A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won’t alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
While I anticipate a future decrease in home prices, I currently recommend diversifying investments away from real estate. Shifting capital into the financial markets or commodities like gold is a safer bet given the current high mortgage rates, recession indicators, and tightened lending standards. Housing prices might need to correct by 40-50% before the market stabilizes. In uncertain times like these, getting independent financial advice from a market-savvy expert is essential.
That's impressive! I'd be happy to share more details. I understand the hesitation, especially when it feels like many firms offer similar services. However, finding a trustworthy advisor has been key to my success.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
Thank you for taking my advice. I'm glad you were able to research her background and feel confident moving forward. I hope your call goes well-her track record speaks for itself, and I'm optimistic you'll find her guidance valuable.
It doesn’t apply to your monthly cash flow. It only applies to your sale proceeds when you sell the property, when you must reinvest the money from the sale and replace an equivalent amount of debt. Hope that helps! - Trevor
Great video-thanks for breaking it down! One quick tip... Start scouting for replacement properties as early as possible-don’t wait until closing-to beat that tight 45-day deadline. And always double-check that your qualified intermediary’s fees and structure keep any boot surprises at bay. Happy investing!
Can u utilize the 1031 if u receive $$ from a private equity real estate investment?? Prolly to put $$ back into a new private placement memorandum Real estate deal…Thanks
Possibly. Depends on a number of factors. Ask your attorney & accountant to be sure you structure the deal correctly, and don’t take receipt of any funds.
No, you cannot take any funds from the transaction and you must replace an equivalent amount of debt. Talk to your accountant for details on the tax consequences. Hope that helps. - Trevor
No, all real estate is considered “like kind“. However, you are correct that the 1031 exchange only applies to investment properties, so you cannot apply it to your personal residence. Hope that helps to clarify! - Trevor
question i borrowed 20k for my someone in order to add a new roof and new paint on property now I i want to sell and do a 1031 can someone add a record a lien of the 20k to pay them back?
If you signed something that pledges the property as security, then yes, they can put a lien on the property (such as a mechanic’s lien for contractors, or a mortgage lien for lenders). If you don’t pay them back and they sue (which is easy) the court can also place a lien on the property. Comunícate with whoever loaned you the money and make paying them back a priority before you sell, or from the proceeds of the sale. As long as you don’t take constructive receipt of the sale proceeds, you should be safe to do the 1031 exchange. Hope that helps! - Trevor
Does this apply to every different property I purchase every time? Ex. I buy House A for 200k and sell it for 300k then I also sell House B for 400k during a similar/same time period. do I get to use a different 1031 exchange for each property? Thus, id have to find a house worth more than 300k for House A and one worth more than 400k for house B, correct?
1031 can be used anytime capital gains taxes are involved, which is typically for investment properties and not usually your primary residence; be sure to talk to an accountant. Good luck! - Trevor
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won’t alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
While I anticipate a future decrease in home prices, I currently recommend diversifying investments away from real estate. Shifting capital into the financial markets or commodities like gold is a safer bet given the current high mortgage rates, recession indicators, and tightened lending standards. Housing prices might need to correct by 40-50% before the market stabilizes. In uncertain times like these, getting independent financial advice from a market-savvy expert is essential.
That's impressive! I'd be happy to share more details. I understand the hesitation, especially when it feels like many firms offer similar services. However, finding a trustworthy advisor has been key to my success.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
Thank you for taking my advice. I'm glad you were able to research her background and feel confident moving forward. I hope your call goes well-her track record speaks for itself, and I'm optimistic you'll find her guidance valuable.
Does all this apply if you're pulling money out of a rental property?
It doesn’t apply to your monthly cash flow. It only applies to your sale proceeds when you sell the property, when you must reinvest the money from the sale and replace an equivalent amount of debt. Hope that helps! - Trevor
Great video-thanks for breaking it down! One quick tip...
Start scouting for replacement properties as early as possible-don’t wait until closing-to beat that tight 45-day deadline. And always double-check that your qualified intermediary’s fees and structure keep any boot surprises at bay. Happy investing!
Excellent tips! I agree with these 100%. 💯👆🏻 Thank you! - Trevor
Thanks!
Thank you so much. I sent this to a client. Such great information and explained very well.
Glad it was helpful! - Trevor
Your energy is contagious! I’m really enjoying your videos!
Thank you! I appreciate that very much. 😊 - Trevor
Thank you for making the video. Very clear explanations and detailed 😊
Thank you! Glad it was helpful! 😊 - Trevor
Can u utilize the 1031 if u receive $$ from a private equity real estate investment?? Prolly to put $$ back into a new private placement memorandum Real estate deal…Thanks
Possibly. Depends on a number of factors. Ask your attorney & accountant to be sure you structure the deal correctly, and don’t take receipt of any funds.
If the house was 400 originally and sold for 900k. Is the gain of 500k allowed to be 1031 and I can keep my original 400?
No, you cannot take any funds from the transaction and you must replace an equivalent amount of debt. Talk to your accountant for details on the tax consequences. Hope that helps. - Trevor
@@RealEstateFinanceAcademy appreciate u my guy
Good video. How does the exchange treat deposits on the new property? Is that coming from the Exchanger or the investor?
Doesn't the "like-kind property" aspect have to be real estate that similar in nature? Such as exchanging investment-property for investment-property?
No, all real estate is considered “like kind“. However, you are correct that the 1031 exchange only applies to investment properties, so you cannot apply it to your personal residence. Hope that helps to clarify! - Trevor
@@RealEstateFinanceAcademy it does! Thank you!
question i borrowed 20k for my someone in order to add a new roof and new paint on property now I i want to sell and do a 1031 can someone add a record a lien of the 20k to pay them back?
If you signed something that pledges the property as security, then yes, they can put a lien on the property (such as a mechanic’s lien for contractors, or a mortgage lien for lenders). If you don’t pay them back and they sue (which is easy) the court can also place a lien on the property. Comunícate with whoever loaned you the money and make paying them back a priority before you sell, or from the proceeds of the sale. As long as you don’t take constructive receipt of the sale proceeds, you should be safe to do the 1031 exchange. Hope that helps! - Trevor
@@RealEstateFinanceAcademy thank you for the info
@papajoe5331
Happy to help! - Trevor
Does this apply to every different property I purchase every time? Ex. I buy House A for 200k and sell it for 300k then I also sell House B for 400k during a similar/same time period. do I get to use a different 1031 exchange for each property? Thus, id have to find a house worth more than 300k for House A and one worth more than 400k for house B, correct?
1031 can be used anytime capital gains taxes are involved, which is typically for investment properties and not usually your primary residence; be sure to talk to an accountant. Good luck! - Trevor
Good explanation ,Tnahk
Great video. Thanks.
Glad you liked it! - Trevor
This video is 10:31 long
😂😂😂 OMG I never noticed that! It must be a sign of good things. - Trevor
@@RealEstateFinanceAcademy Thank you for your value!!!!
@sharaudramey9336 You’re so welcome! Thank you for the nice comment! - Trevor
Qualified intermediary. Ah, “government created jobs” because of government regulation driving up costs and leading to inflation.