EP 80: Compound Your Acquisition Strength by Unlocking The Power of 1031 Exchange

What most people don’t know is that there is a real estate tool that allows you to move anywhere into any type of property, allowing you to expand your growth. In today’s episode, Dave Foster shares with us how we can compound our acquisition strength through the power of the 1031 exchange. And although the term is complex, Dave allows us to fully comprehend it by explaining clearly what a 1031 exchange is and how it works. He even shares some tips on how to start and when to use the 1031 exchange.

It has already been proven by numerous investors who learned and utilized the 1031 exchange that they can compound and scale up their capacity to walk through the peak of financial freedom and toward generational wealth. Sit with us now and find out how to use the 1031 exchange according to its right timeline so you don’t lose its benefits!


💥💥 Remember, this is your MBA. Have a notepad handy, and get ready to take some 📝 notes!

Key Points from This Episode:

  • Dave shares about himself and his goals.

  • What is 1031 exchange?

  • The origin of the 1031 exchange and how a man named Starker made 1031 available at the organic individual investor level. 

  • Dave talks about how the 1031 exchange works.

  • The different types of investors and their timelines.

  • What’s the timeline for a 1031 exchange?

  • When does a property have to close?

  • Is there a max number for a 1031 exchange?

  • What’s the best time to start a 1031 exchange and sell your property?

  • Dave’s story of how the 1031 exchange came to be.

  • Dave shares a secret key strategy to generate profit that is tax-free.

Tweetables:

“In real estate, everybody says what? You make your money when you buy, and that's true. But the 1031, you keep your money when you sell and use the 1031.” – Dave Foster

 “In all sorts of walks of life, real estate at its most organic level is all about growth into it.” – Dave Foster

“You just have to accept what the market is giving you and understand if I'm gonna sell at the top, it's probably unreasonable for me to think that I'm gonna buy at the bottom.” – Dave Foster

“Any property that is used for productive use in business, investment, or trade, as long as it is investment real estate, it qualifies for any other type of investment real estate and that's what makes 1031 so powerful.” – Dave Foster

“And another key that a lot of people don't know about is that another part of our strategy was that we would sell our primary residence. And every time we did that, after living there for two years, we got $500,000 of profit tax free.” – Dave Foster

Resources

1031 Equity Exchange, LLC Website

About Dave Foster

Jake Wiley has been investing both passively and actively in real estate for the past 15 years and raising private funds for strategic value-add investments and long-term holds. He is also the host of the "Limited Partner" podcast, the only community for limited partners.

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EP 81: Fight Inflation With Cash Flow Strategies That Supercharge Your Income

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EP 79: Passive Investing is Your Best Bet to Scale Up Units and Mailbox Money Without the Headaches