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Types of Exchanges

The most common type of exchange is labeled a “forward exchange” and simply means that the investor sells the relinquished property before acquiring a like-kind replacement property. If the timing does not work for this delayed exchange, there are many other types of exchanges that can be used depending on the circumstances.

A

Forward (or delayed) Exchange

where one property is sold and, within 180 days, another like-kind property is acquired.

B

Reverse Exchange

should be considered when the investor finds the property they want to buy and must purchase it before they are able to sell their current property Reverse Video.

C

Construction Exchange

can be utilized when an investor desires to build the eventual replacement property to certain specifications and/or on a separately acquired lot Construction Video.

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