If you have ever done 1031 exchange you know that the identification process moves very fats. Finding the right replacement property is one of the main problems during the exchange. Normally, the identification of replacement property is usually 45 days. The period is calendar days and not business days. Within this period you are allowed to change your mind.
There are multiple things that you should keep in your mind when you are finding a replacement property. First ensure that you start exploring the property very quickly. You should also ensure that you identify about three properties. This is necessary as if one of the property falls through, you still have other options. When you are finding a replacement property ensure that you keep the financial requirements in your mind. The replacement property that you find should be of the same price or higher than your original one.
It is vital to have many options if you want to sell your property very quickly. The biggest mistakes that a lot of people make having the specific property that they want to exchange into. in the hot market, the demand of the property is high, and thus it is challenging to find a property that perfectly meets your needs. The 1031 exchange allows you to exchange any two properties that you find on the market. It is crucial to therefore have many options by expanding your mind.
It is vital to note that 1031 exchange operates under strict guidelines. Once you sell your property you have 180 days to finish the exchange. The first 45 days of the 180 involved identifying the replacement property. If you want to find a replacement property quickly, ensure that you start finding a replacement property before you sell the relinquished property.
It is essential to contact a certified intermediary. It is vital to make sure that you have consulted with the intermediary about the details of the exchange. When you hire an intermediary, you are guaranteed that the whole process will be stable. You also need to work with real estate agent to help you find a buyer for your property and help in finding the replacement property. Turner investment corporation is reputable for helping people finding the replacement market beyond the local market. This firm has a many real estate firms that are distributed in different parts in the country. Turner Investment corporations also help in property management.
When you visit the websites of the real estate agent, you can also find replacement properties. If there is an agent that you know; they will significantly help you to create a list of property that you can select . Another alternative is getting help from the local MLS; the problem is that there is a lot of legwork.