Our client found the perfect investment property and had not sold any of its existing properties. So, not to worry! We created a single purpose entity to acquire the desired new property and parked it until buyers of the existing properties could be found. The timeframes in a reverse exchange are the same as a forward exchange, 45 and 180 days but the client priced the existing properties aggressively to make sure that they were sold in the 180 day time period.
In this situation, we determined that at least two of the client’s three properties would have to sell to get the right match so that provided more flexibility for determining which properties would be sold. As the properties were sold, the funds flowed to us as Qualified Intermediary and ultimately used to reduce the note provided by the client for the acquisition of the new