The main benefit of a reverse exchange where you can successsfully buy before you sell is immediately obvious to anyone who has attempted a standard forward exchange in a tight real estate market. Namely, since you'll be identifioying the property you intend to sell, rather than the property you intend to buy, the normaly anxiety surrounding the typical identification proc ess is gone!
Secondly, the control an Exchanger can maintain over both properties throughout the course of the exchange, makes utilizing the logistics of the reverse approach quite compelling.
Interestingly enough, wWe now have experienced Exchangers who will only do a reverse exchange, regardless of their circumstances because the control and the lack of the pressure associated with identification makes the process so painless.
In addition, there are the following:
Your remove the 45 day Identification from your head
You maintain control over both the replacement and relinquished properties
You gain cash flow from both properties during the exchange
You have the flexibility of going beyond the 180 day excahnge period
You can mix both reverse and forward exchanges into one over-arching transaction
You don't have to sell until found the ideal replacement property
You can diversify your ownership across several properties while maintain deferred gain treatment