Underwrite the opportunity
We review sponsorship, property performance, business plan, and priorities before approaching the market.
1031 Bridge financing
Bridge Financing to Meet 1031 Exchange Deadlines
Quick answer: 1031 exchange bridge loans allow investors to close on replacement property within the IRS 45-day identification and 180-day closing deadlines without waiting for conventional financing. These short-term facilities close in 10 to 21 days, satisfying exchange timing requirements while a permanent loan is arranged post-close. Minimum deal size is $2 million, aligned with the equity profiles of investors doing tax-deferred exchanges in commercial real estate.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
When it fits
When 1031 Bridge financing fits.
A failed 1031 exchange triggers full capital gains tax recognition on the relinquished property sale, often representing hundreds of thousands of dollars in immediate tax liability. The primary risk is not finding the right replacement property, it is failing to close on one in time. Conventional bank financing is simply not fast enough for most exchange timelines, particularly when the identified property requires due diligence, PCNA reports, or appraisals that banks require before commitment. A 1031 bridge loan from a debt fund or private lender eliminates the timing risk: the investor closes the exchange, locks in the tax deferral, and then refinances into permanent debt at leisure. Experienced 1031 exchange advisors and qualified intermediaries routinely recommend bridge lenders to their clients for exactly this reason.
Structure before pricing: leverage, recourse, reserves, prepayment, and closing certainty can matter as much as the headline coupon. We test those trade-offs before recommending a path.
01
Investors who have sold a property and must close on replacement property within 180 days
02
1031 exchanges where identified replacement property cannot close in time with bank financing
03
Investors upgrading from smaller residential rentals into commercial property via 1031
04
Portfolio consolidation: exchanging multiple small properties into one larger commercial asset
05
DST (Delaware Statutory Trust) alternative when direct ownership is preferred
06
Investors who need bridge financing while a qualified intermediary holds exchange proceeds
Lender selection
How We Source 1031 Bridge Capital
We do not treat the lender list as a directory. We target the desks whose current appetite fits the asset, sponsorship, market, and business plan, then compare the full execution, not only the rate.
| Capital source | Where it may fit |
|---|---|
| Debt Funds | Flexible capital for transitional, complex, leveraged, or time-sensitive executions where conventional credit boxes may not fit. |
| Private Lenders | Flexible capital for transitional, complex, leveraged, or time-sensitive executions where conventional credit boxes may not fit. |
| Bridge Lending Platforms | Flexible short-term capital for acquisition, lease-up, renovation, repositioning, or other transitional business plans before stabilization or sale. |
| Qualified Intermediary Partner Lenders | Program-specific capital evaluated for current appetite, proceeds, pricing, recourse, flexibility, and certainty of close. |
| Family Offices | Program-specific capital evaluated for current appetite, proceeds, pricing, recourse, flexibility, and certainty of close. |
How we work
One process. Multiple capital sources.
We position the transaction, identify the lenders most likely to compete, and compare proposals on economics and execution risk, not just headline rate.
A well-structured financing process should create real choices for the borrower, not simply deliver the first term sheet.
Target the right lender desks
The transaction is matched to lenders whose current appetite fits the property, market, and structure.
Create a comparable field
Proposals are evaluated across rate, proceeds, recourse, reserves, prepayment, and closing certainty.
Manage execution through closing
We coordinate lender diligence, third-party reports, and issue resolution until the loan funds.
National reach
Market knowledge where the deal requires it.
We arrange 1031 bridge financing nationwide while matching each transaction to capital sources active in that market and property type.
Atlanta, GABoston, MAChicago, ILDallas, TXDenver, COHouston, TXLos Angeles, CAMiami, FLNashville, TNNew York, NYPhoenix, AZSan Diego, CASan Francisco, CASeattle, WATampa, FL
Browse all markets →
Questions
1031 Bridge financing, clarified.
The final structure depends on the asset, sponsorship, and market. These are the starting parameters we discuss most often.
Working out equity? Our commercial property down payment guide covers typical requirements by loan type: 20% to 30% conventional, 10% for SBA owner occupied.
Short-term financing used to close on replacement property inside the IRS 45-day identification and 180-day closing windows. Terms run 6 to 18 months, interest-only, and the loan is refinanced into permanent debt after the exchange is complete. It exists to protect the tax deferral, not to be the long-term capital structure.
Ten to twenty-one days is standard once a complete file is in hand: purchase contract, title, exchange documents from the qualified intermediary, and preliminary property information. Debt funds and private lenders underwrite the asset and the sponsor rather than waiting on a full bank credit committee cycle, which is what makes the timeline achievable.
Pricing generally runs 7.50% to 11.50%, interest-only, with leverage up to 75% of purchase price and loan sizes from $2 million to $50 million and above. Capital comes from debt funds, private lenders, and family offices rather than banks. Commercial Lending Solutions arranges these facilities and places them with lenders already cleared on exchange timing.
The exchange fails and the entire gain on the relinquished property becomes taxable in the current year, which on a mid-size commercial sale often means hundreds of thousands of dollars. Because the tax cost dwarfs a few months of bridge interest, most investors treat certainty of closing as the governing variable, not rate.
Yes. A bridge lender wants to see a credible path to permanent debt before it funds, because a 6 to 18 month term leaves little room for error. Expect underwriting of stabilized debt service coverage at conservative permanent rates. The common pitfall is over-levering to absorb boot, which leaves the property unable to support a takeout loan.
Let's evaluate the right 1031 bridge structure.
Share the property and financing request. We will respond within 24 hours with an initial view.