Improvements can also be made to your replacement property as part of the exchange. For example, a building can be constructed on land during the 180 day exchange period. 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.