# Commercial Loans

1031 Exchange

The IRS 1031 exchange is a transaction that allows a commercial property seller to defer paying taxes on the sale of the property if they use the funds to buy another, similar property within a specific period of time.

If an investor or developer sells a commercial property, they usually have to pay taxes then and there, but not always. If the proceeds are used to purchase another investment property within 180 days (in most cases) they can be tax deferred. This makes it possible for someone to sell one property, use the money from the sale to purchase another similar property and avoid paying taxes until they sell that second investment property.

The reason behind this rule is simple: Congress wanted to encourage entrepreneurs to invest in real estate rather than simply cash out and use their money elsewhere. It's designed to help businesses grow without penalizing them for doing so by taking away needed capital at tax time.

    Up to
    90%
    LTV - Purchase
    90%
    LTV - Rate & Term
    80%
    LTV - CASH OUT
    $150K up to $5M

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    # Commercial Loans

    Who Can Use a 1031 Exchange?

    Individuals, S corporations, C corporations, trusts, LLCs, and other groups are eligible to request a 1031 exchange for the purpose of deferring their tax burden until later. However, it's important to realize that 1031 exchanges are designed for the exchange of commercial property. As a result, personal homes and vacation residences may not be eligible. In addition, the seller cannot simply use money from the sale of the first commercial property to purchase the second commercial property; the two deals must be part of the same legal transaction (at least in the perspective of the IRS.)

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    Testimonials

    "Mike Reeves was absolutely amazing. The best loan officer I could have asked for. He was there every single step of the process and answered all my questions immediately. I would HIGHLY recommend him to anyone looking to purchase! Great attitude, can do it spirit, and very k
    "I recently had the pleasure of working with Lance Gebhart on my journey to becoming a first-time homeowner, and I cannot express my gratitude enough for the outstanding service he provided. From the initial stages of the homebuying process to well beyond the closing, Lance
    "I had an incredible first experience with Groves Capital. I was thoroughly impressed with Kristin Howard's ability to consider all options to find solutions using her vast knowledge and experience. Despite a few challenges, she always put in the work to find a way forward be
    "Very professional and spent the time and effort needed to complete the loan despite many obstacles Kristen Howard NEVER gave up and placed the loan"
    "We just bought a house with the help of Chris Mishima! He was our realtor AND our mortgage broker, which are both difficult jobs separately, yet he did them both so well. The odds weren’t always in our favor, and Chris fought hard for us to get the best deal possible. We are
    "Ashley was very helpful and was very pleasant to deal with!"
    "Kristin was hands down the most dedicated and hard-working loan specialist I have ever witnessed. I have closed over 10 loans in the last 3 years, and Kristin was hands down the most experienced, knowledgeable and dedicated person I have ever seen. I personally had a pair

    #Apply For 1031

    Why Should You Choose Us?

    We're here to make the home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our simple Hard Money Rate Quote.

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    • Minimal Documentation
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    States We Lend In

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    Looking for lending in a state not listed? We do lend in other states on a case-by-case scenario. Give us a call to see what we can do for you.

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