By Christina S. Porter

There are a number of different resources an investor needs to successfully complete a 1031 exchange. The first step to a successful stress free exchange is developing investment objectives adjusted for risk.

Following are the professionals who the investor needs to have on his or her team before launching the sale of the property he or she is going to relinquish.

Just remember a well planned 1031 exchange is a thing of beauty, and one that is unplanned invites financial and emotional hardship.

The key players in a 1031 exchange are as follow:

The accountant

The investor should make sure his or her accountant has experience doing 1031 exchanges or should find one that does. The accountant is a vital player in providing the investor with information as to the tax consequences of a 1031 exchange and should be able to advise the investor on the desirability of a 1031 exchange for both financial and personal reasons.

A qualified intermediary

The IRS requires that the owner of the property to be relinquished (the exchanger) not be permitted to have control of the proceeds from the sale of their property. It is necessary that a qualified intermediary or a similarly qualified party hold the proceeds and perform the following tasks:

- Acquires the relinquished property from the taxpayer.

- Transfers the relinquished property.

- Acquires the replacement property.

- Transfers the replacement property to the taxpayer.

There are many good intermediaries whose services are competitively priced. Visit www.TM1031Exchange.com and click on TM 1031 Tool Kit to use the national QI finder.

Real estate legal counsel

The investor should make sure his or her legal counsel has experience doing 1031 exchanges or find one that does, in the state(s) the relinquished and replacement property(s) are located. Legal counsel is used to review contracts to make sure the investor’s interests are properly served.

Real estate and 1031 exchange strategy experts

To successfully complete a 1031 exchange, it is vital that the investor have a clear road map as to both the types of investments they are going into and how to traverse the various stages of a 1031 exchange.

Keys characteristics of a good replacement property are certainty of close and transparency. The investor can not afford to have the purchase of their replacement property unravel after the 45 day identification period ends, and the investor needs to be able to quickly determine the risk and potential reward in any property without going through prolonged due diligence. Also vital to a successful exchange is a consistent, dependable flow of available investment opportunities with a range of risk-reward opportunities appropriate for the investor’s needs.

(Contact Christina Porter at 1-877-4 TM-1031 or e-mail her at Christina@TM1031Exchange.com for further assistance. TM 1031 exchange specializes in assisting investors in planning and executing successful real estate investment strategies. Visit www.TM1031Exchange.com for a complete list of investment properties and to download a Free 1031 Exchange Tool Kit.)