The Role of the Real Estate Agent in a 1031 Exchange

Real estate agents and brokers get no respect.

Who is the engine that drives the real estate transaction? Who is the warrior that goes out to prospect and dig up these deals in the dirt and then puts them together?

It's the real estate agent or broker.

Potential Obstacles

Real estate agents work hard to put these deals together, and then everyone comes in and creates obstacles:

• The environmental company raises objections about potential contaminants in the soil

• The title company raises objections about flaws or difficulties in the title

• The bank comes in with their level of requirements

• The lawyers get involved in parsing the verbiage in the contracts

The poor real estate agent or broker has to persevere, taking their client from start to finish. And they don't get paid unless the transaction closes, so they're basically working for free during this entire process.

A Tip of the Hat

I tip my hat to the real estate broker or agent who perseveres, puts the deal together and then at the end of the transaction, gets little or no credit.

• Start Your 1031 Exchange: If you have questions about the role of real estate agents or brokers in a 1031 exchange, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2017 Copyright Jeffrey R. Peterson All Rights Reserved

Tips for Finding 1031 Replacement Property

If you're doing a 1031 exchange you may find that the 45-day identification period goes by way too fast. So today we're going to talk about some tips for locating or finding the 1031 replacement properties to identify during those first 45 days.

Other Trusted Advisors

If you’re a real estate investor you may not have the biggest window on the world of all of the potential replacement properties that may be available to satisfy your exchange. So other trusted advisors can be brought in to widen your window of potential replacement properties.

Financial Planner

A very good resource to talk to is a financial planner that specializes in products that satisfy 1031. These are typically either Delaware Statutory Trusts or tenancy-in-common investments. These are syndicated securities that can only be marketed to accredited investors.

Commercial Real Estate Broker

Another important resource that can widen your window of potential properties is a commercial real estate broker that has the designation CCIM or SIOR. These are real estate agents that have specialized experience in commercial real estate and can offer up possibilities you may not have been aware of.

The most important thing is to start the process early. Get out there looking even before you’ve sold your relinquished property to get a feel for what you may want to designate, understanding that the 45 day identification period goes by way too fast.

• Start Your 1031 Exchange: If you have questions about finding 1031 replacement property, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2017 Copyright Jeffrey R. Peterson All Rights Reserved