@Jerome Morelosno offense but... this doesn't make a lot of sense to meHELOC rates are high so for this to work you'll have to give them a great return to make this work for them...way too complicated for my taste

Not recording a lien might make the transaction less formal but could complicate the refinance process later.

@Carlo D.Maybe it is true for their bank but not for other banks.My wife and I have a (more complicated) trust that owns several LLCs.

Things will get “complicated” if you try to buy more than 3 replacement properties.I don’t see a problem with her renting you a space in her commercial building as long as she charges you “fair market rent”  (then she could leave the property to you at her passing.)

If you are looking to do a complicated structure, ex. wyoming holding company.

My personal taxes involve fairly complicated investments that also require multi state filings.  

That plays a role.3) Where this gets complicated is you are doing commercial financing.

@Jason Malabute Yes, it is easy and straightforward, UNLESS you have a complicated structure in your LLC.

@Gary StarkReal estate tax return preparation is very complicated.

Making matters more complicated, these Sec. 1031 tax basis calculations are needed before a cost segregation study can be recommended.