Can an LLC 1031 Exchange into a joint venture with others?

[Stephanie Figueros]

Hi all,

I have family members that have an LLC that are looking to 1031 exchange one of their properties. We've been talking about joint venturing on a property together (50/50 or 60/40, however we can make it work) and I'm trying to figure out a way to arrange this with their 1031, but I'm not sure if they are allowed to partner with individuals outside of their LLC or how that could work. I haven't found any clear answers so I'm hoping there are others that can share their experience or expertise on this.

Thank you!