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Anyone ever done a 1031 exchange? #8986380 01/12/24 04:14 PM
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crumrw Offline OP
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I have some property in Hunt County just outside of Greenville. My wife and I have had it for years for hunting and recreation, and now we're interested in getting something closer to our friends place near Hamilton/ Meridian area. Anyone ever done a 1031 exchange and could offer some helpful tips? I don't have any specific properties in mind yet, but thought I start to learn the process.

Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8986397 01/12/24 04:59 PM
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I've done dozens of them. PM me your specific questions and I'll help you out.

I use a 1031 custodian in Salt Lake who does 99% of my transactions and I'll give you his number


For it is not the quarry that we truly seek, but the adventure.
Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8986485 01/12/24 07:18 PM
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Can you explain what a basic 1031 exchange is please?


Tired, Wired, and Uninspired
Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8986554 01/12/24 09:24 PM
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Instead of accepting cash for the sale of your property you find another property that you want and basically substitute it. This allows you to defer any capital gains on the sale of the original property. The buyer pays cash and the proceeds are held by a trustee until you find another property. I believe you are required to complete the transaction within 6 months of the initial sale.

Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8986566 01/12/24 10:07 PM
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We’re in the middle of one and will likely have one or two more this year.. The replacement property has to be identified within 45 days of the closing on the property you sell and closing occurs within 180 days. The IRS definition of a “like-kind” replacement property is fairly broad..


Originally Posted by Jungleexplorer
I really hate to do what I am about to do, because it will be very painful for you.


Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8986601 01/12/24 11:24 PM
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Joe and his handlers would love to screw with them and have made indications they will if they can, to go after the capital gains of course and redistribute the wealth. Tax the rich. Destroy real estate sales...and private ownership of anything.

Last edited by Creekrunner; 01/12/24 11:25 PM.

...and have dominion over the fish of the sea, and over the fowl of the air, and over every living thing that moveth upon the earth. Gen. 1:28
Re: Anyone ever done a 1031 exchange? [Re: BenBob] #8986631 01/13/24 12:07 AM
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Originally Posted by BenBob
Can you explain what a basic 1031 exchange is please?



in a nutshell:

a 1031 exchange is a way to defer capital gains tax when selling one property to buy another property (the replacement property) You have to identify 3 replacement properties within 45 days and close on one or more of the 3 within 180 days.

Funds from the parent property are held in escrow by a 1031 exchange custodian who distributes the funds upon closing of the replacement property.


Its a way to defer paying capital gains tax for the time being if finding a replacement property is the goal. For instance, a solar farm offers me $3mm for my property. say I paid $1mm for it. So i would be looking at a capital gains tax on the $2mm. If my intention is to purchase another property I can enter into a 1031 and pay no tax on the net profit. If I find a property that is over the $3mm mark I can still purchase it. If i find one for $2mm i only pay capital gains on $1mm.


you can also break it up into multiple properties, but there are stipulations on what kinds, can't be your primary residence for a period of years, etc.


For it is not the quarry that we truly seek, but the adventure.
Re: Anyone ever done a 1031 exchange? [Re: txtrophy85] #8986660 01/13/24 12:57 AM
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Originally Posted by txtrophy85
I've done dozens of them. PM me your specific questions and I'll help you out.

I use a 1031 custodian in Salt Lake who does 99% of my transactions and I'll give you his number



Thank you! I’ll compile my questions and send you a PM. I’m at the very early stages of considering this, and it seems that you need to have a purchase property in mind with the seller prepared to wait for you to sell your property. Is that how it usually works?

Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8986704 01/13/24 02:37 AM
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Originally Posted by crumrw
Originally Posted by txtrophy85
I've done dozens of them. PM me your specific questions and I'll help you out.

I use a 1031 custodian in Salt Lake who does 99% of my transactions and I'll give you his number



Thank you! I’ll compile my questions and send you a PM. I’m at the very early stages of considering this, and it seems that you need to have a purchase property in mind with the seller prepared to wait for you to sell your property. Is that how it usually works?

