1031 Exchange
A tax-deferral strategy under IRC Section 1031 that allows real estate investors to swap one investment property for another and defer capital gains tax. Bridge loans are commonly used to bridge 1031 timing constraints (45-day identification + 180-day close).
Why it matters on a DSCR loan
The 1031 clock is unforgiving — 45 days to identify and 180 days to close — which is exactly where DSCR financing earns its keep, since qualifying on the property's rent instead of tax returns keeps underwriting off your critical path. Line up your financing before the identification window opens, because a loan that stalls past day 180 doesn't just cost you the deal, it costs you the tax deferral. Investors on very tight timelines sometimes close with bridge debt and refinance into a long-term DSCR loan once the exchange is complete.
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).