Defer Capital Gains. Keep Building Wealth.
We specialize in mortgage financing that works within the strict timelines and structure of a 1031 exchange — forward or reverse — so you can defer taxes and upgrade your investment portfolio without a misstep.
45 Days
ID Deadline
180 Days
Close Deadline
Up to 100%
Capital Gains Deferred
Forward & Reverse
Exchange Types
Overview
The Clock Starts the Day You Sell — We're Ready When You Are
A 1031 exchange (named for IRS Code Section 1031) allows real estate investors to defer capital gains taxes when selling an investment property — as long as the proceeds are reinvested into a qualifying "like-kind" replacement property. The rules are strict: you have 45 days to identify your replacement property and 180 days to close. Miss either deadline and your tax deferral is forfeited.
At Lumen Mortgage, we're experienced with the financing side of 1031 exchanges. We work closely with your Qualified Intermediary (QI) and coordinate the loan structure, timeline, and closing to ensure nothing derails your exchange. Whether you're stepping up from a duplex to a commercial building or trading a rental house for a multifamily property, we'll move fast and get it right.
There are two primary types of 1031 exchanges — and each requires a different financing strategy. In a Forward Exchange (the most common), you sell your relinquished property first and the QI holds the proceeds while you identify and close on your replacement. In a Reverse Exchange, you acquire the replacement property first — before your relinquished property sells — using an Exchange Accommodation Titleholder (EAT) to temporarily hold title. Reverse exchanges are more complex and require bridge or gap financing, but they're a powerful tool when you've found the right replacement and can't afford to lose it while waiting for your sale to close.
Who This Is For
We Are Not Tax Advisors — But We Speak the Language
A 1031 exchange — forward or reverse — has significant tax implications that require a licensed CPA or tax attorney. We handle the mortgage side: loan structuring, QI/EAT coordination, and on-time closing. We strongly recommend working with a qualified tax professional before initiating any exchange. We're happy to refer you to trusted professionals in our network.
Key Features
What Makes This Program Work
Forward 1031 Exchange Financing
The standard exchange: sell your relinquished property first, let the QI hold proceeds, then identify (45 days) and close on your replacement property (180 days). We pre-qualify you before you list so you're ready to move the moment your sale closes.
Reverse 1031 Exchange Financing
Buy your replacement property first — before your relinquished property sells. We structure bridge or gap financing so the Exchange Accommodation Titleholder (EAT) can take title to the parked property, keeping your exchange valid while your sale closes.
Exchange-Timeline Aware
Both forward and reverse exchanges share the same 45/180-day IRS windows — just inverted. Our team tracks your exchange deadlines and prioritizes your file to close on time, regardless of which direction your exchange runs.
QI & EAT Coordination
We work directly with your Qualified Intermediary (forward) or Exchange Accommodation Titleholder (reverse) to structure the loan so proceeds and title flow correctly — without inadvertently triggering a taxable event.
Flexible Income Documentation
Many investors are self-employed or hold property in LLCs. We offer bank statement, P&L, DSCR, and asset depletion qualification paths alongside full-doc conventional options — for both exchange types.
Fast Closings When It Matters
A slow lender can cost you your exchange. We target 21–30 day closings, and we can expedite when your 45- or 180-day window requires it.
Residential & Multifamily Replacement Properties
We finance single-family rentals, 2–4 unit properties, and multifamily buildings — all common 1031 exchange targets in Oregon and California — using conventional, DSCR, or portfolio loan structures.
Conventional, DSCR & Portfolio Options
Depending on your replacement property type and income documentation, we structure your 1031 financing as a conventional loan, DSCR loan, or in-house portfolio product — for both forward and reverse exchanges.
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The Process
How It Works
Determine Your Exchange Type First
Before anything else, we'll help you identify whether a forward or reverse exchange is appropriate for your situation. Forward exchanges are simpler and lower-cost; reverse exchanges require more coordination and upfront capital but are essential when you've found your replacement before your sale closes.
Forward: List & Sell, QI Holds Proceeds
In a forward exchange, your QI steps in at the sale closing to receive and hold your proceeds. We pre-qualify you for the replacement loan before you list so you're ready to make strong offers the moment your sale closes.
Reverse: EAT Parks the Replacement Property
In a reverse exchange, we arrange bridge or gap financing so your EAT can acquire and hold title to your replacement property while you sell the relinquished property — structured under IRS Revenue Procedure 2000-37.
Property Identification (Day 1–45)
Forward exchanges: you have 45 days from your sale to identify up to three replacement properties — we can issue pre-qualification letters for multiple targets. Reverse exchanges: the replacement is already parked; the 45-day clock runs on designating which property is being relinquished.
Loan Processing & QI/EAT Coordination (Day 1–150)
Once under contract, we move immediately — appraisal, title, underwriting, and QI or EAT coordination all run in parallel. Both exchange types share the 180-day close window, and we stay ahead of it.
Close & Complete the Exchange
We close your replacement loan, proceeds or title transfer correctly through your QI or EAT, and your 1031 exchange is complete. Capital gains deferred — forward or reverse.
Requirements
General Qualifications
Ready to See If You Qualify?
Every borrower's situation is unique. Give us 15 minutes and we'll review your financial picture, identify every program you qualify for, and walk you through your options — at no cost and with no obligation.
Licensed in Oregon & California · NMLS #1498678
Related Programs
DSCR Loans
DSCR financing is one of the most popular loan types for 1031 replacement properties — no personal income required.
Investor Loans
Our investor loan suite covers fix-and-flip, rental, and portfolio financing for all replacement property types.
Bridge Loans
Bridge financing is often essential for reverse 1031 exchanges — giving the EAT the capital to park the replacement property while your sale closes.
Self-Employed Borrower Loans
Many real estate investors are also self-employed. Bank statement and P&L programs can support your exchange financing.
FAQ
Common Questions
From the Blog
Further Reading
InvestmentDSCR Loans Explained: How Real Estate Investors Qualify Without Tax Returns
If you're a real estate investor with strong rental income but complex taxes, a DSCR loan might be your best financing option. Here's exactly how they work and who they're designed for.
MultifamilyValue-Add & Rehab Loans for Multifamily Apartments: The Complete Financing Guide for Investors
Buying a tired apartment building, forcing appreciation through strategic renovations, and refinancing at a higher value is one of the most proven wealth-building strategies in real estate — but the financing is more complex than a standard rental loan. Here's how value-add multifamily deals actually get funded.
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