Exchange scenarios
Each exchange structure has a different timing challenge. Harbor provides the financing piece when the borrower has equity, collateral, a replacement property opportunity, and a defined exit strategy.
Standard exchange
A 1031 exchange is generally used when an investor sells an investment property and reinvests in qualifying replacement real estate through the exchange process. The financing need often shows up when the replacement property must be acquired within the exchange timeline.
Reverse structure
A reverse 1031 exchange is generally used when the investor needs to acquire the replacement property before the relinquished property is sold. The financing need often comes from securing the replacement property while the exchange team coordinates the structure.
Improvement structure
An improvement exchange, sometimes called a build-to-suit exchange, is generally used when the investor plans to acquire and improve replacement property as part of the exchange structure. The financing need often involves the acquisition while the exchange team manages the structure, timing, and improvement requirements.
Where Harbor fits
The exchange team manages the 1031 structure. Harbor reviews the financing request, collateral, timing need, and exit strategy to determine whether an asset-based loan can support the borrower’s objective.
A 1031 exchange may involve several professionals, each with a different role. Harbor does not structure the exchange. We review the loan request and provide clear feedback on whether the financing side can support the transaction.
The qualified intermediary, tax advisor, and legal counsel guide the exchange requirements, deadlines, and structure.
Harbor reviews the property, equity, collateral position, timing need, and exit strategy.
When the request fits program guidelines, Harbor outlines what is needed to move the financing request forward.
Key highlights
Harbor helps evaluate 1031 exchange loan scenarios where the borrower has available equity, collateral, a timing need, and a defined exit strategy.
Based on available equity.
Structured to support 1031 exchange timing requirements.
Property, equity, and exit strategy drive the decision. No income documentation required.
Harbor can cross-collateralize properties across multiple states (where permitted by applicable state law), supporting exchanges where the replacement property is in a different state than the relinquished property.
Fast acquisition capital for time-sensitive deals, including replacement properties facing tight exchange deadlines.
Harbor can lend and cross-collateralize properties across multiple states, where permitted by applicable state law. That gives mortgage brokers another path for qualified real estate investors using available equity for acquisitions, 1031 exchange gap financing, and time-sensitive replacement property purchases.
Cross-collateralized structures can support scenarios where the replacement property is in a different state than the relinquished property.
Subject to approval and program guidelines. Not all borrowers or properties will qualify. Program availability may vary by state. This is not a commitment to lend.