WS81: How to Save Tax Dollars in Real Estate Syndication Using 1031 Exchange with Dave Foster

Real Estate Investing and Real Estate Deal

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In this episode, Whitney interviews Dave Foster, investment professional and qualified intermediary, Exchange Resource Group LLC. Dave has 20 years’ experience working in all phases of real estate investing. Dave explains how investors can divert their tax dollars in real estate syndication using 1031 Exchange. Do you need a qualified intermediary for a 1031 exchange? What is the cost of a 1031 Tax Exchange? You will also learn about the benefits of using the BRRRR method of real estate investing. Dave also reveals how you can invest tax free dollars by selling your private residence using Section 121. This show is loaded with great tax saving Tips for new as well as experienced real estate syndicators. Tune in now!

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Time Stamped Show Notes:

  • 00:28 – Whitney introduces Dave to listeners
  • 01:14 – Dave ends up with a huge tax bill after a “successful fix and flip?
  • 03:02 – What is a 1031 exchange? Learn how you can use your tax dollars to build up your real estate portfolio
  • 04:37 – Do you need a qualified intermediary for a 1031 exchange?
  • 05:18 – Which entities are disqualified from being an intermediary for a 1031 exchange?
  • 07:00 – Dave shares how married couples end up becoming accidental real estate investors
  • 08:19 – Learn how you consolidate your portfolio using 1031 exchange
  • 10:30 – Is it advisable for owners to hire property manager for their larger real estate investments? Is it better to function as a passive investor?
  • 11:05 – Can you qualify for a 1031 exchange as a fractional owner?
  • 12:21 – How has the structure of syndication improved over the years?
  • 13:05 – What sort of restrictions are placed on a 1031 exchange in the limited partnership syndications of today?
  • 13:41 – What options does a 1031 investor for venturing into real estate syndication?
  • 14:18 – Dave explains the BRRRR method of real estate investing
  • 15:08 – Get your tax queries answered by the Real Estate CPA
  • 16:02 – When should you get in touch with a 1031 expert like Dave?
  • 16:57 – Dave explains how you can have your tax free dollars generate income inside a syndication
  • 18:42 – Nuances of Section 121 which allows you to generate tax free dollars from your primary residence
  • 21:30 – What is the cost of a 1031 exchange?
  • 22:12 – What is the biggest mistake of doing a 1031?
  • 25:-02 – What is the responsibility of the Limited Partner when doing a 1031 exchange?
  • 26:20 – What is the single biggest factor via which syndicators end up saving their tax dollars?
  • 27:34 – Dave shares his contact information
  • [spp-timestamp time=”27:58″] – Share, Review and Subscribe to the Real Estate Syndication Show
  • [spp-timestamp time=”28:18″] – Joe Fairless’s Best Ever Conference is coming up in Denver this February. Register Now!
  • [spp-timestamp time=”29:07″] – A Special Thanks to our sponsor, Life Bridge Capital

In this episode, you will learn

  1. How to invest your tax dollars in real estate syndication using 1031 exchange
  2. Nuances of the BRRRR method of real estate investing
  3. Restrictions pertaining to a 1031 exchange in a limited partnership syndication
  4. Different Options for a 1031 investor who wishes to venture into real estate syndication


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