Deal Structure to Avoid Capital Gains Taxes

[Jonathan Wooten]

Hi I currently have a portfolio deal in my pipeline where the owner is interested in selling his 14 units portfolio at $1M and was thinking to 1031 exchange his 1M into a bigger property so he could avoid capital gain taxes. 

I am currently thinking about another alternative where he would sell us the property at a loss or the initial purchase prices and then we would structure the remaining equity into a loan to us so he would only receive loan back payments which shouldn't be taxable income. 

Has anyone ever done a structure like that or any other ideas how to not be exposed to capital gain taxation on the sale of his portfolio?

Thanks!