To Back up an Intended
1031 Exchange

ranch and livestock

 

 

With a typical 1031 exchange, you have no fall-back position for tax deferral, if you do not identify or acquire replacement property in time, or if you do not spend all of the proceeds from your relinquished property to do so. It's a gamble, and it puts you under pressure to spend money quickly for property when you might rather search longer for something better or when you might rather re-invest in some other way.

Our solution: When you plan a § 1031 exchange, S.Crow Collateral Corp. contracts with you or with the exchange intermediary to purchase the property on an installment basis and then to convey the property to the end buyer. If the exchange fails, the installment contract, rather than the cash, will be distributed to you, and you still achieve tax deferral.