Join Early Retirement Today
Thread Tools Display Modes
1031 Exchanges-A Risk I Never Would Have Thought About
Old 09-11-2007, 02:05 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
1031 Exchanges-A Risk I Never Would Have Thought About Exclusive

Best quote, from attorney for the CEO of one of the failed 1031 custodians who is accused in a civil suit of misappropriating funds:

"There were contracts, but there were no restrictions on what could be done with the money once it was obtained,'' Dzarnoski said. ``There's a spectrum between throwing money on a gaming table and investing in government securities. McGhan's use fell somewhere between those endpoints, and what's going to be determined in court is whether or not that's OK.''

Well heck, he didn't throw it on the crap tables, so he must be in the clear!

"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-11-2007, 02:55 PM   #2
Full time employment: Posting here.
tightasadrum's Avatar
Join Date: Aug 2006
Location: athens
Posts: 802
It never crossed my mind to ask the attorney doing my 1031 Exchange where she was going to park the money before the second closing.

You can bet I'll address it next time.

Thanks, Ha
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."
tightasadrum is offline   Reply With Quote
Old 09-11-2007, 05:47 PM   #3
Thinks s/he gets paid by the post
tryan's Avatar
Join Date: Mar 2005
Posts: 2,603
I used Allstates 1031 exchange as my facilitator. Then made sure the closing dates were only days - rather than weeks/months - apart. They also made sure I received the interest on the parked $$ (even though it was a short time).

All in all a good experience.

BUT the disclosures you sign are pretty daunting ... it is thier $$ for a short time. It's the only way to have legal exchange. They basically hold and exchange the properties.
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 09-11-2007, 06:34 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 17,239
Since I used to work in the trust dept... I knew the people that did these...

You should use a trust company that is insured.. most banks have the necessary protections.. if you try and be cheap with your money, you can get burned..

BTW, most of the time they were cheap to do considering how much money can go through them...
Texas Proud is offline   Reply With Quote
Old 09-11-2007, 07:22 PM   #5
Recycles dryer sheets
barbarus's Avatar
Join Date: Aug 2007
Posts: 433
Sorry Ha. You were way ahead of me. I posted the same info.

There are many more ways to lose your money than to increase it. Whoda thought. She is in a miserable spot with, it appears, very little recourse.
Where it me, I'd have to stay away from anything sharp for the rest of my life.
barbarus is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
house exchanges grateful Life after FIRE 11 04-28-2007 09:54 PM
1031 exchanges and the tax man vic FIRE and Money 3 10-25-2006 07:18 AM
Land Sale & AMT - should have done a 1031! bearkeley FIRE and Money 25 03-29-2006 09:28 AM
Home Exchanges - Any Experiences? NYC Guy Other topics 2 09-02-2005 07:54 PM
Anyone ever done a 1031 exchange? brewer12345 FIRE and Money 10 06-13-2005 12:15 PM

» Quick Links

All times are GMT -6. The time now is 07:51 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.