Exchange services
Forward Exchange
(Delayed Exchange)
A Forward Exchange is the most typical type of 1031 Tax Deferred Exchange. This type of exchange involves the sale of an investment property (relinquished property) prior to the acquisition of another. The property is listed and upon the sale, the proceeds are held in an escrow account with a Qualified Intermediary. You then have 45 days to identify a like-kind replacement property or properties (replacement property) that need to be documented before this deadline has passed. Within 180 days, a closing must occur on one or more of these properties and the Qualified Intermediary wires the funds from the escrow account to the title/settlement company.
Like-kind Exchange
A like-kind exchange will mean investment property to investment property. This could be a commercial building to land, an investment condo to single family residence, etc. Please contact your Qualified Intermediary with any questions regarding what constitutes a like-kind exchange. If no closing occurs on a replacement property, the funds are returned to you directly. Because of the likelihood of tax implications, discuss with your accountant prior to this time and always contact them prior to entering into a 1031 Tax Deferred Exchange
tailored 1031 exchange services
Reverse Exchange
A Reverse Exchange is the exact opposite of a Forward Exchange in the timing of the sale of the relinquished property. A Reverse Exchange is utilized when the replacement property is identified and closed on prior to the sale of the relinquished property. In this scenario, your 1031 company acts as an Exchange Accommodation Titleholder (an E.A.T.) meaning that they hold title to the replacement property until the relinquished property is sold. This of course means that the funds for the purchase of the replacement property need to come from the client or their financing source.
Reverse exchanges can be seen as higher risk in the sense of market conditions that may delay the sale of the relinquished property. The same 180-day rule applies and if the relished property is not closed prior to this deadline, tax implications may occur. Contact your real estate broker and accountant prior to engaging in a Reverse 1031 Exchange for this purpose.
1031 Experts Inc creates a new LLC for every reverse exchange to ensure that each property is individually protected. While Reverse Exchanges can be complicated, this could be a great way to create an investment opportunity for your portfolio.
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transparent pricing
Forward Exchange
$650 at closing of relinquished property
$550 at closing per each replacement property
Reverse Exchange
$3,500 at closing of replacement property
$550 at closing per each relinquished property
Curious about the step-by-step process?
