San Bernardino County Apple Valley and Adelanto are promoting Industrial Uses which Spurs Growth

Apple Valley Industrial Growth Low land costs in business friendly city has created fertile ground for industrial developers. Part of this growth is the logistics airport that brings in commerce. Walmart is developing a 370k square foot structure near the SCLA airport and it is partly leased already Adelanto lenient to marijuana Adelanto’s population is around 33,000. It is 50 percent Latino and 30 percent African-American, and roughly 40 percent of the population lives below the poverty line The city late last year officially expanded its medical marijuana cultivation and manufacturing zone, while the mayor opposed it. Since measure R passed the zone where medical cannabis cultivation, manufacturing, distribution, transportation and testing can occur was increased by 160 acres to zones marked “light industrial.” They did this by approving the second reading of an ordinance passed earlier. The Council has increased the overall zone to up to 500 acres. This new extension is near the Air Expressway and Yucca Rd. The voter approved 5 percent excise tax, Measure R, to commercial recreational activities as well, in wake of the passage of California’s Proposition 64, which legalized recreational pot. The mayor is very opposed to it. He is quoted in the Victor Valley Press “I can assure you right now that every vote that comes out of my mouth on recreational, to grow in our city (commercially), will be a nay answer,” Kerr said.

Reverse 1031 Exchange: To Buy Before you Sell

In a standard 1031 Exchange a property is sold and then replacement property is acquired. If you locate a property you want but have not sold a property you currently own then a reverse 1031 could be advantageous. This is not a common in practice but has been done by investors. Some common reasons to do a reverse exchange is you have located a property you want based on price, location, zoning or other reason, but you need to act now in order to buy this property. Not a problem simple purchase this new property and begin the process of a reverse 1031 exchange.

Another reason is that many investors have been caught in the middle by not locating an exchange property in the 45 days to identify and 180 days to close timeframe. Locking up that exchange property in advance solve this dilemma for investors, and it may be easier for you to sell your current property than to locate a replacement property. In a slow real estate market it actually maybe harder to sell your current property and easier to get the replacement, especially, if the replacement property is at a low price and ideal location.

Acquiring replacement property first in a Reverse 1031 Exchange can cause some difficulties though. Since you have not sold your current property then you need the deposit funds for the new property. The biggest obstacle is that the two properties can’t be owned at the same time. In theory, an exchange is going from one property to another, so title to the new property and the old property can not be held at the same time. You will need to get a Reverse Exchange Asset Company to act as a straw buyer for the replacement property. You still must adhere to the 45 and 180 day rule as well.
So in a Reverse Exchange the property that will be sold to complete the exchange must be named by day 45 and it must close escrow on or before day 180.

Locating a reputable 1031 exchange company is the key in this manner, as they will act as the straw buyer. We at vacantlanddeals.com have a number of low priced properties that will be ideal buying opportunities. You can buy one of our industrial or residential low priced properties and sell your agricultural land parcels that you may have bought at the height of the market. It is an ideal time to take advantage of lower price Lancaster and Palmdale land, and we have inventory currently that can fit a reverse 1031 exchange.