What is a 1031 Exchange Loan?
A 1031 exchange loan, also known as a like-kind exchange loan, is a type of commercial mortgage that is specifically designed to finance the purchase of a property through a 1031 exchange. A 1031 exchange is a transaction in which an investor sells a property and uses the proceeds to purchase a similar property, while deferring the payment of capital gains taxes.
How Does a 1031 Exchange Loan Work?
To qualify for a 1031 exchange loan, borrowers must have a strong credit history and sufficient income to make the loan payments. The lender will review the borrower's financial information and the details of the property to determine the loan amount and terms.
Benefits of a 1031 Exchange Loan
One of the benefits of a 1031 exchange loan is that it allows investors to sell a property and acquire a new one without incurring capital gains taxes. This can be a useful way for investors to grow their real estate portfolio and defer taxes on the sale of a property.
Get the Financing You Need for Your 1031 Exchange
At Commercial Mortgage Help, we have a team of experienced loan officers who are dedicated to helping borrowers find the right financing solution for their needs. If you are considering a 1031 exchange and need financing to purchase a new property, we encourage you to contact us to learn more about our 1031 exchange loan options.
