What if you find a really good investment property BEFORE selling your current investment property?
WHAT IS A REVERSE 1031 EXCHANGE?
A regular 1031 Exchange allows you to reinvest 100% of the proceeds from the sale of your investment property to a new investment property, instead of paying a tax as high as 35% on profit from the sale. So selling your investment property first and buying a new investment property comes after.
With a reverse 1031 exchange, the order of the transactions gets reversed. Buying a new investment property first and selling your original investment property comes after. You will have 180 days from the day when the escrow for buying an investment property is closed.