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Home » Exchange Variations » Reverse-Improvement Structure

Reverse-Improvement Structure

REVERSE – IMPROVEMENT STRUCTURE (#25)
“WHAT DIFFERENTIATES ASSET PRESERVATION’S FORMAT?”

A number of “Qualified Intermediary” companies offer improvement and reverse exchanges, but the structure varies from company to company. What differentiates Asset Preservation, Inc. from many others?

Quite simply, we offer the best exchange structure and most qualified professionals to facilitate these very unique and complex exchange transactions. Our improvement and reverse exchange services are very different — and substantially better — than those offered by most other companies.

WHAT ARE THE DIFFERENCES?

Our structure offers one of the most sophisticated and secures ways of facilitating exchanges when the Intermediary must hold title to real estate. Asset Preservation sets up a new and separate LLC (Limited Liability Company) to hold real or personal property for the benefit of an individual Exchanger who has selected our professional Intermediary services.

Most exchange companies have a separate exchange holding company in which they hold many properties for many different Exchangers. What is a problem with this approach? A chief disadvantage is that each individual Exchanger’s transaction can be jeopardized by an issue or lien attached to the corporation, which is a result of a problem with another Exchanger’s property. Yes, this format is much easier for the Intermediary, but unfortunately, it leaves each Exchanger in a much more precarious and risky position during their entire exchange period.

QUESTIONS TO ASK AN INTERMEDIARY

  1. Do you create a separate LLC for each and every Exchanger who wants to perform an improvement or reverse exchange? (If not, are you aware that a lien or problem with another Exchanger’s transaction can affect my property as well?)
  2. How do you handle the management of the property during the exchange period? (Are you aware that a triple net lease is a better method of delineating the responsibilities of the respective parties?)
  3. What type of assurance or guarantee will you provide me in writing regarding the security of my proceeds or property while they are in the possession of the Intermediary during the exchange period? (Is this assurance backed by an established and nationally recognized parent company?)
  4. Do you have a specialized staff, including an in-house attorney, specifically dedicated to handling these complicated exchanges? (If yes, how many successful exchanges have they handled?)