Real Estate Syndication/1031 help

[-CarlHungus-]

I have a number of places I go to research this, but I know some of you on here may be helpful. I may have to keep some things anonymous but if anyone is interested I can email privately.

So I invested in an apartment complex in a large Texas city. 50K initial investment. It has performed well, a little above pro forma.
They have sold the property and I'm due my investment plus returns. It looks something like this at the investor level:

1. Contributed Capital $7,900,000
2. Quarterly distributions: $2,100,000
3. Investor Sale Proceeds: $13,700,000
4. Estimated Total Profit: $7,900,000
5. Years held: 5
6. Annualized Profit: 19.5%

===

Anyway, they are proposing a 1031 exchange into another property on Lake Norman.

My issue is this...

Yes, typically I would strongly consider a 1031 exchange. My issue is I don't love this sponsor. Now that I've worked with other PE syndication sponsors I don't think this one is great. This property/investment has been great, but they've really under performed on another property I have with them in another Texas metro area.

Should I just roll with it and trust them on this Lake Norman property (awaiting details)?
Should I cash out and just eat the tax bill?
Is it possible to use this money on a different property with a different sponsor and take the 1031 that way?

 

[MichiganHerd]

Fortunately for you, there's a whole host of financial people on this forum, as well as a couple real estate moguls.

Personally, I hate dealing with anything when it comes to deferred taxes, so I would cash out and pay the gains taxes.

 

[greengeezer]

My understanding of finance is so limited. I once bought some green houses and a red hotel playing Monopoly and shortly thereafter went bankrupt.

 

[-CarlHungus-]

It seems from my research there is no other way to 1031 unless I stay with this company.

I think I’m out of luck then. I’ll cut a bigger tax check it seems.

 

[raleighherdfan]

It seems from my research there is no other way to 1031 unless I stay with this company.

I think I’m out of luck then. I’ll cut a bigger tax check it seems.

"Good! Pay up! You didn't do anything to earn that money. It the govts money." -- ExtraGED

 

[extragreen]

"Good! Pay up! You didn't do anything to earn that money. It the govts money." -- ExtraGED

Just don't pay the taxes. It's YOUR money. Let's see how this ends...

 

[Rock98Dog]

Doc, read up on what’s called a “Drop and Swap 1031”. Could be an Avenue to accomplish what you’re wanting to do.

 

[raleighherdfan]

Just don't pay the taxes.

Easily done when you collect checks under the table, right ExtraGED?

 

[extragreen]

Easily done when you collect checks under the table, right ExtraGED?

^^^Never passes up an opportunity to lie, right phlegmwad?

 

[-CarlHungus-]

Doc, read up on what’s called a “Drop and Swap 1031”. Could be an Avenue to accomplish what you’re wanting to do.

I looked a little into that, but doesn't look feasible with this sponsor/set up.

Maybe if I was an investment partner with like 2 other people it may be feasible.

I think I'm just going to cash out and eat the tax bill.

Thanks for posting/suggesting that. I'm not a complete novice but I'm certainly no expert on these matters.

 

[i am herdman]

Easily done when you collect checks under the table, right ExtraGED?

Just call it the Hunter Biden exemption.

 

[extragreen]

Just call it the Hunter Biden exemption.

^^^oath breaker obsessively agrees with lies when he can't think of one himself

 

[extragreen]

i am herdman

^^^lying trumptard oath breaker

 

[Rock98Dog]

I looked a little into that, but doesn't look feasible with this sponsor/set up.

Maybe if I was an investment partner with like 2 other people it may be feasible.

I think I'm just going to cash out and eat the tax bill.

Thanks for posting/suggesting that. I'm not a complete novice but I'm certainly no expert on these matters.

Closest thing I could think of. I would call one of the companies that specializes in them and give them your exact situation to see what they say. My dealings with 1031s was run of the mill stuff.

 

[Raoul Duke MU]

Cash out and buy a Corvette. You will fit right in at the country club.

 

[-CarlHungus-]

Cash out and buy a Corvette. You will fit right in at the country club.

Don’t you go accusing me of being a member of the country club.