We are always on the lookout for properties that will improve our clients’ financial position. We examine properties listed for sale and those where the owners might be open to sell even though they are not being actively marketed. The 1031 exchange is how the trade happens. The IRS dictates that offering one property for another must follow certain rules. First, the two assets must be similar in terms of dimensions, units, age and condition, i.e., it must be a “like-kind” exchange. Then, the investor must locate the new property within 45 days of conveying the first one, and the acquisition of the second property must be completed after 180 days. Because of the nature of this type of swap, an intermediary holds any sale proceeds until the entire process concludes.