I dont think there’s much waiting going on in real estate but I’ll let the experts answer.


At some point in life its time to quit chasing the pot of gold and just enjoy the rainbow. FR
Keep your gratitude higher than your expectations. RWH
Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8988158 01/15/24 03:47 PM
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There is a 1031 Exchange company in Seguin which more than a couple of my friends have used.

Re: Anyone ever done a 1031 exchange? [Re: Hudbone] #8988272 01/15/24 06:18 PM
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Originally Posted by Hudbone
There is a 1031 Exchange company in Seguin which more than a couple of my friends have used.


They were highly recommended to us too-


Originally Posted by Jungleexplorer
I really hate to do what I am about to do, because it will be very painful for you.


Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8988298 01/15/24 06:58 PM
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At what point do go to a go to a 1031 exchange company? When you’ve identified a property to purchase and are ready to sell? Before any of that?

Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8988591 01/16/24 02:35 AM
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Originally Posted by crumrw
At what point do go to a go to a 1031 exchange company? When you’ve identified a property to purchase and are ready to sell? Before any of that?


Generally as soon as you post your property for sale is a good time to put them on notice. However, for your first one, I highly suggest interviewing a few before just jumping into bed with the first one that answers your phone call. They will deal with the title company to receive the earnings upon closing, and then deal with the title company or lender upon identification and purchase of the replacement property.

Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8989415 01/17/24 02:30 PM
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Tag for later


Cabin rental in Pagosa Springs, Co.
Sleeps 10, If interested please PM me.
Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8989712 01/17/24 10:51 PM
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Last edited by Dave Davidson; 01/17/24 10:51 PM.

Without a sense of urgency, nothing ever happens.

Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley, Rancher Muleshoe Texas 1892-1985 RIP
Re: Anyone ever done a 1031 exchange? [Re: Dave Davidson] #8989758 01/18/24 12:54 AM
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The seguin people did a reverse 1031 it went perfect. Ron

Re: Anyone ever done a 1031 exchange? [Re: crumrw] #8989934 01/18/24 02:33 PM
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I have a property in Colorado and in Arkansas that I am thinking of selling and getting one larger one in Texas. Is it
harder to 1031 properties out of state? And I guess a question for them would be what if one property sells in time
but the other one does not.


Cabin rental in Pagosa Springs, Co.
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Re: Anyone ever done a 1031 exchange? [Re: Mr. T.] #8990301 01/19/24 06:51 AM
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Originally Posted by Mr. T.
I have a property in Colorado and in Arkansas that I am thinking of selling and getting one larger one in Texas. Is it
harder to 1031 properties out of state? And I guess a question for them would be what if one property sells in time
but the other one does not.



Good question. Getting the timing right with sale and purchase is what I’m most concerned about as well.

Re: Anyone ever done a 1031 exchange? [Re: T Bone] #8991508 01/21/24 06:50 PM
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Originally Posted by T Bone
Originally Posted by Hudbone
There is a 1031 Exchange company in Seguin which more than a couple of my friends have used.


They were highly recommended to us too-


I’ve used them….I prefer the salt lake people. Much more on the ball and responsive.


For it is not the quarry that we truly seek, but the adventure.
Re: Anyone ever done a 1031 exchange? [Re: Wildcat1] #8991516 01/21/24 06:53 PM
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Originally Posted by Wildcat1
The seguin people did a reverse 1031 it went perfect. Ron



If you have the funds and everything lines up, I prefer to do a reverse 1031….you can have your cake and eat it too. Things have to line up right though and there is some risk involved.


On a traditional 1031 a seller of another property isn’t going usually to wait until you get a buyer on yours. So it’s best to put it on market and factor closing dates into a contract if you get an offer that is palatable, gives you a little more room in the identification process.


For it is not the quarry that we truly seek, but the adventure.
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