Happy to keep the conversation going!

We would be happy to do construction escrow, but the conversations never really developed that far.

So direct conversations with the City can be invaluable. 

Be careful with pre- or post-exchange cash-outs, related-party loans, or refinancing timed too close to the exchange.7) Practical deal points.Lender & consents: TIC conversions almost always require lender approval; fractional ownership can trigger tighter reserves and covenants.Governance: Use TIC and property management agreements that avoid centralized, partnership-like control and keep voting rights balanced with true co-tenancy.Securities overlay: Syndicating TIC or DST interests can implicate securities rules—coordinate with counsel early.UPREIT vs. 1031: Rolling into an UPREIT via §721 units is a different deferral path with its own pros/cons.Common pathways that work:All-in exchange: The LP/LLC sells and that same entity acquires the replacement; cleanest when everyone’s aligned.Pre-sale TIC carve-out: Those who want autonomy receive deeded TIC/SMLLC interests well before closing, then 1031 independently; the rest exchange inside the entity.DST replacement: The entity or the separated TIC owners exchange into one or more DSTs for diversification and smoother financing.If you share a few specifics—entity type, state, lender requirements, member goals, leverage, and target closing date—we can map a timeline (including any seasoning), model the boot/debt requirements, and choose between same-entity exchange, pre-sale TIC carve-out, or DSTs with confidence.Jason — appreciate the CPA perspective and I agree on the basics.

If the income-based valuation comes in stronger than the sales comps, that’s leverage for you during negotiation and a great data point for refinance conversations down the line.I would look at it as comps will drive the official appraisal because it’s a 4-unit, but the income numbers tell you whether the deal actually makes sense as an investment.

I am already in conversation with them, and I believe (hope) it will be a smooth transition.

For me a great wealth builder was (1) a DEFINED BENEFIT plan allowing me to defer tax on up to $350,000 per year at age 50 when I was in the highest tax bracket; and conversion to and into a ROTH 401k (all self directed) over a 5 year period at a lower bracket and a BIG discount for the non liquidity of my retirement portfolio investments.  

We can go over some quick strategies that might benefit both you and the people you refer — no pressure, just a good conversation about what’s working right now for investors.

Having good conversations, though would like to hear what you would expect for funding terms.

Happy to keep the conversation going!