John, our investor, is interested in acquiring an office building to lease to his business operation. He has found an office building that he can purchase for $750,000.

Five years ago, together with his CCIM, John structured the acquisition of an apartment building for $500,000 that continues to be an excellent investment for him today. Since he has a buyer that is willing to pay $650,000 for the apartment building, John feels that a tax-defered exchange out of the apartment building would be an ideal strategy for acquiring the office building.

In light of the current favorable climate for tax deferred exchanges, John meets with his CCIM to discuss the structuring of his exchange (apartment building for the office building). John's CCIM recommends reviewing alternative strategies for maximizing after tax return and potential for wealth accumulation over a 5 year holding period.

Based on the review of alternative strategy detailed analysis outlined in this case study. . . John discovered that an exchange of his apartment building into the office building was not in his best interest. . . and arrived at a better strategy for accomplishing his goal of acquiring the office building while maximizing his potential for accumulating wealth. . .review the complete case study in our book;