Don’t Close a Deal Until Your 1031 Exchange Is Ready
David Moore started with a clear warning: do not close anything until you know what your 1031 Exchange is going to need. He explained that in recent years, they have seen situations where a sale fell apart, yet the investor still wanted to move forward with their next purchase. Too often, someone tells them, “just buy it and you can do a reverse later,” but that is not how it works.
David emphasized that the 1031 Exchange must be structured before any sale or purchase takes place. The Exchange has to be in place from the very start. He said, “Do not close a transaction without your facilitator involved.” Working with a qualified intermediary early ensures everything is properly set up to meet IRS requirements and protect the tax deferral.
Planning Ahead Protects the Exchange
David reminded investors that if they are working with his team, they will make sure the structure is ready before closing. It is not just about filling out paperwork, it is about setting the right foundation so the Exchange qualifies. If you wait until after the sale or purchase, it is too late to make it a 1031 Exchange.
Knowing Your Options Can Change Your Timeline
Tom Moore shared a story about a future client he recently spoke with. This client planned to sell a property in the next six to eight months but did not fully understand what they could acquire afterward through a 1031 Exchange. Once Tom explained the flexibility of replacement property options, their outlook completely changed.
They had owned a property that had become more of a burden than a benefit with constant management issues and tenant headaches. Learning how broad the Exchange possibilities were gave them a new plan. Instead of rushing or putting it off, they were able to time their sale and acquisition to move into a property that better fit their lifestyle and investment goals.
Flexibility Is the Real Advantage
Tom’s example shows just how understanding your replacement property options can open the door to new opportunities. A 1031 Exchange is not only a tax tool, it’s a way to transition from a hands-on, management-heavy property to one that requires less work. By knowing what is possible early, investors can plan strategically rather than react after the fact.
Work with Experts Before You Close
Both David and Tom agreed that the biggest mistake investors make is waiting too long. Every 1031 Exchange needs to be structured before closing, and having an experienced facilitator involved from the start can make or break your ability to defer taxes successfully.
Whether you are tired of managing tenants or simply ready to rework your real estate portfolio, knowing your 1031 Exchange strategy ahead of time gives you control, flexibility, and peace of mind.
Ready to Plan Your Next 1031 Exchange?
If you are preparing to sell or reinvest, the first step is talking with an expert before you close. David Moore and Tom Moore at Equity Advantage help investors structure successful 1031 Exchanges from the ground up. Reach out today to make sure your next move keeps your money working for you.
The Guys With All The Answers…
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 503-635-1031.
