Hard Money Lender- Bridge Loan?

[Melani Sweet]

I have a question for you experts out there, I have a bit of a unique situation here in CO and need a little evaluation. My parents are working on closing a complicated conservation easement on the family ranch out of state.  It was supposed to be done by this month, but due to government agencies involved, it is dragging on. Once completed, they will be purchasing a few investment properties in a 1031 exchange.      A rural residential property came up here in Colorado that we are all interested in. Would it make sense to find a hard money lender for a bridge loan to purchase the property in my husbands and my name- then sell my parents the property within 4-6 months in the 1031? We are not in a position to qualify for a conventional loan of this size, but have a solid exit strategy here. 

The property does need a bit of work, and think I can get it at a discount from the motivated seller. This property is a bit of a unicorn in the market and location as far as fitting the bill on exactly what my parents are looking for in a rural property,  including a second dwelling.  I could have both units rented quickly. 

Looking forward to hearing your thoughts from an experienced crowd. We are not experienced in REI, but want to be. My folks are very finance savvy, I am just wondering if I should talk to a lender.

[Bill S.]

@Melani Sweet my question about hard money would be how would you make the payments in between when you purchased the property and when the 1031 closed? Also most Hard Money lenders want equity. Where would the equity be for them? Last question is, have you discussed the proposed plan with your 1031 exchange entity? I think there is the requirement that the sales are arms length transactions which the last leg would not be. 

I think the best approach is patience at this point. If the property is still around when the 1031 happens the go for it. If not then it was not meant to be.