plenty,

Great chatting with you at Convention!

I have used APIexchange several times.

My title co says they are one of the best they have dealt with.

Flat fee.

plenty,

Great chatting with you at Convention!

I have used APIexchange several times.

My title co says they are one of the best they have dealt with.

Flat fee.

Plenty, we can second API Exchange.

API will answer all your questions and they will answer some questions you didn't even think to ask.

We have used them twice and have been very pleased with their knowledge and how easy it is to do business with them.

Plenty, we can second API Exchange.

API will answer all your questions and they will answer some questions you didn't even think to ask.

We have used them twice and have been very pleased with their knowledge and how easy it is to do business with them.

I would love to tell what the best 1031 company is. The best answer is it truly depends.

I have used API, I have also used Fidelity and Chicago Deferred Exchange along with 1031 Corp. The truth is in the details of your transaction and the type of 1031 you are planning on doing. In talking with Mr Plenty, I understand that you are selling one place and splitting it into two properties. A great question to ask each of the above companies is how much more do you charge for the purchase of that second upleg property. Another question is what do you charge in additional fees like wiring of funds or online account access.

It would be awesome if who every you choose is bonded and insured. It would be even better if they took your finds during that holding period and allowed you some say on how the used so that you are at least getting interest on the funds. The worse case scenario would be the money sat around doing nothing for that 180 days.

You will want to find out what is the availability of funds policy if the exchange goes sideways before and after the initial 45 day ID period. What happens if you are selling a property in an LLC and elect to put it in a land trust, your own name (Please don't ever do that) or shift into maybe a H/W title scenario?

Not all exchangers are created equal. Some are just easier to deal with than others. Some will help guide you and others will expect you to know it all.

A 1031 exchange defers tax liability for an investor selling one or more properties to buy real estate. The four types of 1031 exchange options used in the U.S. are:

Simultaneous- Both parties relinquish their properties at the same time.

Delay - The investor relinquishes their property and finds a replacement within 45 days.

Reverse- The investor purchases a replacement property through a third-party intermediary before relinquishing their own.

Improvement- Equity from the transaction goes to a third-party intermediary who uses it to renovate the building.

Tiny Tip:

Sometimes the replacement property deal falls apart.

I so simultaneous closings - my buyer and my seller are all set and ready, details covered. The money from the sold property does not actually travel to the intermediary, it's just directed to the replacement seller on the spot.

This avoids the risk RayRay told me, of an intermediary running off with "my" money.

It also eliminates the stress of meeting the deadlines, cuz sometimes things go sideways.

I was not aware that you could 1031 for improvements.

So if I am understanding this correctly I could sell a place, 1031 it to an intermediary and still use it to do improvements on another property I already owned?

or... would I have to use it for improvements on a new property that I did a 1031 on?

When I sold my last place (that I wish I had kept) I had no active plans for buying quickly. Reason I sold was too many irons in the fire.

But I did end up buying another within a few months. Probably past the time frame. Not big bucks by any means. Sold one for 60k, bought one for 100k.

If I could have dumped all or most of the money into an improvement instead that would have helped.

Are you asking me what the law tells you to do?

Or are you asking me how my 1031 company checks on things so you can make things happen in a manner so you stay off everyone's radar screen?

Improvement 1031s can be expensive if you follow the letter of the law. The more I have learned about 1031's though, there is a huge amount of gray in how they are conducted. That gray can save you five figures on a transaction. Typically the FI will create a separate LLC and then sell you the LLC. But others will allow you to create a trust instead.

There are self dealing laws with SDIRAs that the IRS looks at, you can't own a place for less than six months if you elect to buy the place back. 1031's are not the same and don't follow the same laws. So you could in fact short a property and then buy it back in six months and a day for even more. The IRS would think you are the worse real estate investor around making all these bad decisions for doing that. What do I see, you lost money on a transaction and can use that loss against a gain elsewhere.

Thanks for the additional info Ray. I knew you would be able to fill in the gaps for me.

Seems that the Improvement 1031 is above my pay grade at this time.