Real Estate like many assets gives the owner the opportunity to gain value over time. That increased equity in the property grows tax-deferred until the property is sold. A 1031 exchange is a tax advantage given to investors who sell an investment property and use the funds to purchase another investment property of equal or greater value. A reverse 1031 exchange is when you purchase the investment property before you sell the existing investment property you already own.
Loan Origination Fee: 3 Points (min. $2,500)
Loan Document Fee: $650-850
Monthly Interest Rate: 1% per month
Monthly Payment: Interest Only
Loan Amount Range: $50,000 up to $2,000,000
Closing Costs: Paid by Borrower
Loan Closing: 3-5 Business Days
Loan Maturity: 1 month to 10 years
Property Appraisal: Not Required
Underwriting Fee: None
Pre-Payment Penalty: Never
Extension Fee: $0 on performing loans
1031 Exchange – (Sell then Buy) When a client sells an investment property and takes 100% of the proceeds to invest in another investment property. I done correctly the profit from the sale can be rolled into the new investment tax-free.
Reverse 1031 Exchange – (Buy then Sell) When a client first purchases a property they wish to hold as an investment then sells another investment property and uses the profits to pay for that property. When done correctly this can also be done tax-free.