1031 EXCHANGE DONE : 2 Acres in Central Texas - #TexasTriangle
Beck-Reit is no stranger to 1031 exchanges. In fact, you may call us the 1031 experts.
In 2022 we closed two 1031 exchange uplegs. Last week we finished the 2nd of the downlegs. Over the last 10 years we have successfully completed 7 1031 Exchanges, we have never had a failed 1031. 7 Uplegs, 9 Dowlegs- we have moved $1.8 Million our of “Capital Gains” and into other properties. You can see why we are fans and put immense effort into the process.
The rigorous timeline to identify a property to purchase before Uncle Sam tries to swoop in and grab his “share” can be intimidating for most. 45 Days to identify after the Upleg Closes (180 days to close) keeps a lot of sellers from even attempting. The task is daunting, and beggars can’t be choosers. We have a meticulous process that makes every one of those 45 days of the identification period count. The machine is turned on - we look at 1,000 properties, write 30 contracts, get 3 under contract to choose from (possibly purchase more than 1)
On April 6th we closed on 2 Acres in Salado, TX, deferring Capital Gaines taxes on $450,000. For now we will turn the small house into Beck-Reit & Sons offices and use the acreage for our heavy equipment yard. Later this year we will start studying what would be the highest and best use for the 2 acres. Warehouse/Office. Small Retail. Housing developments are popping up in every direction so the demand is coming. We sold our South Austin property, 8702 Cullen, which we had intended to develop into Restaurant/Bar. After going through the zoning process, the neighborhood behind us limited our zoning change. So we moved our money to the 2 acres which are in the ETJ of booming Central Texas. And we have our next Development Project… that is after we get the 24-acre farm east of the F1 Track turned into an RV Park.
Final Thoughts - our economy may be in upheaval. For those investors and buyers holding onto cash for the last 5+ years…. we may just get some opportunities to have fun again.
INTERESTED IN DOING A 1031 EXCHANGE?
Use an expert. Get them involved early. Ideally, the broker who sells your upleg is the broker that finds your downleg/s. At Beck-Reit we don’t take a lot of 1031 Exchange Buyers unless we handle their listing. Another instance or clients we have helped- your time clock is ticking and you are not picky. Want to buy a solid asset and going to move quickly? Time is money, we value our time and your time - we only want to work with clients that will have a successful 1031 Exchage.