1031 TIC Exchange Sponsors Colorado

[Update]: We've recently launched a directory site www.1031reviews.com that provides a more comprehensive list of 1031 registered reps, QIDs, and sponsors by state and city.  We're also adding reviews and ratings, so you can vet folks before working with them.

Larry Behrends CapWest Securities lbehrends@capwestsec.com (970) 346-0120
Don Behunin Sequoia Real Estate Holdings, L.P. dbehunin@sequoia1031.com (303) 451-0700
Edwin Bell Bell & Company, LLC ed.bell@imagi.net (303) 762-7992
Valena Bloomquist Fidelity National Title Insurance Company valena.mulhern@fnf.com (303) 244-9189
Adiel Brasov Marcus & Millichap abrasov@marcusmillichap.com (303) 320-1300
Kathy A. Busch Global Planning, Inc. kathybusch@globalplanning.com (303) 242-8284
Gary Flater MCL Financial Group, Inc. gary@mclfinancial.com (303) 794-8686
David L. Gilbert, CCIM Transwestern Investment Realty dgilbert@tirlv.com (970) 390-3050
Gary J. Herick Herick Asset Management gary@herick.com (303) 731-0100 /(800) 358-0032
Laura Konz CapWest Securities, Inc. lkonz@capwestsec.com (970) 346-0120
Jill Mozer Dividend Capital jmozer@dividendcapital.com (303) 228-2200
Tom Newman Newman Commercial Properties, Inc. tnewman@weltonstreet.com (303) 748-9479
Michael Phillips Portola Financial mphillips@spunj.com (720) 244-3654
Mark Quam Welton Street Investments LLC quam@weltonstreet.com (303) 285-0366
Alison Reed National Planning Holdings alison.reed@jnli.com (720) 489-6416
Gary Ruhl Sagebrush Realty Holdings LLC gruhl@sagebrushcompanies.com (303) 866-0011
Nick Simpson Grand Peaks 1031 Properties nsimpson@grandpeaks.com (720) 889-9205
Michael G. Steinthal CapWest Securities msteinthal@capwestsec.com (303) 837-1003
David Strickland Investment Capital Group, LLC dstrickland@mclfinancial.com (303) 940-9171
Brian Tanner Tenants in Common Realty brian@tenantsincommonrealty.com (720) 945-1000
John Tyler Cherry Creek Partners, LLC jtyler1031@cherrycreekpartners.com (303) 598-5320
Gene Walter MCL Financial Group, Inc. pcsp@mclfinancial.com (303) 274-7820
Dana L. Woodbury Buttonwood Investment Services, LLC dwoodburyservices@msn.com (303) 730-3399

Comments

[Stuart Chamberlin]

What are the specific rules for identifying replacement property? There are two rules for identifying the replacement property and one exception to the rules:

The three property rule

The 200% rule

The 95% exception

The Three Property Rule
This is the rule used most often in property exchanges. The exchanger is allowed to identify as many as three properties for potential exchange. There is no limit on the fair market value of these properties, under this rule. The exchanger does not have to actually acquire all the identified properties. This allows the identification of back-up properties in the event there is a problem acquiring one or more of the (up to) three identified properties. In any event the fair market value of the replacement property(s) must be at least equal to the actual sales price of the relinquished property(s) or there may be taxes due on part of the sale proceeds.

The 200% Rule
If more than three properties are to be identified, then the 200% of fair market value rule is used. There is no limit to the number of replacement properties that can be identified, but their combined fair market value cannot exceed 200% of the fair market value of the relinquished property(s) inclusive of both debt and equity.

Example
If the fair market value of the relinquished properties is $300,000, the exchanger can identify as many potential replacement properties as he or she wishes, as long as the total fair market value of the properties does not exceed $600,000 (200%) of the relinquished properties' fair market value.

The 95% Exception
If the exchanger identified more than three properties and the fair market value of the identified properties exceeds 200% of the sale price of the relinquished property, the identification may still qualify under the 95% rule. The exchanger must actually acquire identified properties whose value is at least 95% of the total fair market value of the identified properties.

Example
If the exchanger identifies 20 properties, each with a fair market value of $50,000, and is relinquishing a property that sold for $300,000, neither the 200% rule nor the three-property rule applies. As long as the exchanger buys at least 95% of the identified properties in terms of fair market value, the 95% rule applies. In this case, the exchanger would need to buy 19 of the 20 properties.

*Note: Failing to satisfy the identification rules may invalidate the entire exchange and could result in tax being due on the entire amount of gain from the sale of the relinquished property.