The Steps to a Successful Exchange

An exchange can go off track very easily. In order to stay on track, you need to stay in touch. Feel free to get a general idea of the steps below, but remember to schedule a consultation. We want you to tell us your story so we can navigate your exchange.


1. Set Up Your Exchange with 1031 Exchange Advantage

Set up your exchange BEFORE you close on the sale of your property, here.

2. Documents Instantly Available

Your documents are instantly available and automatically sent to your closing agent. You are ready to go!


3. Sign Your Exchange Docs

Sign your exchange docs and return by fax to 858-332-1777 or by email to 1031 Exchange Advantage ® is assigned in as the seller as required by the IRS. When the closing occurs the funds will be sent to your account. Your signature will be required before the bank can move your funds. You will receive an account ledger from us.

house with dollar sign

4. Close on the Sale of Your Property

Now that your exchange has been set up, you’re all set to close on your sale!


5. Get a Pre-Qualification Letter

We can help you get your ideas together and point you in the right direction. We can also help you get a pre-qualification letter from a bank so your seller will be more inclined to work with you. Find My Loan


6. Your Countdown Begins

Your countdown begins. You have 45 days to identify your replacement properties. Start reviewing your replacement property choices now!


7. Consider Improving Property

You might want to buy something that needs repairs and use money from your exchange account to fix it up. The improvements will be counted towards the amount you spend. This will help you get back to the sales price of what you sold-an IRS rule to save all taxes!


8. Identify Your Replacement Properties to Us

You will need to send us a letter indicating properties you may purchase. The letter will be with your exchange package and you should call us to go over options to identify.

person requesting funds

9. Request Funds

When you are ready to request funds for a deposit or close, simply visit Complete My Exchange and tell us who your closing agent is. The closing agent will be sent the papers needed to get the funds and close your exchange properties, provided we receive the request (3) days prior to your close.
exchange ledger

10. Ask for an Exchange Ledger

Remember to ask us for an Exchange Recap to provide your accountant. The accountant will need to report the exchange on our income taxes using form 8824.

happy person

11. Celebrate! Congratulations!

If all the exchange requirements are met, you’ve successfully sold your real estate tax-free. We can’t wait to help you do it again!