1031 Exchange Deadlines

[Karl Kauper]

Hi All - When selling a property with the intention of immediately buying another building via a 1031 exchange, can anyone recommend strategies for removing or at least lessening the risk of running out of time to meet the 1031 deadlines? Is there any way to basically “lock in” the target building, or is there always going to be a risk that you won’t be able to find the right building within the 1031 timeframe? I’ve done one successfully in the past, so I’m not a complete novice regarding the topic, but that one experience doesn’t make me any less worried about the possibility of running out of time. The time before I think I found a suitable replacement building purely by luck. Thanks for any insights! - Karl

[David Krulac]

The clock starts when you settle on the relinquished property, 45 days and 180 days.  The way to extend this is to start looking for the acquired property BEFORE you settle on the relinquished property.  Most people don't start looking until the the settle on the relinquished property, start earlier!  You can do a Reversed 1031 buying the acquired property first then sell the relingquished property.  I have done many 1031, and never did a Reverse 1031 and was advised by the Qualified Intermediary that they are more difficult and expensive.