Did you find a new property to buy before you can sell your current one? 1031X can help. We offer nationwide reverse 1031 exchange services to help real estate investors optimize their tax efficiency, buying power, and flexibility.
1031X will help you get the property you want, even when you are competing in a hot market and your sale isn’t ready yet.
In a nutshell:
- We enter an agreement with you for the reverse 1031 exchange
- You go under contract to buy the replacement property
- You assign the purchaser’s rights to the new LLC, or EAT
From there, you (or an outside lender) loans the funds to the EAT so that it may buy the property. This loan is secured against the property. Then, the EAT leases the property to you, ensuring that you have access during the EAT’s holding period. (The lease is almost always structured so that you do not make rental payments to the EAT)
When you sell your relinquished property, the sales proceeds go to a 1031 exchange escrow bank account. When you’re ready to complete the exchange, we draft an “Assignment of Membership Interest” that gives you full ownership of the property under the LLC. Your recent sales proceeds are then used to buy the property from the EAT, pay down the loan, and complete the exchange.
Call us – (888) 899-1031
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