Cetan Funds recently funded an apartment complex bridge loan for a creative reverse 1031 exchange for a seasoned investor acquiring a 10-unit complex.
The borrower wanted to complete a 1031 tax-deferred exchange, moving from several single-family rental properties into a larger, income-producing asset. While he had not yet sold his rental properties, he identified an opportunity he couldn’t pass up. To seize it, he structured a reverse 1031 exchange, allowing him to purchase the apartment complex first and complete the exchange by selling his other properties over the next six months.
We worked closely with the title and exchange companies to structure this as an apartment complex bridge loan, covering most of the complex’s purchase price. To strengthen the loan, the borrower’s rental properties—intended for sale and part of the exchange—were used as additional collateral. As each property is sold, the proceeds will go toward paying down the loan, completing the exchange into the new apartment complex.
The process is already underway, with one of the homes selling shortly after closing. This approach enabled the borrower to secure a more valuable asset for his portfolio while leveraging a tax-advantaged strategy. We’re thrilled to have supported this investor in achieving his goals through creative financing solutions.
Loan Purpose
Cetan Funds provides bridge loans secured by commercial real estate designed to meet the short-term funding needs of businesses and investors. With terms ranging from 1 month to 5 years, these loans are often secured by properties such as apartment buildings, mixed-use spaces, warehouses, and more. Our streamlined process begins with a free consultation, where our loan officers assess your business needs and inspect the property. Using our rapid, in-house underwriting process, we can approve loans under $1 million in as little as 2–4 business days, often funding within 7 business days—without requiring appraisals for smaller loans.
We view lending as a partnership, maintaining transparency and ongoing support throughout the loan process and beyond. Whether funding critical property improvements, facilitating business expansions, or providing fast capital to seize time-sensitive opportunities, our flexible and fast bridge loans are tailored to help you succeed. At Cetan Funds, we’re committed to helping you achieve your business and investment goals with customized financing solutions. Contact us today to learn more about how we can support your project.
Location
Phoenix, Jackson County, Oregon
Loan Terms
$1,100,000 at 12.0% interest only for 12 months
