Many investors and syndicators don’t even realize that it is possible to do a 1031 exchange into syndication. In today’s #Highlights episode, we look back at our conversations with real estate entrepreneurs who have done this. They are Ken Holman of Overland Group and Brandon Bruckman of Insight Real Estate Partners.
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Ken stresses the importance of choosing suitable properties to deal with and the process of incorporating 1031, self-directed IRAs, and regular investors in the same project. Meanwhile, Brandon shares the idea of proper planning and its indispensable role in the processes of 1031. Listen now and learn new knowledge today!
Key Points From This Episode:
- Ken discusses how you can incorporate 1031, self-directed IRAs, and regular investors in the same projects.
- Ken explains that a 1031 investor can’t invest in regular syndication because they’re buying a share of an entity, they’re not buying real estate.
- A little bit of Brandon’s background in real estate and some information on his firm.
- How Insight helps investors with planning and more!
- Steps for operators to take and Brandon’s thoughts on the impact of the political climate.
- The job of matchmaking between syndicators and investors.
- Costs involved in 1031 exchanges and weighing the benefits versus inputs.
- Important details around timing for operators considering a 1031 exchange.
“I like to work with bigger investors as opposed to smaller investors. I have found that it’s possible to incorporate 1031 tax-deferred exchange investors with self-directed retirement account investors and regular investors.” – Ken Holman
“Planning is so critical before you even get into the exchange process.” – Brandon Bruckman
“To stop and to do something a little bit different is more costly and time-consuming.” – Brandon Bruckman
“CPA is a great person to have in this transaction, real estate lawyers are a great person to have in this transaction. The investor wants to speak with these people before they even start to think about doing an exchange.” – Brandon Bruckman
About Kenneth T. Holman
Kenneth T. Holman has had a long and distinguished career in real estate. He obtained his real estate license in 1972 and his real estate broker’s license in 1975. Over the years he has brokered, developed, constructed, and owned over $500 million in real estate assets which have included apartments, condominiums, industrial properties, self-storage projects, office buildings, hotels, a golf course, retail properties, fast-food restaurants and other types of commercial properties.
Presently, Mr. Holman is the manager of numerous limited liability companies and an investment partner with several investors in numerous real estate ventures.
About Brandon Bruckman
Brandon runs Insight’s Milwaukee office. He is focused on growing the 1031 / DST business as well as adding investment clients. Brandon also leads the marketing efforts and investment due diligence. Prior to Insight, Brandon founded West Chapman & Co., a consultancy that assists clients in growing their business by gaining insights through data. Brandon has assisted large and small businesses in industries ranging from Financial Services to Logistics to Pharmaceuticals. Prior to founding West Chapman & Co., Brandon worked at a prominent Hedge Fund as the Head of Fixed Income Financing. Following that experience, he co-founded a Healthcare consultancy assisting hospitals in making vendor selections.
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