When the real estate market is hot, finding the right replacement property for your 1031 exchange is all the more difficult. Even when you do find a replacement property that you love, it may get snatched from beneath you before you can close the deal. In this article, we are going to offer some tips when competing for replacement property in a 1031 exchange.
The Reverse Exchange Option
If you are finding it hard to secure the replacement property you want; if all the properties you look at are getting snatched up by other buyers – then a reverse exchange is your best bet. With a reverse 1031 exchange, you can purchase your replacement property before you sell your relinquished property. This is essentially the opposite order of a typical 1031 exchange. Reverse exchanges are especially useful in hot real estate markets when properties are selling fast. A reverse exchange allows you to grab a replacement property without waiting until your relinquished property sale goes through. Then, within the following 180 days, you sell your relinquished property to complete the exchange.
Reverse Exchanges of Like-Kind Property
For more than twenty years, the 1031 exchange accommodators at Commercial Partners Exchange Company have been helping clients defer their taxes with section 1031 of the Internal Revenue Code. Let us help you prepare your documentation, and make sure you hit all of the necessary requirements. Reach out to the 1031 exchange professionals at Commercial Partners Exchange Company today to get your exchange off the ground. You can find us at our main office in downtown Minneapolis.
- Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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