Improvements can also be made to your replacement property as part of the exchange. This can be done in a reverse or forward exchange structure, including starting in a reverse exchange and finishing in a forward exchange (but with a maximum of 180 days). For example, a building can be constructed on land during the 180 day exchange period in a forward exchange. We form a separate limited liability company to be the titleholder of the replacement property. The exchange funds and/or other financing are used to make the improvements. You manage the construction and approve all construction draws. We pledge the membership interest of the titleholder limited liability company to you, or grant you a mortgage in the replacement property, to secure your interest in the property and improvements. Please note that these are generally complex transactions and need to be properly structured.
Improvement Exchanges
Contact 1031 Services, Inc. with questions or to begin your Improvement Exchange.
