How to Prepare to File a 1031 Exchange

Thoroughly fill out each line-item in this comprehensive resource to ensure that you are fully equipped and ready to successfully file a 1031 Exchange.

When initiating a 1031 Exchange, it is crucial to have a well-defined strategy, organized documentation, and a competent real estate team in place to facilitate the exchange within the designated timeframe. In this informative article, you will gain insights on:

How to architect your exchange strategy.
What documents you must assemble for your exchange.
How to organize your real estate team to assist in the success of your exchange.

Architect Your Exchange Strategy

Investors need to be well-informed about the various exchange strategies available – Standard Exchange, Reverse Exchange, or Improvement Exchange – at the initial stages of considering an exchange. The chosen strategy not only impacts the qualified intermediary's fee but also determines the type of properties to be identified, submission timelines for specific documents, and how the loan product functions in relation to the relinquishment and acquisition of the identified properties. Dive deeper into the linked articles to determine which exchange strategy aligns best with your needs, and it is highly recommended to seek professional guidance. Take advantage of a complimentary consultation with one of our knowledgeable 1031 Exchange experts to discuss your options in detail.

Assemble These Critical Documents

Ensuring that you have the required documents for a seamless completion of your 1031 Exchange is crucial. At Elevated 1031, we simplify the process by automating all the necessary forms and facilitating communication with the relevant parties through our user-friendly Plenti Exchange Portal. Say goodbye to the stress of coordinating with the right individuals at the right time, as our system will keep you informed and prompt you when action is needed at every stage.

Below is a comprehensive list of the essential documents involved in a 1031 Exchange:

Form 593
Form 8824
Form 8949
Form 6252
Form 4797

If you desire to use a loan product to fund your exchange, then it is important to assemble important loan documentation necessary for pre-approval as well:

Business Documentation
Collateral Documentation
Tax Returns
Profit & Loss Statement

Contact Your Real Estate Team

Ensure that you gather your complete real estate team, comprising your trusted real estate agent, experienced real estate attorney, reliable escrow agent, knowledgeable mortgage broker, and, of utmost importance, your qualified intermediary.

Conclusion

Unlock the pathway to a prosperous 1031 Exchange with a strategic trifecta: deliberate planning, meticulous documentation, and a dedicated real estate team ready to empower your exchange. With these pillars in place, the only decision left in your hands is choosing the properties to sell and acquire, as your success awaits.