Hello, my friends. And welcome to another episode of Ask Marco and a round of rapid fire listener questions. I've got a couple of great ones here today, and I'm recording this from my hotel room. As I'm traveling from one city to another right now, I just came back from a great three-day mastermind event in Salt Lake City. And there was just a lot of great content that I could take away from that, both on the personal development side, as well as building the business and making it stronger, improving the culture, and being able to provide better value and service for everybody who A - listens to this podcast, B - works with us at Norada Real Estate Investments and C - invests in promissory notes through Norada Capital Management, which has been an incredible success over the last one to two years. So I want to thank everybody for your support, your trust, and your involvement.

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With that, let me get to a few listener questions here. I think this is one that many people think about and either don't know or don't ask. So this first question is from Josh and Josh writes in and he says, hi, Marco. I stumbled upon your podcast a few weeks ago and have immediately appreciated the clarity you provide about passive real estate investing. Thank you. Well, Josh, you're welcome. So he's goes on to say, as a newbie, one question I've wondered about is how someone avoids the significant capital gains taxes. If they decide to sell their properties. Once a person has reaped the long-term benefits of real estate appreciation. After many years of holding investment properties, this assumes someone is just done, wants the money out in cash form, and isn't rolling sale proceeds into new properties via a 1031 exchange. I'm a long way out from having to think about this quote unquote problem, and perhaps would personally try to keep the properties in the family business after I'm done. But I'd appreciate hearing your thoughts on the topic if you have time. Thank you.



All right, Josh. Well, yes, I have time. I'm making the time and I'm going to give you an answer. So first and foremost, my comment is why ever sell your properties? Personally, I don't think there is ever a need or a time to be selling any properties ever, unless you a have some sort of very tragic situation where you are in desperate need of cash and you have no other option. You cannot borrow other from banks or institutions or from family or friends. And you're really just strapped meaning that your hands are tied behind your back and you have nowhere else to turn. Hopefully you're never in that situation, but unless you actually have a really compelling need to sell or you're in the path of a comment and you're going to get destroyed by something coming out of the out of the cosmos, I don't seem to see a reason to ever sell property unless you are moving your equity to another better location for better upside potential, or just leveraging up and expanding your portfolio, which is the whole reason why you would use a tax deferred 1031 exchange.

So I'm not sure why you're avoiding doing a 1031 as an idea or concept because it really is a great option to do a tax deferred exchange and roll your equity or your proceeds from one property or multiple properties into more or other properties. But ultimately if you have no reason to sell, you know, just keep them in your portfolio, keep them in your trust, keep them as part of your net worth and your assets, and then just put it in your will put it in your trust and pass it onto your, your kids or whoever. So, anyway, I just pose that question because I want you to...