How can investors make the most of 1031 exchanges in today’s challenging real estate environment? In this episode of PlotLines, co-hosts Heather and Britni are joined by Ed Fernandez, President and CEO of 1031 Crowdfunding, to explore the strategic advantages of utilizing 1031 exchanges to maximize real estate investment returns.
Ed introduces his innovative “shopping mall” model, where investors can effortlessly navigate a variety of property types, including senior housing, student housing, and self-storage, to meet their exchange needs. This model is designed to streamline the 1031 exchange process, making it accessible and efficient for investors looking to defer taxes and reinvest their capital.
Ed explains how the rise in interest rates has significantly slowed down the volume of 1031 exchanges, as many property owners are hesitant to sell due to the potential jump in loan costs. However, he also highlights how focusing on specific asset classes, like senior housing, can still offer positive returns even in a high-interest-rate climate.
Looking ahead, Ed discusses the regulatory landscape and the importance of choosing investments in states with favorable local legislation. By avoiding areas with unpredictable regulatory risks, Ed’s strategy ensures that investors can minimize their exposure to potentially detrimental changes in local real estate laws.
Tune in to this week’s episode to hear why Ed would “rewrite” the headline as, “1031 Crowdfunding, with interest rates dropping, has now reached the $10B mark with 350 properties throughout the United States and 5,000 investors.”
Listen to the full episode below and follow along for our next guest!
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