In the 1031 exchange, the identification process of the replacement property moves very quickly. It is usually an issue finding a replacement property. An investor is given 45 days to identify the property. It is not business days but 45 calendar days. Within this period you are allowed to change your mind.
There are multiple things that you should keep in your mind when you are finding a replacement property. Most importantly, ensure that you begin the process of searching for the property as quick as possible. You should also ensure that you identify about three properties. This is necessary as if one of the property falls through, you still have other options. One more thing that should keep in your mind is the financial requirements. The replacement property that you find should be of the same price or higher than your original one.
If you want to find a replacement property very fast, ensure that you have many options. The biggest mistakes that a lot of people make having the specific property that they want to exchange into. in the hot market, the demand of the property is high, and thus it is challenging to find a property that perfectly meets your needs. However with 1031 exchange you can exchange any two kind f properties. It is crucial to therefore have many options by expanding your mind.
The 1031 exchange guide is very strict. Once you sell your property you have 180 days to finish the exchange. The replacement property is supposed to be identified within the 45 days after you sell your property. If you want to find a replacement property quickly, ensure that you start finding a replacement property before you sell the relinquished property.
You should contact a qualified intermediary to help you through the process. Ensure that you have discussed the details of the 1031 exchange. When you hire an intermediary, you are guaranteed that the whole process will be stable. Also, it is recommended that you find a real estate agent to help you find a replacement property. Turner investment corporation is reputable in assisting people in finding a broader market. This firm has a many real estate firms that are distributed in different parts in the country. If you do not want the stress of management, consider contacting this firm.
Another way of finding a replacement property is by visiting the websites of the real estate agents. If there is a real estate agent that you know, contact them and they will provide you with a list of properties that you can consider selecting. Another alternative is getting help from the local MLS; the problem is that there is a lot of legwork.