031 Exchange/Reverse 1031 Exchange Loans FAQ

For the past 10 years, HCS Equity has been ranked by the California Association of Private Lenders as the lender with the quickest turnaround time for funding a purchase loan as part of a reverse 1031 exchange. HCS rarely requires appraisals, income documents, or personal guarantees from the signers and has been working with the

A private lender that specializes in providing private capital for a reverse 1031 exchange will be able to provide funds prior to the sale of the relinquished property by securing a loan on either the new property, the old property, or both. HCS Equity has been ranked as the top lender by California real estate

In addition to the typical fees for third-party services such as escrow, accommodator fees, title, and normal real estate costs associated with closing, a private loan from HCS Equity will typically cost about 2% of the amount borrowed. HCS Equity has been ranked by the National Association of Exchange Accommodators as the lowest-priced private lender

HCS Equity in Carmel, CA has been providing private capital for reverse 1031 exchanges for over 20 years. Accommodators such as IPX, First American Title, and others have been referring HCS Equity to their clients for their short-term capital needs. Loans can be secured by the new property, the relinquished property, or both. HCS Equity

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.

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

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

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 complete.

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

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