In the 1031 exchange, the identification process of the replacement property moves very quickly. finding replacement property is a considerable problem. Normally, the identification of replacement property is usually 45 days. It is not business days but 45 calendar 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 choose a replacement, there a couple of things that you should keep in your mind. It is essential to ensure that you start searching for a replacement property as soon as possible. To be on the safe side, ensure that you identify about three properties. This is necessary as if one of the property falls through, you still have other options. 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 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 market you may not be able to find a perfect property before another person snatches it. 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 replacement property is supposed to be identified within the 45 days after you sell your 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. The intermediary will assist you in the paperwork and ensure that the whole process is seamless. To find replacement property; you should also consider getting help from a real estate agent. Turner investment corporation is known for much-helping investors find a broader market where they can identify a replacement property. The first has a relationship with many real estate firm distributed throughout the company. Turner Investment corporations also help in property management.
Another way of finding a replacement property is by visiting the websites of the real estate agents. If there is an agent that you know; they will significantly help you to create a list of property that you can select . You can also consider seeking assistance from the local MLS, but the problem is that there is a lot of legwork.