1031 EXCHANGE HANDBOOK ...

EXCHANGES OF A MORE ADVANCED NATURE

Reverse Construction Exchanges

What if you cannot get enough new construction completed within 180 days of your sale to equalize and finalize your exchange?  In this case, you can do a reverse construction exchange.  Here the EAT takes title to the land with money borrowed from you before you sell your old property.  Construction on the new property can begin and be well underway so that the construction is almost complete or fully complete when the old property closes.