In this episode of RESOLUT REveal, hosts Ray and Martin welcome Adam Hubschman, CCIM, a seasoned expert in 1031 exchanges. Adam shares his extensive background in commercial real estate and explains the intricacies of 1031 exchanges, including common misconceptions, the importance of planning, and the role of Delaware Statutory Trusts (DSTs). The conversation delves into the current market trends, the impact of bonus depreciation, and the nuances of partial and reverse exchanges. Adam emphasizes the need for strategic planning and the value of engaging with specialists to navigate the complexities of the 1031 exchange process effectively.

Contact Adam at:

https://www.1031specialists.com

Email: [email protected]

Contact us at: https://www.resolutre.com

Takeaways

• 1031 exchanges allow deferral of capital gains tax on investment properties.
• The term 'like kind' encompasses a wide range of property types.
• Planning ahead is crucial to meet the 45-day identification deadline.
• Delaware Statutory Trusts (DSTs) offer a passive investment option.
• Engaging with a 1031 specialist can clarify the process and strategy.
• The current market shows a trend towards residential properties in exchanges.
• Bonus depreciation increases the advantages of 1031 exchanges.
• Partial exchanges can provide liquidity while deferring some taxes.
• Reverse exchanges allow buyers to acquire new properties before selling old ones.
• Choosing a qualified intermediary is essential for a smooth exchange process.

Sound bites

"There's no cost to sit down and talk strategy."

"Plan ahead to hit those deadlines."

"We take direct receipt of the funds."

Chapters

00:00 Introduction to Adam Hubschman and 1031 Exchanges

02:48 Understanding 1031 Exchanges: Basics and Misconceptions

07:19 The Importance of Planning Ahead in 1031 Exchanges

09:49 Navigating the 45-Day Identification Period

11:35 Exploring Delaware Statutory Trusts (DSTs)

14:16 Engaging 1031 Specialists: The Process Explained

16:54 Identifying Properties and Compliance in 1031 Exchanges

18:46 Current Market Trends and Activity in 1031 Exchanges

21:48 The Impact of Bonus Depreciation on 1031 Exchanges

23:51 Partial Exchanges: When and Why to Consider Them

26:24 Reverse Exchanges: A Deeper Dive

29:56 Understanding Fees and Costs in 1031 Exchanges

31:06 Market Recovery and Future Outlook for 1031 Exchanges

32:35 Choosing a Qualified Intermediary: What to Look For

33:57 Final Thoughts and Advice for Owners and Sellers