1031 xChange - what are your stories - help me understand

[Daria B.]

Hi all,

I've read a lot so far about this topic and the more I read and see the restrictions I don't know if it's something I want to venture into. It was a nice thought at first reading of avoiding capital gaines but then I read about the 45 days (max 3 properties) no quarter if issues.

Rhetorical, but why does the IRS not see that no one controls the market and identifying 3 properties with no guarantee of closing and if something goes wrong, that it's no more exchange. And of course money has now been paid to the 1031 xchange company for starting the process so that's now gone as well.

Anyway, after finding this out I wanted to hear from others that began a 1031 but it didn't work out and why. 

Maybe some enlightenment on how to make this work when there is no controlling the market. Meaning, I find 3 properties but then someone else comes along and buys them up or for some reason the seller decided not to sell. Anything can happen that would exclude what I found to no longer be viable, which is why I don't understand that at least within the 45 days other properties could not be included. Anyway, it's the IRS.

Cheers!

Daria

[Bill B.]

I did my first 1032 with Dave in September. 

1) you don’t even have to submit a list of 3 properties until day 45 after you close. 

2) I was able to close before day 45 on my new property so it never even came up. 

A week or two before your property closes you get a property or two under contract. That way your inspection contingency overlaps your closing date. You close on your sale and then you can buy anything you have under contract without ever worrying about the 45 day list. 

There’s was literally zero stress about being able to close before 180 days (I just got that automated email yesterday saying I had a few days left.)