1031x, LLC, and Mortgage
Hi BP,
So, I'm in a situation where I would like some input on how to proceed. I purchased a quad cash back in 2012 and now it doesn't meet my long-term investment strategy - it's not in the best location. I want to pull out and focus on more desirable neighborhoods and larger multifamilies. I am now in contract to sell it and when it closes, I stand to make some very considerable gains that I want to defer the CG taxes on so I can keep growing. I want to do a 1031x and have the leverage of a mortgage to secure a larger property.
My question is would I be able to get a mortgage on a larger property with my down payment tied up in the existing property until the closing, while keeping title to the new property within the LLC? I'm sure I will have to personally guarantee the loan, and will be able to contribute more cash if needed, e.g., reserves. The LLC has been open for four years and I have additional W-2 income to help qualify. Which banks or lenders would help in this situation and what is the best approach? I am in Florida.