Reverse 1031 Exchange with a mixture of properties...
I'd like to do a reverse 1031 exchange. However, the property I'd like to purchase will not cover the value of the properties I'd like to sell, so I would like to park the remaining gain into some DST investments. Is this even possible? As I understand, in a reverse exchange, the purchased properties are placed into some kind of legal entity (EAT?). So will I just deposit money into the EAT and instruct the QI to make separate investments on the main property and the DSTs?
Will I even be able to make DST investments via the EAT? They will need to verify accredited investor status and how will it work with a legal entity?
Finally, who controls the funds in the EAT? Is there any legal barrier preventing the QI from just taking the money and run away? Thanks much.
chris.