Finding Hidden Listings & Motivating Clients with 1031 Like-Kind Exchanges
BY
MELANIE DAWN MOLINA WOOD, EDUCATIONAL PROGRAM COORDINATOR, ANYWHERE INTEGRATED SERVICES
.
February 8, 2024
![A couple walking through an investment property with an agent](http://www.anywhereis.re/images/default-source/default-album/gettyimages-1937435632_rsufebblog_blog.jpg?sfvrsn=4d03949d_1)
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.