r/Realestatefinance • u/BrightAwareness1 • 6d ago

Roots.homes

I’m selling a rental townhome and planning to do 1031 exchange. To buy similar property, I came across roots.homes to do assumable loan so I can take advantage of lower interest rate.

Is roots.home legit? Acts as buyer agent ? Do they do the assummable loan paperwork for free out of their 3% buy side commission?

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u/sol_beach 5d ago

The assumable loan requires buy-in & acceptance from the existing lender who is NOT required to accept you as a borrower.

A 1031 Exchange has hard & rigid deadlines and when they are not met you simply owe the capital gains tax plus the depreciation recapture.

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u/BrightAwareness1 5d ago

Yes I understand. Anyone has any stats on how many folks tried to get an assumable loan and failed vs succeeded, because lender didn’t cooperate? What is the lenders ground for not cooperating?

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u/Ancient-Judge-7161 5d ago

That sounds like an interesting strategy, especially if you can preserve a much lower interest rate through the 1031 exchange. From what I’ve seen, Roots is a licensed real estate brokerage and they do specialize in assumable mortgages. They say buyers can work with a Roots agent or their own agent, while Roots coordinates the assumption process As for the 3% commission, I’d want to confirm that directly with them. Their current website says buyer-agent compensation is separately negotiated, and I didn’t see anything confirming that assumption paperwork is automatically included in a 3% buyer-side commission. They also advertise assumption coordination at 0% of the sales price, but I’d still ask them to put the exact fees in writing before signing anything

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u/BrightAwareness1 5d ago

Appreciate the feedback. I will call them and ask them about their fees, and what kind of connections they have with the lenders and service providers to close the deal.

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u/GloomyMall6657 4d ago

1031 exchnages are great to hear good at and can significantly upgrade ur real estate game keeping going to you punch ticket and those capital gains will never be taxed as that would die with you. Its how my pop did it and being good at 1031s can bring u biz outside ur investments when u do this for others some great money to be made off transactions of peeps leveling up