Are sellers even considering 1031's right now?

User Forum Topic
Submitted by SDNative2 on July 21, 2020 - 7:51pm

Hi Piggs! Is it even realistic to think I can 1031 right now, especially to a coastal property?

I just went through the RE ringer and I think I was part of a stalling tactic by the realtor(s) for a cash buyer to get in position for an O'side duplex I wanted. Said their buyer wanted to do a contingency with me. Loved my proposal.

In any case, I had a nice convo with HLS, which was the only bright spot in this situation!

- Is it just not feasible to compete with cash right now?

- Is it just better to hold onto an SFR on a multi-unit/develop-able lot for now? It's fully rented, good tenant, great rental area.

- Has anyone 1031'd to one of those Delaware Statutory Trusts?

- Any advice from Piggs for a burned-out prospective investment property move-up buyer?

Submitted by sdrealtor on July 21, 2020 - 8:10pm.

Would need to know more details but I'm an almost 30 year NCC resident most of which has been selling RE. Really depends upon what you got and what you are trying to achieve. Lots of interesting opportunities re ADUs also. FWIW duplexes are pretty rare up here and the good ones pretty coveted right now. Maybe better ops doing something else. Feel free to pm

Submitted by Coronita on July 21, 2020 - 8:43pm.

I thought one of the big drawbacks to DSTs was that for many of them, they are hard to get out of.

Submitted by HLS on July 22, 2020 - 4:30am.

When doing a 1031 Exchange there's a huge difference between making an offer with a contingency that you need to sell your property first VS.
having already sold your property and having the cash sitting with the 3rd party.
1031 exchanges can be very stressful with the time constraints.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.