Latest / Connor with Honor: AI, Real Estate and Real Life / 1031 exchange in Santa Clarita
Transcript
- 0:00I misplaced my glasses so we're gonna give this a shot anyway good day everybody today is March 9th, 2025 this is day No. 68 and days left 2 97 in 2025 alright so welcome back I wanna talk to you today about what's happening that means we're 68 days into the year 297 left to go today I'm gonna break down the latest market activity and discuss the rising number of 1031 exchanges I've been noticing in Santa Clarita most of these are amongst the coming soon listings which there's quite a few I'll talk about in that just a moment but what you're gonna need to know whether you're a buyer or seller or investor looking to navigate California's real estate laws so let's jump in now of course I'm not an attorney I'm a real estate agent there's that so if you need legal advice please reach out to one of those but coming soon listings we have 24 this is 24 homes hitting in the market that's gonna be arriving here between now and the next 21 days if you wanna get access to that hit up your agent they should have be able to provide you that email that has all of those coming soon listings if you don't have an agent you know so and I'll be able to send those to you new listings 81 total in the last seven days we've seen that number hundred and thirteen hundred and 25 I did a show last week that's quite a few new listings heading the market five 68 is that total number currently however so we haven't reached much above that that's because they're continuing to be absorbed by those buyers there is quite a high buyer demand with that relaxation of interest rates that we watch trending big between the first of the year and now so we have price changes 70 sellers are definitely adjusting to those market trends we have 18 properties that have fallen out of escrow that number is historically higher so that's actually good that means properties are continuing through the escrow process for those real estate buyers and course to the glee of the real estate sellers 26 properties have entered under contract this week 61 properties have gone pending total and let's see what else we have 51 properties sold this past week eleven properties expired 14 were cancelled 10 put on hold two have been withdrawn that's 24 properties that have a potentiality of you may be getting a better than average deal these are properties that were cancelled and also withdrawn and expired so something to focus on if you are looking and have been looking for a while you might be able to get that better than average deal I know that I have investors hunting me down relentlessly trying to get me to team up with them and again my investor stockpile my folks are very loyal and I'm very loyal to them I'm completely full hit me up in several months but again don't bother to call but those are properties that good investor agent should be hunting now we have 24 coming soon listings meaning these properties aren't active yet but they will be hitting the market soon if you're a buyer now's the time to get pre approved work with your first responder realtor to get ahead of the competition now of course if you're not pre approved you wanna talk to a lender my recommendations go to your bank if you know somebody talk to your family who they use if not I have some fantastic resources that I can refer you to now 1031 exchanges what buyers and sellers need to know now I noticed in today's data we have several listings marked with 1031 exchange as a listing term so agents are being upfront about that thank god let's break it down and talk about what this means for you whether you're buying or selling a 1031 exchange is a tax deferred real estate transaction that allows investors to sell a property and reinvest the protein proceeds into a like kind property paying capital gains taxes at the time of sale so instead the taxes are deferred as long as the investor follows the IRS is strict guidelines now the 1031 exchange rules California Edition like kind property that's No. 1 the new property must be similar in nature to the one that's being sold if for example investment real estate estate a 45 day identification period so in most cases you have that 45 days from the sale up to three uh from the of your property to identify up to three potential replacement properties there's companies that specialize in this by the way 180 day closing period you must close the new property within 180 days of selling the old one so yes there's pressure there so watch out for that and of course No. 4 you're gonna need a qualified intermediary required you can't touch the sale uh proceeds a party facilitator must hold the funds between transactions that's where I talked about some 1031 exchange companies just being fantastic I met quite a few equal or greater value the replacement property must be of equal or greater value than the one being sold to fully different taxes now 1031 exchanges matter in Santa Clarita is that for buyers understanding the seller motivation if a seller is in a 1031 exchange they do need to move quickly this could create a negotiation leverage for you if you're flexible on closing now of course increased investment property availability more 1031 sellers need more investment property turnover so keep an eye out for multi family rental homes and commercial deals if you're looking for those sorts of things for sellers this is something you need to know you must find a replacement property fast if you're selling under 1031 exchange timings everything make sure you work with somebody that will help you secure that next property I know that we had a fiasco happen via a referral into a commercial realm a while back and it could have been and worked out to be a complete nightmare but it did work out that of course it turned the rest of my beard grey buyers need to know your timeline so being transparent about your 1031 exchange can help buyers and doing that up front just like a lot of the listings we have presently these coming soon listings that's really fantastic good on the agents for doing that for their sellers and talking to them about don't surprise anybody because you'll get that agent that writes the offer you inform them of the 1031 exchange they don't wanna wait there out so that's really really good for here in California here's additional items to consider when doing a 1031 exchange you wanna look at the state tax implications of course they always get their money even the federal taxes can be deferred California may still track your capital gains tax if you move your exchange out of state so talk to your tax person because they're definitely the expert in that field and No. 2 depreciation recapture if you've been depreciating your property for tax purposes the IRS may reclaim some of those benefits when you eventually cash out again tax person callback rule for out of state exchanges if you exchange your California property for an out of state investment the state will keep track of your defer taxes and could require you to pay later what two certain things 3 I guess what student loans taxes and debt there you go so 1031 exchanges are definitely powerful tools but they require expert guidance to ensure compliance if you're considering selling an investment property in Santa Clarita want to defer taxes or if you're looking to buy from a 1031 seller let's set up a call and talk strategy please check out the blog at Santa Clarita Openhouses com just a little story at an open house yesterday had some clients come in and they said they saw me on YouTube I know it's nuts anyway love that stuff thank you so much if they're watching reaching out to you both you couple and I hope you guys find what you're looking for in regard to real estate by your terms and when you're ready that's always a realtor's best wish for their clients and even those people that have other agents so I really do believe that from the bottom of my heart to your ear and your heart have a great day we will talk to you soon thanks for watching I will find my glasses I'm Connor with honor over and out