I believe I will be initiating a 1031 Exchange on behalf of my client soon (offer is submitted on Upleg), and I wanted to get some clarification on two questions:QUESTION ONE:She is low on cash for reserves in her bank account, so she will need some passthrough money from the buyer of her downlegs (she needs reserves in bank for loan on new upleg).Does this passthrough need to be first transferred from escrow to an intermediary account then her bank, or could it be transferred to her bank from escrow (skip 1031 intermediary account)?

Hi John,It depends on the lender and the ownership structure.

I would personally recommend house hacking for your first deal, as it is low risk and a good way to gain experience in home ownership, property management and maintenance.

The fact there are separate parcel numbers/tax id numbers indicates to me that Ownership is valid.  

This private investor will not have any control or ownership.

Thank you for response, as this is our first foray into being being a landlord and we rehab'd property to high standard we may be unrealistic in expectations, I guess pride of ownership comes into play. 

For due diligence sake, I am requesting current lease agreement, transfer of security deposit, history of payments and maintenance requests. 

If I transfer the deed to my business or trust, does it matter who’s name is on the mortgage for seasoning purposes.

First lien basis, so you can’t borrow the down payment from them.Most lenders want a borrower to have a certain amount of skin in the game, so LEGALLY being able to put together a nothing down deal is MUCH more difficult than it used to be.A good-great deal can be syndicated, but the money investors want the vast majority of equity ownership, leaving relatively small amount of equity for the “promote”.

I am not sure why you want to change ownership, but that is a different issue.