Improvement Exchange

An Improvement 1031 Exchange allows you to construct improvements or even new buildings on a new (replacement) property by using funds from the sale of the old (relinquished) property. Often, an Improvement Exchange will be accompanied by another exchange method, such as the Reverse Exchange to allow for more flexibility. This makes it important to work with a qualified intermediary when choosing this type of exchange, so you have the support of a board-certified attorney and strategic real estate experts.

Why Choose an Improvement Exchange?

An Improvement Exchange, when executed correctly, can save you time and money if the new replacement property needs some upgrades or improvements. Other advantages that this method offers include:

• Leveraging cash. By using proceeds from the sale of the relinquished property, you can save money that would have otherwise gone to the IRS in taxes. You can also drive up the value of your replacement property, giving yourself increased options in the long term.
• Building an investment. When you utilize an Improvement 1031 Exchange, you are reinvesting your funds to create more value in your replacement property. By doing so, you can increase your buying power and work toward acquiring an even more expensive replacement property.
• A longer timeline. Unlike other exchange methods that require investors to make decisions relatively quickly, the Improvement Exchange allows for a longer decision-making period since the improvements do not have to be completed by the 180-day exchange period.
• Options. The Improvement Exchange is flexible and works well with other exchange methods such as Reverse Exchange. This allows for customization and more hands-on involvement if you so choose.

Get Started on Your Improvement Exchange Today

The qualified staff at 1031Xchange, LLC is ready to help you craft your Improvement Exchange, including providing options for combination and customization. To get started with your Improvement 1031 Exchange today, simply contact us by phone at (866) 724-1031.