Tim Ball (EXP Realty, LLC.)

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Rainmaker
748,791
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Here ya go . . . done it many times in many states:
1. DO NOT PASS GO, your client FIRST needs to hire a QUALIFIED INTERMEDIARY. You need to know how much he can and NEEDS to spend, and what he can and cannot buy.
2. Depending on the briskness of your market AND HIS, he may not be timing the deal properly if his duplex is not already in escrow. Remember you have 45 days to ID the replacement property and 180 to close (them all) AFTER the closing of the duplex.
3. Remember that you will need 1031 verbiage in your Contracts: "Buyer/Seller to particpate in Buyer/Seller's 1031 Exchange at no monetary cost to (the cooperating party)"
4. Timing is important since you're purchasing multiple properties . . . keep an eye on the calendar and allow longer escrows for the downleg (see 5)
5. HAVE BACKUP PROPERTIES identified, JUST IN CASE one falls out. When you exchange, you have to 'exchange up' so if it's a 500k downleg, and you're buying 2 275k uplegs, if one can't close you'll need another to avoid tax on the profit. 
6. YOU talk to the intermediary and get THEIR TIPS for a smooth deal . . . they are your guru!

Nov 03, 2019 05:02 AM
Rainmaker
3,426,151
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Ah, Grasshopper...follow the advice of Candice A. Donofrio.   Real gurus = a good idea.  Gurus masquerading as experts = not so good.  Get the right help to best serve your client.  

Nov 03, 2019 05:53 AM
Rainmaker
3,211,984
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

You work with an attorney who specializes in 1031 exchanges... that's how you keep it from going off the rails.

Nov 03, 2019 04:28 AM
Rainmaker
1,559,170
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

As Candice A. Donofrio wrote. The Best Advice!

Nov 03, 2019 06:30 AM
Rainmaker
3,127,715
Richard Weeks
Dallas, TX
REALTOR®, Broker

Get with a good Qualified Intermediary in your area.

Nov 03, 2019 06:22 AM
Rainmaker
2,826,511
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

No airbags .. follow the advice of Richard Weeks 

Get your broker involved if necessary or partner with another agent experienced in this type of real estate transaction.

Nov 03, 2019 07:06 AM
Rainmaker
5,119,392
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

decades ago, I did one and each party had their own attorney..... it ran very smoothly.... don't play attorney.... even if you think you've mastered this type of exchange, I assure you, you haven't unless you have legal background....

Nov 03, 2019 06:22 AM
Rainmaker
780,753
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Any tips?

Hmm, if you have no experience..

#1. Hit the books
#2. Find someone with experience
and finally, understand 1031s are timing critical. Don't offer outcomes that the time-line will not support.

Nov 03, 2019 04:48 AM
Rainmaker
1,253,389
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Candice A. Donofrio covered it.

Nov 03, 2019 02:42 PM
Rainmaker
2,485,013
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

hand-hold the whole thing and walk it in and out of escrow & into the sunset

Nov 03, 2019 06:28 AM
Rainmaker
617,493
Peter Mohylsky
PrimeSouth Properties - Santa Rosa Beach, FL
Let me help you find your path to the beach.

Hire an expert, 

Nov 03, 2019 05:26 AM
Rainmaker
456,902
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Your client needs a good lawyer with 1031 experience

Nov 03, 2019 05:00 AM
Rainmaker
3,050,482
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

You should definately speak with a lawyer who specializes in closing them. Changing states, going from one type of property to another all add difficulty 

Nov 03, 2019 04:47 AM
Ambassador
1,655,951
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Either take a class on 1031s which are offered all the time or hook up with someone who does them.

Nov 03, 2019 04:31 AM
Rainmaker
1,692,798
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Best of luck

Nov 03, 2019 03:36 PM
Ambassador
2,896,357
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

In Georgia the only difference in the real estate end is to make sure that the closing attorney for the sale/buy transactions are both qualified to hold 1031 funds.  Beyond that the buyer/seller works with their own CPA on budget amounts and I only have a clause to ad to the contract that it is a 1031 exchange.

Nov 03, 2019 03:07 PM
Rainmaker
712,464
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

 If you have not already gotten a 1031 exchange company involved, do so immediately. Their representatives can answer all questions for you and your client. Get them involved before your client negates any advantage offered by doing the exchange.

Follow the advice of Candice A. Donofrio 

Nov 03, 2019 02:08 PM
Rainmaker
3,364,771
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

A good qualified intermediary in Florida is an excellent first step. Candice A. Donofrio provides an excellent outline

Nov 03, 2019 09:59 AM
Rainmaker
1,557,749
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Did you ask this before like a week ago?

Contact a 1031 attorney who's up on the deal.

Nov 03, 2019 07:35 AM
Rainmaker
4,572,791
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Tim,

Like Candice A. Donofrio explained, you need an intermediary!  Wishing you success. A

Nov 03, 2019 01:31 PM
Rainmaker
5,502,648
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Make sure your client is receiving professional advice.

Nov 03, 2019 11:58 AM
Rainmaker
1,263,152
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

They need a good administrator and you (or them) need to find a good agent to partner with in Florida.

Nov 03, 2019 07:52 AM
Rainmaker
1,035,283
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Stick to the schedule. 

A former realtor sold her home for 1+ mil and went around US. Told me she got one in Dallas for 90K. Reluctantly make an offer for a 2 br condo for 550k across from Apple Space Ship.  It was instantly rejected. Then drove 75 miles to East SFBA. Headed for Denver to do basement bargain hunting. You have just 45 days to identify and 180 to close all deals. Not much time to f&c# around. If you identified 3 properties that you like to do exchange from and can not get them. Out of luck.

You are better off showing them new homes or vacant homes to close. 

Nov 03, 2019 07:40 AM
Rainmaker
547,292
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Don't look to active rain for legal advice.  I already see some answers that are not true.

Buyer needs to hire an intermeditiary to show them the way...

 

Eve

Nov 03, 2019 07:32 AM
Rainmaker
642,029
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Refer them to a good agent in FL who understands 1031 exchanges and who will communicate with you and the attorney for a smooth transaction.

Nov 03, 2019 07:28 AM
Ambassador
4,367,333
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Enlist qualified professionals to help with this.

Nov 03, 2019 05:37 PM
Ambassador
2,239,745
Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

I am reluctant to answer your question because I do not practice real estate in either state. Just make sure your client does not deposit the money from the first sale into a personal account - it will no longer be allowed in the 1031 Exchange.

Nov 03, 2019 04:32 PM
Rainmaker
1,658,635
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Tim Ball if your client has not already lined up a CPA or other tax professional in each of those states you may wish to aid him/her with that part of the transaction.

Nov 03, 2019 08:06 AM
Rainmaker
4,160,424
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Hope you referred it to someone that knows how to do a 1031, and then you should not be worried.

Nov 11, 2019 02:24 PM
Rainer
243,524
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

I recommend you read and know all the rules and get Inermediary involved now. First American would be my choice. I would get the title officer and theri CPA to verify what the basis is and what was depreciated to compare IF an exchange is the best. They need to have money to travel to Florida. Buying sight unseen is not a plan.  If you price the California duplex correctly it should sell in 40 days - DO not go into this alone if this is your first one. The listing/sellers will blame you if you land them a taxable event.  A 1031 exchange has hard and fast time lines which make this a juggler's worry.

Nov 04, 2019 10:49 AM
Rainmaker
3,242,159
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I just did one with 1031 in Calif and colorado and no problem

 

Nov 04, 2019 09:01 AM