1031 Exchange / Advice Tips

[Nathan Frost]

Hi, I have two properties that I am looking to sell but once to use the profits wisely. My plan is to buy 1 STR and 1 LTR. How can I go about doing this either with a 1031 or what is the best method to attack this? My plan is to sell one in May and the other in July.

[Erica Calella]

Planning in advance for a 1031 exchange is crucial. Once you close on the sale of your relinquished property, then the clock to ID a replacement property starts ticking. 45 days is manageable but the time goes quickly and a lot can happen in that time. It would be best to atleast have an idea of what home/market you have in mind, so doing that research now will greatly benefit you. 

Using a good/responsive qualified intermediary is also really important. I did my first 1031 exchange with First American Exchange and they helped me through the process to ensure I was following all of the exchange rules properly. The qualified intermediary will also manage all of the funds during this transaction, so you want someone trustworthy and reliable in that aspect too.