Forward (Delayed) Exchange

A Forward (Delayed) 1031 Exchange allows you to relinquish (or sell) your old (or existing) property before acquiring new (replacement) property. Working with a qualified intermediary, you market and secure a buyer for your old property. Once the agreement is signed by the buyer, you do not have to purchase a replacement property right away—you have up to 45 days to identify a replacement property(ies) and up to 180 days to formally acquire title to one or more of those property(ies), subject to certain restrictions. All transactions are overseen by a qualified intermediary to protect funds and ensure the Exchange is compliant with IRS Regulations.

Why Choose a Forward (Delayed) Exchange?

Forward or Delayed Exchanges are the most common 1031 Exchanges that investors use due to their timeline and the involvement of an expert intermediary. There are several other advantages to securing a Forward (Delayed Exchange), including:

  • Sell first, buy later. Rather than having to worry about two or more transactions at one time, a Forward (Delayed) Exchange gives you the flexibility and time to really decide what you want to do and which replacement property best serves your needs.
  • Concurrent Exchange. On a practical basis it’s EXTREMELY difficult to consummate a concurrent exchange. To identify two properties, two willing parties with similar equities with the desire to trade is very rare, but possible. However, often these parties will use the services of an intermediary to memorialize their concurrent exchange transaction.
  • Deferred taxes. In a Forward (Delayed) Exchange, you have the ability to dispose of a relinquished property without incurring any capital tax gain in the current tax year. This gives you a deferred tax advantage, which works for your benefit rather than the government’s. You keep all your capital working for you.
  • Intermediary expertise. Most Forward (Delayed) Exchanges require the assistance of a qualified intermediary. Your intermediary will protect your funds in an account; take care of communication between you, the buyer, and the seller; and help guide you through the transactional process.

Get Started on Your Forward (Delayed) Exchange Today

If you need to discuss your Forward (Delayed) 1031 Exchange or want to explore your exchange options, contact 1031Xchange, LLC by phone at (866) 724-1031 today. Our staff is highly skilled in Forward (Delayed) Exchanges and is ready to serve you.