Hello there! Welcome back to another weekly video with Matt, your mortgage guy. You'll notice the setup's a bit different today—we're holding our mics because we're classy like that. Also featuring today are the lovely Nona and Bubba.
Today, I want to share a quick, somewhat scary story about a closing we had this past week involving a ten thirty-one exchange for an investment property in Denver. It was a real complicated file. The buyer was putting down a lot of money, which usually simplifies things, but this was a reverse ten thirty-one exchange.
For those unfamiliar, a regular ten thirty-one exchange allows you to sell a house and defer paying capital gains on it by rolling those gains into another investment property. It's a fantastic tax deferment strategy that can really help scale up your wealth. A reverse ten thirty-one works a bit differently, but that's a topic for another video.
Our story begins with the closing scheduled for Friday, and everything seemed to be going smoothly... until Monday. That's when the bank called to say, "Hi, we didn't realize this was a ten thirty-one exchange." We had been under contract for a couple of weeks, the bank had all the paperwork, and we had disclosed everything from the start. But somehow, they missed it.
The entire week turned into a frenzy as we scrambled to get all the ten thirty-one documentation sorted the way the bank wanted to see it. We ended up sending the same documents to the underwriters three times, coupled with a few tough conversations.
Despite the chaos, we managed to close on Friday—well, not in the morning as planned, but in the afternoon. And to top it off, this bank had some issues, leading to a delayed funding table. So, we sat at the table for two extra hours.
I'm telling you this because it's a common scenario in the loan world—things can get a bit wild and out of control. It's perfectly okay, though. When things go awry, the key is to stay calm, communicate effectively, and get ahead of the problems.
A huge thanks to Miranda, the realtor in Denver who was incredibly patient and instrumental in navigating these hurdles. Ten thirty-ones are always complex, and you often forget there are layers to such transactions. But it's also a reminder that when things go wrong, the best move is to keep rolling with the punches and not give up. That's what separates the pros from the rest.
I hope you guys liked the van and enjoyed this fun little video for the day. See you all very soon!
Remember, every transaction teaches us something new, and every challenge is just another opportunity for growth. Stick with us for more stories and tips from the world of real estate.
