Tips to Find the Perfect Replacement Property

Getting a like-kind property for exchange is a challenging thing. However, the tips below can help identify the right property replacement for your 1031 exchange.

Your focus should not be too narrow. Have a broad view of options to make the search easy. It is somehow hard to get the exact property you want in a competitive real estate market because someone else might identify it before you. But there are properties which can be exchanged with any other real estate as long as the property is for investment purpose. Therefore, if you are in a hot seller's real estate market, you can expand your market or go for the property, which is not a replica of what you want.

When you are working with replacement property 1031 exchanges, you must follow specific timelines. Property owners are given 180 days to get through the replacement process. You will be given less than 50 days for the identification purpose, which might be too little for you. You should, therefore, start searching for replacement property before you sell your relinquished property. This will ensure you will have an easy time finishing your exchange because you already have a replacement. This will give you the feel for the property you want before you sell your relinquished property.

You can seek exchange services from delaware statutory trust professional. Some qualified intermediaries have specialized in estate exchanges. Such people have the experience needed and thus knows the exchange process more than you do. Reach out to several qualified intermediaries to discuss the details of the exchange process.

Talk to other real estate investors. The time for searching replacement property might be too little for you. With other trusted advisors, there is potential for many replacement properties. You can create a big window if you bring in other real estate investors, thus making it easy to get replacement properties.

One can also widen their window of reliable properties by involving commercial real estate brokers. These brokers are commercial real estate specialist in this field and thus aware of many properties in the market. They will, therefore, be a useful tool in identifying the best property replacement. You can also watch this video at https://www.youtube.com/watch?v=VUFr4SK1-l4 for more info about real estate.

Get a financial planner on board as you find a replacement property. If you get a financial planner who specializes in properties that satisfy 1031 exchanges, your work can be a bit easy as they can tell you whether your property qualifies or not.