1031 Exchange

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My wife and I had owned a single family and a duplex back to back on seperate lots. We owned them for 17 years. We heard about the 1031 Exchange and found a lawyer who deals with the exchanges and got all the information. We decided to sell our properties in Rhode Island and purchase 3 brand new duplexes in Spring Hill, Florida.

We picked Spring Hill because we have a friend who is a real estate agent there and we hope to retire there. She also would look after our property and rent them for us. Well, we sold our properties in Rhode Island for $460,000.00 to a buyer with no agent involved. We hooked up with a builder in Florida who had 2 duplexes almost complete and a extra buildable lot. When you do the exchange you have to already have lined up the property you are going to purchase at the time of your first closing. So when we closed all of the money from the sale of the properties in Rhode Island goes into Escrow with the 1031 Attorney. He made all the money dispersements for our properties in Florida.

The only catch is you only have 6 months to complete all the transactions between all properties. We had to have our 3rd duplex finished by December 25th 2004. We closed on it 3 days before the 25th. So we now own 3 brand new duplexes, one has no mortgage, the others have $75,000.00 down on each. We spent a total of $480,000.00 We aslo purchase another duplex last year in the same area so we now have 4 duplexes with 8 rents. When you do a 1031 exchange you pay no capital gains if you purchase another (like) property for around the same price as your first property sold for. The 1031 Attorney's fee was $3500.00 for all the transactions. I highly suggest a 1031 Echange!

Al Papino
Rhode Islandx

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1031 Exchange

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