1031 Exchange Strategies for Real Estate Investors
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- Опубліковано 21 лип 2024
- In this video I'm going to discuss using 1031 exchanges and entities while putting those things together. 👉 If you would like a FREE 45-minute consultation, you can request one here 👉👉aba.link/pc3
A 1031 exchange means you can take an asset and you can roll the gain, and actually everything needs to roll, another investment property, and you won't have to pay any taxes on it currently.
If you're thinking about doing a 1031 exchange, you definitely want to talk to someone who understands them and look at some of the options you have on either the front side or the backside of that transaction.
What you need to know about setting up a 1031 exchange is covered in this video.
Questions or requests for a video topic are always welcome!
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#1031Exchange #RealEstateInvesting
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This guy is a rock star. That one dislike is probably a former tenant of mine...
That is funny.
Thank you. I am a MLO and am new to helping with financing these transactions, and your video was helpful.
Glad it was helpful!
Can you do a video on private REITs (like fundrise)? Would be interested to see what your thoughts are on that as an investment?
Great video 👍very Use full Information
Hi . Thank you for your videos. Recently I have been shocked and concerned about Title Frauds and Deeds Frauds for properties such as home and land. Can you please make a video how and why this happens. And what do you advise to protect against it . Thanks again.
Excellent video presentation as always!
Thanks again!
took me so many youtube videos to find an explanation like this thank you for the knowledge👊🏾
AK Hamlin
Thanks for watching.
Financial Education!👌🏽#RealEstate
Thank you! Really helped me today.
You are welcome. Thanks for watching.
Solid information. Thank you!
Glad it was helpful!
Sir can you also post a video about waterfall calculation/promote ? I have been really enjoying watching your videos!!
Thanks a lot for this kind of information, been in construction my whole life. Currently I’m a realtor sales person, working on my brokers as right now. Can’t wait to get my very first invest propety.
You can do it!
Great video Clint. Hey my x put his half as Tennant in common through Quit claim to another person who immediately quit claimed it back to him but as tennant in common instead of right of survivor. I thought he was trying to cloud title. Do I need to as well ? I have my kids as my beneficiary by attorney.
You should seek out a local attorney. I think your title may be clouded.
Thanks Clint. Can we use the fund to purchase a multiple replacement properties instead since the market we plan to go in is much less expensive?
You can buy 3 replacement properties.
I believe you already answered this question in the video but I wanted to make sure. Can you exchange your sold property into multiple properties if they equate to the same debt load?
You can acquire up to 3 replacement properties.
You can actually 1031 exchange into more than 3 properties, but the total value cannot exceed 200% of the sale price of the relinquished property unless you purchase at least 95% of the properties you identify with the QI.
You are the goat
Hey, learning a lot from you and Toby. I keep seeing you invest in RE everywhere which gets me thinking, I've been investing "locally" where values remain stagnant for decades, so sell my local investments and find an area with better promise appreciation, but have to learn how finding the right location, identify a property, then manage from afar. Any ideas?
Identify a market then seek out a wholesaler to help you get started. Check out my video with Pace Morby #1 and #2
Okay! yeah, wow, I didn't know all that existed, A whole new world to explore. Thanks for responding
Great video. First one I found that discusses strategies about legal entities. I currently have rental property 50/50 with my brother, zero debt, in the form of a partnership. We receive K-1 every year. We're going to sell the property but I want to move forward with an exchange and he's going to take his portion for other purposes. Is this possible? Do we have to move forward with TIC as mentioned? What are the pitfalls? THANKS!
If you own the property outright do you know how title is held? Is it joint tenants? I presume it is already in a TIC just without an agreement that is not an issue for what you propose.
Since in a 1031 exchange, you have to roll the entire sales amount of a property into the next property, can I take a loan out before I enter into a contract of sale, so that I can get some of my cash out of the profit, before I tie the entire amount up in the next property?
If you take out a loan before the 1031 you will need to pay it off in the exchange and obtain a new loan. When you buy a replacement property you must roll all of the proceeds and any loan amounts into the replacement property to avoid gain recognition.
If we know ahead of time say 6 months before we're going to do a 10:31 and it's owned in our name would it make it easier if we just put it in an LLC now to avoid that situation you talked about? Or even 3 months before?
You could close in a new LLC if it is set up properly to comply with the 1031 exchange.
Does the 1031 have to be a home of greater value or does only the loaned money (debt) have to be larger?
Both are accurate to avoid any income recognition. Equal or greater value is required.
I was told that I cannot do 1031 on flipping as an individual or an entity. But that LLC was exempt from that rule. But I cannot find it in my searching on the Internet to be true. Do you know whether or not that is true? Where can I find that exemption to see it for myself?
Not to my knowledge.
Weird question, can I do a 1031 exchange on 2 properties I already own. I want to sell and roll that equity into a house I bought back in September.
No unfortunately that is not allowed.
Me and my partner on the rental we have are looking to sell it and do a 1031 exchange.
Property isn’t in a llc just both names on deed.
What are other strategies for us to use the proceeds into other real estate deals?
