Can you do a cash out refinance into HUD with 1031 TIC investors?

[Anthony Barbato]

Hello,

We are currently syndicating and have $2M with 1031 investors and are closing as tenants in common. We will use a 4 year bridge loan and do a cash out refinance into HUD in 4 years. We want to have the 1031 investors complete their tax deferred exchange with us. Can we cash out refinance as tenants in common into HUD in order to buy out the investors so that we are the only entity on title?

Thank you

[Ivan Barratt]

Last time I check (it's been a while...) HUD had a moratorium on TIC's. Who's your HUD originator? Are they a servicer? If you're going the HUD route I strongly recommend an originator/servicer with a long track record. HUD is wonderfully structured debt (we have many HUD loans) however it's a mine field that requires the very best of teams!