Special Situations involving Commercial Loans
1031 Exchange Commercial Refinancing
Commercial mortgage borrowers who have completed 1031 Exchanges might want to tap into some of their equity shortly after a 1031 Exchange is completed via 1031 refinancing. These borrowers will usually encounter seasoning of ownership limitations from many/most lenders that will effectively prevent such a refinancing. If a commercial mortgage borrower wants to consider 1031 Exchange refinancing and has recently completed the 1031 Exchange, they should seek out a lender without seasoning requirements or limitations.
What is Sourcing and Seasoning of Assets or Ownership?
Most commercial lenders will look very carefully at issues like the following:
(1) For a purchase, commercial lenders will frequently want documentation about where the down payment is coming from (the source, so having limitations about and investigating where the funds are coming from is called sourcing).
(2) Commercial lenders will also frequently have very specific requirements stipulating that the funds must have been in a specific account for a specific period of time, often 3-6 months or longer (this is called seasoning because it is tantamount to requiring that the funds have matured by being in the same place for a while).
(3) Seasoning of ownership is similar to seasoning of funds, except this requirement involves the minimum time someone has owned a commercial property before they can refinance the property.
At AEX Commercial Financing Group, we have no requirements or limitations involving either sourcing and seasoning of funds or seasoning of ownership. As noted above, refinancing of 1031 Exchange commercial properties is a key example of how it will be extremely helpful not to have seasoning of ownership limitations.
Although we do not have seasoning of ownership limitations that would prevent 1031 Exchange refinancing, please understand that we will want to work closely with your tax advisor before proceeding with 1031 Exchange refinancing.
Properties Eligible for 1031 Exchange Commercial Refinancing
Please refer to the following site for a detailed list of properties eligible for 1031 Exchange Commercial Refinancing without seasoning of ownership limitations via AEX Commercial Financing Group:
Eligible Commercial Properties
1031 Exchange Advisory Services
While AEX Commercial Financing Group can assist with 1031 refinancing issues throughout the United States, there are many technical issues surrounding a 1031 Exchange and 1031 refinancing that will require you to consult with a qualified 1031 Exchange advisor. If you want more information, please contact us.
Contact Information
AEX Commercial Financing Group
Stephen Bush
Chief Executive Officer
Phone: (937) 780-4030
bush@aexllc.com
PO Box 353, Leesburg OH 45135-0353 USA
Chief Executive Officer
Phone: (937) 780-4030
bush@aexllc.com
PO Box 353, Leesburg OH 45135-0353 USA
AEX Commercial Financing Group specializes in quick closings for difficult commercial real estate loans from $100,000 to $25 million and business cash advances up to $300,000 throughout the United States.
About AEX Commercial Financing Group
