The 1031 exchange is a strategy that helps investors build more passive income, with fewer properties, all while avoiding the tax man. While many real estate investors know about this strategy, only a few of them know it well enough to pull it off. The rules are simple; sell a property, buy another property with the proceeds, and pay no capital gains tax. But, this is far easier said than done, and it’s much easier to make mistakes than most people think. Even our real estate hero, David Greene, had a 1031 exchange go awry. To clear up the misconceptions, highlight the common mistakes, and guide us to tax-advantaged freedom, we’ve brought on 1031 exchange expert, Ryan Finch, to the show to share everything he knows about this misunderstood, often misused strategy. Ryan is a real estate investor at heart, house hacking as a sophomore in college to live for free. After working at multiple commercial real estate and development companies, he got the itch to start investing heavier himself and help others propel their wealth. Now, Ryan works to help real estate investors and everyday homeowners make the most out of their equity. Ryan has unlocked the tools that have allowed those with home equity to build passive income streams, buy bigger, better properties, and reduce much of their landlord burden, all in a single transaction. If you’ve been sitting on some post-2020 equity, this episode will teach you how to use it as fuel for your financial freedom fire, all while ditching the tax bill that comes with selling! 00:00 Intro 01:01 Quick Tip 06:18 Turning Equity into Cash Flow 12:09 The 1031 Exchange Explained 19:18 When Does a 1031 Exchange Make Sense? 24:31 What to Know BEFORE You Exchange 32:43 Tax Benefits and Depreciation 36:13 Mistakes to Avoid 44:13 1031 Exchange Resources 46:12 Connect with Ryan! ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=owned_media ~~~~ Grab Some BiggerPockets Merch: https://bit.ly/biggerpocketsswag ~~~~ Find an Investor-Friendly Agent in Your Area: https://www.biggerpockets.com/agent/match?utm_source=owned_media ~~~~ Grab the BiggerPockets Books on Tax Strategies: https://store.biggerpockets.com/products/tax-strategies-book-bundle?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ 1031 Exchange—A Definitive Guide for Real Estate Investors: https://www.biggerpockets.com/blog/1031-exchange?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Will a 1031 Exchange Help Grow Your Portfolio? https://www.biggerpockets.com/blog/1031-exchange-pros-cons?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ How to (Legally!) Avoid Capital Gains Taxes on Real Estate: https://www.biggerpockets.com/blog/capital-gains-tax?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Rich Dad’s CPA on How ANY Investor Can Avoid Taxes: https://www.biggerpockets.com/blog/real-estate-631?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Connect with Ryan: Website: https://www.tangiblewealthsolutions.com/ Phone Number: 720-439-6540 ~~~~ 1031 Intermediaries Mentioned in This Episode: IPX: https://www.ipx1031.com/ Asset Preservation Inc: https://apiexchange.com/ First American: https://www.firstexchange.com/ ~~~~ Connect with David on BiggerPockets: David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Follow David and BiggerPockets on Instagram: @davidgreene24 or https://www.instagram.com/davidgreene24/ @biggerpockets or https://www.instagram.com/biggerpockets/ Episode 707 Show notes at: https://www.biggerpockets.com/blog/real-estate-707?utm_source=youtube&utm_medium=description&utm_campaign=none #biggerpockets #realestatepodcast #biggerpockets707