1031 exchange financing

[Roger Evans]

Happy Friday everybody,

Just reaching out as spring/summer approaches I'd like to sell my current three-family property, I should profit between 300k-350k low end/high end. Just going to say how I believe the process works if you have any advice/knowledge I might have missed I would appreciate it if you dropped a comment. Realistically I'm aiming for May 1st, 2024 to list the property so 30-45 days prior I will hound the market looking for potential deals. But I complete the sale of my property, then have 45 days to identify up to three properties I'd like to buy using this certain rule. Then an additional six months to complete the purchase all while the funds from the sale are being held by QI. If I fail to identify three or close within six then I would owe capital gains tax (I only want to find a replacement property, not invest in any hands-off investment). Did I miss anything? Also, I've never used commercial financing before. I've read a few people say to pay interest only for the first few years is this to save some money initially? Lastly, any advice on brokers/lenders to work with? Thank you in advance I'm currently 30 years old I'd love to upgrade multiple times using this 1031 exchange method, hoping to have some success.

[Joe Vesey]

You have 45 days to identify your replacement property(ies), and day 1 is the day after you close on your relinquished property.  You have a total of 180 days (again starting on the day after you close on relinquished) to close on your replacement property(ies),  not "an additional 180 days."  If you have a failed exchange then you will owe both State & Federal capital gains taxes, as well as depreciation recapture tax.