We are currently working on a reverse 1031 exchange. Our client wanted to move into a larger office space and their property was for sale but had not sold yet. They purchased a new larger building and did improvements before concluding their current sale. When it was sold the sales proceeds went back to the client and the deal was complete. Reverse exchanges are another tool for you to have when buying and selling real estate.
REVERSE
The Reverse Exchange is the opposite of the Delayed Exchange. Where the Delayed Exchange requires the Exchangor to relinquish before he acquires a property, the Reverse Exchange allows the Exchangor to acquire property first and relinquish property second. In other words, the Reverse Exchange allows an investor to acquire a new property today, when an excellent investment may be available, and sell other property later when a better price might be obtained.
The Reverse Exchange greatly expands the ability of the investor to take advantage of changes in the marketplace and to improve his or her investment position.
