One of the hints I received in regards to blogging was the WIFM (What's in it for Me) approach.  So, to those realtors out there, here is one WIFM among many as you have clients considering a 1031 Like Kind Exchange.  I will raise several more in the future.

 As one of the requirements to complete a succesful 1031 exchange, a taxpayer must identify potential replacement property to the Qualified Intermediary they hired to handle their exchange.  This identification must be received by the Qualified Intermediary by midnight of the 45th day.  That is, 45 straight calendar days from the sale of the relinquished property.  Ever wonder why you have an irritated client or receive that desperate call from out of the blue with someone shouting from the other end, "I am on day 44 and need help NOW!!  If they do not identify anything by day 45, guess what, no tax deferral. One of the identification rules is the "3 Property Rule".  This states that the client may identify one, two or three properties, regardless of their value, for identification purposes.  Out of the many years I have handled exchanges, 95% of the time this is the rule my clients will use. 

 Did I forget the WIFM?  Not at all.  Since nothing out of the ordinary ever happens at the closing table, deals never break, inspectors always find perfect property and financing can always be obtained, why would you allow your client to only identify one property?  After the 45th day, no other property can be identified.  So, if they only identified one property and for some reason they cannot close on it (fire, seller backs out, bad inspection), they HAVE TO PAY THEIR TAX!

Why would you let that happen to your clients!!  Even if your client knew for a fact that they will close on the one property they identified, remind them that SOMETHING could happen.  And just in case, let's go find at least one more property you would be comfortable with.  What are you doing?  Helping your client fall in love with you...after all that is what we want.  If they know we are taking care of them, heading off the possible, taping down the corners, they will stay with you.

This WIFM doesn't necessarily mean instant cash in your pocket, but we know a satisfied customer is a returning customer!