Thanks so much for checking out the Real Estate Today Podcast. In studio once again today, Megan McMahan. We’re talking exchanges.
Bobs Blogcast 59 – Megan McMann – Exchanges
Bob: Bob Nelson, real estate investment broker with PacWest Real Estate Investments. Joining me today is Megan McMahan. Megan is the manager of Cascade Exchange Services. She’s an exchange facilitator, an integral part of every tax deferred exchange. Megan also is a CPA, which means that she’s got the formal education as well as the expertise in being able to assist you in putting together the tax deferred exchange. Megan, thanks for joining me today.
Megan: Thanks for having me.
Bob: Let’s go with a situation that one of my clients is facing right now. He has two properties that qualify for exchanges. He wants to sell both of them and acquire a replacement property that is bigger than each of the two. Restated, he has to use the sale proceeds of both sales in order to acquire the replacement property. So far so good? He’s now sold one of them. The other one’s having difficulty closing simply because there’s a lender’s dragging their feet. He’s already got the replacement property under contract, but is starting to freak out because he’s getting past, coming up on the edge of his forty-five day period. Can you handle a situation like this?
Megan: We can. It gets complicated pretty quickly and you have to be really focused on your timelines, because everything with the exchange when you’re selling two properties will go off of the first timeline. For the first property that you sell, you have forty-five days to identify, which they’ve already done. Then you have a hundred and eighty days to close. The key is we have to get that replacement property identified and then closed on within that hundred and eight days, despite the delay in the sale of the second property.
Bob: Right, the problem has been, and he knew he was starting to get himself into a ticklish situation, because one property had effectively sold much quicker than the other. It was anticipated it would be like that. The problem is, finding the replacement property is the real dilemma in today’s market. I work like crazy to find the really good stuff that a person can exchange into, and when they come along, you’d better nail them down fairly quickly. He nailed down one, but now we’re having trouble closing one of his down leg properties to catch up. You can handle something like that?
Megan: Yes absolutely.
Bob: Go to Megan and get council before things turn into a train wreck. I’m Bob Nelson, real estate investment broker with PacWest Real Estate Investments.
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