Want to know a POWERFUL WAY to get high-quality rental properties for 15-20% LESS when you’re doing a 1031 exchange?  This one is sexy, my friends.  I’m Bryan Ellis.  I’ll tell you all about it right now in Episode #171----Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!Hey folks, before we get started today, I wanted to mention to you that we’ve just started a twitter account for Self Directed Investor Radio, and I’d LOVE for you to follow us.  You can get to our twitter feed by visiting SDIRadio.com/twitter.  And at the end of this show, I’m going to give you a nice bribe for engaging with us there on Twitter.  Again, you can reach our page by visiting SDIRadio.com/twitter.So the bane of all self-directed investors is not risk or market volatility or even inflation.  It’s TAXES.  That ever-present drain on our productivity and profits that is spent more wastefully than any of us care to imagine.Fortunately, we don’t have to sit idly by and let Uncle Sam rape our purses.  There are a number of strategies that are wholly compliant with the law – provided by the law, actually – which help to fight the beast of taxation.One of the best such strategies is the 1031 exchange.  I know many of you are familiar with this one, but quickly, for those of you who are not familiar:The 1031 exchange enables owners of real estate to avoid payment of taxes on profits from real estate simply by re-investing the capital in another piece of real estate.  Essentially, you’re just rolling your profits forward from one deal to the next.And this is a HUGE benefit because without the 1031 exchange, you’d be required to pay the taxes on your profits of 15 to almost 30% in some cases... and only after that would you be able to reinvest your profits into another deal… so your investable capital would be MUCH, MUCH, MUCH lower.But that issue goes away with a 1031 exchange… and that’s why so many real estate investors love that particular tax break so dearly.But you know… there are a couple of variations of the 1031 exchange that can be even more powerful than the one you’re already familiar with.  Those variations are called the “Construction Exchange” and the “Improvement Exchange”, and they both have one thing in common:  You’re dealing with unfinished property.Why is that such an opportunity?Ahh yes… my friends… it’s reasons like this that listening to SDI Radio can be so valuable for you.Consider this:An overwhelming majority of people who do 1031 exchanges will exchange INTO rental properties of some sort.  And that really can make some good sense.So for example, the SDI team routinely provides opportunities for investors to buy into great rental properties in Birmingham, Alabama… because the numbers there just work really, really well.  It’s pretty routine to be able to spend no more than $55,000 and end up with a fully renovated rental property that will bring in $750 or more per month making it possible to have a very real net yield of 10%+ per year… so attractive numbers, for sure.And because of that, I regularly hear from investors doing a 1031 exchange who ask me about properties we have available.And sure, I’m happy to share with them the properties we have available.  But the reality is… that’s the wrong question!A better question is:  What are the properties that you COULD have available?  Because if, instead of doing a conventional 1031, if we do a construction or improvement exchange instead, what that means is that your funds could be used on BOTH the purchase AND renovation of the property.Well… I’ll grant to you… that by itself doesn’t sound particularly exciting.But what IS exciting is what that means for your bottom line.  In effect, it means you’ll be able to get 15-20% more with your money than before.For example:  Most of the time, that same property that would cost you $55,000 and yield a monthly rent of $750 can actually be bought for a whopping 15-20% LESS than that – usually arou