A build-to-suit construction exchange is a type of specialized 1031 exchange that allows investors to make improvements to the replacement property prior to closing. Give our qualified intermediaries a call today if you have questions about your build-to-suit exchange in the Grand Forks area –877.373.1031.
Build-to-Suit Construction Exchanges
What is a build-to-suit exchange and how does it differ from a typical 1031 exchange? A build-to-suit (or construction) exchange is a 1031 exchange of like-kind property in which the exchangor constructs improvements on their replacement property as a part of the exchange.
Anyone with real estate experience knows that the perfect property is rare. You may find property that you love, but making changes to the property after purchase is a very common occurrence. This is where a build-to-suit exchange can be useful. If you find a replacement property that you like but that needs improvements, you can make those construction improvements and include them as part of your exchange.
1031 Regulations?
It’s important to remember that there are still a number of rules and regulations that need to be met in order to complete a construction exchange:
- Time. You still have to abide by the standard 180 day time period. That means any construction needs to be completed before the end of the 180th day of your exchange.
- Like-Kind. All property in the exchange needs to be like-kind.
- Investment or Business Use. Your property also needs to be used primarily for investment or business purposes.
Construction 1031 Exchange Company in Grand Forks, ND
Contact one of our construction exchange qualified intermediaries today to discuss the specifics of your exchange. 1031 like-kind exchanges can be complex matters, and even savvy investors can find themselves with a failed exchange if they’re not careful. A qualified intermediary can make sure that you don’t make any costly mistakes with your 1031 exchange. An intermediary can also answer all of your questions, make recommendations regarding replacement property, and prepare all of your 1031 exchange documents. Give our 1031 intermediaries a call today to set up your exchange –877.373.1031.