Replacement Property Identification Exchange Planning

We build the actual 45-day identification list for New Orleans 1031 investors — the document that names your replacement candidates in writing to your qualified intermediary. This is sourcing and documentation work. Your QI runs the exchange rules and your tax advisor confirms the strategy fits your situation.

Turning a Broad Search Into a Written List

Most investors start this process with a general idea — more multifamily, less management, or diversify out of one property type. That's not an identification list. The IRS requires unambiguous written description: a legal description or an address specific enough that there's no question which property you mean. We take your general direction and turn it into candidates with real addresses, current ownership status, and a documented reason each one made the list. We also confirm the property is genuinely available before it goes on the list — a listing that's already under contract with another buyer, or a building the owner has quietly pulled off the market, wastes one of your limited slots.

What's Actually Available in This Market Right Now

New Orleans replacement stock spans small multifamily in Mid-City and Uptown, net lease boxes along Veterans Boulevard and Airline Drive, medical office along the Canal Street corridor and Jefferson Highway, self storage and industrial near the port and rail corridors, and hospitality-adjacent retail in the French Quarter and Warehouse District. Each category closes on a different timeline, and we weigh that against your window before it goes on the list.

• Small multifamily in Mid-City, Uptown, and Bywater
• Net lease and NNN boxes on major commuter corridors
• Medical office near the Canal Street corridor and Jefferson Highway
• Self storage and industrial near port and rail access
• Retail and mixed-use in tourism-adjacent districts

Applying the Three-Property or 200% Rule

Most identification lists use the three-property rule — up to three candidates regardless of value — or the 200% rule, where the total value of everything identified can't exceed twice what you sold. We help you pick which one fits your search. If you want a wider net across several smaller properties, the 200% rule may make more sense than boxing yourself into three names. Your tax advisor should confirm which approach fits your specific numbers. There's also a 95% rule, less commonly used, that removes the value cap entirely as long as you actually acquire 95% of the value identified — we'll walk through whether that applies to your situation, but again, the final call belongs to your tax advisor.

Backup Candidates That Actually Hold Up

A backup candidate that's thinly documented is not a real backup. If your first-choice property falls through in week three because financing stalls or an inspection turns up a structural issue, your second candidate needs the same level of diligence already done — lease files reviewed, insurance exposure checked, title pulled — so switching doesn't cost you the rest of your window. We keep a running status on every backup candidate through the full 45 days, checking in well beyond the moment the list gets submitted, because a backup that was available in week one can be gone by week four if we're not tracking it.

Weighing Insurance and Flood Exposure Across Candidates

Every candidate that reaches your list has already been checked against flood zone designation and, where available, elevation certificate status, since that single factor moves both insurance cost and lender proceeds more than almost anything else in this market. A medical office building near the Canal Street corridor and a warehouse near the port face very different flood questions even though both might sit in a similar zone designation, because the buildout cost at risk inside each building is entirely different. We weigh that risk against the property's income and closing timeline before it earns a spot on your list, rather than treating flood zone as a simple pass or fail filter.

Delivering the List on Time

The identification has to reach your qualified intermediary in writing before midnight on day 45. We build in a buffer so the final list is with the QI at least a few days early, not delivered at the deadline. That buffer gives room to fix a legal description error or an address typo before it becomes a real problem.

Common 1031 Exchange Questions

How many properties can I put on my identification list?

Under the three-property rule, up to three regardless of value. Under the 200% rule, any number as long as total value doesn't exceed twice your relinquished property's value. Your tax advisor should confirm which rule fits your exchange.

What makes a property description valid for identification?

It needs to be unambiguous — typically a legal description or a specific street address. A vague description like 'a duplex in Uptown' won't satisfy the requirement.

Can I change my identification list after I submit it?

Generally no, once the 45-day deadline passes, though your tax advisor can speak to any exceptions. That's why we build the list carefully before day 45, not casually.

What happens if my top candidate falls through after identification?

If you identified backup candidates with the same rigor, you move to the next one. That's why we insist on real diligence for every name on the list, favorite or not.

How early should I start the identification process?

As soon as your sale closes and the clock starts, ideally with candidates already scouted beforehand. Waiting until week three of the window leaves little room to fix problems.

How much does flood zone status affect which candidates make the list?

It's weighed as one factor among several rather than an automatic disqualifier, since flood exposure interacts differently with income potential depending on the property type, the buildout value at risk, and the closing timeline you're working with.

Ready to organize the exchange file?