Tips for Finding a Real Estate Attorney to Help with Your 1031 Exchange

Finding a real estate attorney is an important aspect before becoming involved in real estate investing or a 1031 exchange. The right one will keep you on track and help lessen your liability in your real estate investments. Here are a few tips for finding a good real estate attorney for your 1031 exchange.

Tips for Finding a Good Attorney

• Talk to friends, family members and co-workers, or your state's Bar Association for referrals.

• Talk to local real estate brokers for referrals.

• Call a local realtors association for referrals.

• Prepare a list of questions pertaining to your situation. Most lawyers will answer simple questions over the phone for free.

• Identify a number of possible attorneys and call each one.

• Ask how much each lawyer charges per hour, and request an estimate of the time required to complete the tasks you require – looking over contracts, handling disclosures, and helping with the closing.

• Choose an attorney.

Questions to Ask

Here are some questions to ask your attorney when considering who to hire:

• What experience do you have in creative real estate investing such as subject to investing The Attorney should be open to and understand creative real estate investing.

• How much of your practice is in real estate? It should be at least 30% to 50%. In smaller markets there would be less need for an attorney to devote all their practice to real estate.

• Do you have other real estate investors as clients? If so, ask if you can contact them for references.

• What are your fees? The price the attorney charges is not as important as how well they work for you. The old proverb you get what you pay for applies here.

Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchange Safeguard – Adding a UCC-1 Security Agreement

One way to add extra security to your 1031 exchange is to perfect a UCC security interest in both the account held by your FDIC insured bank and in the qualified escrow agreement itself.  You can do this by filing a UCC-1 financing statement with the secretary of state where your 1031 monies are deposited.

That way in the unlikely event that your QI fails to perform, you’re not only a creditor, but you’re a “secured creditor”.  If a problem were to occur, it is always much better to be a secured creditor, because secured creditors have first priority to get paid over all other unsecured creditors.

Make sure your FDIC insured bank acting as your qualified escrow agent consents to the security agreement in writing, otherwise you may not get a properly perfected security interest in the qualified escrow account.

Remember, when your exchange is over, you will need to file UCC-3 to terminate your security interest in the deposit account.

CPEC1031

At CPEC1031, we specialize in facilitating 1031 exchange transactions of real property. Our qualified intermediaries have over two decades of experience working with clients on their 1031 exchanges. We can help you through the like-kind exchange process and make sure all of your documents are in order, and that you completely understand the process every step of the way. Reach out to us today at our Minneapolis office or at one of our satellite offices across the United States.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

Tips for Conducting 1031 Exchanges in 2020

The 1031 exchange is an ever-evolving tool. It’s important to keep up with those changes to ensure you are doing everything correctly. In this article, we are going to offer up some tips for conducting 1031 exchanges in the year 2020.

1031 Exchange Changes in 2020

1031 exchanges went through a pretty big overhaul a few years ago, with the Tax Cuts and Jobs Act, which removed exchanges of personal property entirely. Thankfully, that Act kept real estate exchanges intact and there are currently no big changes to 1031 exchange policy set to take effect in 2020.

Should I Wait Until 2020 to Start an Exchange?

If you haven’t yet started your exchange, you don’t need to wait until 2020 to begin. You can start your exchange at any time during the year. That being said, there are certain considerations to keep in mind when your exchange straddles two different years. You should always consult with your CPA or accountant to see what they recommend.

Minnesota 1031 Exchange Company

If you’re looking for help with your 1031 exchange or real estate, you’ve come to the right place! The qualified intermediaries at CPEC1031 have twenty years of experience working on 1031 exchanges of all types. We can help you through every step of the 1031 process, making sure that you are fully prepared when it comes time to close. Contact our 1031 exchange team today at our downtown Minneapolis office to learn more about our process and how we can help you save money in capital gains taxes.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

What Our Clients Say About Our 1031 Exchange Services

We can talk about our services all day long, but nothing is more powerful than the words of our clients. Here are a few clients we’ve worked with who had great things to say about our services.

Ryan O’Neill

It has been such a pleasure for our team, The Minnesota Real Estate Team with RE/MAX Advantage Plus, to work with Jeff Peterson and CPEC1031. Each month we have provided real estate investing seminars. With these seminars, we need to have a trusted and "go to" 1031 Exchange company and expert we can refer clients to. Jeff and his team are extremely knowledgeable, hard working, and truly committed to the best interest of each of our clients. Thank you so very much for all that you do for our team and our clients, Jeff. It has been a privilege for us to work with you and your entire team. Cheers! 

Randy Hoese

As a 20+ year real estate agent & broker in the Twin Cities apartment market, I’ve been involved in many 1031 Exchanges. Over the years, I’ve also worked with and referred different exchange companies to my clients.  Jeff Peterson with CPEC1031is recognized as the expert in this area of a real estate sale & he’s my go to guy for anything related to real estate exchanges. He is very experienced, knowledgeable and easily accessible for myself and my clients when we have questions.  I certainly recommend talking to Jeff when you’re considering selling an investment property.  1031 Exchanges can sometimes be complicated so don’t risk losing any of your hard earned money. Hire the best & you’ll be glad you did.

Nancy McKenzie

It is without hesitation or reservation and with great confidence that I offer my highest possible recommendation of Jeff Peterson and the services received from CPEC.  5 stars, A+, Outstanding – all fair characterizations of the professional services and attention delivered by Jeff Peterson. 

As the trustee of a supplemental needs trust, I became involved in an interesting yet somewhat complicated series of real estate transactions.  Some other firms had failed to provide appropriate guidance yielding a convoluted mess.  Then, I was introduced to Jeff.  He has all of the answers and knew where all of the potential issues were.  Jeff helped guide me through the intricacies of a 1031 exchange, various IRS forms, and applicable case law.  Jeff’s technical competence and moral compass are above reproach.  His nickname as “Professor 1031” is well deserved.

It was a pleasure to have the service of a real expert and true professional. 

CPEC1031

At CPEC1031, we have over two decades of experience working with clients on their 1031 exchanges. Our qualified intermediaries can help you through each and every stage of your commercial transaction. Contact one of our qualified intermediaries today to learn more about the 1031 exchange process and how we can help you save money on your next real estate sale. You can find us at our main office in downtown Minneapolis, or at one of our satellite offices around the country.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

The 1031 / 1033 Exchange Combo

We are working with a client that would like to 1031 exchange out of a property that recently went through the Eminent Domain process for a road-widening project in front of the property. Ideally, they want to combine funds from both transactions into one exchange property. Is this possible?

The property is owned as an LLC. How does that complicate the ability to do individual exchanges? Would they have to convert to a TIC in order to go their separate ways? If so, how long would the process take? 

The short answer is yes. This is possible by doing a 1031 / 1033 exchange combo. However, the “value” of the Replacement Property may need to be high enough to cover both a 1033 and 1031.

1031 Exchange Company

Looking for assistance with your 1031 exchange? You’ve come to the right place! At CPEC1031, our qualified intermediaries have over two decades of experience facilitating transactions under section 1031 of the Internal Revenue Code. We can help you through the entire process and ensure that you are well-prepared for the closing table. Contact us today at our downtown Minneapolis office to learn more!

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved