Deferring Taxes with Vanguard 1031 Exchange President Brandon Burns

 

Deferring Taxes with Vanguard 1031 Exchange President Brandon Burns

 

Guest: In this episode of the REI Diamonds show, host Dan Breslin welcomes Brandon Burns, a seasoned 1031 exchange expert. With over 4,000 transactions under his belt, Brandon runs one of the 119 1031 exchange companies in the country. His extensive experience and deep knowledge of real estate investment strategies make him a valuable resource for investors looking to optimize their portfolios through tax-advantaged methods.

 

Big Idea: The conversation centers on the strategic advantages of 1031 exchanges in real estate investment. Brandon highlights the geometric average problem and how 1031 exchanges can mitigate tax burdens, allowing investors to preserve and grow their wealth more effectively. By deferring taxes on property sales, investors can reinvest the full proceeds into new properties, enhancing their long-term financial gains.

 

 

    

 

Brandon: Yeah, that’s perfect. I run a 1031 exchange company. There’s 119 in the country. There’s a good amount, but not a ton. I think one of the things you mentioned that makes a lot of sense, even though I’ve been doing this for a while and I’ve been a part of about 4,000 transactions, I’ve still got a deal this year that I’m not going to 1031 exchange, right? I think there’s two points in life, and sometimes they overlap somewhat, but at one point in life, you’re in your wealth accumulation phase, and in another part of life you’re in your wealth preservation phase. One of the nice things about real estate is that there’s so many ways to win, right?

You can potentially get income, you can get appreciation, you can get tax benefits, and so on and so forth. Well, section 1031 of the tax code creates another benefit for people that own investment property, and it’s just another tool for someone to have. There’s actually two parts of the tax code that give benefits for people that own and are selling real estate that’s made money. The first one is section 121 of the tax code, which is if you’re selling your primary residence, if you’ve lived in it 24 out of the previous 60 months, and it doesn’t have to be consecutive, but a minimum of 24 to the previous 60 months, then you get 500,000 tax-free if you’re married, 250,000 tax-free if you’re single. Well, section 1031 says that if you jump over a number of hurdles that we’re going to quickly go over, then you can roll all of that money into all of your profits without paying taxes into one or more properties, which can be really powerful, and the math behind that is really interesting.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://Vanguard1031x.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Brandon & I Discuss Deferring Taxes:

  • Understanding Section 1031 and Section 121 of the Tax Code (03:00-07:00): Benefits of Section 1031 for investment properties and Section 121 for primary residences, and leveraging both for tax advantages.
  • The Power of Compounding and Avoiding Geometric Average Losses (07:00-09:00): Impact of compounding interest and geometric average problems, with emphasis on how 1031 exchanges help retain profits.
  • Navigating the Four Major Hurdles of 1031 Exchanges (15:00-18:00): Key challenges in 1031 exchanges—time, value, financial, and property type—and strategies to overcome them.
  • Combining Section 121 and 1031 for Optimal Tax Benefits (20:00-24:00): Scenarios where combining Section 121 and 1031 can lead to significant tax-free gains.
  • Scaling Up and Strategic Property Acquisition (32:00-36:00): Personal experiences on scaling from smaller to larger properties, emphasizing mortgage paydown and property management benefits.
  • Pitfalls in 1031 Exchanges (47:00-50:00): Common pitfalls, including incorrect paperwork and the importance of setting up exchanges before closing deals.
  • Delaware Statutory Trust (DST) Overview (59:00-01:03:00): Explanation of DSTs as an alternative investment for 1031 exchanges, including their benefits and limitations.

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Tax Lien Investing with Angela Duncan

 

Tax Lien Investing with Angela Duncan

 

Guest: Angela is a force in the personal finance industry with 25+ years of experience in helping people transform their lives by using passive investments to build generational wealth. Angela has a diverse career in banking and financial advising, owning a top 10 RE/MAX office for 5 straight years with over $2 Billion in sales and is now 100% focused on helping individuals create wealth through passive investing and lending with double-digit+ returns on their money while they continue their business life.

 

Big Idea: Changing your financial future begins with a decision. It is often a good idea to decide to get rich, then map out the plan for the steps to get your there.  Once you have cash, finding a safe & reliable return on that cash provides that passive income to carry you through the rest of your life with options.

 

 

    

 

Dan: I love it. So, do you want to give our audience some background on who you are and maybe a Reader’s Digest version of your career?

