All Forum Posts by: Zachary Curry

322 Units 8% Cap Rate

91 - 94% Occupancy Rate with land to build additional units

Located in Florida

Asking $2.6m

@Bill Exeter Yes I agree intent is reviewed but you are also not mandated to hold properties detrimental to normal business operations. The IRC 1031 states trade or commodities are not allowed, but what I am most referencing is the reverse 1031 opportunity. Most QI's like yourself are able to help investors navigate this process!

As stated within the I.R.C. Section 1031 you are correct in identifying "inventory or stock/trade" not allowing you to treat homes as commodities BUT depending on your time allocated for each home and if you source renters for the properties before you sell them than it is a different discussion. As stated previously please contact your local 1031 Exchange Partner.

IRS Clarification

Of course, and lenders are starting to allow you to leverage those 1031's through bridge loans, you just have to work with your QI/1031 Exchange partner. It will help you obtain financing. 

Good Afternoon Joel,

It is a long shot but the HUD will provide monies for Rural Areas. Not sure where yours is located but it is an option, as you have the experience.

HUD Rural Development

Good Luck!

Good Afternoon Justin,

You are on the right track don't worry. This has become a dilemma for many investors not being able to flip fast enough... and with new allotments with the 1031 exchanges I am trying to tell everyone. Research local Qualified Intermediaries, they will be able to assist. You will be able to utilize your future gains from the pending projects to the QI and obtain a bridge loan they should assist you with this process. Your taxes will be deferred and you will be able to do the additional project. Then you are able to take the earnings of the large project and spread that over several smaller ones.

I am not a lender but this might provide some new options for you.

Good Afternoon Derone,

It depends, you can either charge more a month and offer an amenity OR provide a-la-carte pricing it depends on your local market. If you are looking to obtain tenants quickly then drop rent and charge per use. You might even come out better in the end as well.

Don't forget to factor your depreciation on those machines for taxes.

Good Afternoon Ramon,

Do you consider development projects?

Thank you in advance.

Another way that isn't so practical is sourcing an attorney and placing the money into your own management as a 401(K) self managed portfolio. You will not pay interest, and you receive full access, no taxes. Contact a legal advisor for this one. Good luck!

Mitchel, While some might say you are crazy, I say bravo!

One of the best ways to continue to leverage liquidity is to source a Qualified Intermediary for a 1031 exchange. If you are to develop equity quickly I would advise to flip houses and new allotments in the 1031 exchange programs allow you to access bridge loans to source properties while you are bound with your initial investment as long as your equity from your first transaction is already allocated through your QI 1031 exchange. This will allow your money to be multiplied and to have continuous flips in your pipeline. Word of advise walk before you run just to be safe. But if your dreams aren't big enough to worry you, they aren't big enough! Good Luck, if you are ever in Miami let me know!