Listings, Escrows, and 1031 Exchange Tips from the Lyon | Stahl Team
It’s an exciting time for us here at Lyon|Stahl. In addition to adding to our team, over the past few months we’ve worked hard as both buying and listing agents to sell apartment buildings and single family homes all over Los Angeles and the South Bay. Below are three of our most lucrative properties, sold, in escrow, and listed and some tips for those looking to buy or sell in Southern California at this time and make a 1031 Exchange.
320 Rosecrans Avenue, Manhattan Beach, CA 90266
Priced at only $1,675,000 and located just steps from popular El Porto beach and surf spot, this sea side escrow property is a full size Sand Section lot with preliminary plans for a house and rental unit. The front unit contains 3 bedrooms and 2.5 baths The back unit has two bedrooms, one bathroom, and an ocean view patio, This beach-side treasure is a great place to relax, entertain friends and family and feel truly at home along the coast.
21111 Wood Avenue. Torrance, CA
It’s not often that you come across buildings that are 18 units, so when we heard about the Wood Avenue listing, needless to say we were extremely excited!
Sold for $3,650,000, 21111 Wood Avenue’s building provides a great neighborhood atmosphere and its garden facing “ranch style” property has affordable rents and offers tons of open space and great parking. The property is located close to both the Redondo Beach Pier and Palos Verdes Estates and is particularly family friendly.
ON THE MARKET – ACCEPTING OFFERS!
204 – 208 S Helberta Avenue, Redondo Beach
204 – 208 S Helberta Avenue has been garnering tons of interest from potential buyers. Not only is it 12 units and 33,000 square feet, but it contains 16 parking garages and a unit mix of a house as well as 5 one bedroom, one bathroom units and 6 two bedroom, two bathroom units.
Redondo Beach is vibrant and full of life. Close to the property are bars, restaurants and Redondo Beach locals always looking to have a good time The Redondo Beach Pier and break wall is close by and is one of California’s most famous surf spots.
1031 EXCHANGE TIPS AND GUIDELINES FROM THE LYON|STAHL REAL ESTATE TEAM
Many of our transactions this year have involved a buyer in an exchange. Exchanges are common in real estate and take place when the buyor or investor in question sells one property at the same time they inherit another.
I. Identify which type of Exchange best fits your property needs
1. Simultaneous Exchange: Property is sold and the replacement property is acquired during the same day, as the properties close concurrently. This is the rarest form of exchanges and investors are urged to use an Exchange Accommodator when conducting this type of exchange.
2. Delayed Exchange: This type of exchange allows investors to sell a property and then has 180 days to acquire a replacement property
3. Reverse Exchange: In a reverse exchange the investor is allowed to acquire a replacement property prior to the sale of their other property. This can get complicated
4. Construction Exchange: Investors use the exchange proceeds to build on land improve the existing property. All exchange funds however have to be spent within the 180 day period.
II. Once you have determined the type of exchange you would like follow the following guidelines:
A. Properties must be held for use in trade/business and must be like-kind
B. Timeline states that the exchanger has a maximum of 180 days to complete an exchange – as directed by the IRS. Timeline begins upon the date of the close of escrow
C.Identify your replacement property as:
1. The 3 Property Rule – You can ID any three properties, of any price as long as they are in the United States
2. The 200 % Rule – The 200% rule can be applied if you are choosing to excecise an option to exchange four or more properties. The rule however is that the combined value of the properties you identify cannot exceed 200% of the property that was sold.
D. Tex Defferal: In order to defer 100% of the capital gains tax liability, the following requirement must be met:
1. All the cash that was generated from the sale of the property mut be reinvested into the newly acquired property
2. The value of the new property must be equal or greater than the property sold