We are currently syndicating and have $2M with 1031 investors and are closing as tenants in common. We will use a 4 year bridge loan and do a cash out refinance into HUD in 4 years. We want to have the 1031 investors complete their tax deferred exchange with us. Can we cash out refinance as tenants in common into HUD in order to buy out the investors so that we are the only entity on title?
@Anthony Barbato this is definitely a questions for a 1031 QI or a syndication attorney. Do you know a Qualified Intermediary?
Last time I check (it's been a while...) HUD had a moratorium on TIC's. Who's your HUD originator? Are they a servicer? If you're going the HUD route I strongly recommend an originator/servicer with a long track record. HUD is wonderfully structured debt (we have many HUD loans) however it's a mine field that requires the very best of teams!
Words of wisdom, the worst case scenario is that we perform a refinance before going into HUD in order to cash out the investors. We will confirm with our lender.