Bridge Loans For 1031 Exchanges
To schedule a free loan consultation, please call (254) 230-0012 (for loans in Texas) or (503) 222-4466 (for loans in Oregon and other states).
The whole point of a 1031 exchange in real estate is to defer paying capital gain taxes when you sell an investment property. As long as you reinvest your proceeds into another like-kind investment, you can postpone tax payments.
But if something happens along the way to throw off the timing, you could be looking at a big IRS bill that’s due now!
Let’s look at some of the main reasons that it makes sense to use a hard money bridge loan from TriTalent Funding Group to help facilitate a 1031 exchange.
Quick Loan Approval And Funding For 1031 Exchange Loans
With the tight deadlines in 1031 exchanges (45 days to identify your like-kind property and 180 days to close), time is of the essence. Unlike many other commercial lenders, we can provide loan approval in as little as 1 day and funding in as little as 7 days. These fast loan turnaround times help ensure that you’ll meet your 1031 deadlines.
In many cases, our hard money loans allow real estate investors to quickly purchase a replacement property, with plans to refinance with a conventional lender after the 1031 exchange has been completed.
Flexible Underwriting Requirements For 1031 Exchange Loans
When considering whether to fund a bridge loan, we primarily focus on the value of the property that you’re putting up as collateral. Traditional lenders and banks look at that value as well, but they also often have stringent requirements that we don’t have for credit scores and income.
Bridge Loans For Non-Conventional Properties
Commercial banks are also selective about the types of properties they’ll finance. If your 1031 replacement property isn’t eligible for traditional financing (because it’s distressed, mixed use, under renovation, or some other reason), we can come to the rescue!
Competitive Edge In A Competitive Market
Our hard money loans can also help ensure that you’ll get the replacement property you want! The fact that we can provide a loan in just days means that you’ll have a competitive edge if you’re bidding against other real estate investors. With funds in hand, you can commit to a quick close, which is often attractive to sellers.
Bridge Loans For Partner Buyouts
If you have a real estate partner that needs to be bought out, as part of the 1031 exchange, we can provide a hard money loan to do that.
Bridge Loans For Title Issues
We can also provide a bridge loan to help you fund a purchase that might have title issues. Once those title issues are sorted out, you could then convert your short-term, hard money loan into a conventional long-term loan.
Bridge Loans For Renovations
If the replacement property in your 1031 exchange requires renovation or repositioning, you can finance the purchase and fund improvements with a hard money loan. Using this value-added strategy, you can secure long-term financing after the building is renovated and/or more fully leased.
Bridge Loans For Reverse 1031 Exchanges
Depending on market conditions and/or personal circumstances, you might prefer to buy a replacement property before you sell your current property. If your capital is tied up in the existing property, a hard money loan can be a solution. This type of bridge loan can help you quickly acquire your 1031 replacement property before the property that you’ll be relinquishing is sold. Traditional lenders typically can’t move quickly enough to make a reverse 1031 exchange work, but we can.
Reverse 1031 exchanges have tight deadlines, too. If you’re up against those, a hard money loan could be the best way to ensure that you complete your transactions within the IRS required timelines (45 days to identify the relinquished property you plan to sell and 180 days to sell the relinquished property and complete the exchange).
Bridge Loans To Avoid Disqualified Exchanges
The best laid plans…there’s nothing worse than missing the deadlines of a 1031 exchange and being on the hook now for capital gains taxes that you’d hoped to pay down the line. A hard money loan can help you close on time, so that you maintain your tax deferral.
About TriTalent Funding Group
Founded in 2004, we’re a small, community-oriented, private lender. We’ve closed on hundreds of loans, and our loans range from $75,000 to $7 million. Typically, our short-term loans are for 1 year, with interest-only payments.
For more information about hard money loans for real estate in 1031 exchanges, or to schedule a free loan consultation, please call (254) 230-0012 (for loans in Texas) or (503) 222-4466 (for loans in Oregon and other states).
Please note that we provide hard money loans throughout Texas, including: Dallas-Fort Worth, Austin, Waco, and San Antonio. We also provide hard money loans in Oregon (including the Portland area), Washington, California, Nevada, and Arizona.