Customer Focused Texas Based Private Money Lender
based in Fort Worth, Texas
817-773-1919
delayed 1031 exchange

1031 Exchange Services

Qualified Intermediary Services

Cedar Top Lending, LLC provides qualified intermediary services to facilitate Section 1031 exchanges, reverse exchanges and construction exchanges. Our team has handled a large number of exchanges across the State of Texas for clients from all over the United States. We offer our clients the highest degree of integrity, professionalism and efficiency, at a price well below what is charged by the national exchange companies.

Defer Recognition of Capital Gain Liabilities
IRS Code Section 1031 may allow a taxpayer to defer recognition of capital gain liabilities from the sale of real estate when the proceeds are used to acquire replacement like-kind property. Please refer to a tax expert regarding your qualifications under this section of the code.
Our Exchange Services
We have the experience and flexibility to act as an agent in like-kind exchange transactions. We serve as a qualified intermediary and hold funds until the exchange is completed. Our experienced staff, along with our standard agreement, ensures your transaction is processed accurately and efficiently.

What Types of 1031 Exchanges Can We Do?

Construction or Improvement Exchange

The construction exchange allows the property owner to improve on the replacement property by using tax deferred dollars to update the replacement property while held by a qualified intermediary for the remainder of the 180 day exchange period.
There are three requirements if the taxpayer wants to defer all of their gain from the sale of the relinquished property and instead use it as part of the construction or improvement exchange.
1) The entire exchange equity must be spent on completed improvements or as a down payment by the 180th day.
2) The taxpayer must receive “substantially the same property” that they identified by the 45th day.
3) The replacement property must be equal or greater in value when it is deeded back to the taxpayer. The improvements must be in place before the taxpayer can take the title back from the qualified intermediary.

Delayed 1031 Exchange

The delayed 1031 exchange is the most common type of exchange used by our customers. This is when the exchanger sells, or relinquishes the original property before he acquires the replacement property. You can exchange the property you own first and transfer the proceeds from the sale into the replacement property.
You will need to enter into a purchase and sale agreement before the delayed 1031 exchange can begin. Once this has taken place, a third-party Exchange Intermediary can initiate the sale of the relinquished property and hold the proceeds from the sale in a trust account for up to 180 days while the Seller finds a like-kind property.
The delayed 1031 exchange allows an investor a maximum of 45 days to identify the replacement property and 180 days to complete the purchase of the replacement property. In addition to the numerous tax benefits, this extended timeframe is one of the reasons that the delayed 1031 exchange is so popular.

Reverse 1031 Exchange

A reverse exchange is when you acquire the replacement property through an exchange accommodation titleholder prior to exchanging the property that is already owned. This type of exchange means buy first, exchange later.
Reverse exchanges are not the most common as they generally need to be all cash. Taxpayers need to choose which investment properties are going to be used for the exchange. Failure to close on the relinquished property during the established 180-day window results in forfeiture of the exchange.
There are two main differences:
1) 45 days to identify the relinquished property
2) 180 total days to complete the sale of the identified property and close the reverse 1031 exchange with the purchase of the replacement property

Simultaneous Exchange

A simultaneous exchange is the simplest form of a 1031 exchange and happens when the replacement property and relinquished property close the sale on the same day, thus the simultaneous exchange designation.
There are three ways a simultaneous exchange can take place.
1) Complete a two-party trade where the two parties swap deeds
2) A three party exchange where Cedar Top facilitates the transaction in a simultaneous manner for the exchanger, or
3) A simultaneous exchange using a qualified intermediary who handles the entire exchange

Contact Our 1031 Exchange Team

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