# 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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    (866) 382-1466

    Testimonials

    "Josh Settersten, was AMAZING to work with. Really really good at what he does. Professional, trustworthy, good listener and tries to get you the best deal out there. I learned so much about getting a mortgage from him. He delivered on all fronts. I am glad I had him in my co
    "Josh helped tremendously throughout the entire process of purchasing our first home. He was excellent at communicating and overall exceeded our expectations. I would highly recommend working with Josh!"
    "I can not say enough great things about Brandon Wunder! Our loan was complicated to say the least, and Brandon and his team were there with me every step of the way! With every problem he communicated and found a way to solve them. I was so nervous about this process and Br
    "Groves Capital is the BEST!! Before purchasing my home, I spoke with several brokers and it was such a hassle. I mean seriously, the initial broker I was working with made me want to give up on buying a house entirely.. And then Groves Capital came along! This dream team rea
    "Great company and an awesome team to make it happen an easy and smooth process thanks guys."
    "I had the great pleasure of working with Josh. Not only was he super accommodating but he helped me every step of the way! For me personally, this was the first time I ever bought a home and I can certainly say that without Josh it would not have been as smooth! Thank you ag
    "June An is the best! Super attentive, responds quickly, and is always there for you every step of the way. I’ve used him for both second home loan, primary home refi, and heloc loans and every time has been a wonderful experience. He acquired great rates, handled all of my q

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    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.

    • Customer Focused
    • Minimal Documentation
    • In-Houses Controls
    • Best Loan Services
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    #Apply For 1031

    States We Lend In

    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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    (866) 382-1466