Found the replacement first? There is still a path.
A reverse exchange lets you acquire the new property before selling the old one, with an exchange accommodation titleholder parking title until the sale closes.
Reverse exchanges
For competitive markets
When the property you want will not wait for your sale to close, a reverse structure keeps the deferral intact.
An EAT holds title
A separate entity takes title to one of the two properties for up to 180 days under a long-standing IRS safe harbor.
More moving parts, more planning
Reverse exchanges involve financing considerations a forward exchange does not. They need to be structured before you go under contract.
Three steps, and we carry most of them
Call before you close
We confirm an exchange fits, map the deadlines against your timeline, and put the exchange agreement in place before the sale closes.
We hold the proceeds
Funds go from the closing table to us, never to you. That is what keeps the deferral intact.
You buy, we close it out
You identify and negotiate the replacement property. We handle the documentation, the funding and the reporting trail.
1031 Specialists
Reverse exchanges are more involved than standard ones and priced accordingly, but for investors who would otherwise lose a property — or pay the tax — they are frequently the difference between a deal and no deal.
We are a qualified intermediary for IRC Section 1031 tax-deferred exchanges, facilitating exchanges for real estate investors in all fifty states. We handle the exchange agreement, the identification and closing deadlines, and the custody of exchange funds. Every exchange includes unlimited tax optimization consulting, audit protection and an attorney guarantee, on a simple flat fee you pay at close.
Reverse exchanges, answered
When does a reverse exchange make sense?
When the replacement property will not wait for your sale to close, and paying the tax is the alternative. Competitive markets are the usual reason.
How is a reverse exchange different in practice?
An exchange accommodation titleholder takes title to one of the properties for up to 180 days. That adds financing and structuring considerations a forward exchange does not have.
Does it cost more?
Yes. There is materially more work and a separate entity involved, and our pricing reflects that. The comparison to make is against the tax bill.
Talk to someone before the clock starts
Reach me directly, or call the main line and ask for anyone on the exchange team.
Main line
(631) 438-1031General email
info@1031specialists.comMailing address
30262 Crown Valley Pkwy, Suite B 464Laguna Niguel, CA 92677
The information on this page is general in nature and is not tax or legal advice. 1031 Specialists is a qualified intermediary, not a law firm, accounting firm or investment adviser. Consult your own tax and legal advisors about your circumstances before entering into an exchange.