Real Estate: Florida/1031 exchange

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Question
I have two apartment buildings in Minnesota (Total value $1,350,000) and I would like to do a 1031 exchange into an apartment building in Florida.

My question:  To do this I must purchase a property of equal or greater value.

Does this mean I must purchase a building

(1) greater than or equal $1,350,000
(2) after 6% sales commission I net $1,269,000
(3) There is a $430,000 mortgage on one of the Minnesota buildings so net after sale I have $839,000

So must I buy a building greater than or equal to $1,350,000 or $1,269,000 or $839,000?

Thanks
jeff

Answer
Jeff,
That is a great question and thanks for your details.  

The very best answer should come from the 1031 Exchange Intermediary.  Are you familiar with this?  The intermediary is the 3rd party that handles the sale or "exchange".  You must use an intermediary to complete a 1031 Exchange transaction.

I am sure there are firms in Minnesota that can act as the intermediary.

I hope this points you in the right direction to get the most accurate answer.

Regards,
Steve Schiffer
Olde Town Brokers, Inc.
407-466-8188

Real Estate: Florida

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Steve Schiffer

Expertise

Questions about buying, selling, renting or investing in residential and small commercial real estate.

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Licensed real estate agent since 2003

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Orlando Regional Real Estate Associate (ORRA)

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WKMG Channel 6

Education/Credentials
GRI

Awards and Honors
Voted Orlando Magazine Hot Realtor in '06 & '07

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