They have a foreign exchange guy working for them for a few months.

Seems to me that brokerages rolled over, not fighting in exchange for personal exemptions and paying fines, protect the King!

Many times people just want to exchange information, not get into a lengthy conversation. 

This is our first experience doing a 1031 exchange.  

They are then exchanging into more passive investments in other states for a 7.5 to 8 cap.Another way if someone didn't want to 1031 is to refi out up to 75% of their current property and then use those funds to invest some more.If you straight sale versus 1031 or refi and hold you will get hit with capital gains, possible state taxes, excise tax, roughly 3.8% medicare tax, depreciation recapture etc.

Furthermore, they are owned by husband and wife investors.This is from the CA SOS website:Do I have to qualify or register a foreign (out–of–state or out–of–country) business entity?

When I opted to take the half off in exchange for making the deposit non-refundable, did I waive the option for that deposit to be used against any damages, or is that a mistake by my landlord which they should be responsible for? 

TO me it's just an exchange of ideas until the best idea prevails.

I believe you can create a LLC as a foreign "entity"

Also, I could delay paying the recapture tax by doing a 1031 exchange.