What exactly is a "like kind" exchange?

This part confuses alot of people who have never done a 1031 exchange. Most often, sellers think this means that they must buy the same type of property they are selling -- i.e. exchange a condo for a condo, or a single family home for another home. It's really a whole lot easier than that. You can exchange ANY type of real estate for ANY OTHER type of real estate. Sell a condo and buy a home, sell a farm and buy a commercial building, sell your interest in a timeshare and buy a vacant lot - you get the idea. ANY type of real estate, residential or commercial, can be traded, as long as that property is in the United States. "Like kind" here is meaning that you're trading REAL ESTATE for REAL ESTATE (as opposed to exchanging stocks, bonds, notes, etc.)