Posted by John (OR) on February 26, 2005 at 20:07:08:
There is nothing stopping the buyer of a REO from being a 1031 exchange buyer. The issues are to have a facilitator handle the transaction, make sure you have your timing correct and to have enough deals identified that if something stops you from closing on one you have another already to do.
Hence there are some risks that you will fall out of the 1031 and owe taxes. The risks are not that difference if the target property is an REO.
John B. Corey Jr.
Chelsea Private Equity LLC