Purchase First: A Reverse Exchange Saves 1031s in a Tight Market

As commercial real estate shakes out from the pandemic, it is no secret many buildings will need to be repurposed in the years to come. While 1031 exchanges will be an integral part of the transition, reverse and improvement exchanges will create even more opportunities for savvy investors.

Reverse exchanges provide a way for exchangers to secure the replacement property before the relinquished property is transferred to a buyer. This eliminates the stress of trying to identify replacement property within the 45-Day Identification Period.

When structured correctly, an improvement exchange enables the exchanger to use some of the exchange funds to make improvements to the replacement property. This enables an investor to exchange into a distressed property and use the equity from the relinquished property to make improvements.

Join your CCIM colleagues as Margo McDonnell, CRE, CES®, President of 1031 CORP., explores these options to help your clients maximize their investment opportunities.