Description

In this information-packed episode, Dave Foster, a 1031 exchange specialist, shares his extensive knowledge on using 1031 exchanges to maximize tax savings and build generational wealth through real estate investing. He provides real-world examples of how he utilized 1031 exchanges to retire early and live on a sailboat while raising his family.

Timestamps

[00:03:05] How Dave used 1031 exchanges to convert investment properties into primary residences to generate tax-free profits

[00:06:05] Overview of primary residence capital gains tax exemption rules

[00:09:02] How Dave leveraged 1031 exchanges to fund an early retirement on a sailboat

[00:19:35] Dave explains the "4 D's" of 1031 investing - Deferred, Delay, Defer, Dodge

[00:23:12] Using 1031 exchanges to relocate and purchase undervalued properties

[00:27:18] Converting 1031 investment properties into primary residences

[00:31:37] Hacking 1031 exchanges to invest in syndications

[00:37:25] Paying some tax to invest in syndications with 1031 proceeds

[00:39:57] Overview of reverse 1031 exchanges

[00:44:13] Advanced strategies for improving 1031 exchange properties

Key Takeaways

• 1031 exchanges allow real estate investors to defer capital gains taxes by selling one investment property and reinvesting the proceeds into another
• When timed strategically, 1031 exchanges can be used to convert investment properties into primary residences to generate tax-free profits
• Portfolios can be built up substantially over time by continually deferring taxes through 1031 investing
• Towards the end of one's career, 1031 exchange properties can be converted into primary residences to eliminate deferred tax liabilities
• Reverse 1031 exchanges enable investors to secure replacement properties before selling relinquished properties
• With proper planning, 1031 exchange proceeds can be invested into real estate syndications

Resources & Social Media

Dave Foster's Book: Lifetime Tax Free Wealth

Dave's Website: The1031Investor.com

Dave's YouTube Channel: The 1031 Investor

Follow Us On Social Media

YouTube: Truly Passive Income

TikTok: @trulypassiveincome

Instagram: @truly_passive_income

Facebook: Truly Passive

Twitter: @trulypassive

Download Our FREE Passive Investor Toolkit

Everything you need to get started in passive investing - Download Here

Mentioned in this episode:

Sponsored by Nomad Capital

Looking to invest in self-storage? Nomad Capital converts vacant big-box retail spaces across the Southeast into climate-controlled storage, with a target of 20% annual returns.
Our fund combines low leverage and high depreciation for strong growth and valuable tax benefits. By buying properties at...