Financing and executing my 1031 exchange and military retirement

Creative Real Estate Financing
5yFollow

Financing and executing my 1031 exchange and military retirement

Chris W.
Member since 2018 · 23 posts · 7 votes

I have identified a pair of duplexes for my 1031 exchange proceeds to go towards. I will have to carry a note on them, however I am putting down 47%+ on the total for both of them. 

Snag...I retire from the service in January (dyed in the wool and done) and the bank is not wanting to lend on the note. I will have my retirement check, and other income (but I can not identify it as it is recent). All 4 units are rented and grossing over $3600 a month in rent. 

Where can I find a lender in Hampton Roads that will ACTUALLY lend on something like this? I've tried a well recommend local bank and they are not able to help.

1031 45 day period lapses tomorrow. 

Not very inclined to take on a partner....

Both properties will put me comfortably over what I need to spend for the 1031. 

Open to advice, comments, or....let's talk business?


0Reply
11 views

4 Replies

Jump to latestLatest
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    5y

    @Chris W., I just sent you an email with an option.  Don't want to see your 1031 fail on my watch :)

    The 1031 Investor5137 Reviews
    WebsiteView Page
    0Reply
  • Chris W.
    OP
    Member since 2018 · 23 posts · 7 votes
    5y

    And this is why I chose to work with you while we both burn the midnight oil! Cheers!

    1Reply
  • Sean RooksPro Member
    Rental Property Investor · High Point, NC · Member since 2017 · 272 posts · 304 votes
    5y

    If you decided to put them in a LLC and make it a commercial loan, they would lend on the property and not you personally. I know ABNB and Atlantic Union both do commercial loans. You may have already tried this option, if not, send me a PM and I can get you in contact with someone there.

    0Reply
  • Kevin Romines
    Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    It sounds to me like the bank cant get you qualified, in part because they cant use your retirement income, because its not here yet? If I have that correct, then the only 2 options on a personal basis would be to either do a bank statement loan or a DSCR Debt Service Coverage Ratio loan. Or as mentioned above, you can move the properties in to an entity and do a commercial loan.

    The bank statement loan will need either 12 or 24 months, personal or business bank statements. If personal, they will take 100% of your deposits as your income. If business bank statements, they will take 50% of your business deposits. Both of these options require that you are self employed, so if not, this option wont work for you. 

    The DSCR loan only requires that the properties rent for equal to or up to 15-20% more than the PITI mortgage payment on the proposed loan. There is no employment and other income that is considered or required to be on the application.

    I hope this helps?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free