Reverse 1031 exchange loans provide short-term financing to help investors acquire a replacement property before selling their existing investment property. The loan may be structured on a recourse or non-recourse basis and may be secured by the replacement property, the relinquished property, or additional investment real estate. Underwriting focuses on collateral value, exchange timing, borrower experience, and a clear repayment strategy through the sale of the relinquished property or permanent financing.
