[quote=briansd1]Qwerty007, at Clearfund said above, when you sell and do a 1031 exchange, you can’t get any cash (boot) from the sale.

The money goes to an accomodator and needs to be rolled over to a like-kind replacement.

Real estate is about leverage and maximizing return on equity, so debt is generally a given. You have to rollover the debt as well, or come up with cash or a new loan.

Of course, if you didn’t have debt to begin with, then you don’t need debt on the new purchase.

http://www.expert1031.com/1031facts/articles/ajreb0503.html%5B/quote%5D
Yes I get it thanks. But I respectfully disagree that RE is all about leverage. That mostly makes sense if RE is appreciating, and let’s face it the problem we have now was brought on by borrowing, which is why it’s called the credit crisis. Older ‘dudes’ don’t always want these debt milestone hanging round their necks.