How a Reverse Exchange Works Before You Sell
You buy replacement property first, then sell your current property after.
What Makes a Reverse Exchange Different
In a typical exchange, you sell first and buy later. In a reverse exchange, you acquire the replacement property before your relinquished property sells. This flips the usual order and requires specialized coordination from your QI or exchange accommodation party from day one.
More Moving Parts, More Coordination
Because two properties may be in play at once, a reverse exchange involves more cost categories: accommodation setup, additional title and escrow work, financing on the new property, and possibly holding costs. Your QI, CPA, and attorney need to align before you make an offer.
Confirm the Structure With Your Advisors
There is more than one way to structure a reverse exchange, and the right one depends on your financing, timing, and goals. Do not choose a structure based on this page. Confirm the legal and tax structure with your CPA, attorney, and QI before you act.
Where I Fit In
I handle the real estate side: finding the replacement property, underwriting it, structuring the offer, and coordinating closing with your QI and lender. I am not a QI, CPA, or attorney, so structure decisions stay with your tax and legal team.
Sources
Educational only, not tax advice. Your CPA must confirm tax treatment, timing, participation, basis, and filing before you act.
Common questions
Clear answers first. If one question changes the deal, bring it into the review before you move money.
Q1What is a reverse 1031 exchange?+
It is an exchange where you acquire your replacement property before your current property sells, instead of after. It needs specialized QI or accommodation coordination from the start. Confirm eligibility and structure with your CPA, attorney, and QI before you commit to a purchase.
Q2Does a reverse exchange cost more?+
It typically involves more cost categories, including accommodation setup and extra title, escrow, and financing work, because two properties may be involved at once. Exact fees vary by provider and deal. Ask every provider for an all-in written quote before you proceed.
Q3Who decides the legal structure of a reverse exchange?+
Your CPA, attorney, and QI decide the structure based on your specific deal. I coordinate the real estate side, including property search, underwriting, and offer strategy, but structure and tax decisions are not mine to make.
Considering a Reverse Exchange?
Book a Real Estate Review so we can map your property search and timeline, then confirm the exchange structure with your CPA, attorney, and QI before you make an offer.
Considering a Reverse Exchange?
Book a Real Estate Review so we can map your property search and timeline, then confirm the exchange structure with your CPA, attorney, and QI before you make an offer.
Book a Real Estate ReviewNext steps
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