What happens when the replacement property you want needs work before it really makes sense for you? In this episode of The 1031 Brief, Ashley Stefan talks with Ken Harris about improvement exchanges, and how investors may use the exchange period to add value to replacement property before taking title. They discuss forward and reverse improvement exchanges, the importance of the 180-day timeline, what improvements actually count toward exchange value, and some of the construction, funding and identification issues that can affect the deal. They also explain why improvement exchanges tend to reward early planning, especially when permits, contractors, financing, and other real-world delays all must fit inside the exchange clock.

Most investors assume they have to sell first and buy later in their 1031 exchange, but that’s not always the case. Ashley Stefan and Anthony Alosi, Director of the National Reverse Exchange Team, explore a structure that can help preserve opportunities when timing doesn’t cooperate. They cover how the reverse exchange process works, common misconceptions, practical challenges, and why early planning is essential. If you’ve ever worried about losing a 1031 replacement property option before your sale even closes, this episode is for you.

Ashley has a conversation with Julie Baird, President of First American Exchange Company, about whether early 1031 planning can affect buying power. They discuss how to approach investigating replacement-property options and how to create better deal flexibility in an exchange. They also walk through simple examples, common missed opportunities, and the practical questions investors should raise before a sale closes.