1031 Exchange Financing in California

A 1031 exchange is a great way for savvy real estate investors to defer capital gains tax on investment properties.

We can fund your 1031 Exchange Deal:

  • Between $200k to $5 million dollars
  • Direct private lender (not a broker)
  • Get funded in 5 to 7 days
  • Competitive rates, up to 75% LTV
  • Get pre-approved in 15 minutes
An aerial view of suburban homes

Lending Guidelines

Interest Rates:Starting @ 7.99% (interest only)
Closing Time:5 to 7 Days
Location:Anywhere in California
Loan To Value Ratio:Up to 75% LTV
Loan Types:Purchase, Refinance, Cash-Out, Fix and Flip, Probate, 1031 Exchange
Amounts:$200K – $5M
Origination Fee:2 to 3 points, dependant 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

Recently Funded Deals

Single Family Home in Studio City, CA

Studio City, CA

Amount: $2,080,000
Type: Purchase
Loan To Value: 61.2%
Rate: 8.50%
Property Type: Single Family
Term: 60 Months
Industry property in Costa Mesa, CA

Costa Mesa, CA

Amount: $650,000
Type: Purchase
Loan To Value: Less than 50%
Rate: 9.00%
Property Type: Industrial
Term: 18 Months
Home in Pasadena, CA

Pasadena, CA

Amount: $950,000
Type: Purchase
Loan To Value: 50%
Rate: 8.25%
Property Type: Single Family
Term: 12 Months

What is a 1031 Exchange?

Normally, when selling a property you will be taxed on the capital gains of the sale.

In a 1031 Exchange, an individual or corporation exchanges a "like-kind" investment property for another investment 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 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

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 count down 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

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

Often times the replacement property is of much greater value than the one being sold. 

When an investor is exchanging into a more expensive property if they do not have the funds required they may need a short-term hard money loan to finalize the deal.

Once the 1031 exchange is completed and the investor has ownership of the new property they can then refinance into a more traditional lower cost bank loan.

1031 Exchange Financing

We provide rapid funding for the 1031 exchange real estate investor

1031 Exchange FAQ

Looking to go more in depth on 1031 Exchanges? Check out our blog post, 1031 Exchanges Explained.

Can a 1031 exchange be extended?

Can I do a 1031 exchange with a house I fix and flipped?

Can a 1031 exchange be used for land?

Can you use a 1031 exchange to purchase a primary residence?

Can 1031 exchange be used for second home?

Can 1031 exchange be used for stocks?

Can you still do a 1031 exchange after a sale?

How do I avoid taxes on a 1031 exchange?

How many times can you do a 1031 exchange?

Is a 1031 exchange only for investment property?

What properties qualify for a 1031 exchange?

When to file 1031 exchange?

Who can do a 1031 exchange?

Who holds 1031 exchange money?

How much are 1031 Fees?