1031 Exchange Loans in California

Fast Flexible Funding

Our Hard Money Lending Guidelines

Interest Rates:Starting @ 9.75% (interest only)
Closing Time:5 to 7 Days
Location:Anywhere in California
Loan-To-Value :Up to 75% LTV
Amounts:$200K to $2M
Origination Fee:2 to 3 points, depending on size and term
Lien Positions:First Trust & Second Trust Deeds
Underwriting Fee:$1500
Loan Term:6 to 60 months (extensions available)

Property Types

  • Single-family & Multi-family Investment Properties
  • Condominiums
  • Retail Centers
  • Office Buildings
  • Industrial & Warehouse
  • Hotels & Motels
  • Healthcare & Assisted Living Facilities
  • Special Purpose & Mixed Use
  • Parking Garages & Lots

What is a 1031 Exchange?

A Real Estate Agent Talking With A Client

Usually, when selling a property, you will be taxed on the capital gains from the sale.

In a 1031 Exchange, an individual or corporation exchanges a "like-kind" investment property for another property of equal or greater value (you can also exchange multiple properties).

When done under Section 1031 of the IRS tax code, you can defer paying any capital gains tax into the future. 

This allows you to grow your investment, which is essentially tax-free.

This process can be repeated an infinite number of times until you decide to realize your gains.

This popular and powerful investment tool should be in every real estate investor's toolbox. 

About 1031 Exchange Timelines

A Hand Working on A Chart in Front of a Laptop

Once a real estate investor has sold an investment property, they have 45 days to inform a qualified exchange intermediary in writing about a particular property they plan to purchase.

Failure to inform the intermediary within the 45-day time frame results in an invalid exchange, and the investor will not be able to reap the 1031 exchange tax benefit.

From the date the property is sold, a 180-day countdown begins. 

This 180-day timeline runs concurrently with the 45-day rule.

By the 180th day, the title of the replacement property must be completely transferred into the investor's possession.

Because of these timelines, a hard money loan is often used to bridge funding gaps and accelerate the purchase of the replacement investment property.

1031 Exchanges and Hard Money Loans

Money and Real Estate Assets

If you are running out of time, we can provide you with a bridge loan to complete your transaction and be compliant within the 180-day deadline.

The replacement property is often of much greater value than the one being sold. 

When investors exchange for more expensive property, they may need a short-term hard money loan to finalize the deal if they do not have the required funds.

Once the 1031 exchange is completed and the investor owns the new property, they can refinance into a more traditional, lower-cost bank loan.

Why Borrowers Choose Crescent Lenders

Rates as Low as 9.75%

75% LTV

No Minimum Income Requirement

No Upfront Fees

Direct Lender, Not a Broker

Speedy Approval & Funding Process

Minimal Documents Needed

Self-Employed or Foreign National

Trusted 5-Star Rating on Google

FREQUENTLY ASKED QUESTIONS

1031 Exchange

Can a 1031 Exchange Be Extended?

A 1031 exchange cannot be extended under any circumstance or for any hardship. The only exception is in the case of a presidentially declared disaster.

Can I Do a 1031 Exchange With a House I Fix and Flipped?

This is a gray area. 1031 exchanges are not to be used to purchase a property to sell it for a profit.

If you buy a property, rent it out, make some improvements, and then sell it a few months later, it could qualify for a 1031.

Renting the apartment and collecting income shows the IRS that the property was used as an investment.

Can a 1031 Exchange Be Used for Land?

Yes.

Can You Use a 1031 Exchange to Purchase a Primary Residence?

No. A primary residence cannot be used for like-kind exchange.

Can 1031 Exchange Be Used for Second Home?

No. A primary residence, secondary residence, or vacation home does not qualify for a like-kind exchange.

Can 1031 Exchange Be Used for Stocks?

1031 exchanges cannot be used for stocks, bonds, or notes.

Can You Still Do a 1031 Exchange After a Sale?

Yes, as long as you, as the real estate investor, do not touch any funds.

How Do I Avoid Taxes on a 1031 Exchange?

Yes, as long as you, as the real estate investor, do not touch any funds.

How Do I Avoid Taxes on a 1031 Exchange?

You should speak with a certified 1031 exchange specialist to ensure you qualify for deferring your capital gains taxes.

How Many Times Can You Do a 1031 Exchange?

Under the current IRS tax code, the number of 1031 exchanges an investor can perform is unlimited.

Is a 1031 Exchange Only for Investment Property?

Yes, a 1031 exchange can only be used for investment properties. It cannot be used for a primary residence, a secondary residence, or a vacation home.

What Properties Qualify for a 1031 Exchange?

The relinquished and newly purchased properties must meet certain IRS criteria to qualify for a 1031 Exchange. Here are some guidelines:

  • Both properties must be held for use in a trade, business, or investment
  • Properties used for personal use, like a primary residence, second home, or vacation property, do not qualify for like-kind exchange.
  • Properties must be similar in type; the IRS's definition is pretty broad. For example, a multi-family property would be similar to vacant land.
  • It is impossible to exchange like-kind property inside the United States for a like-kind property outside of the United States.
  • Real property cannot be exchanged for personal property.
When to File 1031 Exchange?

There are 2 time limits to a 1031 Exchange:

The 45 Day Limit
You have 45 days from selling the relinquished property to identify potential replacement properties.

The IRS stipulates that these properties must be identified in writing, signed, and delivered to a person involved in the exchange.

Either the seller of the replacement property or a qualified intermediary would qualify.

Your real estate agent, accountant, or lawyer is not a qualified intermediary.

The 180-day Limit
The exchange must be completed within 180 days of the sale of the relinquished property. At this time, the second replacement property must be completely purchased and received, and the exchange must be completed no later than 180 days after that.

Who Can Do a 1031 Exchange?

Individuals, C corporations, S corporations, partnerships (general or limited), limited liability companies (LLCs), trusts, and any other tax-paying entity, including owners of investment and business properties.

Who Holds 1031 Exchange Money?

A qualified intermediary, or an accommodator, is a company or person that holds the funds in the transaction until they can be transferred to the seller of the like-kind exchange property.

How Much Are 1031 Fees?

Federal capital gains taxes can take between 20% and 40%. State capital gains taxes can be 0% if you live in states such as Texas or Washington.

Depending on your state, capital gains taxes can be between 20% and 40%, and a few states have no capital gains tax.


FAST FLEXIBLE FUNDING
Between $200k and $2 million dollars
Nationwide private lender (not a broker, avoid the extra fees)
Funding loans such as purchase, refinance, rehab, probate, 1031 exchanges, cash-out
All types of investment properties considered, residential, commercial and industrial
Crescent Lenders

Suite #116, 999 Overland Ave

Los Angeles, California

90064


Disclaimer: Crescent Lenders, DBA CrescentLenders.com ("CL") is a California licensed broker under California Bureau of Real Estate License No. #01792267. Regardless of this license, CL considers itself a “finder” for applicable laws and regulations (California Business & Professions Code § 10130, et. seq.).