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Updated almost 3 years ago on . Most recent reply
1031 Exchange Question
Hi everyone, I have quite a bit of equity in a single family home, and ideally I'd like to 1031 exchange it into a commercial real estate purchase. However I don't want to be pressured into finding a deal within 45 days. For a 1031 exchange, can I wait until I get a commercial deal under contract (with a 60 day close) and THEN sell my single family home before the commercial deal closes? I wasn't sure if I could "identify" and go under contract on a commercial property BEFORE selling my single family home.
Most Popular Reply
Quick answer is yes you can do this! But just beware of the timelines and be sure to close your SFH first, otherwise you may need to do a Reverse 1031 exchange, which will have additional fees.
Also be sure to contact a qualified intermediary to assist you in the exchange as soon as you have anything under contract.
Good Luck!