Saturday, August 27, 2005
1031 Like Kind Exchanges and Investments in the Greater Asheville Area
ASK MIZ LORI
Dear Miz Lori,
I am sitting here in my condo on the Gulf Coast waitingto see if another hurricane will be coming my way, and wondering if investments in the mountains would be a wise choice for me. Can you give me a couple ideas about this, please?
Hello! Gulf Coast!
Here in the Greater Asheville area mountains, there are many, many attractive real estate investment opportunities. If you are interested in exchanging your condo at the beach for a mountain property not so vulnerable to hurricanes, you may choose to consider a 1031 Like Kind Exchange.
As you probably already kjnow, IF you decide to do this, you MUST identify 3 potential replacement properties within 45 days of the closing of your property... the funds will need to go directly into escrow with a Qualified Intermediary from closing...so that is something to consider...
IF your main objective is debt relief....
you will need to compare the tax advantages/ savings of the 1031 transaction vs.
just the total relief of getting out of debt and having $85,000 +/- available to buy
another property...
the BEST professional to help you with this decision
is a Qualified Intermediary (more on this below)
Possibly begin with the three (3) following considerations:
1) THE QUALIFIED INTERMEDIARY and professional team members for the 1031 transaction
(in case you decide to go that way)
2) link to the 1031 Manual (good fast facts that should bring you peace of mind)
3) properties (big and small) that may work for you
1)professional contacts who can assist you as part of your 1031 team
(if you decide to go the 1031 route)
You may NOT choose to do a 1031...but if you do my BEST advice is for you to get a QUALIFIED INTERMEDIARY pronto!!!! (Your funds will need to go to the QI at the sale.)
AND...s/he will be able to tell you exactly how this looks for you financially so will be able to answer the questions you asked (below). It is IMPERATIVE that you work through the Federation of Exchange Accomodators to make sure you have a QI who is the kind of professional you need for this transaction!!!! See: http://www.1031.org/
Here is the member locator:
http://www.1031.org/memberLocator/index.asp
Here is the list for North Carolina:
http://www.1031.org/memberLocator/displayMembers.asp?state=NC
MATT LINVILLE....I will send him a note to let him know about you, if you choose....
2) Here is a link to the 1031 Manual....
It is a fast read and can help you decide if you want to go this route or not...
http://63.123.136.2:28122/1031%20literature.htm#delayed
3)PROPERTY POSSIBILITIES
AN EXAMPLE: a 2 BR apartment in a separate building and is already set up as a PUD (means you can sell part of the acreage to defray your costs) with a house...in great shape...with views that has been on the market for awhile (nothing wrong with the house, just a few weird deals that didn't fly)...If you put $85,000 down on this property and rented the guest house on the property for $800/ month...and sold off one or two of the building sites...
you would have income to defer your payments (this could be part of your 1031 transaction) AND your payments would be about equal to what they would be if you bought a property for "X" amount ...AND with the sale of two (2) of the lots...you would be able to do your 1031 Exchange with no problem...and reduce your debt....
ANOTHER EXAMPLE: ...let's say you want a nice little place (CONVENIENT) with no stress place / brand new and that you will probably be able to sell in 2 years and make a VERY good profit...you could buy 2...use one as your 1031 and rent it!!!
Dear Miz Lori,
I am sitting here in my condo on the Gulf Coast waitingto see if another hurricane will be coming my way, and wondering if investments in the mountains would be a wise choice for me. Can you give me a couple ideas about this, please?
Hello! Gulf Coast!
Here in the Greater Asheville area mountains, there are many, many attractive real estate investment opportunities. If you are interested in exchanging your condo at the beach for a mountain property not so vulnerable to hurricanes, you may choose to consider a 1031 Like Kind Exchange.
As you probably already kjnow, IF you decide to do this, you MUST identify 3 potential replacement properties within 45 days of the closing of your property... the funds will need to go directly into escrow with a Qualified Intermediary from closing...so that is something to consider...
IF your main objective is debt relief....
you will need to compare the tax advantages/ savings of the 1031 transaction vs.
just the total relief of getting out of debt and having $85,000 +/- available to buy
another property...
the BEST professional to help you with this decision
is a Qualified Intermediary (more on this below)
Possibly begin with the three (3) following considerations:
1) THE QUALIFIED INTERMEDIARY and professional team members for the 1031 transaction
(in case you decide to go that way)
2) link to the 1031 Manual (good fast facts that should bring you peace of mind)
3) properties (big and small) that may work for you
1)professional contacts who can assist you as part of your 1031 team
(if you decide to go the 1031 route)
You may NOT choose to do a 1031...but if you do my BEST advice is for you to get a QUALIFIED INTERMEDIARY pronto!!!! (Your funds will need to go to the QI at the sale.)
AND...s/he will be able to tell you exactly how this looks for you financially so will be able to answer the questions you asked (below). It is IMPERATIVE that you work through the Federation of Exchange Accomodators to make sure you have a QI who is the kind of professional you need for this transaction!!!! See: http://www.1031.org/
Here is the member locator:
http://www.1031.org/memberLocator/index.asp
Here is the list for North Carolina:
http://www.1031.org/memberLocator/displayMembers.asp?state=NC
MATT LINVILLE....I will send him a note to let him know about you, if you choose....
2) Here is a link to the 1031 Manual....
It is a fast read and can help you decide if you want to go this route or not...
http://63.123.136.2:28122/1031%20literature.htm#delayed
3)PROPERTY POSSIBILITIES
AN EXAMPLE: a 2 BR apartment in a separate building and is already set up as a PUD (means you can sell part of the acreage to defray your costs) with a house...in great shape...with views that has been on the market for awhile (nothing wrong with the house, just a few weird deals that didn't fly)...If you put $85,000 down on this property and rented the guest house on the property for $800/ month...and sold off one or two of the building sites...
you would have income to defer your payments (this could be part of your 1031 transaction) AND your payments would be about equal to what they would be if you bought a property for "X" amount ...AND with the sale of two (2) of the lots...you would be able to do your 1031 Exchange with no problem...and reduce your debt....
ANOTHER EXAMPLE: ...let's say you want a nice little place (CONVENIENT) with no stress place / brand new and that you will probably be able to sell in 2 years and make a VERY good profit...you could buy 2...use one as your 1031 and rent it!!!
