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:
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?
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:
- Contributed Capital $7,900,000
- Quarterly distributions: $2,100,000
- Investor Sale Proceeds: $13,700,000
- Estimated Total Profit: $7,900,000
- Years held: 5
- 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?