1031 exchange, LLC and buying out partners?
So curious if anyone else has experienced this and how the dealt with it.
Myself and 2 friends created an LLC to pool our $$ to invest in an apartment complex. The General Partners of the larger investment are closing on the planned sale of the property after holding/fixing it up for the last 3 years. This is all great news and we're making a lot of money (24.73%IRR, MOIC 1.67x, 67% total return, 23% annual return) and now are looking at what to do w/ this 1031 exchange. We have found a new offering to roll this into, as an LLC, but one of the members may want to cash out.
One of my LLC members is getting divorced. His name is on the LLC. He wants to either cash himself out completely or transfer his ownership to his wife and walk away. Any advice on how to do this? At the end of the day, the LLC needs to either cash out or 1031, right? so internally, the 2 remaining partners could put forward more $$ to cover the 3rd person who wants out?