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:
|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|
|Loan Term:||6 to 60 months (extensions available)|
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.
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.
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.
We provide rapid funding for the 1031 exchange real estate investor