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Retire Early Using 1031 Exchanges
Manage episode 376060096 series 3486025
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In this information-packed episode, Dave Foster, a 1031 exchange specialist, shares his extensive knowledge on using 1031 exchanges to maximize tax savings and build generational wealth through real estate investing. He provides real-world examples of how he utilized 1031 exchanges to retire early and live on a sailboat while raising his family.
Timestamps
[00:03:05] How Dave used 1031 exchanges to convert investment properties into primary residences to generate tax-free profits
[00:06:05] Overview of primary residence capital gains tax exemption rules
[00:09:02] How Dave leveraged 1031 exchanges to fund an early retirement on a sailboat
[00:19:35] Dave explains the "4 D's" of 1031 investing - Deferred, Delay, Defer, Dodge
[00:23:12] Using 1031 exchanges to relocate and purchase undervalued properties
[00:27:18] Converting 1031 investment properties into primary residences
[00:31:37] Hacking 1031 exchanges to invest in syndications
[00:37:25] Paying some tax to invest in syndications with 1031 proceeds
[00:39:57] Overview of reverse 1031 exchanges
[00:44:13] Advanced strategies for improving 1031 exchange properties
Key Takeaways
- 1031 exchanges allow real estate investors to defer capital gains taxes by selling one investment property and reinvesting the proceeds into another
- When timed strategically, 1031 exchanges can be used to convert investment properties into primary residences to generate tax-free profits
- Portfolios can be built up substantially over time by continually deferring taxes through 1031 investing
- Towards the end of one's career, 1031 exchange properties can be converted into primary residences to eliminate deferred tax liabilities
- Reverse 1031 exchanges enable investors to secure replacement properties before selling relinquished properties
- With proper planning, 1031 exchange proceeds can be invested into real estate syndications
Resources & Social Media
Dave Foster's Book: Lifetime Tax Free Wealth
Dave's Website: The1031Investor.com
Dave's YouTube Channel: The 1031 Investor
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TikTok: @trulypassiveincome
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