b'If all of the syndicate members agree, the syndicate can exchange its property for another instead of selling it and cashing out the members. But what if some of the investors want to cash out and others dont?There are 2 options: 1.You can do a Swap and Drop. Basically, this means you will go ahead with the exchange, close on the new property, and then buy out the investors who want out. Theyll owe the tax on their gain, but the rest of the members can carry happily on, tax-deferred. 2.The other option is called a Drop and Swap. In this scenario, the asset manager would distribute the syndicates property in kind (via quit claim deeds) as tenant in common interests to all of the members who dont want to stay in the syndicate, according to their respective percentage interests. This must occur prior to entering into a sale agreement. Thats the Drop. The individual tenants then proceed under a temporary TIC Agreement to the sale, with all individual tenants participating in the sale and signing the sale documents. Ideally, this should all occur within a few weeks of the actual sale, before the lender can ramp up and call the note due on sale. After the sale, the tenants would each be responsible for entering into their own 1031 Exchange, and the original syndicate entity would be dissolved. In either of the above situations, it is likely that some investors will want to stay with the syndicate, which will participate in the replacement property as a single entity, while other tenants may wish to proceed as individuals, and some may just take the tax hit and cash out. 184'