Construction/ Improvement Exchange A construction exchange is an effective strategy when you want to use exchange proceeds to (a) build a new replacement property or (b) make improvements to an existing property. Exchangers frequently utilize this strategy to purchase property in need of renovations or to acquire raw land and build improvements. The Qualified Intermediary, such as 1031ae, sets up a special purpose entity known as an Exchange Accommodation Titleholder (EAT) to purchase the property and improve it during your exchange period. Either upon completion of the project or prior to the expiration of the 180 days, the improved property is transferred to you. Advance planning is crucial in this exchange strategy because circumstances beyond your control could delay construction: inclement weather, plans and permits. Please contact one of our exchange consultants to discuss the construction/improvement exchange strategy. >> back to strategies