Subject-to on a 1031 Exchange

[Bret Halsey]

I'm speaking to an owner who bought a property through 1031-exchange and has a 2 year required hold period due to owning it in an LLC and being a "related party". Could I purchase this property subject-to the current mortgage to avoid triggering the due-on-sale clause as well as maintain his holding period requirements? What other ways might I be able to acquire this property while keeping his tax strategy intact?

[Dave Foster]

@Bret Halsey, Why don't you simply purchase the LLC. That way the loan and ownership of the real estate doesn't change. If the LLC is a single member/single asset LLC you could purchase the LLC membership interest. And the seller could also do another 1031 exchange even though he's technically selling the LLC not the asset.