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RES 1031 - Services

RES 1031 - Services
In an "exchange last" reverse exchange the "replacement property" is purchased before the Exchanger has sold the "relinquished property". RES purchases the Replacement Property for the Exchanger. Then, when the relinquished property is sold to a buyer at a later date (within the 180-day IRS time limitation), RES completes the exchange by deeding the Replacement Property to the Exchanger.

These 7 easy steps complete a reverse exchange:

Exchanger engages RES to be the Exchange Accommodation Titleholder ("EAT") and to prepare documentation for the reverse exchange transaction.
The replacement property must be purchased by the EAT before the Exchanger has sold the relinquished property to the buyer; Exchanger cannot purchase it directly.
Exchanger arranges financing for RES to purchase the Replacement Property; these loans can be made by the Exchanger, its affiliates or third party lenders.
RES and the Exchanger execute the reverse exchange documents and RES purchases the Replacement Property (this is the "parking" arrangement).
RES net-leases the Replacement Property to the Exchanger, who then operates and manages the property as lessee.
Exchanger sells the relinquished property through a qualified intermediary ("QI"). The QI then uses the proceeds of the sale to purchase the Replacement Property from RES.
Exchanger acquires the replacement property through the QI from RES to complete the 1031 tax-deferred exchange.

For more detailed information please see our The Steps in a Reverse Exchange

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