Diversify the assets into different properties??
Yes you can diversify the assets into other real estate. When you sell you can take your portion and buy real estate and your partner can do the same I.e., it does not have to be the same real estate.
@@ClintCoons it it doesn’t necessarily have to be the same state from which the original property is correct?
And would it be possible to add someone to the deed now or when? So their income would help out with the new loans from the other assets we would get?
Is there any relief for 1031 exchanges that were at sufferance with time running out because of the foreclosure moratorium? Most people I know got hit hard with these because they were not able to buy at foreclosure auction.
Last year the IRS provided an extension for a limited period of time.
Thanks for the reply.
Question. I have a building I bought for $600,000 in 2005, selling it for $700,000 now but on a land contract with $200,000 down. One do I need to do a 1031 and two does it have to be for another property that is around $700,000 or does it only have to be for something that is around $200,000? Thanks.
A 1031 would not make sense if you are selling on a land contact. The only way for you to receive any benefit would be full sale with money up from.
@@ClintCoons Ok thanks.
Can you live in an LLC-owned property and later do a 1031 exchange. The property has no debt.
Most likely not unless you are paying rent to yourself and recognizing it as income.
Hi Clint, Can I qualify for1031 by selling relinquished property held in wife and husband names as single partnership(got 1031 proceeds on husbandName/wifename as a single amount in the letter) and purchasing the replacement by creating a ONE new disregard LLC where both husband and wife are 50-50 partners? or do we need to create 2 different disregard LLCs on each name as 100% ownership? Thanks.
Typically in this situations you need to set up 2 separate disregarded LLCs if H&W are owners of the downleg and want to take title in an LLC on the upleg of the transaction.
Question: if the property is bought at 200k and it’s now 300k … I 1031 exchange for a 300k property, is the mortgage of the new property going to be 200k or 300k with 100k equity ?
200k. You need to roll the debt into the new property.
I have a question why do the banks don’t loan you on properties owned by LLC ???
Freddie/Fannie underwriting guidelines prohibit lending to LLCs that hold residential real estate. You can obtain financing if the LLC holds commercial real estate.
If I sell in California and want to exchange out of state, is there any obstacles to that?
Nope. You are good to go.
Hi Clint!
I’m all over & in need of an intermediator (person needs to be in the same State as selling/buying or doesn’t matter?) after found out got a cash offered buyer (want to close ASAP or within 20 days!) 2 days ago. I just joined your Platinum membership 2 days ago too & trying to layout my 2 LLCs in 2 States in a LandTrust. Anyways I need to cash out 1-2 properties in Vegas along with the 1031 selling in CA under a different LLC name but I had changed it to 100% me a few years back. I wanted to buy a 4plex in Vegas & will be under a different LLC name but still me 100%. I need help…
Kay thanks for becoming a Platinum client. Have you had your initial strategy session? Reach out to my assistant Deborah Lewis (dlewis@andersonadvisors.com) after your initial strategy session and we can set up a call to review your plan.
@@ClintCoons Just emailed her! Hope she can call me ASAP.
@@ClintCoons She just replied & said out of the office this week. Yes spoke with Nicolo yesterday & he said will get back to me on Friday (hopefully) after finding out how to structure my LLCs in a better way! Lol
Hi Clint, Lets say you paid 100k but now owe 75k. How does the 1031 work if you do a renovation for 25k then sold it for 150k?
You would avoid paying tax on the 25k in gain.
Can u qualify for1031 by selling relinquished property held in one name and purchasing the replacement by creating a new LLC (assuming both be disregarded and you are the only member of each).
Yes there is a PLR on point that permits this strategy but verify with your exchange accommodator.
@@ClintCoons thanks. What PLR stands for?
@@chi8319 Private letter ruling
How does it work for married couples Partnership LLC in non community states?
The LLC will be treated as a partnership for federal tax purposes.
How do I find a QI company. What do they charge?
A QI is a 1031 exchange accommodator. Your CPA may have a referral or you can google 1031 exchange services.
I have 2 investors in a property we just bought
Bought the house for
50,00 will have another 60,000 in rehab
Investor #1 45 000
Investor #2 30 000
So we purchased the house and have 25,000 to get us started...in mean time
We plan to rehab sell in 6mos...
I a 250,000 line of credit on my current home. That I won't need for a few months.....since I can't repay investors if I decide to 1030 exchange it can I just pay them out of my line of credit?
In the time of purchase, we were working on a line of credit and needed cash to buy the house, so that is why we used OPM.
We have a contract to get them their money back in 6mos
Consider taking title as a TIC to preserve your 1031 option provided you make the property a rental for 1 year.
So if my property is paid off in my name a 1031 will be simple? I want to move out of California to anywhere else
Yes and you can close in an LLC if properly structured.
1031 exchange is just a scam by the IRS 😬
I like how his handwriting becomes progressively worse lol
I try. :). Thanks for watching.
All of the legal nuance makes me want to quit capitalism and get off the grid. Amazing how such a simple thing can be so complicated.