We can get locked into doing the same old procedures and expecting different results. You might check out different methods. You do not have to adopt everything, you just have to find one good one for you.
I think that you should all learn about selling or lending on single family rental units, learn property management, probate, VA loans, Reverse Mortgages, Short Sales, REO Sales, etc. My business model when I started was syndicating apartment houses and I taught classes at UCLA and other venues to find clients. So today let’s talk about 1031 Exchanges.
Home sellers and lenders: Many people right now have substantial equity in rental homes. They might be interested in learning how they could sell their present unit and consider a 1031 Exchange to a larger unit or several units. If you and their tax advisor could explain the benefits and you complete a one into two Exchange, you would realize the listing on one house and the purchase commissions on two homes.
So the first basic question about 1031 Exchanges is, ” What type of properties are eligible?” Properties must be “Like for Like”, but that term is very broad. The IRS term is “Any real property held for productive use in a trade of business or for investment, whether improved or unimproved, is considered like-kind real property. Some examples, include:
#1. Unimproved property for improved property
#2. Fee for a leasehold with 30 or more years
#3. Vacant land for a commercial building
#4. Duplex for a retail property
#5. Single-family rental for an apartment house
#6. Conservation easement for a warehouse to be used in your business
#7. Industrial property for rental vacation property
As you can see, the definition is broad. So one rental for multiple home rentals would be allowed. Your “home” or personal vacation home is not allowed.
This information came from the highly recommended Asset Preservation. You can find more information at Click Here . See you at the multiple closing.
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