Angela: Yeah, absolutely. So, I grew up in Section 8 housing and welfare. I like to say that it’s a poverty mindset beginning. I didn’t know anything about money. My mom was a single mother, and I definitely didn’t enjoy being in poverty. I shared a room with my little brother, had free lunch programs, and I took the city bus to school. It was not a great, fun way to grow up. But at the same time, I do think it’s advantageous for me because when you don’t have money, you don’t really have that fear of losing it because you never had it. So, as soon as I was old enough to sign my own lease, I had several jobs, and I started my college journey. I really wanted to be a stockbroker. I thought I was completely fascinated with stocks. I wanted to go trade on the exchange. When I graduated and kind of got in that field, I quickly realized that I just don’t have the heart or the stomach to be in that industry. That’s when I switched to real estate.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.EmpowerHerMoney.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Angela & I Discuss Tax Liens:

  • Tax Lien Investing for 10%+ Returns

  • Breaking the Cycle of Poverty

  • Reprogramming Yourself Using a Bigger Vision

  • Asking Better Questions for Better Results

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Getting Offers Accepted without Being the Highest Offer

Last year we sold & closed 330 deals. More than half of those deals were sold to buyers who presented offers which were NOT the highest price. This is because we, as sellers, often choose the STRONGEST offer, not necessarily the highest offer. Here’s how to present the Strongest Offer:
  1. Know the Highest Price YOU Can Pay
  2. Present an Airtight Offer
  3. Close Every Single Deal You Win

Know the Highest Price YOU Can Pay. Sounds simple enough, right? Negotiation usually goes back & forth, with seller & buyer starting high & low respectively, then meeting somewhere in the middle. There certainly is a place for this style of negotiation, but NOT when there is a competitive situation with more than one offer on the table. This is when you want to present your strongest offer.

In this situation, you need to calculate your actual highest offer and present that amount. You will fight the urge to start low and meet in the middle. Many of the losing offers are often just $2K-$5K below the accepted offer-those buyers barely lost the deal for being just a little bit too cheap. Know the highest price you can pay and make that offer.

Present an Airtight Offer. An airtight offer is an offer which you cannot walk away for any reason (other than title issues) once that offer is signed. This is airtight:

  • Large Earnest Money Deposit – 10% Earnest money is large. I’ve accepted several offers presented with 100% earnest money. Those buyers are serious and always closed their deal.
  • No Due Diligence Period – Knowing what you can pay means you don’t need inspections or contractor bids to move forward on your offer. The strongest offers waive their inspections & attorney review period. These buyers are serious and always close their deal.
  • Quick Closing – The strongest offers don’t need 30 days to close, they can close in 2-3 days if needed because they actually have the cash to close.

Close Every Single Deal You Win. If you have been in the real estate investment business any length of time, you already know that certain brokers & wholesalers bring a large percentage of the deals to the market. Those are HIGH VALUE contacts to the savvy investor and you benefit when you realize that they are always judging you & your client based on past deal performance.

There are agents and buyers I’d likely never again accept an offer from due to their behavior during the transaction. You wonder, “What did they do?” Either they attempted to renegotiate a lower price or simply never closed the deal. I don’t feel STREGTH from the offers they present after that point. Your reputation for closing will win you deals or cost you deals, depending on how you perform.

Now, if you know your number, present and airtight offer, and close quickly with no headaches, you cement a positive reputation with the parties in that transaction. Do that often over a career, keep presenting your offers, and you will win dozens of deals at better prices when the circumstances are in your favor.

This can be tough because when you don’t win a few you may stop presenting offers. You begin to think you can’t win. When you know your number, (and you’re not too conservative), you present airtight offers with above average hard (think 10%+ EMD) earnest money deposits, and are willing to close in days instead of weeks/months, you will periodically win deals on those terms over competing offers at highest prices.

Turn Key Rental Market Selection with Zach Lemaster

 

Turn Key Rental Market Selection with Zach Lemaster

 

Guest: Zach Lemaster is the founder & CEO of Rent To Retirement, a turn key rental company focusing on new construction single family & small multi family rental property. Starting his investment journey while serving as an Optometrist and Captain in the US Air Force, Zach strategically grew his portfolio to allow for early retirement from his medical career.

 

Big Idea: Buying rentals can set you up for a comfortable retirement or simply give you a larger pile of cash to reinvest later in your career. That said, selecting the RIGHT rentals in the RIGHT market can speed this process up while reducing the headaches and attention that come with a rental portfolio.

 

 

    

 

Dan: Yeah, for sure. It was very interesting. I saw the bookings come through. Turnkey rental property was a big topic a few years ago, so I’ve been in the business since 2006, and I remember those companies proliferating probably right as things started to come out of the great recession, there’s a lot of turnkey rental businesses in the Atlanta market. I knew of some in the Philadelphia market and I’ve seen some come and some go and I think some of them went, like in the Atlanta market, you could get houses for $25, $30, $35, $40,000. They were selling them for $75, $80, $90 while the prices ratcheted out that price point and then you couldn’t find the inventory. That became like a big issue for those companies, and they kind of wound them down. The investors were very happy because their investments went from a $100,000 deal to $250 and $300 without renovations or any other additional costs. So we’ve seen them come and go. You’ve been around for a while and you have an interesting model with the new construction. Do you want to kind of give the audience an overview of the business model here?

