1031 Exchange Mastery: Skyrocket Your Real Estate Profits with Tax-Deferred Strategies

Are you maximizing your real estate investment potential through tax-deferred strategies? 

Mike Jesowshek and Michael Scherer delve into the intricacies of 1031 exchanges. They explain its purpose, benefits, and the critical role of proper planning and advice from tax advisors. They emphasize the necessity of involving a qualified intermediary and the potential financial advantages, including tax deferral and strategic reinvestment, to maximize wealth building in real estate investment.

[00:00 - 04:52] 1031 Exchanges and its Planning and Prerequisites

• Mike Jesowshek introduces the topic and guest Michael Scherer from RCX Capital Group.
• They discuss the significance of 1031 exchanges in real estate tax strategy.
• Key aspects of initiating a 1031 exchange including the role of tax advisors and ownership structure, are discussed.

[04:53 -12:22] 1031 Exchange Process, Timelines, and Exploring Replacement Property Options

• Michael explains the strict timelines and procedural steps involved in a 1031 exchange and the importance of investing in like-kind properties for tax deferral. 
• He explores like-kind exchange requirements and potential replacement properties.

[12:22 - 16:22] Liquidity and Investment Goals in 1031 Exchanges

• How does the liquidity aspect of investments affect 1031 exchange decisions?
• Investment goals and timelines should align with 1031 exchange strategies.

[16:22 - 20:04] Final Steps and the Role of RCX Capital Group in 1031 Exchange

• Michael gives an overview of the final steps in the 1031 exchange process, focusing on replacement property identification and closing within set deadlines.
• He shares the importance of understanding and planning for the financial and legal intricacies of the exchange process.

[20:05 - 24:23] Common Mistakes and Wrap-Up

• Michael outlines common mistakes in 1031 exchanges, emphasizing the need for early planning and professional guidance.
• Final thoughts on the importance of understanding 1031 exchanges as part of a comprehensive real estate investment strategy.

Direct Quotes:

"1031 exchange is an exceptional tool for wealth building, but something that you need to plan around." - Michael Scherer

"Proper planning is essential. Talk through your options, understand your goals and objectives." - Michael Scherer

"One of the most amazing wealth-building tools is section 1031." - Michael Scherer

Connect with Michael!

LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ 

Email: levi.smith@rcxcapitalgroup.com 

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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