Oh well....From the federal side and surely by any state, an attorney can originate a loan, following the requirements of an originator.The only issue I saw was with the trust being in title and saying you loaned to whomever.

It is taxable income

new federal law covers this.  

AND, you don’t save a pro-rated portion of the taxes, any amount of your exchange over the ADU value would be 100% taxable. 

You’ll need to hand over a large chunk of cash that’s just going to go to state and federal government, maybe 25-50% of the total gain, not just on the current property. 

The biggest lever the Federal Government has is tax policy.

The "boot" (cash or non-like-kind property you received, which is $190k in this case) is taxable.

You need to contact the IRS to ask for a Federal Employer Identification Number or FEIN.  

In the parlance of the Federal government, such loans are called loans on one-to-four family dwellings.

You diligence needs to be trying to pull out if your operator has some competitive advantage that will let them eke out marginally more returns for you, to more than offset the additional fees you are incurring.Of course, with a 1031, the analysis is slightly harder, because you have to factor in the tax savings you are getting through your 1031, relative to taking sale proceeds as taxable and investing in a group that may have lower fees.