1031 exchange not investing all $. Will that $ get taxed?

[Andy Lanyi]

I am not understanding the 1031 exchange process quite right. Is it true that when you do the 1031exchange and you do not spend all the money on the next purchase that that money will get taxed as capitol gains. As an example you you purchase a pice of property for $1,000,000 you sale it for $2,000,000. Then you buy another property for $1,000,000. You do not invest the other $1,000,000. When you first invested your money it was all cash. So now you can not pull your money out with out getting it taxed? And if you wanted to be your own bank and take back a first of lets say 1,000,000 and the buyer pay you $1,000,000. Would you get taxed on that first $1,000,000.I thought that would be a good way to not get taxed, you being the bank and taking the first on the property.