Reverse exchanges are becoming more popular as investors need to quickly close on excellent purchase opportunities.  A reverse exchange occurs when the replacement property is acquired prior to closing on the relinquished property.  This strategy eliminates pressure-filled problems presented by the 45-day identification period and the potential loss of a great purchase opportunity.

An improvement exchange allows the investor to build from the ground-up or improve an existing property, with tax deferred dollars and meet IRC requirements.  Owner-users use this strategy to build a new warehouse or office building in Orange Beach/Gulf Shores, Alabama that meets their exact requirements, rather than being limited to properties available on the market. 

More Gulf Coast investors are combining a reverse exchange with an improvement exchange and creating a perfect opportunity to purchase the new property first – and begin making improvements to this property before the relinquished property is sold to a buyer.

Property values are at the highest levels ever on the Alabama Gulf Coast.  Savvy investors can maximize their investment return by taking advantage of completing IRC 1031 tax deferred exchanges.