Real Estate Agent Training: 1031 Exchanges & Structured Sales: HD

Watch the On-Demand Replay: http://www.mcdanielrealestatesystems.com/replay-1031-exchanges-structured-sales-strategies-to-save-you-your-clients-tens-of-thousands/ Stop chasing clients and start growing them. Get instant access to our FREE mini course, 5 Minutes to Farming here: http://unbouncepages.com/5-minutes-to-farming/ 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. 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 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 Before getting into the bulk of the show, we tackled a tough question on how to go against teams in a listing presentation when you’re a solo agent. Understand that every strength of a team can be presented as a weakness: no personalized service, too many clients to handle properly, handoffs to junior staff, multiple points of communication, etc. If you can’t sell yourself on the business side, attempt to connect with them personally. People like to do business with people they like. Then we brought in James, who started by sharing the 3 types of properties that DON’T qualify for 1031 exchanges; primary residences, 2nd homes and flipper properties. 1031 exchanges might apply to any other type of property because they are intended for properties used for business or investment purposes. 1031’s allow you locate your next property, sell your existing property and then roll over all your equity into the new property and pay zero federal or state taxes on capital gains. James explained why flipper properties don’t qualify and what constitutes a flipped property versus a short-term income property. Here’s an interesting point: Primary residences may qualify for 1031 exchange on a portion if there’s a business or investment component, such as multi-use properties with both commercial and residential space, farms and even a single-family home with a home office. So that’s important to keep in mind when working with clients that work out of their home. So why don’t more people use 1031 exchanges? James explained that due to the time constraints on finding the next property, 1031’s work best when you identify the next property before even selling the existing one. That mean