Diversify from real estate to bonds on a tax-deferred basis
Effectively replace real estate exposure with a corporate bond. Low leverage property leased to highly rated credit tenants offer the opportunity to 1031 exchange higher risk real estate into a long term bond equivalent security. This can be powerful personal financial and tax planning if used appropriately. This type of bond equivalent property also can allow for enhanced liquidity with improved access to the credit markets to raise cash levels.
Insiders holding publicly traded stock looking to diversify with other insiders
Minimize cash investment for a stock swap fund.
Permit tax deferred distributions
Add basis to your holdings with little equity.
Finance mergers and acquisitions
An acquiring firm can uncover significant cash, defer tax recognition and book up the balance sheet
Recapitalize a company without diluting the equity
A company with low basis real property can access substantial cash, defer tax recognition and enhance financial statements