Have a contract on a property and will use those funds to buy a different more expensive one.

What specifics need to be a part of my 1st closing?

Any reference you can point me to would be appreciated

You need to bring in a 1031 Exchange company before you sell. They have to hold the profits, otherwise you won't be eligible for the 1031. Once you take possession of the cash, you are out of luck. I know some 1031 companies if you need recommendations. Email me at atxbanker at gmail

Also remember you're on the clock to identify and close on the new place as soon as you close on yours.

Identity more properties than you think you need.

Thanks for all the replies.

I also have a very good 1031 exchange contact as well. PM or email (in profile) for this person.

You can typically only identify three properties. You have 45 days to identify you replacements. You can put offers in on properties within the 45 days and go through inspections and negotiations and if that property goes final then identify it as a replacement prior to closing or the 45 day expiration. No need to identify a property on day 10 that you are going to pursue only to have it fall through on day 30. That would be 1 of your 3. Hope that makes sense.

Bumping this discussion.

I own some Ag exempt property that I held for 3.5 years. Intended to build a home, never did.

I'm now listing that acerage, and buying a larger, more expensive tract of Ag exempt propert.

Can I use the 1031 procedures? Have a few more questions, but let's start there.

PFG said:

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Bumping this discussion.

I own some Ag exempt property that I held for 3.5 years. Intended to build a home, never did.

I'm now listing that acerage, and buying a larger, more expensive tract of Ag exempt propert.

Can I use the 1031 procedures? Have a few more questions, but let's start there.

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PFG,

1031 exchanges are for like kind property that is NOT owner occupied. People sometime believe "like kind" means residential for residential or commercial for commercial, but that is not the case. Like kind is simply real estate for real estate. In other words, you can't sell land and buy stocks, bonds, etc.

As long as you didn't live on the land you are selling and don't intend to live on the land you are buying, you should be fine

One other thing is that suppose you were selling an apartment complex for a million. You can buy more than one separate, non-contiguous property, e.g. a strip center and two rent houses.

Definitely find you a good qualified intermediary and let he or she guide you.

My information comes from being an escrow officer that has closed many 1031's but I certainly don't claim to know all of the intricacies.

Ah ok. Bummer. The purchased land will - without a doubt - be used to build a home that will become our homestead.

Sounds like, if I can't live on the new land purchase, then I'll be locked into paying capital gains on the sale of the other lot.

Where is your property you are thinking of listing?

Comal county, about 15 min NW of New Braunfels. Smithson Valley school districts

Anyone have a good reference for someone to execute a 1031 exchange?

A lot of commercial real estate brokers are very experienced in 1031 transactions.