I have a friend whose husband died and their family trust became credit trust, which is an irrevocable trust. She sold her rental property and doing a 1031X purchase as the replacement property. She is having a hard time finding a lender who would lend on the credit trust. The purchase contract shows the credit trust as the buyer. She doens't want private money loan. Are you aware of any lenders who can lend and vest in credit trust? Thanks!
I have a friend whose husband died and their family trust became credit trust, which is an irrevocable trust. She sold her rental property and doing a 1031X purchase as the replacement property. She is having a hard time finding a lender who would lend on the credit trust. The purchase contract shows the credit trust as the buyer. She doens't want private money loan. Are you aware of any lenders who can lend and vest in credit trust? Thanks!
@Alicia Zhao Trust-owned properties can definitely narrow the lender pool, especially when the trust is irrevocable. A lot will depend on the trust structure, trustee powers, and whether the replacement property is being held as an investment. Is the new property a rental or owner-occupied? Feel free to click Contact Us, check out our website, or give us a call if you'd like to discuss the scenario further.
Hi Vijay, the replacement property is a rental as well. Thanks.
@Alicia Zhao Thanks for clarifying. Since it's an investment property, do you already have a purchase contract and 1031 exchange timeline in place, or are you still exploring lender options at this stage?