Talk to an Advisor

What is a Reverse Exchange?

A Reverse Exchange, also known as a Reverse 1031 Exchange, is a powerful tax strategy that allows real estate investors to acquire a replacement property before selling their relinquished property. In a traditional 1031 exchange, the investor sells their property first and then acquires a replacement property within a strict timeline. However, in a Reverse Exchange, the process is reversed, hence the name.

This strategy is useful in situations where the investor has identified a replacement property but hasn’t been able to sell their existing property within the 45-day identification period of a traditional 1031 exchange. With a Reverse Exchange, the investor can acquire the replacement property first and then sell their relinquished property within a 180-day period. This timeline reversal allows the investor to move quickly and avoid the risk of losing out on a desirable replacement property.

A Reverse Exchange can be complex and requires the guidance of an experienced Qualified Intermediary (QI) to ensure compliance with IRS regulations. At 1031 Exchange Place, we specialize in all types of 1031 exchanges, including Reverse Exchanges, and our team of experts is available to assist you throughout the entire process. With our guidance, you can take advantage of this powerful tax strategy and achieve your investment goals.