Anyone know of other vehicles to park my money longer than 6months(1031 exchange) before I need to role it into another investment?
I was thinking of something like a mutual fund/IRA/ etc if at all possible then when I am ready, get money out and invest.
thanks,
J
If its coming from a 1031 exchange, you may want to look at a packaged TIC (Tenants-in-common) investment.
You could consider buying tax liens or tax deeds. More often than not, property owners will come up with the money to pay off the back taxes that you paid to the governmental authority. The good part about your investment is that they must pay not only the taxes but also an extremely high interest rate - 24% in some states. This can be a good opportunity to earn a higher than market ROI. There are risks that need to be understood and each state has different redemption periods and other factors that must be completely understood before investing.
Joseph,
If you have net proceeds from a 1031, your qualified intermediary can invest the proceeds into some interest bearing vehicle until you use the funds to purchase a replacement property. You only have 180 days to acquire a replacement property, so parking your money LONGER than 6 months will disqualify a 1031 exchange.
Using the proceeds to buy tax liens, as campbellsimon suggested, is not a qualified investment use and disqualifies your proposed exchange. Joolkano suggested a TIC investment, but this is rolling your proceeds into another investment property and completing the exchange – not parking your money in a liquid asset so you have ready access when you need it.
The short answer to your question is: There are no vehicles that will let you park exchange proceeds longer than six months without disqualifying the exchange.