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One cool way to put $1000s in your pocket while investing in real estate

This money saving option has been tested and utilized since forever, 1921 to be exact. (Only cool nerds know that). The 1031 Exchange is a real estate investor's kryptonite offered by the IRS.

"...of course (our CEO) knows of some LEGAL loopholes to get around at least one of the requirements."

The Exchange isn't a tax shelter per se. But instead, it is a way to defer taxes that are due on the profits one makes when they sell an investment property (capital gains tax). Obviously, with all good things that make us salivate in excitement, there are still points to keep in mind in order to have a smoother experience with fewer negative surprises. The same applies when using the 1031 Exchange.

How It Works-in sum

  • Sell investment property

  • Invest in your next investment property

  • Save on capital gains tax until you stop this invest-reinvest cycle

Time Limits & Other Restrictions

Sounds amazing, right? I wouldn't say that what I am revealing next is a "catch". But it is definitely the most important thing to keep in mind. Note that upon selling your initial investment property, you only have 45 days to find your next investment property in order to adhere to the 1031 Exchange guidelines. In addition, you also only have 180 days to go to closing for the replacement/new investment property. Furthermore, you also are held to the requirement of using 100% of the equity from the original property for the replacement/new investment property.

The immediate upside? It's a good thing that our CEO is well-versed in some related real estate legal pointers. So, of course she knows of some LEGAL loopholes to get around at least one of the requirements. But you've gotta book a consultation for that! So do it, and share this info with someone who'd be ready, willing and able to put the information to practical use. Head over to the services tab and start creating a vision for what your next level of success could look like. We'll be waiting.

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