1031 Reverse Exchange: Buy First, Sell Later

A 1031 reverse exchange can help investors acquire a replacement property before selling an existing investment property—but the strategy requires careful coordination. This guide explains the basic structure, including the role of an exchange accommodation titleholder, then highlights financing considerations such as bridge loans, mortgage qualification, liquidity, and lender timing. It also emphasizes the IRS identification and completion deadlines: 45 days to identify the relinquished property and 180 days to complete the exchange. Because tax treatment and transaction requirements can be complex, investors should assemble a qualified tax advisor, exchange intermediary, real estate professional, and mortgage broker early. Bay Area investors can use this framework to start a better-informed conversation about feasibility and next steps.