Real estate investments are increasing in popularity, especially since 1031 property exchange seems to be an incredibly profitable investment method. A new trend in terms of 1031 property exchange has emerged lately, and this seems to simplify the process for the investor considerably. Managed direct ownership seems to be the hot topic of real estate investments right now, and below are some key-steps to a seamless acquisition. Keep reading below for a deeper insight.
Find a reliable consulting company
We mentioned in the beginning that the process is a rather complex one, and most likely, you want to find some reliable consulting services before jumping into action. Managed direct 1031 exchange is a real opportunity, but only if you collaborate with the right expert. Keep in mind that this company will handle the entire process, from identifying an exchange property, to all the legal matters. As a result, you want to find a truly skilled expert for this purpose.
The property acquisition is the first thing you should think of
If the previous step was accomplished, the consulting company will make sure to identify a suitable exchange property that meets your demands. Generally, the terms of the sale will be negotiated so they match the client’s criteria, which comes as a big plus. In case the client themselves were to negotiate those, there might appear miscommunication issues or simply issues when it comes to the negotiation capabilities. Some extremely reliable companies like this make sure to make the initial deposit out of their funds, until a financing opportunity appears for their clients. Moreover, all the matters regarding the escrow will be fully handled by these professionals, including the distribution of all due diligence materials. The loan and property settlement statements will also be managed and reviewed by the team of professionals, which comes as a great advantage for the investor.
The property asset management – A key step handled by the expert team
The team of experts will also carefully select a third-party property management company. The property management company must meet all the legal requirements of the lender, and the company will have to collect all the monthly rental fees, and other administrative and legal matters.
The financing sources matter
When it comes to financing, the consulting company also has a big word to say. From identifying a suitable lender for the investor’s needs to making the initial deposit and negotiating and executing all the legal documents required for a loan, the investor can forget about all the hassle of these complicated steps, as the consulting company will take care of all.
There are other crucial steps when it comes to this type of real estate investments, but truth be told, when you collaborate with an expert team, you will certainly have your peace of mind. The chances for you to professionally manage a process like this are slim to none, so it would be better if you’d have the opportunity to collaborate with such experts.