If you have ever done 1031 exchange you know that the identification process moves very fats. It is usually an issue finding a replacement property. Normally, the identification of replacement property is usually 45 days. It is not business days but 45 calendar days. You can change your mind during this period.
Before you choose a replacement, there a couple of things that you should keep in your mind. 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 will ensure that if one fall through, you will always have two more choices to exchange. When you are finding a replacement property 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. On of the main challenge that faces people during the 1031 exchange is having only one option. 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. Always ensure that you expand your thoughts and have many options.
It is vital to note that 1031 exchange operates under strict guidelines. 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. For you to identify a replacement property fast, it is prudent to begin searching the property days before you sell the relinquished property.
You should contact a qualified intermediary to help you through the process. It is vital to make sure that you have consulted with the intermediary about the details of the exchange. When you hire an intermediary, you are guaranteed that the whole process will be stable. To find replacement property; you should also consider getting help from a real estate agent. Turner investment corporation is reputable in assisting people in finding a broader market. This company has a nationwide relationship with real estate firms which help it have a wider reach of properties. 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 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.