Who can benefit from The 1031 Show™?

Wally Smith:
Well, and we see it every, it seems like every decade now. There is a one of these severe once in a lifetime market crashes that come around every 10 years. The primary audience for our show has been those who have accumulated highly appreciated assets. I mean in 2008, they were buying condos for $10,000 a piece. They were almost being given away. You can put a condo on a credit card back then. They were going for so cheap and now they may be worth 100, $125,000 in a low rent area and it’s time to cash in.

But they don’t want to get killed on the capital gains. They don’t want to get killed on the depreciation recapture and they’d really like the benefit of the wealth that they created to go to their heirs instead of going to the government in taxes.

So historically, that has been one of the tremendous advantages for wealth creation of the 1031 Exchange. The question for a lot of folks has been, if I do a 1031 Exchange, I’m exchanging one property for another. How do I find that property? The deadlines, the 45 day window, the 180 day closing window. All of those things have been extremely confusing and limiting and complicated, but with the Delaware Statutory Trust that we talk about, that provides–I think we’re going to get into it after our next break–what we call insurance. It’s a 1031 Exchange Insurance.

You have the certainty of close. You know that that can happen.