Selecting the Right Properties

Analyze Your Exchange Options

One of the most important steps to executing a successful 1031 exchange is planning your new investment properties commonly referred to as your “upleg” properties. Nothing is more likely to cause issues or potentially cause your exchange to fail than a lack of preparation and planning. Below we outline at a high level what some of the steps you should take in planning a successful exchange. All this planning should be done before you even thinking about alerting your current renter to your intent to do an exchange.

What are your Growth Goals?

The first step in guiding your exchange to the right type and location of properties is figuring out what your overall goals for the 1031 exchange. These are some of the reasons our clients exchange:

Increase Cash-Flow
Increase Leverage
Networth Growth
Ease/simplicity of management
Relocation

What type of Properties are you Comfortable Buying?

Once you’ve determined the type of reinvestment you are planning to do, your next decision will be type of property to support your goals. These are some of the different investment property types we help our clients acquire and are based on their goals:

Single Family Residence
Condo/TH
Apartment Buildings
Short Term Rentals
NNN Commercial or Industrial
Hospitality Properties
Delware Statutory Trusts

Where are the Properties Located?

Based on the Type of Returns you want and the property types you are interested in we will help you analyze different geographic markets to help you select the one(s) that best suit your needs. This includes local economic forecasts, popluation trends, business demographics, other important financial factors, as well as one of the most important data points: local inventory of your target property type.

Putting it all Together

After you’ve done all your analysis you’ll have a clear picture of what, why, & where you are planning to invest. Your next step is getting your current investment property ready for the market and listing it for sale. Click the button below to learn more about how we help our clients acheive maximum results when listing their investment properties for sale.

How to List and Sell for maximum results

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Ten31 Real Estate

Residential Investment Real Estate Done Right.

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408-718-9319