Here are the 2-min short video and the 2-min podcast versions of the written introductory summary below, distilled from the 15-minute full-length video of a case study: “1031 Exchange rules: How a pharmacist used strategy, timing, and like-kind intent to own her space“.
After almost 10 years of running a thriving pharmacy business in San Jose, CA the owner wanted to buy the building from the landlord. But the landlord refused to sell, and threatened to increase the rent substantially upon lease expiration.
To help the pharmacist realize her dream of owning the pharmacy building, the Ivy Group suggested a power move: Buying the next door medical condo—before the lease expired.
The pharmacist sold a residential duplex in Tuscan, AZ using a 1031 Exchange to purchase the next door medical suite. A couple of months before the lease expired, she sent a courtesy notice to the landlord to vacate the property upon lease expiration.
It turned out that EVERYONE in the chain was doing 1031 exchanges. In addition to these two parties, the seller from whom the landlord was buying the up-leg acquired property was also using a 1031 exchange, so were the other buyer and seller in a 5-party chain.
All of them had the strict deadlines set by the IRS: 45 days to identify, 180 days to close. If one party missed the deadline, everyone is screwed.
Now the pharmacist’s dream came true: owning both her business and the building. With the Ivy Group’s advice, she has turned rent into equity. The suite next door? Positioned for long-term income.
To learn real estate strategies, and how to align 1031 exchange tax rules, negotiation leverage, and timing:
The Ivy Group | Commercial Properties, Above & Beyond.
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