The clock matters. Plan around it, not against it.
A 1031 exchange has two real risks: identifying the wrong property, or letting the timeline slip. Both are timeline problems wearing property-problem costumes. The exchanges that succeed are the ones we've planned backward from the deadline at every step — the qualified intermediary, the lender, the listing agent on the upleg, the inspectors, the title company all moving in coordinated sequence. The work is mostly logistical. The discipline is what makes it succeed.
An exchange engagement begins, ideally, before the relinquished property closes — that's when planning is cheapest and the options are widest. We work backward from the 45-day identification deadline and the 180-day close deadline, identifying not one but two or three candidate upleg properties so a single fall-through doesn't end the exchange. I coordinate with your tax counsel and the qualified intermediary, manage lender pre-approval on the upleg in parallel with the relinquished sale, and structure offers that account for the exchange constraint without telegraphing it as a weakness to the upleg seller. If a candidate property fails inspection or pricing, the backup is already underwritten and ready. Most exchanges I run close around day 90–110 of the 180, well inside the IRS clock — not because of luck, but because we worked backward from the deadline at every step.
Investors selling appreciated property who want to defer the gain into replacement property of equal or greater value. The most common shapes I see: small multifamily upleg into larger multifamily, single-family rental upleg into a small commercial property, or a long-held parcel into income-producing real estate. Reverse exchanges (acquire upleg before disposing of the relinquished property) are workable but more complex; we talk through whether the structure justifies the cost case-by-case.
How it runs.
Pre-list planning. Engage as early as possible — ideally before the relinquished property hits the market. Tax counsel, qualified intermediary, and target upleg criteria all in place before close.
Backup identification. We identify two or three candidate upleg properties before the 45-day clock starts, not on day 44.
Parallel underwriting. Upleg lender pre-approval and inspections run alongside the relinquished-property close, not after.
Upleg offer + escrow. Offer structured to accommodate the exchange constraint without weakening the negotiation.
Close + final exchange documentation. Qualified intermediary distributes funds; tax counsel files the appropriate forms; we close.
About this engagement.
Can you start the exchange after the relinquished property has already sold?
Yes — but the planning room is much tighter. I prefer to engage at least thirty days before the relinquished sale closes; engaging after close is workable, but the 45-day identification deadline becomes the immediate constraint.
Do you provide the qualified intermediary, or do I bring my own?
I work with three QIs whose work I've used repeatedly and trust. Clients are welcome to bring their own; many prefer the recommendation because the working-relationship reduces friction across the exchange.
What if all my identified properties fall through?
That's exactly why we identify two or three rather than one. If all of them fail — which has happened a couple of times in more than twenty-five years — the exchange fails and the gain becomes taxable. The backup-strategy discipline exists precisely so it almost never gets there.
If a 1031 clock is already running, the conversation should start this week.
Replies within one business day — usually within four hours. Confidential, no drip sequences.