Ready to boost your business? We’re talking 1031 like-kind exchanges and providing real-life examples of how your clients can take advantage. Join our class on February 15th. Register here!

What is a 1031 like-kind exchange? It is a tax-deferred transaction that allows someone to sell a business or investment property and buy another property of the same type without paying capital gains tax on the sale.

David Gorenberg, JD, CES® and Director of 1031 Exchange Education at REAL1031, tells us,  “Like-kind exchanges are the single most powerful tax tool for real estate investors. Real estate agents who understand like-kind exchanges often use their knowledge to differentiate themselves in a crowded market, attracting more customers, many of whom are repeat customers.”

By understanding the rules and benefits of 1031 like-kind exchanges, a real estate agent can bring added value to their clients and themselves.

Increased Transaction Volume:  When investors engage in 1031 like-kind exchanges, they are usually selling one property and acquiring another, leading to two transactions instead of one. This “two-for-one” transaction adds up to higher commissions for you when you are involved in both the sale of the relinquished property and the purchase of the replacement property. Even if the client is purchasing a replacement property in another state, you – as their trusted agent – can make the referral to an equally qualified real estate agent at the other end.

Competitive Advantage:  1031 like-exchanges have specific rules and timelines. Having expertise in these types of transactions can set you apart from competitors. Investors will specifically seek out your assistance, knowing you can help them make informed decisions, navigate the timelines, minimize risk, and maximize their investment opportunities. Positioning yourself as a specialist in this niche market helps you increase your sales opportunities and market share growth.

Networking Opportunities: Professionals involved in 1031 exchanges often work closely with other industry experts, including tax advisors, attorneys, other real estate agents and qualified intermediaries. Being part of this network can open additional opportunities for collaboration and referral business.

Your knowledge of 1031 like-kind exchanges is important to your customers and clients. It can also be an important and profitable part of your real estate career strategy.

About Melanie Dawn Molina Wood

Melanie Dawn Molina Wood is the Educational Program Coordinator for Real Source University for Anywhere Integrated Services. Melanie Dawn has worked in the real estate industry since 1985; and brings her experience and engaging teaching style to you with a series of high energy, educational real estate classes designed to boost your real estate knowledge and grow your business.

This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. The material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. Not for reproduction.