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Updated over 5 years ago,
Reverse 1031 exchange - disadvantages, problems, risks ???
I am planning to do reverse 1031 exchange. First buying replacement property (currently in escrow). The title will be held by EAT (The Exchange Accommodation Titleholder) till I sell relinquished property.
What makes me little bit nervous is that the title is held by EAT (unrelated entity). I am providing cash to purchase (as a loan to EAT).
Anyone experienced. What is my protection if things go wrong (bankruptcy, fraud, etc.)? Is there a risk? How to mitigate it?