Featured LoanReverse 1031 Exchange - 18 Condo Refinance
Loan Amount: $2,000,000
Loan-To-Value: 65% LTV
Situation & Challenge
The owner of the 18-unit condo building was doing a 1031 Exchange, selling this property to buy a larger multi-family investment property, but hit a glitch when the buyer’s financing fell through a week before the scheduled close of escrow.
The seller needed to switch course, going from a regular 1031 Exchange to a Reverse 1031 Exchange. That meant taking cash out of the subject property to use as down payment funds on the acquiring property.
Solution & Result
First Capital Trust Deeds worked with a private mortgage investment fund to get lower cost bridge financing on the condo at 8.50%.
The owner used the proceeds of the refinance to execute the Reverse 1031 Exchange. The 18 condos sold within three months, allowing the owner to complete the exchange.