Replacement property identification is the foundation of every successful 1031 exchange under Section 1031. A 1031 exchange defers, and never eliminates, capital gains and depreciation recapture tax by rolling the proceeds of a relinquished property into like-kind real property held for investment or business use. Investors selling commercial or investment real estate in Austin have exactly 45 calendar days from the relinquished closing to pinpoint qualifying replacement assets that meet their financial objectives, risk tolerance, and closing timeline, then acquire them within the outer 180-day window.
We compile a curated shortlist of replacement properties drawn from on-market listings, off-market deal flow, and institutional broker networks across Texas and nationwide. Each candidate is screened against your target cap rate, tenant credit profile, lease structure, and geographic preferences, and against whichever identification rule fits your search — the three-property rule or the 200-percent rule — so the properties named in your written identification are genuine, closeable candidates rather than placeholders. We coordinate directly with your Qualified Intermediary, who holds the exchange funds under the safe harbor rules and prepares the identification and assignment documentation; we are not a Qualified Intermediary and never hold your exchange proceeds.
A disciplined identification process keeps your exchange on track and prevents costly last-minute decisions that erode the tax-deferral benefits you set out to capture. An identification that is late, vague, or built around properties you cannot actually close converts a deferred gain into a taxable one for the year of sale, so the quality of the shortlist matters as much as its timing.
Asset focus
Challenges
- A generic property search wastes days that do not exist inside a 45-day identification window.
- On-market inventory alone rarely produces enough qualifying candidates to satisfy the three-property or 200-percent identification rules with real margin for error.
- Properties that look attractive on a listing sheet often fail on financing, title, or environmental grounds once diligence begins.
- Investors selling a single large Austin asset face a compressed timeline with little room for a failed identification.
What we deliver
- A ranked shortlist of replacement candidates screened against your cap rate, tenant credit, and lease structure targets.
- Access to off-market deal flow and institutional broker relationships across Texas and nationwide.
- A written identification package ready to deliver to your Qualified Intermediary before the 45-day deadline.
- Preliminary underwriting on each candidate so you can compare properties on a consistent basis.
Related services
Understand how federal capital gains tax applies when you sell a rental
Understand the stepped up basis rule for inherited real estate
Understand the structures investors use to earn passive income from real estate
Coordinate standard forward exchanges
FAQ
How many replacement properties can I identify?
Most investors use the three-property rule, which allows up to 3 identified properties regardless of combined value. If you want more candidates, the 200-percent rule permits any number of properties as long as their combined fair market value does not exceed 200 percent of your relinquished property's sale price.
When should the property search actually start?
Before your relinquished property closes. Starting the search only after closing leaves you building a shortlist from scratch inside a 45-day window that is already running. We front-load sourcing so you enter identification with a vetted pipeline.
What makes a property description valid for identification?
The identification must unambiguously describe each candidate, typically by street address or full legal description, and it must be delivered in writing to your Qualified Intermediary before day 45. A verbal mention to a broker does not satisfy the requirement.
Do you help with off-market properties?
Yes. We draw on institutional broker relationships and off-market deal flow in addition to on-market listings, since on-market inventory alone rarely produces enough qualifying candidates with real margin for error.
What if my top candidate falls out of contract?
This is exactly why a ranked shortlist matters. Under the three-property rule you typically hold backup candidates already identified; under the 200-percent rule your broader list gives you room to pivot without needing to amend the identification.
Do you act as my Qualified Intermediary?
No. We source and screen properties and coordinate with your Qualified Intermediary, but we are not a Qualified Intermediary and never hold your exchange funds.