what are the risks for seller selling property to a 1031 Investment Company?
441241
Okay here we go.\n\nA 1031 exchange is a method of selling one house and buying another without being subject to taxes typically imposed.  It appears your buyer is in such a situation.  When he sells his property the proceeds go directly to the Exchange Company.  When his purchase of your home is to close the Exchange company uses these funds for his down payment.  The closing statement will actually show the exchange company as the buyer.  This is not a concern for you.  \n\nGenerally this purchasing method is used when a buyer is a real estate investor and he is exchanging one rental property for a new rental property.  Again, this is an outside issue and should not impact the sale of the home or hinder the proceeds you receive.\n\nRead the contract thoroughly.  If necessary have it reviewed by an attorney.  Based on what you have said it does not appear your interest in the property will be comprised.\n\nIf you have any-other questions feel free to contact me and if I know the answer I'd be happy to help.
350939
What you are referring to is for primary residences after people have lived there for 2 years... This does not apply in you situation.\n\nWhat does apply is a procedure known as a 1031 exchange.  1031 exchanges allow you to totally defer your capital gains tax by reinvesting the proceeds of your sale into another 'like kind' property.  (like-kind refers to the other property being investment use as compared to personal use).\n\nI'm finishing up the testing on a 1031 exchange site.  The information is real, and many of the test properties are available listings as well.\n\nFeel free to check the site out for the basics on a 1031 exchange.
1009319
Yes, the IRS mandates that a unrelated 3rd party be your 1031 exchange accomodator/intermediary.\n\nTHIS IS NOT SOMETHING THAT YOU WANT TO HAVE A BUDDY DO FOR FREE!!!!!!!!!!!!!!\n\nAppreciate that I'm trying to shout for effect, cause you would no sooner try to get heart surgery from the guy down the street to save a buck.\n\nThe exchange process is not that complicated, nor that expensive.  But there are a few things that must be done the right way.\n\nI've heard of 2 main horror stories, you can guess the first... yup, someone screws up and you owe capital gains tax... the second reason is that this 3rd party has possession of your funds.\n\nIn the early days of the 1031 exchange, before people were bonded & insured (things you want to make sure they are) people skipped town with the money.... yes, ouch.  Make sure they are insured an bonded.\n\nNow, the reason that I'm on my soap box is because I'm about to complete my 1031 exchange resource page: http://www.1031store.com .  I've worked with a number of 1031 exchange buyers & just want to clear up a number of misconceptions and make everyone's life a little easier.\n\nIt's my true thought that once people associate TAXES with 1031 exchange, they just shut off.  Who wouldn't want to watch a little TV rather than read about this stuff.\n\nI promise to fully complete the site by July 4th, but feel free to check it out in advance.\n\nYou will be able to find experts here:\nhttp://www.1031store.com/experts/1031_exchange_experts.php\n\nCalculate your capital gain here:\nhttp://www.1031store.com/resources/1031_capital_gains_calculator.php\n\nHope this helps.  You'll be able to connect with some decent people shortly.
164477
As you have realised, your portfolio is very heavy on property.\n\nOne of the fundamentals of investment risk management is to diversify. When you are diversified when one investment type experiences a decline another might go up. \n\nIf you are carrying no debt on your 2 properties you are actually in a good position but might need to move things around. Are all of your properties currently rented? What is happening to the income from that?\n\nYou may want to consider buying some shares as an additional investment. They will provide you with a semi regular income and can be sold very quickly and in small parcels, unlike property. \n\nYou'll obviously need some money to purchase shares. Would you consider selling one of the units in your complex for this purpose? Or taking a loan against the units? \n\nAnother investment category it sounds like you should be strongly thinking of is cash. You should have a "rainy day" account that could keep you going for at least a couple of months.\n\nI would suggest you talk with a financial planner. Shop around for a decent one and understand what services they offer and how they get paid e.g. are they going to just flog product from one place. \n\nSounds like selling the unit block and converting the proceeds to a smaller block or less units and shares and cash may be a good idea.\n\nI am not an expert and don't know anything about your situation so it's hard to comment
1172823
You can absolutely sell your property with little to no hassle...Just disclose what, if any, problems you are having with the home and sell it as-is.
1001748
Invest it in another property and spread the risk
727067
High risk low reward.\n\nYou will have to draw up some hefty condominium documents (two or four owners can't be permitted to vote on much too many tie votes) to handle all of the day to day operations of the common elements owned by the association.\n\nYou would find better investments with larger complexes that will be easier to convert.
