Our adviser Edan-Shalom Gross successfully navigated their 1031 Simultaneous Exchange which resulted in them moving into a property with double their current units. Like many, Irma and Juan were hesitant to get the ball rolling on this 1031 Simultaneous Exchange.
“Just bring me an offer,” “I just need to find my upleg first,” or “I had a bad experience,” are quick phrases that become belief that doing things the harder way is better. Irma and Juan were no different. They are veterans of investment property ownership, amassing a diversified portfolio of multi-family properties across Southern California.
In order to help Irma and Juan, Edan-Shalom consulted our team of professionals to design a strategy that would help them get a better, bigger property. This made more money and gave them a road map of proactive steps that Edan and the Gonzalez’s would make together to address their concerns while keeping them on a successful path to “better.”
Edan-Shalom and the team were able to move Irma and Juan to a better area in Valley Glen, went from 6-Units to 12-Units, and since then, Irma was able to collect all of her first rent collections in the new building.
Here’s how the 1031 Simultaneous Exchange went down:
- LISTED THE PROPERTY AT RECORD SETTING METRICS.
- GENERATED 22 OFFERS.
- ENTERED ESCROW TWICE/1ST TIME BUYER WANTED UNDESERVED CREDITS.
- COVID-19 HIT.
- GENERATED A 2ND WAVE OF COMPETING OFFERS.
- WENT UNDER CONTRACT ABOVE LIST AND REMOVED CONTINGENCIES WITH $0 CREDITS AND NO REPAIRS, AND SELLER EXTENSIONS (IF, BUT NOT NEEDED).
- IRMA AND JUAN WROTE 9 OFFERS ON UPLEGS BY THE TIME THE DOWNLEG WAS NON-CONTINGENT.
- DUE TO EDAN’S RAPPORT WITH BROKERS FROM OTHER FIRMS, HE GOT IRMA AND JUAN TO THE FRONT OF THE LINE ON 12-UNITS, IN A BETTER AREA, WHERE THEY WILL MAKE A BUNCH MORE $$$.
- DOWNLEG CLOSES DURING HEIGHT OF COVID-19 LOCKDOWN.
- EDAN SOURCES INSPECTION, MANAGEMENT, FINANCING AND INSURANCE OPTIONS.
- UPLEG CLOSES LESS THAN 30 DAYS AFTER DOWNLEG, MAINTAINING CLIENT’S INCOME STREAM.