There are many different types of exchanges afforded to you under the §1031 Exchange. Knowing which one is right for you will depend on your particular needs. Be assured that whatever those needs are, your Vesta Strategies advisor has the experience and expertise you can rely on.

The following are brief descriptions of the different types of exchanges available to you:


Types Of Exchanges

Delayed Exchange
The most commonly used exchange is the Delayed Exchange, which is also known as the Starker exchange. The process of a Delayed Exchange begins upon the close-of-escrow of the relinquished property. From that close, you will have a maximum of 45 days to identify up to three potential properties that you wish to exchange for. After the 45-day period, you have an additional 135 days to complete the purchase of one or all three of those properties identified. Vesta provides you with all the documentation and guidance to help make this process hassle free.

To find out more about the time periods, click here!

Simultaneous Exchange
You may consider a Simultaneous Exchange if you have already identified a property or properties you wish to exchange for prior to the closing of escrow of the relinquished property. In this scenario, the two properties will be exchanged concurrently. Because some risks and timing complications may arise, investors typically call on a Qualified Intermediary such as Vesta for assistance in doing this type of transaction. By doing so, an exchangor avoids the possibility of having their exchange disallowed due to having unrestricted control (constructive receipt) of the proceeds from the property sold. Therefore, when you work with Vesta, we will act on your behalf as the controller of these proceeds as you complete the legal process. However, you will still maintain full discretion of how the proceeds are handled. You can rest assured that we will prudently and effectively manage your funds with the help of our strategic banking partners and detailed accounting system.

Improvement Exchange/Build-To-Suit
Often, the investor will want to make improvements to the replacement property and have the cost of the improvements included in the exchange value of the replacement property. The improvements may consist of repairs or remodeling of an existing building, or the construction of a new building on raw land. It is important to know that all improvements should be completed and the exchange estate dispersed within the 180-day time period. As a result, these types of exchanges have to allow for certain uncalculated risks to arise, advance planning is critical in conducting an Improvement/Build-To-Suit Exchange. Our knowledgeable consultants are not only experienced in handling this type of an exchange but will also make sure your plans for this exchange are carried out in the most efficient manner.

Reverse Exchange
A reverse exchange offers unique advantages for Exchangors who want to find a replacement property before they sell the investment property they currently own. This legal procedure was expanded upon and new revenue procedures were added in October of 2000. An Exchangor can now purchase the desired property without the time restrictions found under other types of exchanges. Vesta will help you by acquiring title to that new property, allowing enough time for the old one to close. We will essentially hold on to that property until you are ready to make the exchange. Please see "Reverse Exchanges – A Brief Overview" and “What is a Reverse Exchange?” for more details.