Most investors think the hard part of a 1031 exchange is picking the replacement property. The hard part is everything that comes after. Once your 45 day identification window closes, you have roughly 135 days to turn a name on a list into a closed property. In Part Two of my 1031 Exchange series I walk through that stretch of the timeline, and this is the checklist I use with my own clients.
Watch the video: https://youtu.be/Fmn8CWixb9I
What belongs in your 135 days
Negotiate your terms early. The price conversation should start the moment identification is done, not after your inspections.
Complete inspections and feasibility studies. Commercial properties hide their problems in roofs, foundations, and mechanical systems. Find them while you still have leverage.
Order environmental assessments when necessary. A Phase One takes weeks, and if it flags something, a Phase Two takes longer. This is the single most common schedule killer I see.
Obtain your appraisal. Your lender will not move without it, and appraisers in busy Texas markets book out.
Review title. Easements, liens, and survey surprises are much cheaper to solve on day 60 than day 170.
Secure financing. Rate locks, underwriting, and loan committee approvals all take real calendar time, and the 180 day deadline does not pause for your bank.
Resolve issues before closing. Every one of the items above can spawn a problem. The investors who win leave themselves room to fix things.
The math nobody does
Write those items down and assign each one a realistic number of days. Most investors get to about 100 days of work before they ever account for a single surprise. That is why I tell clients in San Antonio and the surrounding Hill Country to run their exchange like the deadline is day 120, not day 180.
A 1031 exchange rewards preparation and punishes improvisation. If you are considering one, reach out to me and Carl Pikus early and we will build this checklist into a real schedule for your deal.
Schedule a 1031 strategy call with JJ: https://calendly.com/treygroupcommercial/30min
JJ Gorena helps investors across San Antonio, Boerne, New Braunfels, and the Texas Hill Country structure 1031 exchanges the right way.
Nothing in this article is tax or legal advice. Every exchange is different, so talk with your CPA and a qualified intermediary before you make a move.
JJ Gorena II
Trey Group Commercial | eXp Realty
commercial@thetreygroup.com
