Posted by Frank Chin on April 23, 2005 at 05:36:15:
John:
Missed you at the convention.
I sold a property not long ago, and wanted to do a 1031, and asked my attorney to add the language. I got hold of a facilitator, who gave him the needed language to add.
After some discussions, it was decided to include the 1031 language via addendum a week before closing, rather then explaining to the buyer up front. My attorney and the buyer’s attorney concluded that in most cases, buyers who never heard of a 1031 either get nervous thinking your pulling a fast one, and if explained up front, might feel they’re entitled to “share” some of your tax savings.
So the change would be explained to the buyer that “the seller wants the paperwork signed so he transfer the funds directly to someone else at closing so the seller can pay for the next property. Everything else is as is.”
At a week before closing, the buyer already got his mortgage, so he’s not going balk since it’ll be explained to him that he’ll lose the deposit if he walks. Besides, where the money goes to is not his concern.
For the past decade I have networked in the Cape Cod, MA area in the building trades, mostly remodeling but some new construction. Seven years ago I built my first home that has since tripled in value. Two years ago I moved some equity around purchased and remodeled a rental that I will close on next Thursday and net 100K. I understand I could shield my capitol gains through a 1031 exchange. For months I have been seeking to network with like minded investors that focus on rehabs and flips in hopes of reinvesting my profit from above sale. To my knowledge Cape Cod Investments Club, is the only REI club in the area, and they wont meet until May. Its frustrating for me to posses the capitol to invest, have a good credit standing, the equipment, knowledge and small crew to tackle most rehab projects, but cant find anyone that wholesales or concentrates on accusations that would network with me and benefit from the resources I bring to the table.
Question:
1)Can anyone offer me advise as to where to begin regarding a 1031 exchange ?
2)Does anyone on this forum invest in my area ?
Does anyone on this forum have any contacts or advise were I can locate information on investors in this area ?
No reason for frustration - Posted by John Merchant
Posted by John Merchant on April 22, 2005 at 18:13:29:
1031 Facilitator companies abound in most yellow pages and a call or two will find somebody close by who could help you.
But understand you MUST have some 1031 language in your SALE documents as afterwards it’s too late to include it…and any/all sales proceeds must be held by that 1031 Facilitator and can’t be touched by you personally.