Some 1031 Specifics?

[Jim Witten]

Hate to ask same old questions others ask. However, I've read multiple articles on 1031 basics through Googling, but have failed to find answer to some specifics. I'm in CA by the way. I don't expect answers to all, but if you want to help with just ONE question, that helps!

-The form used for identifying the 3 properties within 45 days, it's not an official government form like a W9, it's just a template style that varies? Like this one? http://www.exeter1031.com/

-Is an actual purchase agreement needed also? Or could an assignment of contract/Purchase agreement replace the identification form instead? I could use it in lieu as proof that I identified something?

-Does the seller of each of the 3 properties have to sign the form stating they are in talks with me to sell to me?

-The 3 properties I pick, can I change them after the 45 days as long as I close on something within the 180 days, or do I you have to stick with the 3 once the 45 days is up?

-The intermediary, they are certified "intermediaries" you hire, and they charge a fee? Or hourly rate? Could I just go to the seller or sellers agent directly instead?

[DL Martin]

Originally posted by @Jim Witten:

Thanks Robert. Helps a ton.

Do I have to pick 3, or can it just be one?

And if the seller does not need to sign anything, is there not proof required that these are actual potential properties I am thinking about purchasing, outside of me just writing 3 address down on an identification form? I presumed a contract, purchase agreement, etc was needed?

Jim; 

My advice is to do complete due diligence on three satisfactory properties and be very happy if you are able to complete the transaction with any of the three. 

@Bill Exeter 's company facilitated a 1031 for me in late 2015. His company over performed in every single phase of the transaction. After that experience, I will never consider any company other than Exeter Exchange.  

I traded a California 4 plex for a Cincinnati Suburban 39 Unit.  The 39 unit cost $100k more than the sales price of my 4 plex. In retrospect, I got very lucky on many details of this transaction... 

The single best piece of advice I have is to do your best to make sure that your seller is a "solid citizen" type of person. The integrity/honesty of the seller is crucial unless you are willing to "fold" every single time that an issue arises during escrow. If the seller is aware that you have selected three properties, and that you have other options, they will be much less likely to play hardball with you. 

DL 

Luke 2:14KJV