An Investment System (Vehicle) invests or holds an ownership interest in real property, receiving income from the property for the benefit of the underlying owners in the Vehicle. The Vehicle offers fractional ownership interests to investors owning real property which are exchanged for an ownership in the Vehicle. Such exchanges obtain deferral of gains from appreciation in the value of the property, which would otherwise be taxable, by complying with the provisions of IRC section 1031. The Vehicle provides investors the ability to execute subsequent exchanges of ownership interests in the Vehicle, at the discretion of the exchanging owner, for a separate replacement property representing a more desirable investment. The Vehicle Sponsor facilitates such subsequent exchanges, via either a replacement investor that acquires the ownership in the Vehicle or by purchasing the exchanging owner' s interest. Purchases could be financed using a liquidity facility or line of credit established for such purpose. A method of exchanging property to obtain the benefits of tax deferral of gains is also described.