Chalk up another investor innocently snared in the 1031 timing trap.
That’s not a small amount of $$$ to place in a short period of time.
45 days to identify their new property and 180 days to close. BTW, the 180-day clock starts the same day as the 45-day one.
As mentioned in other posts, the solution is to NOT close on the existing property, but to give the buyer of the relinquished property the OPTION to buy it. The timing of the closing/sale will make it much easier to make your upleg purchase.
No time pressure if the clock never starts.
We’ve all seen deals fall apart in the due diligence period. Also title issues crop up. Environmental problems can also delay or make properties worthless.
All these can/will kill your 1031 exchange.
I always have some properties tied up via options so that my 1031 exchange contacts have a place to place their funds. Even if its just for a short period of time.
This is more cash than I normally can place at once, but contact me as things constantly change.
Thanks for listening.
Keep us posted,