Reverse Construction Exchange A reverse construction exchange basically combines a reverse and construction exchange into one. It may be appropriate when (1) the replacement property must be closed before the relinquished property can be sold or (2) when it will take more than 180 days to construct the desired improvements to the replacement property. The Qualified Intermediary, such as 1031ae, sets up a special purpose entity known as an Exchange Accommodation Titleholder (EAT) to purchase the property and allocate funds for improvements. The EAT will acquire the raw land well in advance of the sale of the property that you currently own, giving you a head start on the approval and building process and helping you to meet the 180-day requirement. It is crucial that the Qualified Intermediary has in-depth knowledge of reverse and construction exchange strategies because of the complexity of such exchanges. 1031ae works with your tax advisors and attorneys to help guide you through the process. Please contact one of our exchange consultants to discuss the advantages and complexities of a reverse construction exchange. >> back to strategies