“Hello Gary… We’re interested in selling our investment properties. We like the 1031 exchange concept. However, we are scared off by the 45 day identification process and feel it’s not enough time to find a property to buy.”
Answer:
A couple of ideas…
First, you could list your properties contingent on buying a property. In that way, if you don’t find a property, you don’t sell. Yes, you will lose a few buyers, but 80-90% of buyers will still be interested.
Second is a “reverse exchange,” where you buy the new property first. Two caveats: 1) It costs you about $5,000 in extra fees. 2) You need to have the down payment money available WITHOUT first selling your properties.
For more info, email me or call me at (858)457-KENT.
For more on 1031 exchanges, try our free DVD: “How to Trade Up Your Investment Or Rental Real Estate & Pay ZERO Taxes.”
