Direct Lender · Reverse 1031 Exchanges · Nationwide

    Reverse 1031 Exchange Bridge Loans

    A reverse 1031 exchange bridge loan lets you buy your replacement property before your current property sells. Helvetica Group funds the purchase on a short-term bridge loan, from $300,000 to $10,000,000+, and the sale of your current property repays it when the exchange completes.

    We lend from our own balance sheet and managed funds, lend to the entity that holds title for the exchange, and coordinate directly with your Qualified Intermediary. Closing timing depends on borrower preparedness, third party reports and complexity; we typically close 3–10 days following receipt of all requested documentation.

    $300K–$10M+
    Loan amounts
    Up to 65%
    Loan-to-value
    Starting at 8.99%
    Rates
    1.5% +
    Discount points
    6 mo – 5+ yrs
    Terms, fixed & interest-only
    Buy first
    Close before your sale
    Nationwide
    Metro areas, selectively
    1,000+
    Deals funded
    Submit Your Reverse ExchangeAll 1031 exchange bridge loans

    How a reverse 1031 exchange bridge loan works

    In a reverse exchange the purchase comes first, so there are no sale proceeds yet to fund it. The bridge loan fills that gap until your current property sells.

    1. 1

      Before you sign. Talk to your Qualified Intermediary about a reverse exchange and send us the replacement property, purchase price, requested loan amount and QI contact.

    2. 2

      Parking. Your QI sets up an Exchange Accommodation Titleholder (EAT) to hold title to a property during the exchange, usually the one you are buying.

    3. 3

      Purchase. We lend to the EAT-held entity and work from the QI's documents, so you close the purchase now. We typically close 3 to 10 days after receiving all requested documentation.

    4. 4

      Within 45 days. You identify in writing which property you will sell.

    5. 5

      Within 180 days. That sale closes, the exchange completes and the sale proceeds typically pay down or pay off the bridge loan. Any balance is refinanced into permanent debt.

    Reverse vs. forward 1031 exchange financing

    The deadlines are the same. What changes is the order, who holds title, and what repays the bridge loan.

    Forward exchangeReverse exchange
    Order of eventsSell your current property, then buy the replacementBuy the replacement, then sell your current property
    Who holds whatYour QI holds the sale proceedsAn EAT holds title to one of the properties
    Where the purchase money comes fromExchange proceeds, plus a loan for the restA bridge loan and your equity, before any sale proceeds exist
    How the bridge loan is repaidRefinance into permanent debt, or a saleProceeds from the sale of your current property, then refinance any balance
    Deadlines45 days to identify, 180 days to close45 days to identify the property you sell, 180 days to complete

    A reverse 1031 bridge loan we funded

    A real closed Helvetica loan, with the structure, LTV and exit documented in full.

    Reverse 1031 bridge loan property in Beverly Hills, CA
    $5.0M

    Reverse 1031 bridge loan, closed before the sale

    Beverly Hills, CA

    1031 Exchange
    Luxury SFR
    Bridge Loan

    The borrower bought the replacement property before the sale of their current property closed. The loan was sized at 50% of value across three properties, with payoff planned from the sale.

    Read full case study
    Forward 1031 exchange bridge loansView all case studies

    Who you work with

    Your loan is reviewed and decided by our own lending team in Carlsbad, not passed to a third party.

    Chad Mestler

    Chad Mestler

    Chief Executive Officer

    25+ years in commercial real estate investing, lending and structured finance.

    Tom Phanco

    Tom Phanco

    Managing Director

    Oversees origination and wholesale lending.

    MILA

    AI Loan Assistant

    Takes loan inquiries 24/7, by phone or chat.

    (760) 624-3301

    Reverse 1031 exchange bridge loan questions

    What exchangers, brokers and Qualified Intermediaries ask us about buying before selling.

    Can you get a bridge loan for a reverse 1031 exchange?
    Yes. In a reverse exchange you buy the replacement property before your current property sells, so the purchase has to be funded before any sale proceeds exist. Helvetica funds that purchase on a short-term bridge loan, lending to the entity that holds title for the exchange, and the sale proceeds typically pay down or pay off the loan.
    Why do banks decline reverse 1031 exchange loans?
    In a reverse exchange an Exchange Accommodation Titleholder, set up by your Qualified Intermediary, holds title to one of the properties during the exchange. Many conventional lenders will not lend to a property held that way, and their approval cycle rarely fits the 45-day and 180-day deadlines. We work from the QI's documents so the loan fits the exchange structure.
    How much does a reverse 1031 exchange bridge loan cost?
    Our rates start at 8.99% with discount points of 1.5% or more, and pricing depends on the property, leverage and exit. Your Qualified Intermediary charges its own fee for the exchange, which is usually higher for a reverse exchange than a forward one because the titleholder has to take title. Ask your QI for that fee.
    What is the disadvantage of a reverse 1031 exchange?
    Cost and timing risk. You carry two properties and bridge loan interest until the old property sells, and the exchange administration costs more than a forward exchange. If the old property does not sell within 180 days, the exchange can fail and the loan still has to be repaid, so plan the sale and a backup exit before you buy.
    What happens if my old property does not sell within 180 days?
    The exchange can fail and the gain may become taxable, so talk to your QI and tax advisor early. The bridge loan still needs an exit, usually a sale or a refinance into permanent debt. That is why we underwrite the property and your exit plan, not only the exchange timeline.
    How do I pay off a reverse 1031 exchange bridge loan?
    Most borrowers repay it from the sale of the relinquished property when the exchange completes. Any remaining balance is paid down or refinanced into permanent financing on the replacement property. Selling the replacement property is the last fallback.
    How fast can you close a reverse 1031 exchange bridge loan?
    Closing timing depends on borrower preparedness, third party reports and complexity; we typically close 3 to 10 days following receipt of all requested documentation. Send us the deal and your QI contact as early as possible.
    What are your reverse 1031 exchange bridge loan terms?
    Loan amounts from $300,000 to $10,000,000+, up to 65% loan-to-value, rates starting at 8.99%, discount points of 1.5% or more, terms of 6 months to 5+ years, fixed and interest-only options. Business-purpose and investment property only.
    Do you lend on reverse 1031 exchanges nationwide?
    Yes, selectively. We lend in metro areas nationwide; availability varies by deal, property type, licensing and underwriting.

    Informational only; not tax, legal or investment advice and not a commitment to lend. Confirm your exchange plan with your Qualified Intermediary and tax advisor. Business/investment purpose only.