This means that the two of you bought/own a membership interest (partnership interest) in an entity and did not buy/own real estate, so it does not qualify for 1031 Exchange treatment.  

However, there is a workaround: if you can structure the transaction such that you acquire 100% of the membership interests in the LLC, it can be treated as a direct purchase of the underlying real estate by you.

We got both legal and CPA advice and then set up the current entity structure, which is this: Our trust (set up for asset protection) has membership interest in two LLCs (one in Texas and one in Florida, where we own rental houses). 

. - a membership only group but certainly adds lots of value for their members.

That was the nail on the head I was looking for.I also recommend you pay for a membership in the California Apartment Association (CAA).

Hi Alex, have you completed a membership and will be attending the meeting tomorrow? 

Each designated LLC has its own governing documents establishing its members, managers, and membership interests.

Your father will then need to email those leads he is interested in investing with to get on their investor distribution list.After that, your father will start getting emails about deals whenever a Lead brings one to the membership. 

I am out as soon as my current membership expires.

because each time hit with realization of the BS, the whole game is rigged that it's not BS, it's just you havn't gotten to that other thing, that next level, that other access, and it keeps ya going layer after layer after fee after membership.