Reverse Exchanges

Advanced exchange strategy allowing purchase of replacement property before selling relinquished property.

Reverse exchanges, also known as "parking arrangements," allow Washington DC investors to purchase replacement property before selling their relinquished property. This advanced strategy requires coordination with a qualified intermediary who temporarily holds title to the replacement property. We structure reverse exchanges to maximize flexibility while maintaining IRS compliance. This strategy is particularly valuable in competitive markets where desirable replacement properties sell quickly.

Frequently Asked Questions

How do reverse exchanges work in Washington DC?

Reverse exchanges allow Washington DC investors to purchase replacement property before selling their relinquished property. A qualified intermediary temporarily holds title to the replacement property until the relinquished property sells. This strategy provides maximum flexibility in competitive markets.

When should I consider a reverse exchange in Washington DC?

Reverse exchanges are ideal when you find a desirable replacement property that may sell quickly in Washington DC's competitive market. This strategy allows you to secure the replacement property first, then complete the sale of your relinquished property within the required timeline.

What are the risks of reverse exchanges in Washington DC?

Reverse exchanges require careful coordination and involve additional complexity. For Washington DC investors, the main risk is failing to sell the relinquished property within the exchange period. We structure reverse exchanges to minimize risks while maximizing flexibility.