When To Consider a Reverse 1031 Tax-Deferred Exchange

The real estate market, including residential and multi-family investment properties, has changed considerably over the last nine months. Relinquished properties are staying on the market much longer than they used to.

Planning and coordinating 1031 tax-deferred exchange transactions has become more challenging when the like-kind replacement property has already been identified and under contract.

We are seeing more reverse 1031 exchange transactions in today's challenging real estate market because investors are finding it necessary to acquire the like-kind replacement property before they can sell their relinquished property or risk losing the investment opportunity.

Reverse tax-deferred exchanges can be a great solution for this situation. Investors can acquire and close on the like-kind replacement property and still have 180 calendar days to complete the sale of their relinquished property and thereby preserving their tax-deferred exchange treatment.

You can learn more about reverse 1031 exchanges at: http://www.exeterco.com/intro_reverse_1031_exchange.aspx.