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Residential Real Estate

If you are contemplating a reverse exchange of residential real estate properties, here are a number of things to consider:

Complexity

While a reverse exchange is more complex than a forward exchange, the complexity for you, the Exchangor, can be reduced by way of a modern, comprehensive reverse exchange process. At ExStra, we have processes that handle the complexity with virtually no exceptions, meaning that once you start, the results are consistent, predictable and safe. Also, we are specialists in reverse exchanges that involve multiple properties, making improvements to New Property and in dealing with complex ownership structures.

Is a reverse more expensive than a delayed?

Reverse exchanges have higher fees than forward exchanges. This is true but the fee for handling the transaction is usually not the best way of determining the right strategy to use. For example, if your properties generate rental income, then a reverse exchange may be the best choice financially. This is true because you, the Exchangor, continue to receive the rental income from your Old (Relinquished) Property during the exchange period in addition to any income generated by the New (Replacement) Property that you are buying. You potentially have two sources of rental income during a reverse exchange. By contrast, during a delayed exchange, your Old Property is sold and the cash proceeds are given to a QI until the New Property is acquired. Your Return on Investment (“ROI”) during a delayed exchange is going to be at or near zero. We’ll be happy to help you analyze your situation to determine the best way to maximize your Return on Capital during an exchange. You can also use the analysis tool we provide, which is available here.

We are very competitive

We want your reverse exchange business since reverses are all we do. We will match or beat any competitive fee quotation for a similar reverse exchange. See our Fee Guarantee for details. In addition, for the fees we charge, we provide:

  • A fixed and flat fee with no hidden charges or holding charges if your exchange goes longer than anticipated.
  • A new LLC which will never hold assets other than yours and which will either be assigned to you or dissolved at the conclusion of the exchange.
  • No increase in fees if you are using a 3rd-party lender or need to use a simple Exchange First instead of an Exchange Last.
  • A thorough analysis of your best "exit strategy" so that the transfer of the New Property is done with maximum continuity of loan, title insurance and liability insurance as well as minimum exposure to unnecessary taxes.
  • Asset security provisions that are the same as those used for much larger and more complex exchanges of commercial real estate. See Security Devices for more.