If you have ever done 1031 exchange you know that the identification process moves very fats. finding replacement property is a considerable problem. Normally, the identification of replacement property is usually 45 days. It is vital to note that it is the calendar days and not business days. During this period you are allowed to change your mind if, for instance, one of your intended property is sold to someone else.
Before you commence searching for a replacement property there are a couple of things that you should ensure that you keep in your mind. Most importantly, ensure that you begin the process of searching for the property as quick as possible. To be on the safe side, ensure that you identify about three properties. This will ensure that if one fall through, you will always have two more choices to exchange. Finally, ensure that you keep the financial requirements in your mind. Find a property that is equal or higher the price of the original property sale price.
If you want to find the property very fast, ensure that you have many options. The most typical mistake that a lot of people have is sticking to only one property. In the hot market, it is challenging to find a property that perfectly meets your needs since the demand is high. The 1031 exchange allows you to change any real estate property for another one. It is crucial to therefore have many options by expanding your mind.
You need to know that 1031 exchange operates under strict guideline. After selling your relinquished property, you have 180 days to complete the exchange. The first, 45 days portion involves identifying the replacement property. The quickest way to find a replacement property is to starting finding it days before you even sell your property.
It is essential to contact a certified intermediary. You should contact a specialist so that you can discuss the details of the 1031 exchange. A quality intermediary will help you in the paperwork to ensure that there is a smooth transaction. You also need to work with real estate agent to help you find a buyer for your property and help in finding the replacement property. Turner investment corporation is reputable for helping people finding the replacement market beyond the local market. This firm has a many real estate firms that are distributed in different parts in the country. Turner Investment corporations also help in property management.
On the sites of many real estate agents, you will find a list of property. If you have a real estate agent that you know, they can significantly help you to generate a list of all the potential properties that you can choose. local MLS can significantly help you to a replacement property, although there is a lot of legwork that is involved.