1031 Exchange Examples With Mortgage

Paul Getty has been directly involved in business transactions totaling more than $3 billion on assets across the United States and holds real estate broker licenses in the states of California and Texas. His expertise includes all significant asset classes, such as retail, office, multifamily, and senior and student housing. Paul has experience in both buying and selling, sourcing and structuring debt and equity, working out problems, and managing assets and properties. On the firm’s numerous transactions, he has closely collaborated with a number of nationally renowned real estate brokerage and investment firms, including Marcus Millichap, CB Richard Ellis, JP Morgan, and Morgan Stanley. Paul also has a large network of commercial real estate buyers and sellers, which includes financial institutions, family office managers, and high-net-worth individuals. Paul was the founder and CEO of Venture Navigation before it became First Guardian Group/FGG1031, a boutique investment banking firm that specialized in structuring equity investments made by high net worth individuals and institutions. He has more than 35 years of extensive, global business management experience in a variety of settings, including early-stage start-ups and multibillion-dollar corporations. His prior experience includes taking part in successful IPOs and M&A deals that brought in over $700M for investors. Paul graduated with honors from the University of Michigan’s MBA program in finance and holds a BS in chemistry from Wayne State University. Paul Getty is a registered financial representative with LightPath Capital Inc, member FINRA/SIPC, and he has securities licenses in Series 22, 62, and 63. Paul is a well-known author and lecturer on topics relating to investments, sales, and management. He is the author of three books that are available on Amazon and other retail sites: The 12 Magic Slides, Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors, and Tax Deferral Strategies Using the Delaware Statutory Trust (DST).

Read more of what you like.


How does a 1031 exchange work with a mortgage?

When making a 1031 exchange, trading across or up can help you avoid a mortgage boot. In other words, you take on debt when you buy a replacement property that is equal to or higher in price than your previous mortgage.

Can I use a 1031 exchange to pay off a mortgage?

Only the purchase of Replacement Property, the payment of closing costs, or the repayment of a mortgage or deed of trust covering the Relinquished Property may be done with the exchange funds.

What is an example of a 1031 exchange?

Example 1: The Fundamentals You decide to sell your current house, which has a $150,000 mortgage. It sells for $650,000. Purchase a replacement property for at least $650,000 to satisfy the requirements for a 1031 exchange. You must also take out a loan for at least $150,000 to pay for it.

What is not allowed in a 1031 exchange?

The following assets are not eligible for tax-deferred exchange treatment under IRC 1031: Stock in trade or other assets held primarily for sale (i e. Securities or other proofs of debt or interest held by a developer, “flipper,” or other dealer Stocks, bonds, or notes.