Real Estate Investors Mastering 1031 Exchange Strategies for Success

Real Estate Investors: Mastering 1031 Exchange Strategies for Success

On this episode of the Investor Financing Podcast, Beau interviews Dave Foster, a 1031 Exchange Expert. Beau and Dave discussed the strategic ways to start taking advantage of the 1031 exchange.

Timestamps

[01:20] The 1031 exchange exists specifically for the sale of investment property and the purchase of investment property
[01:32] What is a like-kind exchange?
[02:02] Defining qualified use
[03:55] The purchase and the sale are on two different tax returns
[04:42] Things to consider to demonstrate your intent
[04:55] Don’t forget that the IRS could use anything against you
[05:53] Do the 1031 exchange by using the mirror test
[08:31] Advice to somebody that’s looking for an exchange company to work with?
[08:55] You are qualified as an intermediary if you are not disqualified
[09:05] What disqualifies you?
[09:44] People jump into business when the market is booming
[12:04] Segregated dual signatory account
[16:44] When the syndication sells, depreciation is not a free thing – must be recaptured and pay it
[17:40] Separate 1031 eligible activities from your other investment activities
[18:03] Keep deferring the tax by doing 1031 exchanges
[19:01] Using mixed-use properties
[19:56] It’s advantageous if the real estate happens to be worth a lot more than the business value
[22:27] Cool thing about the 1031 concept and the strategy behind it
[23:02] What are the 4D’s of 1031 investing?
[24:00] Why do you have a 401K?
[25:10] Use the 1031 exchange to go into different sectors
[26:06] 1031 is an awesome opportunity to continue to shape your portfolio
[26:23] You can use 1031 exchange to go from active to passive management
[29:28] How to calculate prorated amounts
[30:56] Look at the strategic moves you can make
[32:33] The value of 1031 is in helping you to where you want to go
[33:00] The best time to get your Qualified Intermediary (QI) involved is as soon as you have a contract for sale
[34:51] What is a reverse exchange? Why do you need to use it?
[35:27] In order to buy a new property you’ve got to have to process the money
[35:50] Can the borrower or the person that is going to do the reverse 1031 exchange legally sign for the entity?
[36:56] You could buy another property or you could do a reverse improvement exchange
[37:56] Do a value-add project tax-free
[39:03] Is there any value in doing a deferred sales trust
[40:35] How did Dave start in the real estate industry?
[44:56] Do a few things right early on in your journey –the process of learning
[45:24] The key to being strategic
[47:54] Start to know what you do not know
[50:54] 20 years of culmination and strategies of how Dave has been through real estate investing
[52:00] Go to www.the1031investor.com to find out more about Dave

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💥 Thanks for watching 💥
#1031 #1031Exchange #1031exchangestrategies

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.