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Updated 5 months ago, 06/12/2024

User Stats

25
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26
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Mike Auerbach
26
Votes |
25
Posts

1031 Specialists - Real Estate Investing - True Power of Compounding

Mike Auerbach
Posted

The power of compounding in real estate is real - yet most professionals don't understand how powerful it really can be even though they talk about generating wealth.

The true power of a 1031 exchange is the ability for an investor to meet their investment objectives without losing equity to taxation. With more money, an investor can buy larger, multiple, or more productive properties

Don't believe me - take a look at this comparison chart:

Let’s say you do 10 transactions in your investing career. If we jump to transaction 10 in the table, which is highlighted, by exchanging each time you will have amassed $5.766MM.

If you decide not to utilize a 1031 and pay 30% taxes each time, after 10 transactions you’ll be left with a little bit over $2,000,000.

You’ll be $3.75M richer by doing a 1031 exchange.

Numbers don't lie!

#1031exchange #compounding #investmentsales #cre