There is one IRS-approved method for building or improving that uses 1031 funds.Construction 1031 Rules and Process In a nutshell, it goes like this:You go under contract to purchase the replacement lot in OklahomaA 1031 company creates a brand new LLC to act as holding company (Exchange Accommodation Titleholder)You enter into an agreement with 1031 company outlining your plans in the construction exchange You assign the purchase contract for the lot to the new LLCYou arrange financing for the LLC to purchase the lot (this loan can be from you, a third-party lender, or your 1031 sale proceeds)Loans to LLC is secured by Note and Deed of TrustLLC buys the lotNow the LLC can begin paying for improvements to construct the barn-condoDuring the building period, LLC rents back to you and makes you "Project Manager" to oversee the improvements.Once improvements are completed -- or at the end of your 180 days -- 1031 company assigns ownership of the LLC to you. 

I don’t particularly like this method as you will have to track two separate loans.

You cannot get conventional financing using this method.  

@Tim IvoryWhen I employ the BRRRR method I look at my calculated ARV after repair number.  

I have also heard of this method before, but I thought the savings seemed negligible.  

For the record: "The monthly S&P CoreLogic Case-Shiller Home Price Indices use the “repeat sales method” of index calculation – an approach that is widely recognized as the premier methodology for indexing housing prices – which uses data on properties that have sold at least twice, in order to capture the true appreciated value of each specific sales unit.

@Kirk R.

Please note that specific information such as the property address and names of those directly or indirectly involved in this particular real estate transaction were intentionally omitted to maintain confidentiality given delicate subject matter of/affecting health, life and safety.IntroductionHaving provided carbon monoxide (CO) testing of gas utilization equipment for well over ten years during the 1980's and 1990's in addition to having learned about the production, mitigation, prevention, testing, and harmful effects of elevated levels of carbon monoxide due to incomplete combustion of natural gas utilization equipment from a recognized leader/foremost authority on carbon monoxide testing in the industry by the name of Jim Davis—senior carbon monoxide/combustion trainer and consultant for the National Comfort Institute (NCI), who began traveling the country during the 80's and 90's conducting carbon monoxide training seminars for building and HVAC contractors, building inspectors, utility companies and virtually anyone interested in learning about carbon monoxide testing and proven methods to mitigate and prevent gas utilization equipment from producing elevated levels of carbon monoxide in flue gas known to cause CO poisoning—has without a doubt proven invaluable in heightening my awareness of conditions conducive to/indicative of incomplete combustion known to result in elevated/unsafe levels of CO in flue gas.

C buyers can expect to hear from us 2-3 times per month until they become A or B buyers.This method has helped my team and I effectively manage our time to focus on top priority clients. 

What methods do YOU use to find and maintain cash buyers?