Improvement Exchange

An Improvement 1031 Exchange enables you to make improvements or even construct new buildings on your new property (“replacement property”) by using proceeds from the sale of your old property (“relinquished property”). An Improvement Exchange can be combined with another exchange method, such as the Reverse Exchange, to allow for more time or flexibility in cost. 

When approaching an Improvement Exchange, it is important to work with a qualified intermediary. Your qualified intermediary will oversee your process and provide the support of a board-certified attorney to ensure your exchange complies with IRS standards. An intermediary will often provide strategic real estate experts who can further help you cut your costs. 

Why Choose an Improvement Exchange?

With the support and know-how of an intermediary, an Improvement Exchange can save you time and money. This type of exchange is especially helpful for new properties that need upgrades or improvements. You’ll also recognize other advantages such as:

  • Building up your investment. This type of exchange allows you to create more value from the funds you put into your new property. You’ll be able to increase your buying power and work toward acquiring even more expensive replacement properties.
  • Leveraging tax money. An Improvement Exchange allows you to use money from the sale of your relinquished property that would have otherwise gone to the IRS in taxes. You’ll also be using this money to drive up the value of your replacement property, so it’s a win-win.
  • Options. The Improvement Exchange works well with other exchange methods such as the Reverse Exchange to give you more options and customization—and more hands-on involvement, if you so choose.

Get Started on Your Improvement Exchange Today

If you’re curious about Improvement Exchange or wondering if it is the right exchange method for you, call on the expert staff at Prime West Exchange, Inc. Our team consists of the top authorities in the real estate and escrow sectors, and we can help you find customized options that work for your unique financial situation. To get started with your Improvement 1031 Exchange today, simply contact us by phone at (818) 442-2228.