1031 Exchange
Question: We have a property we want to buy and one we want to sell, we want to 1031 the equity of the selling property into the one we want to buy. However, the one we want to buy is a really good deal and I don't think a contingency will work (it will be sold). Can you borrow cash privately, use that as the equity money for the new purchase, and when your property sells return the borrowed cash, somehow in a 1031 format, or in a way to avoid capital gains? :-?
I do this all the time: A Reverse 1031 Exchange, My accountant actually does all the work. I usually pay cash for both properties and sell one and keep one. Run the situation over with a tax attorney or your accountant
Lori
[addsig]
Here's a link about reverse 1031 exchange:
http://www.ipx1031.com/pdf/ReverseExchange.pdf