A 1031 is mostly about the clock.
Day 45 identification. Day 180 closing. Both deadlines are absolute. Most exchanges that fail, fail on the calendar, not the property.
We know the rules
Like-kind requirements, identification rules (3-property, 200%, 95%), reverse and improvement exchanges, partial 1031s with boot. We'll tell you what your situation qualifies for before you commit.
We start before the sale closes
The 45-day clock starts the day your relinquished property closes. We start building the replacement-property pipeline weeks before that. Most failed exchanges started looking on day 1.
We coordinate the qualified intermediary
A 1031 requires a QI who holds the proceeds. We've worked with several reputable Atlanta-based QIs and can introduce you to the one who fits your timeline and complexity.
How we work a 1031.
Pre-sale planning.
Before your relinquished property closes, we sit down and define the replacement criteria. Number of properties, target markets, financing approach, intended hold period. We start building the candidate list 30 to 60 days ahead so day 1 isn't day 1.
QI setup.
You select a qualified intermediary. We'll introduce you to two or three we've seen run clean exchanges. The QI takes possession of the sale proceeds, holds them in escrow, and disburses to close the replacement property. This must happen before the sale closes.
The 45-day identification.
Within 45 calendar days of your sale closing, you must identify up to 3 replacement properties (or more under the 200% / 95% rules). The identification must be in writing to your QI. We help you build the right list, with backups, before the clock starts.
Replacement underwriting.
For each identified property, we run real numbers. Cap rate, debt-service coverage, cap-ex reserves, exit projection. The property that wins the 1031 is the one that holds up to the math, not just the one that's available.
Offer, contract, diligence.
We negotiate the offer with 1031 contingencies and timeline language. We project-manage inspection, appraisal, financing, and title work to keep the 180-day clock honest. Buyers who started week one usually close week ten or eleven, well inside the window.
Close by day 180.
The replacement property must close within 180 calendar days of your sale closing. We coordinate QI disbursement, lender funding, title transfer, and final paperwork. Day 180 is a real deadline; we plan to close several days early.
The exchange decisions that matter.
1031 exchanges are mostly forgiving on property and unforgiving on timeline. Here's where most exchanges go right or wrong, and where we add the most value.
Like-kind scope
Any U.S. real property held for investment or business use qualifies. Land for rental property is fine. Personal residence to rental is not. We'll confirm your specific situation qualifies before you commit.
Which identification rule
3-property (up to 3, no value cap), 200% rule (more than 3 if total value is under 200% of sold property), 95% rule (more than 3 if you close on 95%+ of identified value). We'll pick the rule that gives you the most flexibility.
Reverse or improvement
Reverse exchanges (buy replacement first, sell relinquished second) and improvement exchanges (use proceeds for renovation) are doable but more complex. We'll tell you whether either is worth the cost in your case.
Partial exchanges and boot
You don't have to reinvest 100%. The portion you don't reinvest is "boot" and gets taxed at standard capital-gains rates. Sometimes a partial 1031 is the right move; we'll model the after-tax math.
What disqualifies an exchange
Touching the sale proceeds yourself (not via QI). Missing the 45-day identification. Missing the 180-day closing. Identifying property you can't finance. Each of these is preventable with the right preparation.
"We sold a duplex and had 45 days to identify three properties or lose six figures to taxes. Park Realty had a shortlist ready before the closing wired through. Closed the replacement on day 71. Smooth."B. AldrichDuplex to single-family 1031, Kirkwood to Oakhurst, 2023
The things 1031 clients actually ask.
Strict rules, but mostly common-sense answers when you have someone who has done it before.
What qualifies as like-kind?
Any U.S. real property held for investment or business use exchanges for any other U.S. real property held for investment or business use. Single-family rental to multi-family. Raw land to commercial. Apartment to industrial. The flexibility is much wider than people assume. Primary residences and inventory (flip property) do not qualify.
What's a QI?
A qualified intermediary, also called an accommodator. A neutral third party that holds your sale proceeds in escrow during the exchange. You cannot ever touch the proceeds yourself, even for a moment. The QI must be in place before your relinquished property closes. We'll introduce you to two or three reputable Atlanta-based QIs.
Can I do a reverse exchange?
Yes. You buy the replacement property first (parked with an exchange accommodation titleholder) and then sell the relinquished property within 180 days. Reverse exchanges are more expensive (often $5k+ in QI fees vs $1k-$2k for forward) and have stricter rules. Worth it when you find the perfect replacement before your current property sells.
What if I miss the 45-day window?
You lose the exchange. The transaction is treated as a straight sale and capital-gains tax becomes due. This is why we start building the replacement pipeline weeks before your sale closes. Failed 45-day windows are the most common cause of broken exchanges, and they're almost always preventable.
What's boot?
Boot is any value received in the exchange that isn't like-kind real estate. Cash you don't reinvest. Personal property thrown into the deal. Debt relief that exceeds what you take on the replacement. Boot gets taxed at standard capital-gains rates. Sometimes accepting a small amount of boot is the right strategic move; we'll show you the math.
Pick the stage you're actually at.
The 45-day clock waits for no one. If you're inside an active window, tell us that first and we'll respond same-day.
Exploring whether 1031 makes sense for your situation? We'll send you a structured walk-through. Selling soon and want a head start? We'll start building the replacement list now. Already inside the 45-day window? We respond within hours.
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Send us the dates.
Closing date of the relinquished property and the relevant deadlines. We'll get back to you within hours with replacement candidates worth identifying.