Lender preflight prepares your financing package before you submit a formal loan application, reducing the risk of surprises that delay closing and jeopardize your 1031 exchange timeline. Lenders evaluate borrower financial strength, property cash flow, and asset condition, and any weakness in these areas can stall or kill the deal with no time left in the 180-day window to find alternative financing.
We assemble a preliminary loan package including your personal financial statement, property financials, and a deal summary, then present it to target lenders for early feedback on terms, leverage, and timeline. Issues such as low debt service coverage ratio, environmental concerns, or borrower liquidity gaps are identified and addressed before the statutory clock starts running against you.
A financing contingency that falls apart mid-exchange can force you into a taxable event, since there is no mechanism to extend the 180-day deadline outside of specific federally declared disaster relief. Lender preflight de-risks the transaction before you commit to a replacement property.
Asset focus
Challenges
- A financing contingency that falls apart mid-exchange can force the investor into a taxable event with no time left to identify an alternative.
- Low debt service coverage ratio, environmental concerns, or borrower liquidity gaps are often discovered too late in a rushed application process.
- Lenders evaluate borrower financial strength and property cash flow together, and a weakness in either area can stall or kill the deal.
- The 180-day exchange window leaves little time to shop for alternative financing if the first lender declines late in the process.
What we deliver
- A preliminary loan package including your personal financial statement, property financials, and a deal summary.
- Early feedback from target lenders on terms, leverage, and timeline before formal application.
- Identification of debt service coverage, environmental, or liquidity issues while there is still time to address them.
- A financing timeline synchronized with your 45-day identification and 180-day closing deadlines.
Related services
Find replacement properties for your 1031 exchange
Understand how federal capital gains tax applies when you sell a rental
Understand the stepped up basis rule for inherited real estate
Understand the structures investors use to earn passive income from real estate
FAQ
What does lender preflight actually check?
Borrower financial strength, property cash flow, debt service coverage ratio, and asset condition, the same factors a lender evaluates in formal underwriting, but earlier and informally.
Why does this matter more in a 1031 exchange than a normal purchase?
The 180-day closing deadline leaves little to no time to find alternative financing if your first lender declines late in the process, since there is no mechanism to extend that deadline outside specific federally declared disaster relief.
What documents go into the preliminary loan package?
Your personal financial statement, property financials, and a deal summary, presented to target lenders for early feedback on terms, leverage, and realistic timeline before formal application.
What issues does preflight catch most often?
Low debt service coverage ratio, environmental concerns on the subject property, and borrower liquidity gaps, all of which are far easier to address before the statutory clock is running.
When should preflight happen relative to identification?
Ideally before or during your 45-day identification window, so financing feasibility is already confirmed for the properties on your identification list rather than discovered afterward.
Do you arrange the financing yourselves?
No. We assemble and present the preliminary package to target lenders and help you interpret their early feedback; the loan itself is originated and underwritten by the lender.