This is the same as an improvement exchange, except that you are going to buy the new property before you sell the old one, and start on the improvements right away. This is desirable when you either want or need to purchase the new property before you are able to close on your old one first. One of your challenges is how will you buy the new property and start on the improvements if you do not have the funds from the sale of the old property yet? In these cases, most of our clients have the cash necessary to fund the purchase and improvements up front, so this problem does not hold them up. The problem with cash buyers is not that they are not able to purchase the property or do the improvements, but wanting to get those items done prior to the 180th day time frame. The reverse exchange is a great tool because in a reverse, the dates are "soft", meaning you can go past the 180 days if you need to in order to complete the exchange. You will lose the safe harbor, but in a reverse exchange there is nothing stopping you to go past the 180 days as long as you are working with a QI that holds onto to your new property for you during the entire exchange period. In this manner, you can take your time to complete the exchange and not miss out on the advantages of doing a 1031 exchange. Call us and we will fill you in on the details.