1031 Exchange / Reverse 1031 Exchange Loans

1031 Exchange / Reverse 1031 Exchange Loans2022-11-03T20:56:39+00:00

HCS Equity has over 20 years of experience in providing private direct capital to investors looking to use a 1031 exchange to acquire a new investment property. HCS Equity will work with the investor, Qualified Intermediary (QI), CPA, real estate agents, and financial advisors to make certain our loan closes correctly and within the prescribed timeframes. We also work with Reverse 1031 exchanges for investors that are looking to close on a new property prior to selling the relinquished property. Appraisals are usually not required, and HCS Equity is comfortable with distressed properties, under valued and vacant commercial properties, or other distressed assets.

HCS Equity is operated by the actual investors on these loans allowing accurate and quick closings. The partners of HCS Equity have personally participated in many 1031 exchanges over the past 20 years giving us intimate knowledge of the process, and contacts within the industry. HCS Equity 1031 exchange loans do not have prepayment penalty and can be used on properties listed for sale, in escrow or going on the market very soon.

Additional Benefits Include

  • No prepayments, perfect to help bridge a short-term gap of capital
  • Providing capital for all types of 1031 exchanges loans; forward 1031x’s, reverse 1031x
  • Loan amounts from $100k to $4M
  • Close in as little as 7-10 days
  • Funds can be used for reverse 1031x, construction exchange, forward 1031x
  • Can cross-collaterize multiple properties with partial releases for each
  • Over 20+ years working with sophisticated investors in combination with their attorneys, agents and accommodator

FAQ

Can I repay the 1031 loan as soon as I sell one of the properties?2022-10-11T15:24:22+00:00

Yes, HCS Equity loans have no prepayment penalties or minimum interest due. They can be repaid right away.

How quickly can these loans be completed?2022-10-11T15:24:51+00:00

With the required deadline to close the exchange property(s) purchase within 180 days, you may not have time to close with a traditional loan. Banks often take many months to complete the closing of a commercial purchase loan with delays in obtaining the appraisal, detailed underwriting, review of leases, tenant lease subordinations, etc. HCS Equity can close in as few as fifteen days.

Do normal banks offer these types of loans?2022-10-11T15:25:13+00:00

Some private commercial banks will lend to 1031 Exchange/Reverse 1031 Exchanges on commercial property, but tend to take a long time to complete the transaction. Most retail mortgage lenders that specialize in 1-4 unit properties will not be familiar with 1031 Exchange/Reverse 1031 Exchange lending, and unable to perform.

How much equity do I need to have in the property?2022-10-11T15:25:33+00:00

We are looking for at least 30% to 35% equity.

What loan amounts do you offer?2022-10-11T15:26:03+00:00

We offer loans for 1031 Exchange/Reverse 1031 Exchanges from $30,000 to $4,000,000.

How long is the term offered?2022-10-11T15:26:25+00:00

Our typical term is a one-year balloon. We do require borrowers to demonstrate they have a plan in place to provide long term financing.

Looking To Get Started?

Contact us today for more information regarding any of our loan products. As direct lenders, we make quick approval decisions, and can provide funding in as little as 7-10 days. We are available via phone or email anytime of the day or night.

SCHEDULE A CALL TODAY

Private Loan Process

*This is for illustrative purposes only, HCS Equity does not provide legal advice or services

Go to Top