1031 Specialists - Common 1031 Question - Regarding Members of an LLC

[Mike Auerbach]

Can some of the members of an LLC do their own exchange or cash out at the time of the sale of the property?

A drop-and-swap allows investors to drop out of their current ownership structure, break away from partners and buy a property on their own. It’s important to get a structuring attorney involved, particularly in a state like California, before you sign a Purchase & Sale Agreement.