Do your best to secure financing for a replacement property before relinquishing your sale property.
During the last twenty years I have seen my share of exchanges struggle to get financing for a variety of reasons.
I have seen people lose their job or even quit their job while in the middle of a 1031. Obviously job loss is not controllable though I strongly encourage you to complete an exchange before putting yourself in a more difficult situation.
Today, more than ever it is critical to understand one’s finance situation before entering into an exchange. Getting a loan today often takes substantially longer and as exhibited in this month’s “Deal of the month” we find the loan to value requirements are much different than only a few short years ago…
When I was first learning to SCUBA dive I was taught to “plan the dive, dive the plan”. The same can be said about 1031 Exchanges, planning is essential.
