One of the most challenging aspects of a like-kind exchange is finding the right replacement property. In this article, we will offer up some tips for finding and identifying the perfect replacement property for your 1031 exchange.
Keep a Wide View of Your Options
Don’t focus too narrowly on a specific property you want to exchange into. In a hot seller’s market, you may not be able to get the exact property you want before someone else snatches it up. The good news is that you can exchange pretty much any real estate for other real estate (provided it’s held for investment or business purposes). It doesn’t hurt to expand your scope and consider options you may not have thought of before.
Give Yourself Enough Time
1031 exchanges have to abide by strict timelines. To review: once you sell your relinquished property, you only have 180 days to acquire your replacement property and finish your exchange. The first 45 segment of those 180 days are set aside as your identification period. Start looking for replacement property before you even sell your relinquished property so you don’t back yourself into a corner that you can’t get out of.
Contact a Like-Kind Qualified Intermediary
CPEC1031 specializes in real estate exchanges under section 1031 of the Internal Revenue Code. Twenty years of experience has given us unique insight into the ins and outs of the 1031 exchange process. Reach out to a qualified intermediary at CPEC1031 today to discuss the details of your 1031 exchange. You can find us at our offices in downtown Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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