Timing brief
Day 45 Is a Decision Deadline, Not a Search Strategy
The identification window works best as the final stage of a prepared search—not the first time the owner defines return targets, financing limits, or fallback options.
Start with a written buy box
A useful buy box is more than property type and market. It should state the acceptable purchase range, leverage, expected cash flow, management burden, geography, due-diligence standard, and the reasons the owner would walk away.
Writing those criteria before the sale closes makes the 45-day period a disciplined comparison. Without them, every listing can look plausible and every week can disappear into a new direction.
Build the financing path before Day 0
Replacement financing can become a hidden deadline inside the statutory deadline. Confirm lender requirements, entity structure, liquidity, and underwriting assumptions early. If a particular asset class or ownership structure requires more lead time, that should change the search plan before the exchange begins.
Keep a primary path and a fallback path. The point is not to predict every obstacle; it is to know which variables can change without breaking the economics of the exchange.
Choose an identification framework intentionally
The regulations allow up to three replacement properties without regard to aggregate value, or any number whose aggregate fair market value does not exceed 200% of the relinquished property's value. A separate 95% rule may preserve an over-identification only when the required share of identified value is actually acquired.
These are compliance frameworks, not portfolio recommendations. The right approach depends on the actual candidates, valuations, closing probability, and acquisition strategy.
Treat the identification as a controlled deliverable
Replacement property generally must be unambiguously described in a written identification delivered on time to an eligible recipient. Confirm the required format and delivery process with the Qualified Intermediary rather than relying on an email thread or draft list.
Brandon helps owners prepare the decision framework and coordinates the Qualified Intermediary process through i1031. The investor's tax and legal advisors should review transaction-specific conclusions.