Posted by Dave T on November 09, 1998 at 18:37:23:
1031 exchanges do not have to be property-for-propery exchanges as in a traditional barter transaction. That is, two people with property do not need to find each other and agree to “swap/exchange” their holdings.
A 1031 exchange can still be accomplished through a traditional sell and buy approach. An investor who sells property to a third party could still buy his replacement property from yet another party without invalidating eligibility for a 1031 exchange.
There are tax rules governing the transactions, but that should not keep you from offering to buy property from an investor who wants to do a 1031 exchange. Once your sale closes, the investor buys the replacement property from someone else to complete the 1031 exchange – insuring that he/she follows the IRS rules governing the transaction.