Darned 1031

Yes I did remember there was a huge problem with it, just couldn’t remember the details and my accountant didn’t like it either.

You’ll have to bust some serious butt to find a good replacement in time but it can be done. Delay your selling closing as much as possible, even consider offering a lease until you find a replacement.

@Coach62 makes a HUGE point:
“Do not use a cut rate 1031 intermediary, what happens if they run off with the funds?”

As per the following article it states that the owner of a 1031 Exchange Company stole his Clients’ money.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXb9Rat_AfYQ

“Edward Okun, the Miami businessman convicted of stealing from customers of his tax-deferral firm, 1031 Tax Group LLC, was sentenced to 100 years in prison for running a $126 million fraud scheme.”

As per the IRS Website in order to become a Qualified Intermediary you apply for a QI-EIN (which is a special Employer Identification Number assigned by the IRS to a Qualified Intermediary) :
http://www.irs.gov/Businesses/International-Businesses/Qualified-Intermediary-Frequently-Asked-Questions

The IRS’ criteria to become a Qualified Intermediary is not a high bar.

Be careful…very careful with whom you park your 1031 money with as it might not be there when you need it.

We wish you the very best!

Coach62,

I would say you don’t know what I’m thinking.
A reverse 1031 coupled with additional high-interest debt is for those who live life on the edge.

I use options to time my purchase and sale closings.
And I’ve done them since the 90’s.

Could you elaborate how you used the options for your purchase and sale closings? I am facing the same issue.

When selling a property, I have my buyer place funds into escrow for an option on the property. They are not allowed to close the option/escrow until I’ve placed my next property into escrow via another option.

Simple.

No 45-day timing issues, no 180-day closing problems.

I might need your contact if my property sold out.
thanks

My contact email is: mweiss1031@gmail.com

Happy Hunting!

Been away from this discussion for awhile.
My contact email is mweiss1031@gmail.com

Thank you,

Mike Weiss