What if all properties identified go under contract?

Question

Looking for a second opinion. Situation. We identify 3 properties, submit offers, but they all go under contract, not to us.  Can we re-identify, or buy one not on the list?

Bill Exeter · Answer

Hi @Amy Kendall,

You can change your mind and identify other potential replacement properties as long as you are still within your 45 calendar day identification period.  Unfortunately, if you are past midnight of your 45th day, then there is nothing you can do unless any of the properties that you did identify fall out of contract or you can buy them from the other party as Dave pointed out.

Dave Foster · Answer

@Amy Kendall, as long as you are within your 45 day identification period you may continue to offer on any property you want.  On day 46 whatever is on your list are the only properties available to purchase to complete the 1031 exchange.

If the tax you're deferring is significant enough then you could always to go the new buyers of those properties and offer a quick buck if they sell to you.  Yes it stings but if it saves the 1031 it might be worth it.