1031 Exchange:
1031 Exchange Guide | 1031 Exchange
Services
| HARBOR
CITY 1031 EXCHANGE SERVICES |
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Christopher Cunniffe, Harbor City’s Broker-in-Charge,
frequently teaches seminars to attorneys, accountants and other
professionals regarding the complex provisions of Internal Revenue
Code Section 1031 and its associated regulations. During his previous
career as a real estate attorney, he regularly closed real estate
transactions using Section 1031. Section 1031 is one of the most
powerful tax planning tools available to real estate investors and
Harbor City takes pride in the depth of our knowledge and experience
regarding Section 1031.
Harbor City is uniquely qualified to serve as
your 1031 Exchange “quarterback”. Below is a summary
of the role we typically play in providing real estate brokerage
services to 1031 Exchange clients:
- Assessment of Needs.
We begin the process by meeting with you to review the status
of your 1031 Exchange transaction. You may already have contracted
to sell your “relinquished property” and need assistance
to set up a 1031 Exchange and find suitable “replacement
property”. Alternatively, you may have already identified
your desired “replacement property” but need help
marketing the sale of your “relinquished property”.
Finally, you may just be thinking about a 1031 exchange and want
to learn more about the costs and benefits of pursuing a 1031
Exchange. Regardless of the status of your transaction, Harbor
City welcomes the opportunity to serve you.
- Assembling Your 1031 Exchange Team.
Harbor City benefits from very strong relationships
with experienced accountants, attorneys and qualified intermediaries.
We can plan and coordinate your 1031 Exchange with your existing
accountant and attorney, or provide you with a list of recommended
professionals with whom we have had good working experience. In
either event, we work with these professionals to review your
tax and financial circumstances and structure a 1031 Exchange
that best serves your interests. In some cases, this consulting
process may result in a decision not to pursue a 1031 Exchange
at all.
- Sale of “Relinquished Property”.
Harbor City can customize a marketing plan to sell
your “relinquished property”. The type of marketing
plan we develop will vary depending upon your time constraints
and the type of 1031 Exchange structure that you elect to pursue.
See Harbor City Seller Services
for more details regarding our “full service” and
“limited service” options.
- Setting up the Exchange.
As you approach the closing of the sale of your “relinquished
property”, we make arrangements for an experienced qualified
intermediary to hold your 1031 exchange funds. We coordinate with
the closing attorney and the qualified intermediary to make sure
that all necessary 1031 exchange procedures are followed and properly
documented.
- Identification of “Replacement
Property”. We meet with you to discuss and review
your short term and long term goals, risk tolerance, available
cash, borrowing capacity, existing real estate portfolio, geographic
preferences, and property type preferences. We then undertake
a comprehensive property search using a wide variety of property
listing databases as well as our extensive contacts in the real
estate brokerage and development community. See Harbor
City Buyer/Tenant Services for more details. Harbor City is
very aware of the time constraints associated with 1031 exchange
transactions and we work diligently to quickly provide you with
a range of “replacement property” options.
- Contract Negotiation.
We bring our extensive deal structuring and negotiation experience
to bear to assist you and your attorney in negotiating the purchase
of your “replacement property”.
- Due Diligence, Financing
and Closing. Our work does not end after the contract
for your “replacement property” is signed. Instead,
we stay actively involved as your transaction manager to coordinate
the services of attorneys, loan officers, environmental and civil
engineers, architects, surveyors, insurance agents and other professionals,
as needed to complete due diligence, finalize financing terms,
and complete the exchange.
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