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Accommodator Loan
An third party who acts as a facilitator when a borrower sells a real estate investment property and has a profit. The problem a buyer runs into is that his profit will be taxed unless given to an accommodator to hold while the borrower goes out and purchases a new investment property (see 1031 Exchange Rule.)
After the new property is bought, the accommodator returns the monies back to the borrower so that the profit can be shifted to a new investment property.
Accomodators make possible the 1031 tax-deferred exchange by helping borrower in buying and selling property. In a nutshell, the accommodator holds the money.
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