1031 Exchanges and a Flexible Close
Hey, guys. This is Brian Sullivan with World Class Ventures, your local San Diego house buyer. And I want to go over a deal we did in Ramona. And it involved a 1031 exchange. Real quick, what a 1031 exchange is essentially is a tax strategy where you defer paying taxes on capital gains on investment properties. So only investment properties, not your primary residence. So with a 1031, obviously it’s a lot more involved than that. So if you have any more questions, there’s stuff online. And you can also talk to your accountant. That’s probably the best thing to do before you move any further with a 1031 exchange.
With a 1031 exchange, there is a lot of parties and a lot of timing involved. So with all that fluctuation, you want assurance that at least one side is going to close. So in Ramona, they had an investment property. It was a rental. And they lived in Georgia. And they wanted something closer. So flying out once a year to Ramona, I think was getting old. So they wanted a property in Georgia close to them that they could have as a rental. So they contacted me. I went and took a look at the property. It was actually tenant occupied at the time. And gave them an offer. And they accepted. And we opened escrow. And another thing with escrow, have an escrow company that you … That knows 1031 exchanges. There’s a lot of stuff involved. And we use McClsoskey Escrow http://www.allisonmccloskeyescrow.com/. They’re in San Diego. They’ve been doing it for 30 years. They’re actually a 1031 exchange specialist. So always do that.
So once we opened escrow, they then went looking for a placement property in Georgia and once they found one, they told us they found one and we then close. And they then bought their replacement property. So they had the insurance that we were going to close and the flexibility of when to close. So that was a great thing for them. And it made a complicated process a lot more simple. So it was a win-win all around. So if you have any questions about a 1031, obviously, talk to your accountant. But again, if you have any questions, about getting a all cash offer, a fair offer for your property, please give us a call at 760-201-0911. Or contact us at wcvhousebuyers.com.