Speaker A flags red flags in commercial real estate deals: declining leases, tenant legal issues, weak debt-service ratios, and environmental problems. Tommy Dobczyk explains 1031 exchanges: a leased property can't swap for ground-up development, but development can become leased property if the replacement costs more or equal.
Path 3—1031 which is not us due diligence checklist. Okay? So lease legal tenant keep going down. I'm curious if keep going down, down, down, down, down, down, down, down, objection tenant DSCRs tight environmental exposure go no-go so jump in here real quick.
Yeah please. So on the 1031, you jump past it, but that's actually something that what we can do is we have a network of people that are in the 1031 market, right? And so we can reach out to the qualified intermediaries that we have relationships with. You have anyone that has a profile like this? Because it has to be equal or greater value. It has to be like, you know, a like-kind, an in-kind property or like-kind property. So meaning like in this case, based on what I'm hearing, it's, it's, it's, it's a leased property. So you can't necessarily go from a, from a leased property over to a ground-up development, but you can do a ground-up development into a leased property when you're doing 1031.
Right? Right.
So yeah, just finding some, you know, I mean, I like that it makes that suggestion for 1031 because it gives me the opportunity to reach out to my network and say, hey, do you guys want to be partners on Yeah, okay.
