Reverse Exchanges

Reverse 1031 Exchanges: You have identified a replacement property that you would like to purchase first before selling your relinquished property, you will want to perform a reverse 1031 exchange in order to accomplish that. The way it would work is that you would contact us and get us connected with your title company and we would work with them to obtain whatever documentation we may need in order to get the first step started. You will need to come up with some funding to purchase the replacement property whether it be in the form of a loan or cash. While you make that decision, we will form an Exchange Accommodating Titleholder (EAT) for you, which is an entity that will be managed by us to hold title of your replacement property. If you decide to use a loan to purchase your replacement property, the loan will have to be under the EATs name, so be sure to use a lender that is familiar with a reverse 1031 exchange. After you have closed on the replacement property, you have 45 days from the closing to identify your relinquished property and then 135 days to close. Once you have closed on your relinquished property, we will grab your proceeds from the sale and inject them into the replacement property by paying off the loan that is on your replacement property, after that we will deed the replacement property to you or assign 100% of the member’s interest in the EAT to you