Avoiding Taxes Using 1031 Exchange Real Estate Investing
Guest: Dave Foster is a 25-year real estate veteran and coach who has used 1031 exchanges to increase his buying power while minimizing his tax obligations. He has a keen understanding of how to use this under-utilized tax provision to create wealth in real estate.
Big Idea: 1031 exchanges can be used to defer taxes and leverage capital when transitioning from one real estate investment to another. With the right strategy, investors can keep their own tax dollars working for them, creating more buying power and limiting their tax obligations. Dave Foster can show you how to unlock the benefits of 1031 exchange real estate investing.
Episode 241: A Deep Dive into Real Estate with Wyatt Simon
Guest: Wyatt Simon is a seasoned real estate investor renowned for his transformative approach to achieving financial freedom through strategic property investments. With a background rooted in leveraging the power of real estate assets, Wyatt has successfully built a remarkable portfolio, starting from humble beginnings. Through innovative strategies like the Burr method (Buy, Renovate, Rent, Refinance, Repeat), Wyatt has demonstrated a knack for maximizing returns while minimizing initial capital investment. His dedication to empowering others and sharing valuable insights has made him a sought-after figure in the world of real estate investing.
Big Idea: In this podcast is the transformative power of real estate investing in achieving financial freedom. Wyatt Simon emphasizes the importance of aligning investments with personal goals and values, leveraging the right strategies, and adopting a growth mindset to succeed in the competitive real estate market.
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/
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Resources mentioned in this episode:
View the Episode Description & Transcript Here:
Wyatt Simon & I Discuss Empowering Wealth Creation:
• Wyatt and I discuss Rental Market Trends, Growth, and Regional Market Conditions (7:13): Explore current rental market trends and factors, including interest rates, driving rent growth for strategic real estate investment decisions in the Sunbelt and Midwest regions.
• The Importance of Resilience in Omaha’s Housing Market (00:11:39): Analyze the factors contributing to Omaha’s housing market resilience during economic downturns for insights into market stability.
• The Direct-to-Seller Approach (00:17:55): Learn about strategies for building relationships with property owners and negotiating deals outside traditional market channels in real estate acquisitions.
• House Hacking and FHA Loans (00:34:50): Explore how to leverage FHA loans for house hacking, a strategy for reducing living expenses through rental income.
• Scaling to Multifamily Properties (00:35:21): Discover insights on transitioning from single-family homes to multifamily properties for increased scalability in real estate investments.
• Tax Benefits and Depreciation (00:42:32): We delve into tax benefits and cost segregation in real estate deals, with approximately 35% of the purchase price returned to investors in depreciation in year one. Discuss the allocation of depreciation and alignment of interests between investors and operators.
Dan Breslin: Welcome to the REI Diamond Show. I’m your host, Dan Breslin, and this is episode 210 on 1031 Exchange Real Estate Investing to Avoid Taxes with Dave Foster. If you’re in building wealth through real estate investing, you are in the right place. My goal is to identify high-caliber real estate investors, and other industry service providers. Invite them on the show and then draw out the jewels of wisdom.
Those tactics, mindsets, and methods are used to create millions of dollars and more in the business of the real estate. Dave Foster is an expert in 1031 exchanges. Real estate investors who have mastered the use of 1031 exchanges avoid their investment gains from being taxed heavily at each transaction. The 1031 exchange allows investors to postpone paying income taxes on large real estate profits. This keeps your gains compounding over time, leading to more substantial wealth over time. Think Warren Buffet, who has been a master at Tax Advantage Investing.
Resources mentioned in this episode:
For Access to Real Estate Deals You Can Buy & Sell for Profit:
Dave Foster & I Discuss 1031 Exchange Real Estate Investing:
What are 1031 Exchanges
How to Use 1031 Exchanges
Trends and Strategies of 1031 Exchanges
Relevant Episodes: (There are 210 Content Packed Interviews in Total)
- Dave Lindahl on Multi-Family Investing in Emerging Markets
- Anna Barsky on Deferring Capital Gains
- Real Estate Development with Karl Krauskopf
- How to Invest in a Franchise Business with Jon Ostenson