Your Exchanger Found the Replacement Property. We Close the Financing in 45 Days.

We can move fast, but "fast" needs a realistic definition. We can typically issue a term sheet within a day or two once we have the purchase contract, the relinquished property settlement statement, and basic entity information, and a conditional commitment shortly after that. What we cannot do is skip appraisal, environmental, and title work entirely, those still need to happen, but we can order them on a rush basis and run them in parallel with our own underwriting instead of waiting for one step to finish before starting the next.

The single biggest lever for speed is starting before identification is finalized. If your exchanger is choosing between two or three candidate replacement properties, we can pre-underwrite each one so that whichever property gets formally identified already has financing moving. That approach has saved more exchanges than any amount of speed after the fact.

If the timeline truly is a handful of days from a completely cold start, tell us that directly and we will tell you plainly whether it is workable given the property type, or whether a short term bridge solution with a fast close is the better path to protect the exchange deadline even if it is not the cheapest permanent financing available.

To fully defer gain in a 1031 exchange, the general rule your exchanger's tax advisor is applying is that the debt on the replacement property needs to equal or exceed the debt paid off on the relinquished property, unless the exchanger offsets any shortfall with additional cash into the deal. We are not the ones giving tax advice on this, your exchanger's CPA and the QI own that call, but we do need the actual payoff figure early so the loan amount we structure lines up with what the tax side needs.

Where this gets complicated is when the replacement property cannot actually support the debt level needed to avoid boot, whether because of a lower purchase price, a lower loan to value ceiling for that property type, or debt service coverage that will not stretch that far. In those situations we tell you and your exchanger that reality clearly and early, rather than sizing an application to a number the property cannot actually carry and having it fall apart in underwriting with days left on the clock.

Yes, and this is a meaningfully narrower lender pool than a standard forward exchange purchase, so it is worth flagging to us as early as possible. In a reverse exchange structured under a qualified exchange accommodation agreement, the EAT takes and holds title to the replacement property, sometimes for up to 180 days, while the relinquished property is marketed and sold. The lender is financing an entity that is not the ultimate owner, and many lenders will not underwrite that structure at all.

We work with lenders who understand parking arrangements, who will document the loan against the EAT entity correctly, and who are comfortable that the exchanger will take title at the end of the parking period once the relinquished property closes. We coordinate directly with your exchanger's QI on the QEAA documentation and the entity structure before we take the loan to market, so the lender we approach is not learning about the parking arrangement for the first time at term sheet stage.

Improvement exchanges are unforgiving on timing. The improvements identified as part of the replacement property need to be substantially in place, and the property needs to be identified with real specificity, before the 180-day exchange period closes. That means the draw schedule, contractor mobilization, and permitting all have to be realistic against a fixed calendar date, not an open ended construction timeline.

We structure the financing with that compressed schedule in mind: a draw process fast enough to keep pace with the work, a contractor and general contractor bid package reviewed before closing rather than after, and, in a construction reverse exchange, coordination with the EAT holding title during construction. If the scope of work as planned genuinely cannot be completed by day 180, we will say so early so your exchanger and QI can decide whether to scale back the improvement scope rather than finding out at day 170 that the value in place will not qualify.

Our direct lending relationship is with exchangers acquiring directly owned real estate, whether that is a whole property or a tenant in common interest large enough to be financed individually. For a Delaware Statutory Trust interest, the DST sponsor typically already has master level financing in place across the trust, so there is usually no separate loan for us to place on the investor's individual fractional interest.

Where we add value on the DST and TIC side is on the partial exchange situations: an exchanger splitting proceeds between a directly owned replacement property, which we finance, and a DST or TIC interest for the balance. We coordinate our closing timeline with your exchanger's DST closing so both sides of the split land inside the 180-day exchange period without one holding up the other.