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Best 45 Day Replacement Property

If you recently sold or are in the process of selling a property and are not ready to pay the large capital gains tax you will need to identify a 1031 Exchange replacement property.

But what is your best option that can be identified fast and creates predictable net income?

Perhaps you have sold a residential multi-unit or multi-family property and you have had enough of tenants and maintenance and property managers.

Now, this 45 Day Rule seems to create an atmosphere of both opportunity and stress coming down to the last days and there never seems to be enough time.

So what should you look for in the best replacement property type?

For one, you would ideally want a long term lease so you don’t have to deal with turnover annually. A five, ten, or fifteen-year lease would be optimal.

Normally the property owner/landlord is responsible for paying property taxes and repairs. But, what if that burden could be shifted to your tenant?

Investment Grade net leased properties are often the property of choice for the best tax-deferred exchange replacement properties

One of the guidelines set forth by the IRS in the 1031 Code is the identification of a potential replacement property. The “45 Day Rule” is standard compliance language when dealing with a 1031 Exchange.

The Replacement Property must either be Closed or Identified within 45 days from the date of transfer of the exchanged property.  For the prudent Taxpayer/Seller engaging upon a 1031 Exchange adventure, as soon as the Relinquished Property becomes “Under Contract” one may want to proceed forward in diligently looking the “Replacement” property.

But remember, the timing begins upon the Relinquished property closing.  This is why the suggestion is always to begin your replacement property search prior to the actual Closing of the property.  By doing this, you have your standard 45 days as well as the timing it takes for the relinquished property purchaser to accomplish their due diligence. 

InvestmentGrade1031.com can help you find, fund and exchange into a single asset or a portfolio of investment-grade net leased properties. You can have long-term tenants like CVS, Dollar General or Starbucks with leases guaranteed by corporate.

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