Jennifer Edmondson
Role: Exchange Coordinator, 1031 CORP.
Location: Bend, Oregon
How should a client prepare for a 1031 exchange?
Many of our clients are learning the details of the exchange process during our initial conversation. Early conversations to understand a client’s needs are always best, although we often see clients during the rush of closing. There are so many different scenarios and every exchange is different. I like to walk clients through the steps, timing requirements, and whether the property will qualify. I always explain the role the Qualified Intermediary plays in the process.
We always recommended that you talk with your tax advisor—to make sure you will benefit from doing an exchange.
The timing of getting started before your sale is finalized is critical. Sadly, we see the heartbreak of a client missing the opportunity for a 1031 exchange because the exchange was not initiated before the closing of their sale.
How is the market in the Pacific Northwest?
In central Oregon, a high influx of tourism drives the local economy. We see many types of investment properties in the region as a result-especially in the resort areas with both, long-term and short-term rental units, and some personal use as well.
Inventory is low because of the popularity of the region. It’s become hard to find replacement properties and rental units because of the influx. The city of Bend is working on expanding urban growth boundaries, and we are seeing a lot of multifamily housing going up to accommodate the people who want to live here full or part-time. It will take time for construction to catch up with housing needs.
