As a Realtor I’ve spent countless hours researching and training with the best Real Estate exchange companies in the world. One way to save on taxes in Real Estate is through an exchange. In 2018 I helped 4 clients complete a 1031 exchange and over 30 years probably another 100. According to Section 1031 of the U.S. IRS Code, a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property. What exactly does that mean? Let me share an example: Andy did 4 exchanges in 8rys. First he bought a single family home then traded it into a duplex. Then he traded that into a 4plex and finally a 12 unit in Portland. Along the way he made quite a bit of money and a nice monthly income. Though my friend was financially smart he wasn’t very bright in relationships. He met a girl who was a dancer. Within 3 months of meeting her he married her and put her on title to all his Real estate holdings. Less than 2 months after they wed she took out a second for $351,000 on the 12plex without his knowledge and when the ink dried on the check he never saw her again. You might be wondering why I mentioned Andy’s sad love story since it really has nothing to do with a 1031 exchange. Because if Andy had listened to me when I told him if you’re looking for love at a dance bar, and your relationship only progressed as long as you have one dollar bills in your pocket, she may not be “the one”. Had he listened to me he could have traded the 12unit for a 20unit by now. Instead, poor Andy has to wait 4-5 years to make up the equity he lost. Don’t be like Andy; call me today to talk about how a 1031 exchange can build your real-estate investments dramatically while saving money. And if I have to I will escort you to each and every dancing bar you go to just to make sure you make good sound financial decisions while there. There are probably only 1 out of a thousand realtors who would make that sacrifice for you, and I am that one. Now I just need to sell my wife on this plan, I’ll get back to you later on that.