How is property trading related to 1031 property exchange? merely offers advertising services for parties willing to trade properties and can be used to list and find your replacement property in a 1031 exchange. You can also list your property and specify it as being part of the 1031 exchange. We do not facilitate the transaction, rather provide advertising service helping parties find properties matching their use, value, location, and other criterias. Remember that in any 1031 like kind property exchange "like kind" use is the key, so you will first need to narrow your list of potential exchange properties based on their use. You can specificatlly search our site for multifamily, commercail, or businesses.

1031 like-kind property exchange is the tax deferment tool that allows investors to sell properties and apply proceeds from the sale to a like kind (similar in investment use) property and defer any capital gains tax due. 1031 exchange rules are very specific and you can read more at

The following information is provided by

    What is a Qualified Intermediary?

    A Qualified Intermediary (“QI”) is an independent party who facilitates tax-deferred exchanges pursuant to Section 1031 of the Internal Revenue Code. The QI cannot be the taxpayer or a disqualified person. Acting under a written agreement with the taxpayer, the QI acquires the relinquished property and transfers it to the buyer. The QI will hold the sales proceeds to prevent the taxpayer from having actual or constructive receipt of the funds. Finally, the QI acquires the replacement property and transfers it to the taxpayer to complete the exchange before the end of the exchange period.

    While many people have an understanding of a like-kind exchange, we have found it is in the best interest of clients to specialize in this area because there are so many traps for the unwary. This is a highly technical subject area and after assisting hundreds of clients with this one type of transaction we “can see around corners” and help you troubleshoot problems before they exist.

    What does “like-kind” mean?

    Under 1031, all real property (as it is defined by state law) is considered "like-kind" with other real property of the same nature and quality. The following are examples of qualified "like-kind" real property exchanges:
    Raw land for rental property
    Single family rental for multi-family rental
    Retail space for motel/hotel
    Farms/ranch for golf course
    30-year leasehold interest for fee simple interest
    Non-income producing raw land for income-producing rental property

    What does the 1031 exchange process look like?

    The taxpayer signs a contract to sell the relinquished property to the buyer
    Prior to the property closing, the taxpayer retains ES Group to be the qualified intermediary
    At the closing of the relinquished property, the exchange funds are wired or a check is sent to ES Group
    Within 45 days after the transfer of the relinquished property, the taxpayer completes the Identification of Replacement Property exhibit and returns it to ES Group (if the taxpayer does not acquire all replacement property within the first 45 days)
    The taxpayer has a maximum of 180 days in the exchange period (or until the tax filing deadline, including extensions, for the year of the sale of the relinquished property), to acquire any and all replacement properties
    At the closing of the replacement property, ES Group wires the exchange funds or a check is sent to complete the exchange


Trading Newsletter

Get property trading news, success stories, promotions...
Email Format