Some 1031 Exchange Questions

[Michael Hayworth]

I've read some online resources but still have a lot of questions. Here is the first batch of questions:

1. One intermediary my CPA recommended says this on their website:

1. [First, set up an account]
2. "Second, via an executed assignment, ERI assumes the purchase contract and instructs the closing agent to deed the property from the investor to the buyer. The sale proceeds go directly to ERI to be held in a secure segregated bank account."

Can someone explain the "assignment" to me? And the funds aren't just tracked by my CPA - they have to be held in an intermediary' account?

2. If the funds are held in an intermediary's account, how are they accessed? I buy a lot of properties at trustee auctions, which requires that I come with cash in hand. Is that not doable if using a 1031?

3. How long does it take to set one of these up? I have a property closing on 12/29, and another in January.

I'll start there and ask follow-ups based on the answer.

Thanks,