Many people who are considering a reverse 1031 exchange want to know how to get the money to finance their exchange. There are two ways to finance a reverse 1031 exchange.
Out of Pocket vs. Lender Financing
The first option for financing your reverse exchange is to advance the funds out of pocket. The other option is for you to arrange for financing with your lender.
Pros & Cons
If you use bank financing, the exchange company signs the note and mortgage on a non-recourse basis, and you guarantee the debt or cosign the loan. This applies if you are parking the ownership of the replacement property. However if you are parking the ownership of the relinquished property, then the financing with the bank is less complicated.
Contact CPEC1031, LLC Today!
CPEC1031, LLC has been facilitating 1031 exchanges of qualifying real property for more than two decades. Our qualified intermediaries are here to help. We have the knowledge and expertise to help you through your 1031 exchange and defer your capital gains taxes. Contact us today at our Minneapolis office to learn more about our full range of services and see how we can help you through the details of your next like-kind exchange!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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