Reverse 1031 Exchanges Gain in Popularity in Current Market

Significant Buying Opportunities
Incredible investment opportunties abound everywhere today. I'm sure that you have seen them, or at the very least heard of them. There are properties that are being sold everyday via a short-sale, via foreclosure (Trustee's Sale) or deed in lieu of foreclosure, or directly by the financial institutions that have already taken the property back via foreclosure (REO Property). The potential long-term return from these investment properties is absolutely astounding. The investment opportunties often already provide positive cash flow.

Cash Is King: But Must Move Fast
The catch is that those who have cash are in control. Cash is King. Investors that have all cash can make offers and move and close on the acquisition of the troubled property quickly. This creates challenges for those that would like to structure a 1031 exchange because you have to move quickly and will generally not have time to sell your existing relinquished property in time to structure a 1031 exchange transaction.

Demand for Reverse 1031 Exchanges
The need to move quickly in the acquisition of short sale properties, foreclosure properties or REO properties has resulted in an unexpected increase in Reverse 1031 Exchange transactions. Investors are identifying tremendous buying opportunities and moving on the acquisitions quickly by acquiring the replacement properties immediately through a Reverse 1031 Exchange.

The Reverse 1031 Exchange allows the investor to move much quicker by taking advantage of the current investment opportunities created by the present real estate market cycle. The investor can buy their replacement properties first and then worry about selling their existing relinquished property within the next 180 calendar days.