Avatar's Blog
» 1031 Rollover - Close It or Lose It
The 1031 rollover is one of the best things to happen to real estate investors. By selling and then buying a like-kind property within a specified period of time, investors can roll over their investment capital tax free (for the moment), providing them with more working capital to reinvest. There are many rules to follow, so if you are not aware of this process, it is best to start at the IRS website.
The problem with 1031 rollovers can often be the time constraints on buying the new like-kind property. Once identified, if the property is a single family dwelling, the likelihood of being able to purchase another is reasonably good. But, if you are rolling over an apartment building, commercial or industrial building, trying to complete the identification and purchase of the next property can be a challenge. Fortunately for 1031 rollover clients, Avatar Financial Group can close a purchase loan within two weeks of the time the borrower submits a complete loan package and down payment toward the costs of due diligence. Sooner, if necessary. Contact Avatar if you need to close quickly.
