Hi all, My relative wants to combine their $500K personal exemption & a 1031 exchange to liquidate their rental properties without paying taxes, but they are worried about missing the180-day time limits for the 1031 exchange, so they want to involve their son-in-law (SIL).

Quote from @Jai Windish: Hey everyone,I am from Illinois and actually closer to Peoria than Champaign, but choices were limited.

Experts say it can be risky for an investment fund to operate this way, since it may require ever more participants to be brought on board, rather than making money from its business.More than 60% of RAD’s operating expenses in 2020, the most recent period for which the company has released audited financial information, consisted of asset-management fees and other payments to a separate company owned by Mendenhall and other RAD executives called RAD Management LLC, according to an analysis of the financial data.Those fees and payments amounted to more than $730,000 that year, RAD said.ADVERTISEMENT“We have limited operating capital, few significant assets and limited revenue from operations,” RAD wrote in the January document, which sought to raise up to about $58 million in new funds, for a total of $75 million of company shares.

In addition to taking 6-9 months to close, they are also subject to (i) annual audits, (ii) annual REAC property inspections, (iii) recurring annual MIP payments on top of your interest rate, (iv) large initial deposits to the replacement reserve, (v) commercial space limitations to 15-20% EGI / 25% NRA, and (vi) less forgiving underwriting with 7.00% minimum vacancy rates when determining our underwritten NOI.

My experience currently involves but is not limited to; breach of contract, embezzlement, coercion to include extortion and blackmail, and bribery from both lender and two NEW WESTERN agents.

There is always a transition period where selling owner stays on and over time new owner transitions into full control.

When something goes into default, like this property has has, I have little to no control yet assumed a lot of risk. 

Common problem, no easy answer:(We try to allow our owner clients to arrange their own maintenance, but have learned the hard way there MUST be limitations:1) They can't hire our people!

It’s not limited to rentals, but since your parents-in-law's home is a primary residence and not a rental, it wouldn’t qualify for a 1031 exchange right now.

The fact of the matter is, when you sell or buy a business, you are entering into a business partnership with the person on the other end of the transaction.Yes, the partnership is limited (partial buyouts aside), but what you will be accomplishing during your time together is significant.Due diligence can take months.