The basic concept is you are the intermediary between to parties (your seller and your buyer). 

The FSBO seller on the other hand will find his FSBO a magnet for every wholesaler, investor, and flipper some of who will be honest and upfront and some of who will try to disguise themselves as end buyers and not financial intermediaries looking to tie up the property for little or no option money and sell for a higher price.Good luck 

You would have to demonstrate under audit that you had the intent to hold the relinquished property for rental, investment or business use in order to qualify for 1031 Exchange treatment.Assuming that you do qualify, you could do a concurrent two-party swap as long as it is properly documented by your advisors, or you could sell your relinquished property first, structure a formal 1031 Exchange transaction through a Qualified Intermediary, and then by her property as your replacement property.Keep in mind that your relinquished property and your replacement property must be held for rental, investment or business purposes in order to qualify for tax-deferred exchange treatment.

Jason,I would talk to an intermediary or tax attorney before you move forward.

A Qualified Intermediary must also be used to facilitate the transaction by holding the profits from the sale and then disbursing accordingly.  

A MBB only acts as intermediary between lender and borrower.

You can treat the receipt of the earnest money deposit as taxable boot, and defer everything else through the 1031 Exchange, or you can contribute the earnest money deposit back into escrow, then structure the 1031 Exchange transaction with a Qualified Intermediary, so that everything would be tax-deferred.Has the property been held, treated and reported as rental, investment or business use property since you in your sibling inherited the property customer.

Looking for recommendations for a 1031 exchange intermediary in Wisconsin.

I have $125k sitting with the intermediary. 

Most life insurance companies do not accept direct contact from end borrowers, forcing them to go through qualified intermediaries.