It is possible to do a 1031 exchange into syndication. In this #Highlights episode, we look back at our conversations with Ted Lanzano, Alex Shandrovsky, and Michael Brady. They talk about how you can take advantage of 1031 Exchanges and enter into syndication.
Watch the episode here:
Listen to the podcast here:
Ted talks about 1031 exchanges and how they can be used smartly for increasing your net worth. He also gives a bunch of examples of how you can use this strategy in your real estate business and keep growing your assets, all the while avoiding large taxation. Meanwhile, Alex and Michael shed light on some of the more technical aspects, such as complications that come with doing a 1031 exchange into syndication, the role of the 1031 investor in the syndication, and how to structure a deal with this type of investor. Click the play button and learn more about how you can take advantage of your 1031 exchanges!
Key Points From This Episode:
- Deferring capital gain on a sale and increasing net worth through a 1031 exchange.
- The role of market timing in this exchange strategy.
- Basic concepts to understand when considering a 1031 exchange.
- Leveraging these timeframes in smart ways and giving yourself some extra runway.
- Cost segregating properties and how this fits into the 1031 model.
- When is too late to pursue a 1031 exchange during the sales process?
- What is a reverse 1031 exchange? Purchasing before a sale!
- Alex and Mike’s backgrounds and why they are an ‘odd couple.’
- An explanation of a 1031 and what would motivate an investor to do this kind of exchange.
- Two sets of challenges come with bringing a 1031 investor into syndication.
- The root cause of why 1031 exchanges into syndication can be so complicated.
- Two ways that the same investor can be on both sides of a 1031 exchange.
“I mean, it (1031) really is one of the available strategies when you sell an investment property. It’s one of the available strategies to defer the capital gains on the sale of a property. It’s probably in my mind, the most important wealth-building strategy in real estate investing.” – Ted Lanzano
“It’s a great strategy when you’re picking up things at the bottom and then selling them as the market rises.” – Ted Lanzano
“1031 exchange is a term-free, interest-free loan from various levels of government. We’re talking about the federal government as well as the various states and some cities that actually impose taxes on capital gains, that allow you to go out and buy bigger, hopefully, more profitable properties.” – Michael Brady
“There are two different challenges that are kind of two sides of the same problem. It all stems from the fact that essentially, the taxpayer who sells the relinquished property, that’s the property that they’re going to defer the taxes on, has to be the same investor that buys the replacement property which is the property they’ll be investing their capital gain in.” – Michael Brady
Links Mentioned in Today’s Episode:
About Ted Lanzaro
Ted Lanzaro is a Certified Public Accountant and real estate investor with over 29 years of real estate consulting and investing experience. He is also the author of The Tax-Smart Landlord, a book of tax strategies for real estate investors. Ted has helped thousands of investors nationally save millions of dollars in taxes in his career.
About Alex Shandrovsky
Alex Shandrovsky is a Silicon Valley seasoned entrepreneur. Starting with a $3,000 Loan, He built a multi-million dollar catering business serving leading tech companies including Google, Airbnb, and Facebook. . He has been featured in numerous publications including Haaretz, Newsweek, and San Francisco Chronicle and has studied Digital Marketing at Dartmouth University Business School. As a Senior Business Development representative for Madison 1031 Exchange, Alex has the privilege of building multigenerational wealth for driven real estate investors. He is a proud husband and father to 3 adorable children
About Michael Brady
Michael S. Brady is Executive Vice President of Madison 1031, a national Qualiﬁed Intermediary for tax-deferred Exchanges pursuant to Internal Revenue Code §1031. As a Certiﬁed Exchange Specialist® and attorney, his responsibilities include consulting with clients and their advisors to provide guidance on the regulations affecting §1031 Exchanges, as well as overseeing Madison 1031 Exchange’s national sales and marketing efforts. His seminars have received rave reviews for being both entertaining and informative, and his audiences have included top law and accounting ﬁrms as well as brokerage companies nationwide. Mr. Brady has published many articles on tax and legal issues and is the primary author behind the Madison 1031 Zone blog. Prior to joining Madison 1031, Mr. Brady headed up three other leading 1031 exchange companies, overseeing several thousand 1031 exchange transactions during his career. As an attorney, Mr. Brady has over 25 years of experience representing clients in commercial and residential real estate transactions, as well as a wide variety of business transactions and commercial litigation matters, and has acted as general counsel to a title insurance company.
Love the show? Subscribe, rate, review, and share!
Join the Real Estate Syndication Show Community: