Yes. When it comes to 1031 exchange, you can buy multiple properties. In fact, you are allowed to buy up to three properties. But if you want to have more than three properties, a corollary rule of 1031 governs. This is actually possible through a couple of 1031 exchange rules called the 200% and 95% rules. These rules can help you with property identification.
Consequently, property identification can create an ease of buying multiple properties in a 1031 exchange. As to the mentioned rules, the 200% rule allows someone to identify more than three properties, provided that the combined value of the properties does not exceed 200% of the value of the relinquished property. On the other hand, the 95% rule provides for a property identification with no reference to the sale price of the relinquished property, provided that an investor actually acquires and closes on 95% of the value identified.
In summary, you can buy multiple properties in a 1031 exchange as long as you follow the applicable rules. After all, buying properties is not subject to unlimited discretion by the investor. Note, however, that it’s a great idea to have 1031 exchange experts and legal counsels to help you out.
Even after outlining all the information above, dealing with 1031 Exchanges can still seem daunting. That’s why the Leveraged CRE Investment Team at Commercial Properties, Inc. is here to help you achieve your 1031 investment goals. Contact us at (480) 330-8897 or send us an email at request@leveragedcre.com.
Need help on your 1031 Exchange? We got you covered! We prepared a free e-book that will serve as your guide to achieve your long-term business goals or obtain that property you’ve always been dreaming of!
Phill Tomlinson is a commercial real estate broker with Commercial Properties, Inc. (CPI) in Scottsdale, Arizona, and owner of the Leveraged CRE Investment Team specializing in investment sales and tenant/landlord representation in the Phoenix and Scottsdale submarkets. Phill applies over 21 years of experience in the Real Estate industry helping investors and owners maximize their returns.
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