Demand Increases for 1031 DST Exchange Replacement Properties
On April 9, 2020, the IRS approved relief for 1031 Exchangers who, as result of COVID-19 related challenges, were struggling to meet previously published timelines for identifying and concluding acquisition of “like-kind” replacement properties. The former 1031 Exchange 45-day identification and 180-day acquisition deadlines that fell on or after April 1, 2020 were extended to July 15, 2020. While the extension provided much needed breathing room for investors, it also created a temporary surge in demand which has tightened the supply of available Delaware Statutory Trust options at this time.
Many DST sponsors are also expressing concerns over challenges in obtaining financing in today’s suddenly turned volatile lending market. Delays in obtaining needed financing are likely to further reduce the pipeline of new DSTs that may be available to investors over the upcoming months.
If you have completed the sale of your rental property and not yet identified a suitable replacement property and (very importantly!) identified at least one good back-up option, please contact us ASAP to explore 1031 options.
FIRST GUARDIAN GROUP IS OPEN FOR BUSINESS 7 X 24
We are open for business and stand ready to assist you with your exchange transaction. If you need a personal exchange consultation, we are happy to schedule a conference call at a time that works with your schedule and situation.
If you have any questions, please feel free to contact us at 866-398-1031 or schedule some time on Paul’s calendar.