today's market to do 1031 exchange and only 45 days to find one

[Johnson Best]

Hi Everyone,

I have an investment house in Las Vegas I want to sale it, and I will incur almost 250k capital gain.  Since it is an investment so I dont get the tax exemption on it.

So is the only way to avoid paying hefty tax is to do 1031 exchange.  I live in Los Angeles area, it is very short time to find a house in 45 days.  In addition, bigger fear is with today's very high price already and alot higher than Las Vegas cash I will be received.  I am basically going to spend more and buying the house at the top of the market cycle a chance of price decline or price flat for many years.   

What would you have any recommendations for me on what to do or options regarding my situation thanks!

[Dave Foster]

@Johnson Best, Timely question.  I was just writing a chapter and here's some options right from the book.

Start shopping well before your old property closes

Negotiate contingencies with floating closing dates so that you can delay the closing of your purchase until your sale closes

don’t forget that the 1031 cuts both ways, you’re also a seller when you start your 1031. And as the seller, you could negotiate with an eager buyer, a contingent floating closing date

Sweeten the deal with cash. It’s amazing how even the toughest negotiator can melt before a pile of cash. So use earnest money as a way to get the sell of a property to let you go into contract with an extended closing date to accommodate the closing of your sale.

Other contingencies can also help. A seller who may not understand your need to delay closing to accommodate your 1031 sale might be willing to give you an extended inspection period or finance period.

Pocket properties. Do you have a friend who owns a property that might be for sale but isn’t.

The Delaware Statutory Trust (DST) and the syndicated Tenant in Common (TIC) project are opportunities for you to own fractional interests of much larger investment properties.

Let your exchange die. While certainly not the preferred option it is important to emphasize that there is no penalty for starting a 1031 exchange and not completing it. If you cannot find a good replacement