Most lenders aren’t comfortable with the title structure a reverse 1031 requires. The replacement property is temporarily titled in the name of an Exchange Accommodation Titleholder (EAT). The EAT is typically the borrower. You're the EAT's manager, so you sign the loan documents and run the property, and you personally guarantee the loan. When the relinquished property sells, ownership of the replacement property passes to the investor and the exchange is complete. Most lenders' guidelines don't allow this structure. We can accommodate this.

Yes. If you have equity in the relinquished property or another investment property you own, a bridge loan or cash-out refinance can be used to access that equity for the down payment on the replacement property. The amount available depends on the equity position in the property being refinanced. This allows investors to move quickly on the replacement property without liquidating other assets or waiting for the relinquished property to sell.

Not always. If the property qualifies on its rental income (DSCR), we don't need tax returns or personal income. If it doesn't, we can qualify you on personal income instead, which can allow a lower DSCR. The right path depends on your situation. Bridge financing is asset-based, with no income documentation required.

The EAT is a single-purpose LLC formed by your Qualified Intermediary to temporarily hold title to the replacement property during the exchange period. You remain the beneficial owner throughout, responsible for management and economic risk. The EAT is typically the borrower. You're the EAT's manager, so you sign the loan documents and run the property, and you personally guarantee the loan. When the relinquished property sells, ownership of the replacement property passes to the investor and the exchange is complete.

Yes. During a reverse exchange, the loan closes in the EAT's name and you sign as its manager. Outside of an exchange, loans can close in the name of an LLC, corporation, trust, or individual. Because these are considered business-purpose loans, entity vesting is standard and expected. Most investors completing a reverse exchange are already operating through an LLC or other entity for liability and tax planning purposes.

Eligible properties include single-family homes, condos, townhomes, and 2–4 unit and 5–10 unit non-owner-occupied residential investment properties. For other property types, contact us to discuss available options.