Types of Exchanges
Pacific Real Estate Investments brings exchangers, buyers, and sellers together to transact a wide variety of §1031 tax-deferred exchanges.
Forward Exchange
(Sell property > Buy Replacement)
- Exchanger sells the relinquished property to buyer. The deed is delivered directly from the exchanger to the buyer. Net proceeds from the sale are wired to the qualified intermediary.
- Exchanger has 45 days from the date of the closing on the relinquished property to identify replacement property in writing. Exchanger must close on replacement property(s) and complete the exchange within 180 days from the sale date of the relinquished property.
- Exchanger purchases the replacement property from seller. The qualified intermediary wires the net proceeds to the closing to complete the purchase. The deed is delivered directly from the seller to the exchanger.
Other Types of Exchanges
- REVERSE. Buy property (with separate cash) > Sell exchange property to fund purchase and repay the cash used to fund the purchase.
- IMPROVEMENT. Sell property > Buy Replacement > Keep spending exchange money on renovation/construction. The funds are drawn from the exchange account and paid to the vendors performing renovation/construction work.
- SIMULTANEOUS. Sell and buy on the same day.
What is an Exchange? |
Why Exchange? |
Exchange Requirements |
What can be Exchanged? |
Types of Exchanges |
Exchange Examples | Home
Pacific Real Estate Investments, LLC
15280 NW Central Drive, Suite 202-10 Portland, OR 97229
503.439.8924 phone 503.217.6072 fax
kennedy@pacificinv.com
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