# 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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    "I have financed multiple properties with these guys, and it's been amazing every time. The process was seamless. And I got the best possible rate. They are incredibly professional and efficient. Highly recommended."
    "John Murdock was such a pleasure to work with he went above and beyond to be sure everything was transparent. He made sure we had the knowledge on what to expect through the loan process. he is definitely an asset to your company. Will definitely use him again when needing f
    "We felt very supported in our loan and made the process very easy. Thank you to Chris and his team for the excellent communication and support."
    "Josh Settersten is fantastic!! My husband I had the pleasure working with Josh via our first home buying experience, and he made it such an easy process! He was always quick to respond to any of our questions and kept us updated throughout the entire process. We are beyond g
    "I worked with Kristin Howard to refi my home and she made the process so easy! She is very knowledgeable and experienced and was able to answer all of my questions. She got me a great rate and saved me a ton of money. I highly recommend Groves Capital for your home loan need
    "Desmond, Experience in finding the right solution to getting a home loan was outstanding. His commitment to detail shows that he has his clients best interest at hand. Trust is the most important things when it come to getting a loan and providing personal information. Thank
    "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

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