All Forum Posts by: Nick Potohnick

I have connected with a QI but I believe they are only interested in doing the actual 1031 as they have not answered my question.

I own a single member LLC that owns the property I'm selling and then I'll start a new single member LLC to buy the replacement property that I'll buy from the friend in the future I talked about in my post so I believe since I'm the single member owner of both LLCs it qualifies as the same person for the 1031?

Hi,

I have a commercial property that I want to buy and also have another property that I have for sale currently about the same price as the replacement property I want to buy but it has not sold yet. I also have a friend that is interested in getting into real estate investing and has about 52% of the funds available to buy the the new property I want to buy, I have the other 48% in cash and wanted to know if it is legal and still be able to eventually do a 1031 if we went into this property together and bought it as a multimember LLC with him owning 52% and me owning 48% and rent it out for 12-24 months with the ultimate goal of be buying his 52% out when my other property sells in a new single member LLC and then be able to do a 1031 exchange, would that work and allow for the full purchase price to be counted toward the 1031 or only 52% of it?

Another thought I had was I could loan him the 48% to purchase it all himself (I would take 48% of the rent income as my interest) and then I buy the property from him in 12-24 months when my other property sells. I have a large gain on this property I am selling so want to be able to claim the full 1031 amount but want to make sure it will fall into the 1031 rules and we are not doing anything illegal.

Any help would be greatly appreciated.

Thanks