1031 Exchange NNN Loan

[Barry Schwartz]

Hi Everyone,

I am currently a member of a partnership in which I inherited my interests from a family member. There is a phantom income issue whereby the members are all required to pay taxes on their own personal returns with their own money not generated by the income from the real estate holdings.

Does a type of loan exist whereby a lender would provide a lump sum of cash. Making up a number arbitrarily 150K as a loan which would be tied to the underlying holdings as collateral. Once the mortgages are all paid in full in a few years the loan would be paid back from the existing or new tenants monthly income which would be recurring for many years. In the unlikely event no income is realized at such time in the future, the equity in the real estate which is worth much more than the loan amount would serve as collateral.

Please let me know if such a type of loan exists would love to learn more.

Thank You