Every deal has a challenge—whether it’s a seller with an unclear title, a property with zoning issues, or just finding the right buyer who actually sees the value.I’ve been navigating all of this while working on land and mobile home deals, and honestly, the problem-solving side of it is what keeps me hooked.

These are not simple challenges to overcome. 

So let’s assume with realistic expense estimates over 1st 5 years you average $250 in today equivalent dollars (it will be a challenge at that starting point).The ADUs are typically receiving valuations below $100k, but let’s be generous to show the scope of the people and say it adds $150k of value. 

A standard 1031 exchange requires that the same entity selling the property also acquires the replacement property, which becomes challenging when proceeds are split between partners.Potential Strategy: "Drop and Swap"One approach is the "Drop and Swap" method:- Convert Ownership: Before the sale, the LLC distributes the property to the partners, converting joint ownership into individual tenants-in-common (TIC) interests.- Individual 1031 Exchanges: Each partner can then independently conduct a 1031 exchange with their share, deferring capital gains taxes by reinvesting in like-kind properties.Considerations:- Timing: The IRS may scrutinize transactions where the "drop" (distribution) and "swap" (exchange) occur in quick succession.

The 45 days identification time sometimes presents a challenge and if you dont give yourself a little wiggle room you might end up buying something you dont necessarily want/like. 

I’m currently leading a luxury condo project in Cabo San Lucas and looking to expand my knowledge in real estate syndication.I’d love to hear from experienced professionals about:✅ Best practices for structuring a successful syndicate✅ Key strategies for raising capital effectively✅ Navigating the legal and financial aspects of syndication✅ Lessons learned from successful (or even challenging) syndication experiencesI’m here to learn and connect with like-minded individuals who have expertise in this area.

Challenges?

The affordability and cash flow potential are real, but so are the challenges.

Challenges?

I'm in the Atlanta market, and with hard money loan fees and agent fees (5.5%), I've found it extremely challenging to find a profitable flip.