Get the details on reverse exchanges.

A reverse exchange may be needed when you’re unable to close on the property you’re selling in time to purchase a new investment property. Despite the term "reverse exchange" suggesting that the exchange begins when you purchase your new property, in practice, you won’t swap properties in this order. Instead, you must involve a third party, referred to as an Exchange Accommodation Titleholder (EAT). EATs are limited liability companies that temporarily hold title to either the new property (replacement property) or the one being sold (relinquished property). This arrangement ensures compliance with specific tax regulations governing property exchanges.