708453
Pros\nTenants that pay off your mortgage\nDepreciation write-offable on your taxes (often leaving you with no taxable cash flow)\nCASH FLOW!!!\nThe buying price is based more on the operations of the property than what the market dictates (as in single family)\nThe building itself will often secure the mortgage with its positive cash flow.\nThe amount that is added in equity to your property every year is substantial with a property as big as 16-units.\nMore ways to add value and cash flow to the property than with a single family unit\n\nCons\nTenants (if you choose not to use a property manager)\nMaintenance (but that is the same as any property and you appear to be versed in that)\nThe selling price is based more on opertaions than what the market dictates (as with single family)\n\nGood luck
746625
You should. Real Property is Real Property. The danger could arise if the property was overpriced.
331303
As a real estate broker, I always advise my clients against seller financed properties.  If you are creditworthy enough, you should be able to obtain financing through a bank or other lending institution.  Seller financed properties are a way for a seller to delay paying capital gains through what is called an installment sale.  They will also make more money off the property in the long run because they are collecting interest as well as principle on the loan and sale. Remember you will most likely get a better deal from the bank both in terms of rate and term of the loan.\n Seller financed properties are usually a good deal for the seller and a bad deal for the buyer. Caveat Emptor!\nNelson
206572
It depends if your contact can be assigned Also in the Future when you buy you can State "your name and or Assigns" then you can with out asking other wise many Developers will not let you sell Unless they are soldout\n\nhttp://www.boyntonbeach-homes.com
131455
Under IRS 1031 rules you may sell income property and reinvest entire amount in income property and NOT be subject to any capital gains tax. This does not apply if your are selling your residence (where you live), however in this example  single persons gets up to a $250,000 exemption before taxes apply and a married couple gets $500,000.  There are many IRS 1031 rules that must be strictly complied with to avoid tax on an investment sale and purchase .  Look for a 1031 Qualified Intermediary in your local phone book or on the Web.
236764
It doesn't have to be anything special.  I (your name)\ndo hereby withdraw the offer to purchase the property located at (address).\n\nThe problem is you can be sued.  You need to have a good reason to withdraw.  In my case I paid for a home inspection and the guy found a lot wrong with it...the seller agreed to fix everything and was in the process of doing so but i decided there was too much wrong with it so i wrote something to that affect and I was out of the deal.\n\nI did search for a more formal example letter and didn't find one.\n\nyou could try http://www.uslegalforms.com/
273903
It is not public record as the deal may still fall through and the seller would then be at a disadvantage for the next round of buyers. Sometimes your buyers-agent talking to the sellers-agent of the house of interest can gain more info than they should be able to since they might consider it a foregone conclusion. This is not something that sellers-agent should do though.\n\nAlso, this is kind of unethical if you are planning to use it for that house should it come back on the market. But if you are using it as a comp for some reason then you shouldn't feel as though you are doing anything wrong, just looking for advance knowledge that will be know eventually anyhow.
680439
You could pay an escrow company to take the risk but that will cut into your profits.\n\nBasically this is the risk you run with dealing with a company in a place that you are unlikely to be able to get legal redress.  The best guarantee you have is the lure of regular business.\n\nGood luck
463475
Depends on whether this is an investment property or your primary home.\n\nPrimary homes allow for a gain of up to 250,000 if you are single, 500,000 if you are married.\n\nIf this is an investment, you will have to pay capital gains if you do not do a 1031 exchange.  There are formulas to calcualting your gain and applicable taxes.\n\nYou can also choose to do a 1031 exchange, and defer capital gains taxes into another investment property.\n\nHere's a link to the capital gains calculator on my site:\nhttp://www.nnnstore.com/1031_capital_gains_calculator.php
998439
There are several issues here.     Let's start with the appraisal.  Appraisers are regulated and appraisals are valid if performed in complaince by a licensed real estate appraiser.  If your buyers are getting financed on the purchase, an appraisal will, in all probability, be required.  If they are not financing it, no appraisal will be required so you may never know the home's real value.\n\nThe fact that your sister's home may be valued higher than yours would not be unusual if her home is bigger, in better condition, or just not comparable to yours.  Just because a house is next door doesn't mean the values will be the same.  There are a lot of things that factor into value. \n\nNext, if you signed an agreement to sell the home for $200,000,\nyou have entered into a contract to sell at that price.  it may, and I stress MAY, be too late to change that now.  The may comes in because the Realtor must disclose that the buyer is a licensed Realtor.  If he did not do so in writing on the sales agreement, you may have a case to void the contract.\n\nFinally, that Realtor has absolutely no business bringing in anyone to move you or tell you what can be moved.  He has no rights to enter your property at all without your permission until such time as the buyer's loan documents and your deed awarding them the title to the property have been signed and recorded.  Until that day, the home is yours and yours alone.\n\nAt best, what has occured here is an example of horrible communications.  At worst, you're being swindled and taken advantage of. \n\nYou say you cannot afford a lawyer.  I say you cannot afford not to consult one.  You can pay the lawyer's fee from the proceeds of the sale. \n\nAt least make an effort to protect yourself.  Call legal aid, call  your pastor, call an advocacy group for people with your disability.  Help is out there, please go get it.\n\nI'll pray for you.