It sounds like they have money, and it sounds like in exchange for that money you're setting them up with an income stream.

Regarding a 1031 exchange, it is important to have a conversation with your accountant prior to getting it done.

e.g. is it possible for someone to lend $100k on a deal in exchange for, say 6% interest rate plus 10% share of profits?

Fortunately, you will be able to to a 1033 exchange into new property and avoid any tax on the gain. 

The LLC has to do the 1031 exchange because that is the tax return reporting the activity of the property. 

Looking forward to connecting and exchanging ideas!

I'm aware of the challenges and I am welcoming to them in exchange for the experience of helping sellers solve whatever problem that they might have.

If you're not exactly excited about jumping back into the market, there Are passive investments that are eligible for 1031 exchange as well.

@Heidi FahringerReal Estate Expertise - Are they familiar with real estate-specific tax strategies, such as depreciation, 1031 exchanges, and write-offs for repairs, property management, etc.?

Especially with the favorable tax incentives offered to buy and hold real estate vs the ordinary income tax you'll pay on private lending.A 1031 exchange would allow you to indefinitely defer all of the capital gains tax you would have to pay, and instead use it to purchase better performing property/properties.