A 1031 exchange gives you 45 days to identify and 180 days to close. When conventional financing can't move that fast, hard-money acquisition is how investors meet the deadline — and refinance once the clock stops.
If you've sold an investment property and want to defer capital gains through a 1031 exchange, the IRS gives you two deadlines:
That second deadline is where buyers get stuck. A conventional loan takes 30 to 45 days if everything goes smoothly — and in luxury real estate, nothing goes smoothly. Title issues, appraisal gaps, underwriting conditions, and lender overlays can push closing past your 180-day window.
Miss the deadline and you owe the taxes. That's not a risk worth taking.
Here's how I structure 1031 acquisitions for investors:
The private loan is a bridge. You use it to acquire the property and satisfy the 1031 requirement, then refinance into long-term financing once you own it and the exchange is complete.
The IRS doesn't care how you finance the replacement property — they care that you close within 180 days. Hard money guarantees you can. The refinance happens after the exchange is done, so conventional underwriting delays can't jeopardize your tax deferral.
Hard money isn't cheap. You'll pay a higher interest rate and points on the short-term loan. But compare that to the capital gains tax on a $2M+ sale — the math speaks for itself. The bridge loan is a rounding error against the tax you'd owe if you miss the deadline.
I'm your realtor and your lender in one. I'll help you identify the right replacement property in the Phoenix corridors — Paradise Valley, Arcadia, or The Biltmore — and fund the acquisition with private capital that meets the 1031 clock. If you want to renovate, I can design and manage that too.
Racing a 1031 deadline? Schedule a Private Consultation and let's see if fast private capital is your path.
Whether you're acquiring, refinancing, or repositioning property in Paradise Valley, Arcadia, or The Biltmore — let's have a conversation about where you stand and where you want to be.