Dear 1031x: I am thinking about doing a 1031 and trying to understand the procedure. When a replacement property is found, does the down payment for that property come out of the Qualified Intermediary Account, separate funds of the Purchaser or it doesn't matter???
Dear R: You can use either exchange funds or separate funds to make an earnest money deposit. Our preference is that you use separate funds to make the deposit and then replacement those funds with exchange funds when you close on the purchase.
Steve Hickox
Attorney / President
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