Monday, March 31, 2014

This Week Another Stab at 1031 Exchanges


1031 Exchanges will be the topic of discussion this week at Real Estate Investors of Virginia. We will have guest speaker and financial advisor, Jerry McMillian to cover the topic. We talked about 1031 Exchanges with our member Robert Young about a year ago and it’s about time we dive back into them.

1031 Exchanges are a way to get around paying capital gains on a property that you sell as long as you reinvest all of the proceeds in a new property. You are essentially deferring this tax for later recognition. One who takes advantage of sophisticated loopholes such as this understands the time value of money. The ability to make more money with that dollar in your pocket today. However there is a cost of doing 1031 Exchanges that must be considered. It’s a no brainer for expensive property but questionably beneficial on low dollar volume exchanges.

Come on out and lets get back into the details of the 1031 Exchange and spend a little time with good, like minded people.

PS. I’m back from Tampa. Spanky and I went down there on one of those cheap Allegiant flights. We were there to talk to REO Realtors and get a feel for the market and specifically where we should invest. I learned allot. It was a highly productive trip.

We rented a speedboat for one day to ride around and see where it would be good to buy a house on the water as well. That thing was fast! I found that all of the boat rental places wanted people to have lots of experience with boats after getting turned down a few times. So I quickly realized that I had to lie to get a boat. Man did we have fun… There was a tornado watch and the water was really choppy. Only beached the boat once!

We’re glad to be back alive. The flight back was contracted out to Miami Air. There was a very inexperienced pilot of this massive plane. We were coming down into Roanoke and he almost crashed it. People were thrown all over the place smacking their heads on the walls of the plane. The plane dropped several times so fast that there was weightlessness. Then several G’s that made your stomach turn upside down. Not mine but many people in the plane were puking. It was gross.

I was scared for real. It takes quite a bit to scare me. I was clutching onto the seat in front of me for my life. Thoughts going through my head that I don’t have my company set up in a trust yet with beneficiaries that can have it once I die without having to deal with our lovely government. Looking out the right window there was Smith Mountain Lake. Then there was Tinker Mountain. VERY CLOSE to the plane. We were right next to it. It was a little higher than we were.

Once the pilot realized he was going to crash the plane he pulled up hard and we were headed straight up still getting thrown all over the place. There was some wind but I think it was more pilot or plane error. About 15 minutes of pure terror. No Joke! Once we got above the clouds it settled out and he landed it in Greensboro where he abandoned us after the airlines held us hostage on the plane for 2 hours straight while they were figuring out what to do. Me and Spank hired a Cabby to go back to the shop and get a van for 8 of us to bring us back to Roanoke. Whew, glad that part was over.

2 comments:

Koki on April 2, 2014 at 3:41 PM said...

Hi Dallas, I didn't see a link for an e-mail so am posting here. I have a lead on a house in Lynchburg that may be a good deal for someone in your area, but yours is the only reia meeting I could locate on the internet. Can I get the deal in front of your members, or perhaps someone knows of a reia club in Lynchburg? Thanks! Alison alisonmiller@springstreetproperties.com

Dallas ® on May 26, 2014 at 3:01 PM said...

Hi Alison,

Just sent you an email on how to put out deals to our group. I believe there is a small REI group in Lynchburg. 15 or so people.

Try this:
Central Virginia Real Estate Investment Association

Contact: Suzanne Crawford
Telephone: (434) 444-0040
When: 3rd Tuesday of each month, 6:00pm doors open, 6:30pm meeting
Where: 2309 Bedfore Ave., Lynchburg

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