All Forum Posts by: Account Closed

Hello all,

I have a couple of questions about completing a 1031 exchange. 

1. The property being sold is under contract and scheduled to close in a couple of weeks. Can I begin making offers on new properties to buy or do I have to wait until the sale is complete? 

2. Regarding the need to identify 3 potential properties to buy within 45 days of closing on sale of the initial property: Can these properties by "identified" (or given to the 1031 agent) after an offer is accepted or do I have to identify 3 potential properties before I begin making offers?  My concern is that I could identify 3 properties that I like and all three offers get rejected. I realize that you can potentially identify more than 3 properties within the 45 day window. But it seems more efficient to get a property under contract and then identify it as one I intend to use to complete the 1031 exchange. I'm assuming the 1031 language can be added as an addendum after the property is under contract and the information has been sent to the exchange agent.  Is this possible?

Thanks in advance for any information provided.

Seleem

Thank you both, @Dave Foster and @Ashish Acharya, for your explanations. That's what I was hoping - that I could transfer the new property after closing, into a disregarded, single member LLC, without triggering a taxable event. I appreciate your quick responses and expertise on this matter!

All the best.

Seleem

Quick question about 1031 exchanges and legal entities: 

If hold title to a property in my own name and sell the property with a 1031 exchange am I allowed, at any point, to transfer the new investment property into an LLC or will I lose the tax deferment by doing so? Is there a holding period before I am allowed to do so? I typically hold title to investment properties in an LLC but the particular one that I am selling happens to be in my personal name.

Any advice or information is appreciated. Thanks in advance!

Cedric, There's a local real estate investment group in Savannah (Savannah Real Estate Investors). They have occasional meet ups. They also have a Facebook group where people post deals. It's a good way to network and meet other investors who are buying, selling, or wholesaling properties. 

John, Savannah would be a great place for STR but the city restricts them within the historic district and downtown. They only allow a small percentage of properties to operate as STR.

Hey Matthew, 

Advantage Insurance is good.

I realize you said the downtown area in your original post. However, something to consider as a secondary option is Tybee Island. To my knowledge, they have no cap on short term rentals and these types of investment properties are very popular (and profitable) there. It's a close enough drive (20 minutes) that you could still enjoy the downtown Savannah area, in addition to the beach. Tybee is a separate municipality. I doubt they would eliminate short term rentals in the future as their economy is dependent on them.