A 1031 exchange provides the opportunity of deferring taxes by swapping one investment property for another. However, the nuances of 1031s can be tricky to understand, so we’ve asked Mr. 1031 himself, Dave Foster, to join us and help explain the basics of a 1031 exchange. We discuss why the time constraints of 1031s are unattractive to investors, some solutions for deferring tax and maximizing a 1031, the costs related to 1031s, and how to overcome the challenges that may arise when investing in a 1031. We also learn about vetting 1031 intermediaries, the Delaware Statutory Trust, and the “four” D’s of 1031 investing.
Key Points From This Episode:
- Introducing 1031 expert, Dave Foster as he describes who he is and what he does.
- The basics of a 1031 exchange.
- Why the time constraints of 1031s scare many willing investors away.
- How some are forced into deals that aren’t the right fit for them.
- Solutions for deferring tax and fully utilizing a 1031.
- Assessing the costs of a 1031 exchange.
- Things that could go wrong with a 1031, and how to overcome these problems.
- How to separate good 1031 qualified intermediaries from bad ones.
- Delaware’s Statutory Trust (DST) and how it differs from standard syndication.
- The four Ds of 1031 investing: defer, defer, defer, and die.
Links Mentioned in Today’s Episode:
Dave Foster on LinkedIn
Dave Foster on Instagram
Dave Foster on X
Dave Foster on YouTube
The 1031 Investor
Lifetime Tax-Free Wealth
Asset Management Mastery Facebook Group
Break of Day Capital
Break of Day Capital Instagram
Break of Day Capital YouTube
Gary Lipsky on LinkedIn
Joseph Fang on LinkedIn
