With the cheapest source of funds available, Advantage Mortgage has developed a strong investor based clientele and helped many borrowers conducting tax exchanges.

What you need to know about 1031 tax exchanges:

Both the sale and purchase contract of the properties you are exchanging must contain verbiage specifying that the transaction will fall under the provisions of the 1031 tax exchange code.

In a standard tax exchange, a property of equal or greater value than that sold must be purchased within six months. To be entitled to the tax deferral, 3 potential properties must be identified for purchase with a qualified intermediary within 45 days of closing. Within 180 days of the closing, you must close on the exchange property purchase.

Reverse exchanges allow a borrower to first purchase a property through an intermediary. Once they have sold the property intended for exchange, they can transfer the newly purchased property to themselves and gain the tax deferred privileges.

In either case it is essential to connect with a Qualified Intermediary (QI). For more information about conducting a tax deferred exchange and a referral to a local QI, call Eric Smith, the owner of Advantage Mortgage.