What's a 1031 exchange and how can you use it to make money in real estate? In this episode of Retail Retold, Chris Ressa sits down with 1031 exchange expert David Foster to demystify one of real estate’s most powerful wealth-building tools. David, a seasoned Qualified Intermediary (QI), breaks down how 1031 exchanges allow investors to legally defer capital gains taxes when selling and reinvesting in real estate. From common pitfalls (don’t call after the sale!) to best practices and market trends, David shares insider knowledge gleaned from decades of experience and thousands of transactions.Takeaways:A 1031 exchange allows investors to defer taxes on profits from real estate sales.Qualified intermediaries (QIs) are essential for facilitating 1031 exchanges.Documentation and compliance with IRS regulations are critical in 1031 exchanges.The best time to involve a QI is when a property is under contract for sale.Costs for QIs are generally reasonable and vary by location.Market conditions can significantly impact the effectiveness of 1031 exchanges.Investors should be aware of depreciation and its impact on taxable gains.The 1031 exchange has historical roots in supporting agricultural growth.Strategic asset selection is key to successful 1031 exchanges.Over-leveraging can lead to challenges in executing a 1031 exchange.Chapters00:00 Introduction to 1031 Exchanges04:57 Understanding the Role of a Qualified Intermediary09:32 The Process of a 1031 Exchange14:42 Cost and Value of 1031 Exchanges19:14 Market Trends and 1031 Exchanges24:19 Challenges and Lessons from 1031 Exchanges27:02 Fun Questions and Conclusion

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