SB&OH EXCHANGE ACCOMMODATORS, LLC

September 1, 2004

Dear Friends:

Thanks to all of you are certainly in order.  July turned out to be a record month for SB&OH Exchange Accommodators.  More of you chose us to accommodate your exchanges than in any past month.  We do sincerely thank you all for the confidence you have placed in us.

August slowed a bit as it historically does.  The reasons for this are several, including vacations and the wrap-up of summer.  One condition, however, is unique to this year.  For whatever reason there seems to be a lack of inventory of replacement property; at least that is the feedback we are getting.

This does bring up an interesting exchange alternative:  tenancy-in-common arrangements.  While the distinction between a partnership interest and a tenancy-in-common interest requires close examination by an expert, there is a whole new industry growing around this concept.  As we are sure you know, partnership interests cannot be exchanged under § 1031 of the Internal Revenue Code but tenancy-in-common interests can be.

The tenancy-in-common concept in exchanging does have several advantages to the exchangor.  One is allowing an exchangor with limited funds to purchase an interest in a larger quality property rather than being required to purchase a smaller free-standing unit.  The exchangor is able to have a hands off interest in the property under a tenancy-in-common arrangement and need only deposit the check each month.  A tenancy-in-common arrangement can also be a fall back when faced with 45 day and 180 day deadlines.

The arrangement is complex and the need to sell or refinance may be more difficult because many parties are involved.  What is more, the tenancy-in-common interests are not as marketable as other interests.  Buy-back arrangements may be at a considerable discount.

This is a new area.  Although it has opportunities, it also has risks.  Whether it is right for you or not requires close scrutiny of your individual situation.  Should you have interest in exploring this further for your personal involvement, please call either Jeff Helsdon or Tom Oldfield.  Both of these attorneys are current in this area and eager to be of help to you.

Until next month, our best regards to you.  Happy exchanging!

Sincerely,
Your Friends at

SB&OH Exchange Accommodators, LLC