The real estate market in Arkansas or is booming at a significant pace. Over the years, the demand for homes and investment properties have increased in the state. Property prices have sky-rocketed in Northwest Arkansas in recent years. Though due to the low living cost, Arkansas isn’t one of the most expensive states of the United States. However, because of the rise in demand and shortage of supply, property prices have increased tremendously in the state. The 1031 Exchange Arkansas market also shows the same trend.
Opportunity for 1031 Investors –
If there could ever be the best time for doing a 1031 exchange in Arkansas, it’s now. With the real estate market booming, 1031 investors can expect good quality buyers for their investment properties. Undoubtedly, in largely populated cities like Little Rock and Fort Smith, finding a buyer for your property may not be a big task. However, you may also need to spend more to acquire a replacement property in this region. On the other hand, cities like Rogers and Bentonville could be more affordable for buying properties.
Beware of the deadlines if it’s your first 1031 exchange –
Locating properties may not be a big issue for 1031 exchange investors as they have Qualified Intermediaries for this. However, whether they’ll get the property within the specified time limit or not, could be a concern for some investors.
- 45 Days Identification Period – As a 1031 exchange investor, you must identify a potential replacement property within 45 days from the sale of your relinquished property. This time frame of 45 days is known as the Identification Period. Written identification of the potential replacement property must reach 1031 Corp. on or before the midnight of the 45th day.
- 180 Days Exchange Period – Once you’ve successfully identified your replacement property, you must acquire it before your exchange period ends. Every 1031 exchange investor gets 180 days in total for completing their exchange, which begins the day the relinquished property is sold.
Note: The IRS has no provision for extension of deadlines. Your 1031 exchange will no longer be valid in case you missed any of the deadlines.
To speak to a 1031 advisor for investment opportunities in Arkansas, you can call 888-993-2835 or email us at info@1031xchange.com
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