1031 Reverse Exchange Cost Calculator

Reverse exchanges buy replacement before selling relinquished property.

Purchase price

Facilitator fee

Parking entity fee

Bridge financing rate %

Bridge days

Total reverse exchange cost

$371,377

Bridge financing cost

$332,877

Soft fees

$38,500

How the math works

Bridge cost = purchase × rate × days/365. Soft fees = facilitator + parking + legal.

$18M × 7.5% × 90/365 = $332k bridge + ~$38.5k fees = $371k total reverse exchange cost.

How to Use

Enter purchase price.
Enter facilitator fee.
Enter parking entity fee.
Enter bridge financing cost.
Enter 180-day bridge duration.
Read total reverse exchange cost.

Frequently Asked Questions

Why reverse?

Lock replacement property while selling relinquished. Protects against buyer walk-away. Allows closing date flexibility. Prevents forced quick sale of relinquished. Critical in hot markets with limited replacement inventory.

Structure?

Qualified Intermediary (QI) 'parks' one property in an Exchange Accommodation Titleholder (EAT). Borrower acquires replacement. Within 180 days, sells relinquished to QI, unwinding the parked position. Strict IRS timing.

Costs?

QI fee: $3k-10k. EAT fee: $2k-8k. Legal: $5k-20k. Parking fee: $5k-25k. Bridge financing (if needed): 2-5% of purchase. Total fees typically $25k-100k on top of standard 1031 cost.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.