Real estate assistance

Theresa Fluegel with Chicago Deferred Exchange. can do your 1031 for you. That’s all she does. I’ve done a few 1031s with her. Her company acts as the required qualified intermediary. She is based in the Bay Area but everything is done electronically.

You should check with https://www.meganmicco.com on property sales and 1031 exchanges. I worked with her on a multi-family sale in Berkeley a few years ago and her advice was incredibly helpful. You need to identify a new property to purchase within 45 days of closing your sale and then complete the new purchase within 180 days, so it's important to be in close contact with an experienced agent who can make sure you meet the required timelines. Good luck!

We used Teresa Fluegel who does only 1031 exchange transactions.  She is a Certified Exchange Specialist and has clients all over California but is located in this area. Each of her clients have different reasons for doing the1031 exchange, Teresa is very knowledgeable and helpful in achieving your goals and facilitating the 1031 exchange transaction.  She took us through the process step by step. 

Teresa Fluegel, Certified Exchange Specialist®, Chicago Deferred Exchange Company

Direct: (415) 596-6749

Teresa.Fluegel [at] cdec1031.com

Hi, We have done several 1031 exchanges using IPX 1031, specifically initially with James Callejas but we have also had experience with many of his associates in various transactions. They will guide you through the process. You will also need an accountant who can deal with the tax implications as it can be pretty complicated and you really need to understand the timing issues before you start as you have a limited time to identify a replacement property and then complete the exchange. One word of advice-check the likely insurance issues on a replacement property or the area it is located as it has become a big issue in California.

Good Luck

Howdy anonymous 1031 person,  I've done these sales/exchanges three times, and was successful meeting the time limits twice, so was happy with outcomes.

If you have a realtor, ask your realtor if THEY have done 1031 like-kind exchanges (and push them on this ... how many times?  when?  what situtations?).

Once you have a realtor you're confident about, ask that person for names of 1031 exchanges they've used in the past.  Don't let them pick for you; just get any names and do your own research.  You can also search online for 1031 exchange entities.  Once you find some listings, call and have a chat:  how long in business? how often they complete one of these exchanges? what fee they charge?  and those are the basic starters.

I'm assuming you've already done some research on how these exchanges work, what "type" of property you're "exchanging" for what OTHER type of property, and the strict time lines involved ... if not,  do that tonight!

One thing that a potential exchange service will NEVER bring up -- and YOU SHOULD -- is asking, "How much interest are you paying on the exchange amount?"  Sometimes you'll get several seconds of dead air ... they don't bring this up, and aren't used to people asking about it.  But here's the importance of this:  if you are involved in a sale where there is $500,000 on deposit for several months, even at a 3% interest rate, that can be over $7,000 of interest in just 180 days!  (in one of my past 1031 attempts, the "sale property" was far in excess of $500,000, so a half year of interest was going to be significant). They are more than happy to keep all of that themselves without ever saying a word.  So you need to ask, and feel free to negotiate!  They are already getting a flat fee to HOLD YOUR MONEY, and then verify a couple of pieces of paper at the end of the real estate transaction ... which their fee more than covers.  A multi-thousand dollar "bonus" on top of that is uncalled for.  Feel free to take a "pass" on any 1031 exchange that won't pay you some of the interest on the "deposit" amount.  For me, I wouldn't take less than half of the interest that they are making on the deposit, but I haven't done an exchnage in about seven years, so it's possible there are new differences.  Make sure this provision is in writing -- in the actual exchange agreement itself.

Also, it's never too soon to start looking for your new target property you'd be buying.  The one time a 1031 exchange did NOT work for me, was when, in a tough time for real estate, I couldn't find a property that worked for what I was trying to do (like you, rental property within a specific geographic area).  While the timelines under 1031 seem like they give you plenty of time, you can run out of time trying to find property that works for you.  Good luck!  And if you want more detail, post up again!  Kirk out.