Paying my own construction company in a 1031 Exchange

[Aaron Nelson]

I am selling a property and immediately purchasing a BRRRR investment with the gain via 1031 exchange. I own a small construction company who will be completing the repairs on the new property.

The QI won't hold the construction funds for me. Is it OK to prepay the construction company (my LLC) for the repairs in lieu of the QI holding the funds? The company would receive the full rehab amount and I would finance a portion of the purchase of the property.