Reverse 1031 Exchange Loans
Buy before you sell to preserve tax benefits.
Who Its Best For?
- Investors who find the ideal replacement property before selling their existing one
- Clients facing tight market inventory or timing issues
- Investors needing flexibility to close first, sell later
- Those looking to preserve 1031 tax benefits without rushed decisions
What It Does
A Reverse 1031 Exchange lets investors acquire their next property before selling the current one. Our financing provides the capital needed to complete the purchase while still allowing a deferred tax exchange once the existing property sells.
This program removes the stress of racing the 1031 clock, ensuring investors don’t lose a great opportunity just because their current property hasn’t sold yet.
Why It Matters
In competitive markets, investors often find their ideal replacement property first. A Reverse 1031 Loan gives them the flexibility to move forward immediately and still capture the full tax benefit when the sale closes. The benefits include:
- Ability to purchase before selling
- Full 1031 tax deferral once the existing property sells
- Avoid rushed sales or missed opportunities
- Simplified coordination between purchase and disposition
Key Benefits
- Short-term bridge financing to acquire replacement property first
- Fully compliant with IRS 1031 requirements
- Capital for purchase or improvement of replacement assets
- Option to refinance or transition into long-term DSCR financing later
- Available nationwide
Example Scenario
An investor identifies a high-performing rental property but hasn’t sold their current asset. We structure a Reverse 1031 bridge loan, allowing them to close immediately, then complete the sale and exchange within 180 days — preserving tax benefits and capturing the new opportunity.
FAQ
What’s the difference between a standard and reverse 1031 exchange?
A reverse exchange allows you to buy first, sell later, while still deferring taxes.
How long can I hold both properties?
Typically up to 180 days to complete the sale and exchange.
Do I need a qualified intermediary?
Yes. The intermediary temporarily holds title to the replacement property during the process.
Can I use this with commercial or residential properties?
Yes, it works for any investment or business-use real estate.
What happens after the sale?
Once your original property sells, the proceeds are used to pay off the bridge and finalize the exchange.
