How to get on the title of a 1031 exchange
I own and manage short term rental properties in Maui. Recently the short term rental market drove off a cliff, not the first time. In the meanwhile, a friend was in the process of 1031 exchanging into another short term rental. Of course now is not the greatest time to buy, but it's also not the greatest time to pay the State and IRS $60k+. My friend relies on short term and long term rental income for his daily spend. Who knows if his long term tenants will pay next months rent. He owns $10mil+ in property and is credit worthy but relatively cash short. He needs $200k down on the new unit and is rolling $150k from the previous investment property. If he buys the unit, he will be strapped for cash, and if he sells the unit, he will also be strapped for cash after paying taxes. I got cash. I'm thinking to make up the remaining $50k and set up a $25k emergency fund for this unit. I got more where that came from if necessary. What is the best way to get on the title? Quitclaim after closing? Add name to the mortgage (I hate bank lending)? There is zero concern for a lack of trust in this situation. I'm willing and able to waive management fees on his other units until we pull out of this (3 year reserve assuming zero income). What is the best way to proceed?