Wednesday, July 25, 2007
1031 Exchange Strategies
45 days is not 45 days. Prior to putting your investment property on the market, please see what is realistic to trade in to. I educate my sellers on what is available with their sales proceeds in the investment market they are trading to. If they want a NNN property, then I provide them a list of conservative, good quality properties. These may not available when they come to write offers in the future, but similar properties will be. This base line confidence of what they can purchase, helps them move forward with the marketing and sale of their relinquished property. Once we have a buyer in escrow, and let's assume a 45 day close of escrow, we start making offers on replacement 1031 exchange properties. This gives my clients approximately 90 days to be in escrow. More so, it allows multiple offers to be made and due diligence to be accomplished way before anyone starts sweating. When you fill out the identification form for your intermediary, I want you to have one rock solid property in escrow with contingencies removed and two available back ups - just in case. That's how to manage an exchange.