@Gary Dawson , there is a way to do that with exchange funds but it is an additional process called a reverse or reverse improvement exchange. In the right circumstance these can be very helpful.
An improvement exchange has the QI taking title to the new property before you do. If your sale has closed then exchange proceeds can be use to purchase the new property in the entity set up by the QI called the EAT (exchange accommodating title holder). Then while the eat holds the property it is improved by you also using exchange proceeds. Once these are complete you take title to the new improved property (or the LLC holding the property) completing your 1031 exchange and using exchange proceeds for both purchase and improvement of the new property.
As you can imagine improvement exchanges are a bit more complex and expensive. But they don't break the bank when compared to the taxes saved by being able to put exchange dollars to the improvements.
Great to know Dave!
I am going out of towm for a couple of days but would live to hop on the phone next week to discuss my situation and how the numbers are going to work out.
Thanks again for the safely advice!