Anxious about a 1031 Exchange? Get a team

A successful 1031 exchange begins long before your property hits the market. Most owners know about the 45-day identification period, but fewer appreciate how quickly it passes. Without sufficient preparation, that deadline creates pressure, leading to stress and rushed decisions.

The antidote is having a deal team. A deal team consists of the key professionals who play an instrumental role in executing a successful 1031 exchange. These are the members of your team:

The Exchanger (You)

Before listing, define your “buy box”: the specific characteristics of the replacement property you want. Consider desired cash flow, preferred locations, unit mix, asset type (perhaps NNN or even a DST), upside potential, or acquiring multiple properties. Equally as important is identifying what falls outside your criteria. A disciplined focus allows you to recognize real opportunities quickly and avoid wasting time once the clock starts.

Your Real Estate Broker

This should be your deal team leader. Your broker should help coordinate other team members and refine your buy box. The best brokers leverage their extensive network to anticipate and solve problems that will save you time and money.

Your Tax Advisor

Consult your CPA early to evaluate how a sale fits within your overall tax planning. This includes understanding your adjusted basis, depreciation accumulation, and estate planning needs. The best time to get your tax advisor’s full attention on planning an exchange will typically be before and after busy tax months (i.e. June-August and late October-December.)

Your Lender

If financing will be required, have your real estate broker engage lenders early to confirm DSCR, LTV, net worth, and liquidity requirements, which helps ensure the replacement properties you pursue are attainable.

Your Exchange Accommodator

If you don’t know one, lean on your real estate broker to recommend an accommodator that is nimble, experienced, and responsive.

Ultimately, a strong deal team will allow you to move swiftly, make better quality decisions, and ensure a positive outcome.

Eric Lowe is a real estate broker and founder of Pierson Post, a commercial real estate brokerage based in Bonita, CA. He began his career as an attorney handling complex real estate transactions across Southern California. As a broker, Eric helps owners decide when and how to sell, designs targeted marketing strategies, and guides 1031 exchanges. He blends institutional deal expertise with boutique client service. Call Eric at 618-813-7583 or elowe@piersonpost.com.