Zach: Yeah, I’d be happy to Dan, and thanks for starting there because I think turnkey in general, it’s a buzzword and like any business, but especially in real estate there are companies and different business models that work in certain market cycles and some that don’t work in other market cycles, as you just alluded to. It’s great. That’s the beautiful thing about investing in real estate. If you, I don’t want to say time the market, but if you invest over the long term, your properties should go up over time. It sounds like during that market cycle that you just mentioned in your history, there’s a lot of people that did really well. But turnkey investing, it’s a buzzword. There are a lot of people who may have had experiences with turnkey in the past or don’t really know what that means, or people saying turnkey could even be a broker saying, a house for sale is turnkey.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

www.RentToRetirement.com

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Zach Lemaster & I Discuss Turn Key Rentals:

  • Buying Lower Maintenance Property

  • Selecting the Best Markets for Growth

  • Going Bigger – Scale with Simplicity

  • 5% Down Investor Loans

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Private Money Lending Masterclass with Dan Breslin

 

Private Money Lending Masterclass with Dan Breslin

 

Guest:  This is a presentation on Private Money Lending by Dan Breslin, host of the REI Diamonds Show.

 

Big Idea:  Private Money Lending can be an effective and reliable source of above average returns for those with some cash. It is also an effective method to scale a fix & flip business.

 

 

    

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

www.DiamondEquity.com

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

I Discuss Private Money Lending:

  • How to Become a Private Lender

  • Earning 10% Returns by Investing Passively

  • Underwriting Private Money Loans & Borrowers

  • Finding Private Lenders

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Private Money Lending with Dan Breslin

 

Private Money Lending with Dan Breslin

 

Guest: This episode is actually Dan interviewing his father, Dan Breslin.  The elder Dan Breslin is a Private Money Lender for other fix & flip investors throughout the Northeastern US.

 

Big Idea: Private Money Lending can be an effective and reliable source of above average returns for those with some cash.  One often overlooked source of this cash is dormant IRA and other retirement accounts.  Dan and his dad cover private money lending on retirement accounts.  They also talk through the founding of Diamond Equity Investments – which is the volume fix & flip real estate firm founded by Dan (the podcast host).

 


    

 

Dan Breslin: Dad, welcome to the REI Diamond Show. How you doing?

Dad: I’m awesome. How are you today, Danny?

Dan: Doing well. I think for a lot of our friends, our family, the people who know us personally, they’ll probably think this is a really interesting story. To the listeners who catch us occasionally, I hope they find it interesting and intriguing, but I wanted to have you on the show here today to talk about your experience as a private lender from the private lender’s perspective. I think for the listeners who maybe don’t have as much affinity to hear our second topic of the founding story of Diamond Equity Investments and like my career as a real estate investor, I think hanging out and listening in to the perspective of somebody who is doing private money loans on fix and flip investors houses, is worth the time to do the research so that you listening can have that conversation with people who will potentially be a private lender for you and fund your deals.

While the main topic will be private lending, we are going to start off with the founding story of Diamond Equity Investments and to give some people contacts, our company in 2023 closed $57 million in real estate, meaning after the renovation was done, we sold it, we add up all those sale prices, that was $57 million. That was not our profit, that number will be not disclosed in public and that was 330 transactions. We’ve done that with a large team. We have the virtual offer app, we’re closing deals, we’re rehabbing deals in states, I think 19 states in 2023.

We didn’t step foot in the state at all to buy it, fund it, close it, do the work, and then resell it and get a retail buyer to go to the settlement table. We’ve been blessed to attract a team of high caliber talented individuals here to come together and put together the the volume of deal flow that we’ve done. That’s Diamond Equity, we did 54 million in 22 and 54 million in 21, so we’re no strangers to doing volume of deals throughout the United States, but I started from humble beginnings, which I’m sure [inaudible] in a few minutes. Dad, you got your Oliver shirt on there, and my dad’s name is Dan as well, but through this episode, I’m probably going to call you dad or Pop. That was[?] listening Pop. You got your Oliver shirt on, so maybe you could talk about your setup right now, brief summary of your career, where you live, and maybe how you fit into being a private lender.

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

www.DiamondEquity.com

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

My Dad & I Discuss Private Money Lending:

  • How to Become a Private Lender
  • Earning 10% Returns by Investing Passively
  • Vetting Potential Borrowers
  • The Founding Story of Diamond Equity

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.