1. Decide
Making a wise decision on what investment property is a good option for a 1031 Exchange is essential. There is some criteria that should be met when selecting a property for a 1031 exchange transaction. Discussing this with your Qualified Intermediary is beneficial.
2. List
Listing your investing property is the next step in the 1031 exchange process. Choosing a knowledgeable Commercial Real Estate Agent is very important.
3. Due Diligence
Begin your search for an replacement property and do your due diligence. Your qualified intermediary such as Elite 1031 Exchange can give you all the proper timelines that pertain to the state in which the transaction is conducted.
4. Hire
Hire Elite 1031 Exchange, LLC to execute the transaction and guide you on every step of the process. We charge a one time reasonable fee and provide outstanding service.
5. Negotiate and accept the offer
Elite 1031 Exchange, LLC will act as your qualified intermediary and will execute all documents properly so that the criteria for a tax deferment on a 1031 exchange transaction is met with diligence.
6. Sell your relinquished property
As in a standard closing the title company and Attorney handles the closing, however we as the qualified intermediary represent the client in the transaction. The proceeds will be transferred to our es-crowed in our account.
7. Identify the replacement property within the designated time period
It is permissible to identify up to three properties or more if closing on 95% of them.
8. Close on the property of your choice
Notify the seller that you are looking to execute a 1031 exchange transaction.
9. Let your Qualified Intermediary work with a title company that they work well with
A little company and QI working together will make the process smooth.
10. Plan your next 1031 exchange transaction
If you would like to acquire wealth using a 1031 exchange transaction is a great resource. The benefit of a 1031 exchange is that you can do it again and again.