Posted by Ed Garcia on January 08, 2001 at 10:35:54:
Bryan,
I’ve read your post three times, and I’m still not sure if the seller is offering the property to a new buyer to be their 1031 exchange, or if the seller is doing a 1031 exchange in his sale. The whole talk about a 1031 exchange, could be a smoke screen for the benefit of the ad, to sell the property.
What I would do is find out if the seller is involved in a 1031 exchange? If he is, he could be a motivated seller.
I don’t know your market to advise you on this deal. You mention that you’re lacking on down payment, but don’t give us any information about you, your credit, income, etc.
Bryan, I think that the ad is a smoke screen to sell the property, however if I’m wrong, then I’m sure the seller might be motivated to work with someone with good credit, and consider carrying paper towards the down payment.
I came across a seller who is offering a few multiunit appartment buildings in the same street. One building in particular–4 units, 3bdrm each, going rent $650/mo, asking price 189,900. Here is what the listing claims:
“Features well maintained two story, all brick, 4 unit building. Three bedrooms per unit with separate utilities. Rent is lower than going market rate at $30,600 GRI. Close to shopping, on bus line with easy access to the Beltline. Property is sold as a 1031 exchange. Seller is a licensee. Great investment opportunity!”
From what I could find, a 1031 exchange is initiated by the seller to avoid paying capital gains. This sounds like a decent deal, but I don’t have near the funds to pay any reasonable downpayment.Any suggestions?