Both the property that you sell and the new property you purchase must meet certain requirements. Both properties must be used for business or for investment. Property used primarily for personal use, like a primary residence or vacation home, do not qualify for a 1031 exchange. Both properties must qualify as “like-kind.” Like-kind property is property of the same nature, character or class. Most real estate properties are considered to be like-kind to other real estate. For example, if an investor sells a 4-unit home and purchases a large apartment building, those properties are still considered like-kind as both properties are classified as investment real estate. Land may also be considered “like-kind” with other real estate property types such as apartment buildings and SFRs.
By Daniel Goldberg|2018-07-02T17:02:33+00:00July 2nd, 2018|
About the Author: Daniel Goldberg
Daniel is a veteran finance and real estate professional with more than 12 years of experience. His background working for large financial institutions has provided him with invaluable perspectives on capital raising, fund management, entrepreneurship, risk management, and alpha generation. As Director of Origination at Wilshire Quinn Capital Inc., Daniel works closely with mortgage brokers and borrowers to structure hard money loan deals. Daniel's attention to detail, negotiation skills, personality, and business acumen allow him to think creatively, execute quickly, and provide a high level of service to his clients. Daniel grew up in Long Island, New York, and has been living in San Diego for the past seven years. Daniel’s hobbies include playing ice hockey and acting as a referee for the sport. Daniel also practices the bass guitar and plays gigs with local bands around town.