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How to Quickly Identify A Replacement Property

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. It is vital to note that it is the calendar days and not business days. During this period you are allowed to change your mind if, for instance, one of your intended property is sold to someone else.

There are multiple things that you should keep in your mind when you are finding a replacement property. Most importantly, ensure that you begin the process of searching for the property as quick as possible. It is essential to make sure that you have identified about three replacement 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 kind of property that you find must be higher or equal to the cost of the original property that you sold.

If you want to find the property very fast, ensure that you have many options. The most typical mistake that a lot of people have is sticking to only one property. 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. However with 1031 exchange you can exchange any two kind f properties. The best thing is to expand your thoughts and consider many options.

You need to know that 1031 exchange operates under strict guideline. Once you sell your property you have 180 days to finish the exchange. The replacement property is supposed to be identified within the 45 days after you sell your property. The quickest way to find a replacement property is to starting finding it days before you even sell your property.

A qualified intermediary will significantly help you to find replacement property. Ensure that you have discussed the details of the 1031 exchange. A quality intermediary will help you in the paperwork to ensure that there is a smooth transaction. 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 known for much-helping investors find a broader market where they can identify a replacement property. The first has a relationship with many real estate firm distributed throughout the company. If you do not want the stress of management, consider contacting this firm.

When you visit the websites of the real estate agent, you can also find replacement properties. If you have a real estate agent that you know, they can significantly help you to generate a list of all the potential properties that you can choose. Another alternative is getting help from the local MLS; the problem is that there is a lot of legwork.

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