As an investor navigating the complexities of a 1031 exchange, finding properties with over 50% leverage can often feel like a daunting task. The need for high loan-to-value (LTV) ratios—especially above 65%—paired with cash-flowing investments, presents a unique set of challenges. At Fortitude Investment Group, we specialize in delivering tailored solutions for investors with diverse and specific needs, leveraging our expertise and relationships within the real estate market.
High-leverage properties, with LTV ratios exceeding 65%, are often sought after by investors aiming to maximize their returns while meeting the debt-replacement requirements of a 1031 exchange. However, such properties are not only harder to identify but also require careful analysis to ensure they align with your financial goals and risk tolerance. Balancing leverage with cash flow is critical to achieving sustainable investment success.
At Fortitude, we take pride in our ability to source investments that meet high-LTV requirements while ensuring cash flow remains intact. Our comprehensive lineup of investment options includes:
One of our clients recently sold a property in New York City for $20 million, carrying a $14 million mortgage. They sought a passive replacement option that not only addressed the mortgage boot but also provided income at a high LTV. Through our network and expertise, we were able to identify a portfolio of DST investments that offered over 70% LTV while generating stable cash flow. This solution not only satisfied their exchange requirements but also aligned with their long-term financial objectives.
What sets Fortitude apart is our robust network of industry relationships. These connections enable us to:
If your unique situation demands creative problem-solving, we tap into our network to find the right fit—ensuring that even the most challenging cases can be addressed.
If you are in the midst of a 1031 exchange and require properties with over 50% leverage, contact us today. Let us guide you through the process, leveraging our experience and industry relationships to provide tailored solutions that meet your needs. At Fortitude Investment Group, your goals are our mission. Sign up today to view our latest property listings!
Important Disclosures:
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. There are material risks associated with investing in private placements, Delaware Statutory Trusts ("DSTs") and real estate securities including the potential loss of the entire investment principal, illiquidity, tenant vacancies impacting income and revenue, general and real estate market conditions, lack of operating history, interest rate risks, competition, including the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and investors should read the PPM carefully before investing paying special attention to the risk section. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited. Risks associated with 1031 exchange- A 1031 exchange has an identification period of 45 days from the sale of the relinquished property to identify a potential replacement property or properties depending on the value of the previous property. To defer all capital gains tax, you must reinvest the entire net proceeds from the sale of the relinquished property into the replacement property and acquire debt on the new property that is equal to or greater than the debt on the property that was just sold and relinquished. The rules and regulations of the Qualified Opportunity Zone (QOZ) Program are complex, and compliance with the QOZ Program comes with significant challenges such as appreciation unpredictability, certain neighborhoods may be less accommodating to development, illiquidity for up to ten or more years, availability and cost of construction and development financing uncertainty, development and redevelopment real estate risks, as well as a number of Jobs Act interpretation uncertainty which may impact future risks, if any. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA.