For financial advisors
A better structure
for clients with
gains they want to protect.
0%*
Taxes at closing
100%
Equity preserved
8-12%
Target annual return
* §721 exchanges are non-recognition events for federal income tax purposes. Individual tax outcomes depend on cost basis, depreciation history, holding period, and state of residence. Consult your CPA.
Many of your clients have built meaningful real estate equity in a structure that was never designed for their next chapter. We give them a better one.
The problem
Clients stuck in real estate
The tax problem
Long-term owners of small multifamily buildings carry decades of appreciation and depreciation. A sale typically triggers a combined tax liability of 30-40% of the building's value.
The concentration risk
A single building often represents a disproportionate share of your client's net worth, illiquid, undiversified, and operationally demanding. The tax wall prevents the diversification they need.
No better structure
A 1031 exchange just replaces one building with another. Selling triggers a 30-40% tax liability. For most clients, there has simply never been a structure that preserves their equity and keeps their capital working in a diversified, institutional vehicle.
The solution
A 721 exchange, not a sale
A 721 exchange allows your client to contribute their building to a professionally managed portfolio in exchange for a passive ownership stake, with no taxable event at closing. No capital gains. No depreciation recapture.
Their equity moves forward intact into a diversified, income-producing portfolio. The tax event that would have occurred at a sale is deferred entirely.
Key distinction
This is a contribution, not a sale. IRC Section 721 is the IRS-approved structure that makes this possible. The tax event that would have occurred at sale is deferred entirely. Your client keeps 100% of what they built.
For you
A stronger advisory relationship
A solution to a persistent problem
Many high-net-worth clients carry concentrated real estate positions they cannot easily exit. The 721 exchange gives you a tax-efficient answer: one most clients have never heard of.
Strengthens your advisory relationship
Introducing a strategy that protects your client from a 30-40% tax hit at exit positions you as a proactive, comprehensive advisor, not just a portfolio manager.
Simple referral, no complexity
You make the introduction. We handle the education, structuring, and transaction. Your relationship with your client stays intact throughout.
For your clients
A tax-efficient transition to passive income
Capital preservation
A §721 exchange defers capital gains and depreciation recapture entirely. Your client's full equity basis rolls forward intact with no tax haircut at transition.
Income-producing passive ownership
Your client receives quarterly distributions from a professionally managed portfolio, with institutional-grade operations replacing all landlord responsibilities.
Estate planning benefit
OP units can pass to heirs with a step-up in cost basis, potentially eliminating the deferred tax liability entirely, a meaningful tool in your client's broader wealth plan.
Who we work with
Built for the advisors who know their clients best
Wealth managers & RIAs
Clients with significant real estate equity often hold an outsized share of their net worth in a single illiquid asset. The 721 exchange is a path to tax-efficient diversification.
CPAs & tax advisors
You understand the embedded gain problem better than anyone. We translate that into a structure your client can actually execute. We coordinate with you throughout.
Estate planning attorneys
For clients thinking about succession and legacy, the 721 exchange defers the tax liability and moves the asset into a professionally managed, diversified portfolio.
Financial planners
Clients with meaningful real estate equity and no institutional-quality vehicle for it. The 721 exchange gives them a structure their position has earned.
How it works
Three steps to a referral
01
Identify a client with embedded gains
Think about clients who own small multifamily buildings and have held long enough to carry meaningful embedded gains, but have never had an institutional-quality structure for that equity.
02
Make the introduction
Connect them with Middle Door. We handle the educational conversation, explaining the 721 exchange structure and whether it is the right fit for their situation.
03
We coordinate with you and share in the upside
We work alongside you throughout the process. You stay informed and involved. We handle the transaction, your client relationship stays yours, and you receive a finder's fee from us upon closing.
Have a client who might benefit?
Reach out directly. We can walk through the 721 exchange structure with you and discuss whether it is a fit for your client's situation.