1031 exchanges—where you can sell a property for a big profit, NOT pay taxes on that profit, and use your WHOLE net sales price to re-invest in one or more new, income-producing properties—are something that we think every long-term buy-and-hold investor needs to know, cold.
When you know the rules (and there are plenty of ‘em), you can:
- Save tens of thousands in taxes every time you sell a ‘property held for income’
- Use that money you saved to re-invest in even better opportunities
- Completely avoid that nasty “depreciation re-capture” tax
- Grow your wealth and income way faster than you are right now
But you can’t just decide to do a 1031 exchange: you have to know all the requirements AND have the right people already in place to complete them BEFORE you sell your rental, lease/option, or short-term rental.
That’s why Scott Ellsworth will start this Online Masterclass by making sure you understand all the regulations:
- What defines a “property held for income” (sorry, your retail flip or wholesale deal won’t qualify, and neither will the one you sold on contract for deed)
- What identifies a “like kind” exchange (yes, you can exchange houses for apartment buildings, or apartment buildings for land, but not houses for notes!)
- Why you need to find a “Qualified Intermediary”, and what that person’s job is (it’s way more than just “holding onto the money)
- What your sales contract needs to say, if you intend to do an exchange after you sell it
- Why walking away from the closing with the proceeds check kills your chances to save all those taxes instantly
- Why your title company will be deeply involved in this process
- How long you have to find the new property you want to buy, and why you should start that process BEFORE you sell the one you want to sell
- How many new properties you can identify, and buy, with the money from the sale of your old one
- Why you have to replace BOTH the cash you got from your sold property AND the debt that was paid off when you sold it, and how to do that
- How to roughly calculate how much tax you’ll save from exchanging any given property (so many people badly underestimate this, because they think that their “Profit” is the cash they get at closing. It’s not)
- How long you have to close on your new property or properties
- The words you need in the purchase agreement for your new property(ies)
- Why how you hold the property you sell, and how you hold the property you’re going to buy, matters a LOT.
In other words, you’ll learn all the requirements and practicalities in the morning.
But then, in the afternoon, Scott will share some of the more creative aspects of exchanging like:
- “Reverse exchanges”, where you (sort of) buy the new property BEFORE you sell the old one
- How you can use your exchange money to trade into PARTS of other people’s properties, to get a return and “park it” passively when you can’t find a new property you like better
- How you can replace the debt you need to replace without going to a bank to do it
- How to use options to line up ‘replacement properties’ well in advance of selling one
- How 1031 exchanges can help you trade properties you don’t like very much for ones you like better
- How you can get the cash you want out of your property without paying taxes on it
As always, this in-depth Masterclass is super-affordable AND guaranteed, or your money back:
Order Now: $97.00