The concept of a 1031 exchange is just great, of course, but it sure seems implemented in a funny way.
Within 45 days of the sale of my property I have to make a list of properties I’m interested in. Then, I have six months to commit to buying one or more on my list.
The problem is it that it can take soooo loooong to find a park that i’m willing to buy! My mentor told me he allows a year between when he starts seriously looking to when “the park” comes along.
So, when the right park comes along, I tell the seller I want it, but then I have to put my three real estate investments (2 houses, one park) on the market. Who knows how long it’ll take to sell those!
Uncle Sam, why not let me sell my properties, have an intermediary hold the proceeds for however long I need, then when I find “the park”, he’ll release the funds, and we’re done. The lousy interest rate I’d get while the funds are held would be good motivation for me to find the next investment. Why does the government care how long the funds are held?
Anyway, I’m done venting. I just don’t know why the government doesn’t talk to me before passing these laws.
The best solution to my dilemma seems to be to put some cash down to get a seller to hold a property while I’m selling mine, then 1031 my sale proceeds over to the seller. Right?
Those of you who have done a 1031, how did it work out? Any tips/tricks/suggestions?