If the goal of the exchanger is to exchange several properties into one or more replacement properties, the exchanger must consider the daunting prospect of completing all of the sales, and then the purchase, within a 180-day window. Challenging indeed! The 45-day identification period, along with the 180-day exchange period, starts when the first of several sales in the same exchange closes.
Successful exchangers have sold multiple properties in the same exchange by utilizing a variety of strategies:
- Delay closing on the first few properties to sell until the remainder of sales can be agreed to and closed within a short period.
- Secure the desired replacement property with an option to purchase until sales of the relinquished properties can be negotiated and closed at roughly the same time.
- If all else fails, a reverse exchange can be structured so that the replacement property can be purchased by the qualified intermediary for the exchanger prior to selling the relinquished properties. This strategy does avoid the strict time limits of the delayed exchange, however, financing and other considerations often make this strategy costly.