Lending Considerations in a Reverse Exchange
Reverse Exchange lending requirements vary greatly from a typical Forward Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange . It is very important for the Lender to be experienced and knowledgeable in Reverse Exchange lending at the beginning of the exchange process. For detailed requirements and considerations for lending in a Reverse, or Built-to-Suit, Exchange review this flyer.