AgentNews Brief

Reverse exchange can secure bargain real estate

Keep deal alive when unexpected delays arise

The duplex close to the university campus was too good for Harvey Blanks to pass up. An acquaintance of mine for more two decades and a longtime real estate investor, Blanks had been in a holding pattern for the past 18 months, waiting for more positive signs in home sales. However, he signed an agreement on Jan. 4 to purchase the duplex, believing the deal was a huge bargain. "It's not just about the built-in rental pool that will always be there because of the university," Blanks said, "but the building's in great shape and the seller needed to get out of it. The timing isn't great for me, but it's a great long-term play." The timing wasn't great for Blanks because he had intended to sell another one of his properties via a tax-deferred exchange in order to purchase the duplex. Taxpayers can defer capital gains tax by selling one investment property and then buying another investment property of equal or greater value within certain time frames. Howeve...