They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.Last month I’m on Zillow looking at the value of my properties.

@Kevin Hoover, with certain types of entities it is possible to contribute property to and distribute property from that entity without triggering a tax event. 

So brainstorm the different options then pull the trigger!

Don't over think this, pull the trigger actions create results. 

I’m having a hard time finding a great price in a great location and I just can’t seem to pull the trigger on anything.

BUT I have also heard that it could trigger a due on sales clause, bringing the note fully due at any moment.

And then you have BP and an army of experienced investors happy to answer your question or poke holes in your deal before you pull the trigger..Be honest with yourself, are you looking for moral support?

It may trigger if you are paying down the balance aggressively during the prepayment penalty period.