My background is real estate and I have owned a lot of it. I am over 70 and retired with trusts and other vehicles already in effect. I sold a large apartment building 3 Years Ago by way of 1031 tax deferred exchange. It required me to purchase investments that were high-value with more loans in place.

I had acquired this building during the last slowdown and it increased in value nicely. The two buildings I exchanged for in the 1031 three years ago have also appreciated greatly. Being concerned about how crazy the market has increased, I have decided it is safer to take some additional chips off the table. I am currently under contract and in escrow to sell 128 units in Dallas, Texas and have chosen not to go 1031 exchange again. I would need to exchange into approximately $30 million in real estate and that is both difficult to find, nerve-racking to accomplish on 1031 terms and I feel foolish for someone at my age.

I don't consider myself crazy and think this is a wise decision. If the market continues going wacko I will do fine with the real estate I still own. If there is a slowdown, or crash I will be in great position with cash to take advantage of that situation. I don't like the nearly 2 million dollars I will pay the iRS! Just one man's opinion.