Posted by Rick Vesole on December 31, 2000 at 12:56:50:
The best way to do a multiple property exchange is to tie up the replacement property before you sell the properties you already own. You could tie the replacement properties up with an option.
Another possibility is to find someone you trust - who is not related to you - to buy and hold the replacement properties until you have sold all of your properties.
After you have sold all your properties, you complete your exchange by purchasing the replacement property from your friend. This gives you up to 180 days to complete your exchange. This is similar to a reverse exchange - which you could also do. I understand that there are new regs out on reverse exchanges - but I haven’t seen them yet.
Posted by Tom-Ca on December 31, 2000 at 11:58:29:
When a person has mutiple properties to sell it seems that the given amount of time in which to do a 1031 makes it an impossible move.
I am familiar with the other types of exchanges such as the Two-Way Exchange and Cash out.
It would be very hard to find someone who wants to trade down to a smaller property. Sure there are many scenarios where a seller/buyer might want to exchange but the reasons are just as improbable as finding the buyer/seller for the exchange. the limited time that the I.R.S. gives you (45)days to find a property for an exchange is well…stingy!
It is no wonder that on the heels of the " tax reform act" of 86, there are in 2001 shortages of rental property for all concerned. And that at a time when home ownership is at an all time high. If anyone has done a multible property 1031, I would be delighted to hear from you or any comments on this subject of multible property exchanges.
Tom-Ca