Posted by Dave T on November 09, 1998 at 18:37:23:
1031 exchanges do not have to be property-for-propery exchanges as in a traditional barter transaction. That is, two people with property do not need to find each other and agree to “swap/exchange” their holdings.
A 1031 exchange can still be accomplished through a traditional sell and buy approach. An investor who sells property to a third party could still buy his replacement property from yet another party without invalidating eligibility for a 1031 exchange.
There are tax rules governing the transactions, but that should not keep you from offering to buy property from an investor who wants to do a 1031 exchange. Once your sale closes, the investor buys the replacement property from someone else to complete the 1031 exchange – insuring that he/she follows the IRS rules governing the transaction.
Has anyone ever dealt with someone wanting a 1031 Exchange? Are these people usually set on doing this or can you still try to make an offer to them without the exchange? Isn’t the purpose of the 1031 to help with the capitol gains. So can’t you make offers to these people without the property trade and still help them in the capitol gains area.
I would be happy to send you more information regarding 1031 exchange transactions. Please email your mailing address and I’ll have the brochures forwarded to you which will help spell out the exchange process and help you understand the other side of the issue.