1031 Exchanges - Structuring Reverse and Improvement Exchanges

"What Differentiates Asset Preservation's Format"

  STRUCTURING COMPLEX EXCHANGES

A number of "Qualified Intermediary" companies offer improvement and reverse exchanges, but the structure varies from company to company. What differentiates Asset Preservation, Inc. from others?

Quite simply, Asset Preservation offers the best exchange structure and most qualified professionals to facilitate these very unique and complex exchange transactions. Asset Preservation's improvement and reverse exchange services are very different - and substantially better - than those offered by most other companies.

First, we have a Division dedicated solely to commercial exchanges and the more complex exchanges like reverse and improvement exchanges. Below is a description of what differentiates us from other Qualified Intermediaries and some very important questions to ask your QI before initiating an exchange.

For my post on Improvement Exchange Requirements, click here.

For more information on Reverse Exchanges, click here.

For more specific tax code information on PARKING ARRANGEMENTS in general, click here.

WHAT ARE THE DIFFERENCES?

Our structure offers one of the most sophisticated and secures ways of facilitating exchanges when the Intermediary must hold title to real estate. Asset Preservation sets up a new and separate LLC (Limited Liability Company) to hold real or personal property for the benefit of an individual Exchanger who has selected our professional Intermediary services.

Many exchange companies have a separate exchange holding company in which they hold many properties for many different Exchangers. What is a problem with this approach? A chief disadvantage is that each individual Exchanger's transaction can be jeopardized by an issue or lien attached to the corporation, which is a result of a problem with another Exchanger's property. Yes, this format is much easier for the Intermediary, but unfortunately, it leaves each Exchanger in a much more precarious and risky position during their entire exchange period.

QUESTIONS TO ASK AN INTERMEDIARY

1. Do you create a separate LLC for every Exchanger who wants to perform an improvement or reverse exchange? (If not, are you aware that a lien or problem with another Exchanger's transaction can affect my property as well?)
2. How do you handle the management of the property during the exchange period? (What is the best method of delineating the responsibilities of the respective parties?)
3. What type of assurance or guarantee will you provide me in writing regarding the security of my proceeds or property while they are in the possession of the Intermediary during the exchange period? (Is this assurance backed by an established and nationally recognized parent company?)
4. Do you have a specialized staff, including an in-house attorney, specifically dedicated to handling these complicated exchanges? (If yes, how many successful "parking arrangement" exchanges have they handled?)

REVERSE AND IMPROVEMENT EXCHANGES HAVE SEVERAL VARIABLES THAT SHOULD BE DISCUSSED WITH THE EXCHANGER'S TAX AND LEGAL ADVISORS.

FOR MORE INFORMATION:

Lisa A. Lambert, Esq.  877.646.1031  or LisaL@apiexchange.com

Asset Preservation, Inc.  800.282.1031 info@apiexchange.com   www.apiexchange.com