1031 Exchange Step-by-Step:

The 1031 Exchange process is relatively simple:

The exchanger decides to sell and finds a buyer.

At the closing, proceeds are wire-transferred to a designated "Exchange Accommodator" or "Qualified Intermediary," so that the seller (exchanger) cannot directly touch the funds.

The exchanger's funds from the sale are held in a separate account, set up by the Exchange Accommodator, for each specific transaction. The first half of the transaction is completed at the close of the sale.

Within 45 days thereafter, the exchanger must identify or "nominate" a replacement property and must complete the exchange within 180 days of the close of escrow of the relinquished property in order to qualify for tax deferral. These timelines are set by the IRS.

Once the replacement property is nominated and is ready to close, funds held by the Accommodator are wire-transferred to close the replacement property.

Title to the replacement property is then transferred to the exchanger to complete the exchange.

A qualifying tax opinion from an independent law or accounting firm is provided to the exchanger to support the qualified tax deferral.

We make it easy for you to find a property to exchange into, make sure it's suitable under 1031 Exchange rules, and make sure it's a good investment for you. Then we offer it to you for you to invest into. Our Co-Ownership Interest properties are all vetted for suitability and profitability, and our certainty of execution acquisition process ensures that the nominated property will close on time so that all 1031 Exchange deadlines will be met.