There are several different types of exchanges. Provided below are brief descriptions of the most common.

Aircraft/Business Exchanges
The most commonly exchanged personal property is aircraft and business. As stated previously, although certain exchanges of these natures are allowed, the rules for them are much stricter. For these exchanges, the term "like-kind" has a much narrower definition than that of a real estate property exchange. Both the relinquished and replacement property must fall within the same General Asset Class or Product Class. The idea behind this can be best understood through a few examples rather than a detailed explanation. A corporate jet can only be exchanged for another corporate jet, not a commercial aircraft. A restaurant can only be exchanged for another restaurant, not a nightclub. Even though, both properties being exchanged are quite similar, the classifications are in fact quite different. Thus, these types of exchanges are ineligible for Tax-Deferred Exchanges. As with many aspects involving tax-deferred exchanges, it is critical that you receive proper guidance before proceeding. Excalibur 1031 Group will always provide you with free consultation and help you coordinate your transaction.

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Delayed Exchange
The most commonly used exchange is the Delayed Exchange also known as the Starker exchange. The process of a Delayed Exchange begins upon the close-of-escrow of the relinquished property. From that close, you will have a maximum of 45 days to identify up to three potential properties that you wish to exchange for. After the 45-day period, the code extends to you an additional 135 days to complete the purchase of one or all three of those properties identified. Excalibur 1031 Group provides you with all the documentation and guidance to help make this process hassle free.

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Improvement Exchange/Build-To-Suit
Often, the investor will want to make improvements to the replacement property and have the cost of the improvements included in the exchange value of the replacement property. The improvements may consist of repairs or remodeling of an existing building, or the construction of a new building on raw land. It is important to know that all improvements should be completed and the exchange estate dispersed within the 180-day time period. As a result, these types of exchanges have to allow for certain uncalculated risks to arise, advance planning is critical in conducting an Improvement/Build-To-Suit Exchange. Our knowledgeable consultants are not only experienced in handling these this type of exchange but will also make sure your plans for this exchange are carried out in the most efficient manner.

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Reverse Exchange
A reverse exchange offers unique advantages for Exchangors who want to find a replacement property before they sell the investment property they currently own. This legal procedure was expanded upon and new revenue procedures were added in October of 2000. An Exchangor can now purchase the desired property without the time restrictions found under other types of exchanges. Excalibur 1031 Group will help you by acquiring title to that new property, allowing enough time for the old one to close. We will essentially hold on to that property until you are ready to make the exchange.

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Simultaneous Exchange
You may consider a Simultaneous Exchange when you have already identified a property or properties you wish to exchange for prior to the closing of escrow of the relinquished property. In this scenario, the two properties will be exchanged concurrently. Because some risks and timing complications may arise, investors typically call on a Qualified Intermediary such as Excalibur 1031 Group for assistance in doing this type of transaction. By doing so, an exchangor avoids the possibility of having their exchange disallowed due to having unrestricted control (constructive receipt) of the proceeds from the property sold. Therefore, when you work with Excalibur 1031 Group, we will act on your behalf as the controller of these proceeds as you complete the legal process. However, you will still maintain full discretion of how the proceeds are handled. You can rest assured that we can prudently and effectively manage your funds with the help of our strategic banking partners and a faultless accounting system.

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