Orexco 1031 Exchange

Orexco Provides Broad 1031 Exchange Services And Guarantees


Orexco is subsidiary of Old Republic International Corporation, a $13 billion insurance company. Its broad and comprehensive IRS Section 1031 services help clients take advantage of tax deferred exchanges to diversity, consolidate or leverage their investment portfolios; Orexco 1031 exchange investors have numerous options to accomplish their investment goals.

Orexco, incorporated in California in 1993, works with Old Republic National Title Holding Company to guarantee the security of exchange funds. Old Republic will reimburse for any loss of funds sent to Orexco if the loss is caused by Orexco. The company carries $50 million in errors & omissions insurance, and holds a fidelity bond to cover dishonesty or fraud for $40 million on a single event basis and $80 million on an aggregate basis.

Types of services offered by Orexco

Orexco’s services include Like-Kind Real Property Exchange, Like Kind Personal Property Exchange and Multiple Asset LKE programs. Like-Kind Real Property Exchange applies to the exchange of relinquished property with replacement property that is similar, without respect to differences in quality or grade. So, the question of whether real estate is improved or unimproved is immaterial. Therefore, raw land that has been held as an investment can be exchange for a business owned rental property. Further, raw land could be exchanged for single family rentals, farms/ranches,  offices/commercial space, motels/hotels, golf courses, multi family rentals, raw land, and industrial.

Like-Kind Personal Property Exchange tends to require a trade of similar grade and quality.LKE Programs are for ongoing exchanges, and those involving 100 or more property assets. These are used in cases where one would be continually upgrading equipment, like fleets of vans, for example. The LKE program provides deferred capital gains tax and improved cash flow for asset acquisition.

Orexco provides four types of exchanges, including Delayed, for when there is a time delay between the release of one asset and the acquisition of another. Reverse exchanges occurs when the replacement asset is acquired before the relinquished asset is sold. Improvement exchanges are used when the exchanger uses the proceeds from a sale to improve existing property. And, a simultaneous exchange occurs when both the relinquished asset and the acquired asset are sold at the same time.

Orexco consults with tax advisor to ensure transactions qualify for tax-deferred status. They prepare the legal required legal documentation. As assigned principal for transactions, they also execute closing documents. Finally, they will hold proceeds where necessary.

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