If you don’t understand 1031 exchanges, you might be costing your clients thousands. 1031’s apply to any property with a business or investment component, this could include primary residences if there’s a home office, farm or commercial space involved. So it’s important to understand 1031’s to help your clients roll their equity over into a better investment property and help them build wealth.
1031 exchanges allow you to preserve all your equity, reinvest into a better piece of investment property. It’s a dream come true when it comes to investment property in real estate. -James Callejas
Takeaways + Tactics
1. 1031 exchanges allow you to pay zero taxes - it’s a dream come true for real estate investment property
2. Rule of Thumb - 1031’s can apply to ALL except: primary residence, 2nd home and flipper properties
3. Identify the next property before selling the existing property - and bring in a 1031 expert early in the process to facilitate the deal
Now that you’re armed with the basics of 1031’s you can look for opportunities to serve your clients better and, in the process, present yourself as a trusted advisor looking out for their long-term interests. This separates you from every agent who just wants to take the listing and collect their commission.
Over a period of 17 years, James, IPX1031® Vice President and Account Executive, has learned about 1031 Exchanges from the bottom-up, starting with documenting the process in accordance with IRS regulations all the way to running seminars and educating audiences. James has received the prestigious CES® (Certified Exchange Specialist) designation by the Federation of Exchange Accommodators. James frequently speaks to investors, commercial brokers, REALTORS®, attorneys and CPAs on the “ins and outs” of exchanges, associated tax implications and how to build wealth within real estate by utilizing 1031 Exchanges. You can connect with James by email: email@example.com or phone: (415) 291-5181.