Getting Creative with 1031 Exchanges

[Bryan Beal]

Seeking some advice on how to proceed with a potential investor.

I have someone who is ready to throw in a significant amount of money to invest into our real estate offerings and the situation has become a little...  Tricky.  They are in the the process of selling a large commercial portfolio and they want to use the proceeds from that sale to invest into our platform.  They (obviously) want to limit their tax liability so in order for this to work we'll need to find a way for them to utilize the 1031 Exchange. 

Does anyone have any suggestions here?  Could we potentially form an entity where they are the majority shareholder and use that to invest?  Could we place them as first deed holder and do it that way?  Any thoughts/suggestions would be greatly appreciated!

-Bryan

[Michael Skoczylas]

@Bryan Beal I see at least 2 options for you. 1. Sell TIC interests to the investors and 2. Form your own DST. Both of these can be complicated, but may be worth it for you if the 1031 investor is big enough.