Can you do multiple properties or does it have to be one property for that $1 million?
Answer: You can buy as many properties as you want.
You may have heard about the three-property rule, which means you're limited to purchasing three properties. That's not true. The three-property rule says you can identify any three that you want at any value.
Then there is the 200% rule. It says you can identify as many properties as you want, but altogether their value can't equal more than 200% of what you just sold. So if you sold for $1 million and you identified seven properties, all seven together couldn't equal more than $2 million.
Then there's the 95% rule, which I've never seen used in real estate. It says you can identify as many properties as you want, we don't care what the value is, but you must purchase 95% of the value of what you identified. That's very hard to do in a real estate transaction.
More and more people are getting involved in 1031 Exchanges. We've come across many accountants and attorneys who are not very knowledgeable about how to do a 1031 Exchange, so make sure the people you hire are knowledgeable.
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Discover the Jealously Guarded Insights of Real Estate Tycoons and Hot Dealers! Back in the days of the wild, Wild West, when easterners traveled across this vast country looking for opportunity in the newly opened territories, they were often referred to as a ‘tenderfoot’.