Hi, Everybody! Are you a Property Investor? Thinking about becoming a Property Investor? In today’s video, you will find out exactly what a 1031 Exchange is and how it benefits a Real Estate Investor! Phil Atwan from Exchange Resources is here to get us started with a quick explanation of what a 1031 Exchange is and who it benefits.
Phil is a great person and professional. I seriously appreciate it when I am in a conversation with another professional that brings valuable information and knowledge. The “Phil Series” is a set of four videos that are aimed at giving you information about 1031 Exchanges in case you are interested in owning multiple properties. I really appreciated his time because all of my videos are really aimed at providing the beginning stages of education and he really gave of his time selflessly. It is really easy to look up properties on the internet but it’s like they say, the devil is in the details. Phil can show you how to invest in real estate the right way.
Definition of a 1031 Exchange per Phil: is a popular tool among investors. Who is an Investor? It is someone who has a property that they are not living in but it is not their second home or a vacation home. They are using the property for investment or business use. The government says that when you sell that property, you have to pay the tax on the difference of what you paid for it versus what you sold it for plus some options in there. That is called a Capital Gain and that can be very extensive in the cost of the tax. Usually between 28%-45%. When you utilize the 1031 exchange, it is like a trade. You are saying I am selling this but I am buying something of more or equal value. Or if I want to buy multiple properties I can do that.
Per Phil the key to a 1031 Exchange is buying a better property that is going to be a better for you and these are the areas that investors are looking for:
Cashflow: They want properties that work for them. Your i
Cake and Eat it too: Appreciate and produce income. Value of the asset to be more that what they paid for it.
Tax Write-off: Government charges taxes on the rent you recieve. Appreciation allows you to write off and reduces the amount of taxes you have to pay.
Diversification: After equity grows you want to buy more properties.
The take away is to invest in better properties to grow your portfolio. Now this is just 1 out of 4 videos that we recorded that day with Phil so there is plenty more and he goes into further detail. If you are interested in buying an income property, this is definitely a series you want to watch.
In the videos, you will see me laughing and having a great time and as I point out in one of them Phil has such a great energy – there were times, we both said, we should have just let the camera keep recording. If you have questions about a 1031 exchange or just general real estate investment questions, please feel free to contact Phil. Click here and it will take you to his website, just scroll down to his picture and name. Better yet, feel free to call him at 213.479.8800 or send him an email at firstname.lastname@example.org and if you still aren’t sure you want to connect with him, click here to connect to a blog he has.
I will be posting these videos a few days apart so if you have questions, watch the videos first. He might answer some questions or he may make you think of more or different questions. In any case, have a great week and I will talk to you soon.