Types of exchanges

Built for every kind of deal.

Most exchanges follow the standard forward path, but the code allows for several structures. Here’s how each one works, when it makes sense, and what to keep in mind.

T-01 · Most common

Deferred (Forward) Exchange

You sell the relinquished property first, and Mesa 1031 holds the proceeds while you find and acquire the replacement property. The 45-day identification clock and 180-day closing clock both start at your sale.

When it’s used

The default for nearly every investor — you’ve sold, or are about to, and want to reinvest the proceeds into new property without triggering tax.

Keep in mind

Line up likely replacement properties early. The 45-day window moves fast, and identification must be in writing.

T-02 · Buy first

Reverse Exchange

The order is flipped: the replacement property is acquired before the relinquished property sells. Because you can’t hold title to both at once, an exchange-accommodation titleholder parks one property until the sale closes.

When it’s used

Competitive markets where the right replacement appears before your sale is done — you don’t want to lose it waiting to sell.

Keep in mind

More moving parts and financing considerations. Same 45/180-day clocks apply, measured from the parking acquisition.

T-03 · Improve it

Construction (Improvement)

Exchange proceeds are used not only to buy the replacement property but to build or improve it. The intermediary holds title while improvements are made, so the added value counts toward your exchange.

When it’s used

When the replacement property alone isn’t worth enough to defer the full gain, or you want to build to suit on acquired land.

Keep in mind

Improvements must be completed and the property received within the 180-day window to count toward the exchange value.

T-04 · Same day

Simultaneous Exchange

The relinquished and replacement properties close at the same time, in a single coordinated transaction. It’s the original form of the 1031 exchange and the simplest in concept.

When it’s used

A direct swap between parties, or back-to-back closings that can be scheduled together on the same day.

Keep in mind

Timing has to be exact. Even a one-day gap turns it into a deferred exchange — which still works, with a qualified intermediary in place.

Not sure which fits?

We’ll figure it out together.

Most people don’t arrive knowing which structure they need — and they don’t have to. Tell us about your property, your timeline, and what you’d like to buy next, and we’ll recommend the right approach.

As a focused local firm, we routinely handle reverse and construction exchanges that larger national shops turn away. If it can be done, we’ll find the path.

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