Real estate transactions have always been a challenge to complete, even under normal circumstances. When the time deadlines of a 1031 exchange are added into the mix it is especially important that everything runs smoothly. The number of net lease properties on the market at any given moment, as well as their relative ease of acquisition, have long made them an attractive option for investors in a 1031 exchange. Certainty and ease of closure are key benefits that may give net lease properties even more appeal in this new environment.
The pandemic caused by the Covid-19 virus has created some unique issues for those who are trying to close real estate transactions, especially those trying to buy replacement properties to complete their 1031 exchange transaction. There are multiple challenges to purchasing real estate under the current conditions, including restrictions against visiting properties to conduct due diligence, lender issues, as well as general concerns for the financial viability of the tenants.