Buy First, then Sell with a Reverse 1031 Exchange!
Found a great deal on a replacement property? Seller would like to close quickly? A Reverse 1031 Exchange may be just what you’re looking for! A Reverse 1031 Exchange allows you to purchase and close on a replacement property before the relinquished property is sold or even under contract if you follow the rules. Rule #1: Set up the exchange BEFORE you buy!
Three Reverse 1031 Exchange Methods
These are simplified explanations and there are potential pitfalls to look out for. Please contact our Reverse Exchange Department by phone, 866-944-1031 or schedule a consultation for a comprehensive recommendation for your particular situation.
All Cash Method
This method is as the name implies. The purchase is made with cash on hand. The funds for the purchase can be money from a refinancing or with available cash on hand.
This method allows the purchaser to finance a replacement property with a traditional mortgage. With this method the title of the Relinquished property is deeded to the Accommodator before the close of escrow on the replacement property. When the Relinquished property is sold, the exchange is over.
Reverse 1031 Exchange Financing
Although difficult to find, a few lenders will, on occasion, finance a Reverse 1031 Exchange. Many lenders do not fully understand Reverse 1031 Exchanges and if approved often carry higher interest rates.