If you're looking for a good investment opportunity, you might consider a DST 1031 properties exchange. This is where you sell a property and find an exchange, with the sale of the initial property not having capital gains. If you're thinking about this investment opportunity, remember these tips.
Set Up 1031 Before Closing
Before you officially close on another property, it's important that you already have this 1031 exchange set up. Then, getting the replacement property will be a smoother process and you won't have to stress as much.
There are several ways you can get this exchange going, such as completing forms online, emailing, or calling an asset preservation company directly. Just make sure whichever option you decide to go with, you provide all of the relevant information. This should include details on yourself, the closing agent or attorney, and the property being purchased.
Hire a Real Estate Agent
Since these exchanges involve a lot of property selling, it's important that you have a professional that can carry out these sales as quickly as possible. That's where a real estate agent comes in handy.
They're probably already familiar with this exchange process, and as a result, can get all of the paperwork in order and list your property on the right directory sites. They will also do their best to quickly vet offers so that this property gets sold and you can begin buying more replacement properties. This agent saves you a lot of time and stress, ultimately.
Identify Up to Three Properties
Once you start looking for replacement properties to complete this exchange, it's important to remember that you have to identify up the three that you're willing to pursue. Thus, it's important to really look over the replacement options carefully.
Make sure the condition of the properties are excellent and preferably in a good part of town. This way, you'll have no trouble selling these replacement properties at a later date. Again, a real estate agent can help with this search process. You then don't have to spend a lot of time overthinking replacement properties.
A 1031 DST exchange is a great investment opportunity in the realm of real estate. It may seem pretty complex, but it doesn't have to be. You just need to know what this process involves and follow the necessary protocol in the beginning. Then, you'll get through this exchange without any major complications taking place.Share