LendSure Launches Reverse 1031 Exchange With Bridge Loan

Non-QM wholesaler LendSure Mortgage Corp. introduced a new program allowing borrowers to finance new investment properties without selling their existing assets.

The Reverse 1031 Exchange with Bridge Loan program is a new addition to the lender’s non-QM offerings for real estate investors.

The LendSure Bridge Loan requires no payments until the maturity or sale of a relinquished property, giving investors early access to capital for down payments on replacement properties.

“The addition of the Reverse 1031 Exchange with Bridge Loan to our solution toolkit is an exciting development in the changing market,” Joseph Lydon, Co-Founder and Co-Managing Director of LendSure, said.

“By utilizing our 1031 Exchange solution, investors can seamlessly transition sale proceeds into new, similar investments, effectively deferring taxes on capital gains, providing a considerable strategic advantage for their financial growth.”

The program is designed to “safeguard” the tax benefits of a 1031 exchange and is still subject to the same identification and exchange periods as a traditional 1031 Exchange.

A 1031 exchange allows the sale of one investment property and the purchase of another without paying capital gains tax on the sale. Rules created by the IRS state that the property you’re buying and the one you’re selling must be “like-kind,” though most real estate properties fall together in this category. This also only applies to properties bought and sold in the U.S.

There are several different types of 1031 exchange. LendSure’s program covers reverse exchanges, a process through which a buyer purchases a second piece of real estate before selling the first. There is typically a time limit on the completion of the sale to qualify.

San Diego-based LendSure Mortgage Corp. is a wholesale lender offering a range of non-QM loan programs for borrowers that don’t fit conforming guidelines.