1031 into LLC for a syndication
I have a relative who is looking to 1031 out of their first rental. I have been thinking of creating a new LLC that would they could "contribute" to as part of their 1031 and combine that with my investment $$ and investment $$ from my 3 kids in the same LLC so that the new LLC can participate as an LP in an apartment syndication. Neither my relative nor my kids are sophisticated investors but I am. This would be my first syndication deal-I have a GP with a deal already picked out.
I seems from what I've read that I'm missing something in my thought process here. The operating agreement is one issue, but I'm really interested in whether or not I would be in violation of SEC rules to raise funds for the LLC to invest in the syndication.
TIA!