1031 EXCHANGE SERVICES
Delayed Exchange
A delayed 1031 exchange is the most common type of exchange, where the Exchangor sells their relinquished property, and a Qualified Intermediary (QI) manages the transaction. The QI holds the proceeds for up to 180 days while the Exchangor secures a replacement property. Although straightforward in concept, strict IRS 1031 exchange timelines and identification rules apply. The Exchangor has only 45 days to identify potential replacement properties and 180 days to complete the purchase. To ensure compliance, a Qualified Intermediary is required to handle exchange documents, facilitate the sale and purchase, and manage the sale proceeds for acquiring the new property.
Reverse Exchange
A reverse 1031 exchange occurs when the Exchangor purchases the replacement property before selling the relinquished property. To comply with IRS rules, an Exchange Accommodation Titleholder (EAT) is required, as the Exchangor cannot hold title to both properties simultaneously. This is usually structured through a single-member LLC, which Growth 1031 creates and manages, serving as the EAT to hold the property on behalf of the Exchangor. Since traditional financing is often unavailable for EATs, reverse exchanges typically require cash purchases or financing through a hard money lender. Growth 1031 specializes in facilitating reverse exchanges, ensuring a seamless and compliant process for real estate investors.
Free Consultation
Curious about our 1031 exchange services? Contact us today with any exchange questions you may have. We would love to help you find answers to questions like:
Does my property qualify for a 1031 exchange?
How do I start the 1031 exchange process?
When should I hire a 1031 exchange accommodator?
What are the time limits for a 1031 exchange?
Can I identify more than 3 replacement properties?
How many replacement properties can I purchase in a 1031 exchange?
What does "like-kind" property mean in a 1031 exchange?
Do I need to reinvest all sale proceeds to qualify for tax deferral?
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