Cetan Funds recently funded a rental rehab loan in Tualatin, Oregon for an experienced repeat borrower using a 1031 improvement exchange. The borrower had just sold a duplex and wanted to roll the sale proceeds into a new investment property without paying immediate capital gains taxes.
To make that work, the borrower completed a 1031 improvement exchange. In simple terms, the exchange company temporarily formed and owned an LLC that bought the fixer-upper and acted as the borrower on our loan. This setup allowed renovation costs to count toward the 1031 exchange requirements. Once enough money was spent improving the property, the exchange was completed and ownership transferred to our client. We worked closely with the exchange company to structure the loan correctly and keep the process smooth and compliant. Cetan Funds regularly handles creative 1031 loans like improvement exchanges, forward exchanges, and reverse exchanges.
Our client fully remodeled both the interior and exterior of the home, turning it into a high-quality long-term rental for their portfolio. The upgrades significantly increased the property’s value, creating immediate appreciation and additional equity. The home is now rented, and the borrower plans to refinance into a long-term loan shortly.
Have a 1031 exchange or rental rehab project coming up? Cetan Funds provides flexible private money loans for investors across Oregon and SW Washington, including more complex exchange scenarios.
At Cetan Funds, we provide flexible residential rehab financing for value-add projects like this rental renovation in Tualatin. Our short-term rehab loans are designed for real estate investors who need speed, certainty, and a lending partner who understands renovation timelines, budgets, and execution risk.
Whether you are repositioning a single-family rental, completing a major interior and exterior remodel, or upgrading a property as part of a 1031 exchange, our rehab loans can cover acquisition, construction costs, or both. We offer competitive terms, in-house valuations, and fast underwriting decisions to keep projects moving without delays.
We work with experienced investors rehabbing properties to hold long term or for flips, as well as clients executing more complex structures such as 1031 improvement exchanges and reverse 1031 exchanges. Our draw process is streamlined and managed in-house, and we pride ourselves on responsiveness and the highest quality of service.
Have a residential rehab project in mind? Let’s talk.
Location#
Tualatin, Washington County, Oregon
Loan Terms#
$488,000 at 12.0% interest only on funds drawn for 12 months
