The Bottom Feeders Are Jumping into the Real Estate Market Using Reverse 1031 Exchanges

The Bottom Feeders Are Here

Have you noticed the same trend in the investment real estate market cycle that we have?  Bottom feeders are jumping in.  The bottom feeders have realized that we are getting close to the bottom of the investment real estate market cycle and are starting to jump into the real estate market by acquiring distressed properties, such as foreclosures, short-sale properties, REO properties, and the like. 

The bottom feeders help the market absorb excess property due to foreclosures, short-sales, REO properties, etc.  This is the natural progression of these real estate market cycles.  It would be interesting to see a study on how fast the excess properties are being absorbed in this market cycle compared to prior market cycles. 

Increase in Reverse 1031 Exchanges

I thought I would share the interesting trend that we have noticed.  We've seen a marked increase in the number of inquiries via telephone calls, emails and website questions asking about reverse 1031 exchange structures and procedures, and we have seen a nice increase in the number of reverse 1031 exchanges opened over the last few weeks.  Real estate investors are using reverse 1031 exchanges to take advantage of buying opportunities due to the current real estate market cycle.

Acquire Property First Using A Reverse 1031 Exchange

Real estate investors are finding investment real estate opportunities and acquiring the investment real estate using reverse 1031 exchanges before they have even listed their relinquished properties for sale. They are taking advantage of the reverse 1031 exchange structure so that they can acquire their like-kind replacement property before they sell or even list their existing relinquished property.