Hello, my friends, and welcome to another episode of Passive Real Estate Investing. And I am your host, Marco Santarelli. Thank you for joining me, and I hope you can pay attention to today's episode. It's about 30 minutes. It is about the 1031 exchange. It's something I talk about frequently on the show, but I don't go into a lot of detail. But it's essentially known as a like kind exchange. It's a tax deferred exchange. It allows you to take your equity from the sale of your assets and move that into other investments like kind investments, similar investments, similar assets without generating any tax impact. No tax liability, meaning you could do it tax free. And when you stop to understand the power of doing this, you'll realize that you can keep everything you've gained, everything you've earned in those capital gains and compound them, turn them into additional gains by multiplying the effects of what you can invest in growing a larger portfolio, increasing your cashflow, increasing your gains, keeping the equity and using that to gain more equity through appreciation from increasing the size of your portfolio.

It's not a difficult thing to do, it's not a difficult concept. It's actually quite easy to understand once you wrap your head around it. People do it all the time. Investors are doing this all the time to increase their portfolio size and maximize the wealth creation that happens. And when you really stop to think about the power of compounding what Einstein called the eighth wonder of the world, you'll realize you can increase your wealth by four times or more in a similar time period than you would or could otherwise. So pay attention to today's episode, and if it makes sense, talk to my team of investment counselors. We can help guide you on making this work on how to do this. It's not difficult. Investors contact us all the time for help in executing this because it involves the sale of your existing property or properties, but then identifying the replacement properties within a certain timeframe.

So we're gonna talk about all that today with my guests. So I hope you enjoy it. I hope you get a lot of good takeaways from this. And if it makes sense, just schedule a call with my investment counselor team. Also put a, a link in the show notes here that can connect you to some more information and the team that we work with on the 1031 exchange side. So enjoy today's episode.

FREE copy of The Ultimate Guide to Passive Real Estate Investing.

If you missed our last episode, be sure to listen to Asset Protection Strategies You Need To Know

It's my pleasure to welcome Jeff Bemis to the show. Jeff was raised in Newport Beach, California, not too far from where I live right now. And he attended the University of Southern California. And after graduating from USC as a member of multiple honor societies, Jeff work at Ernst and Young. And he was a CPA there and he turned his career towards finance and attained his CPFA designation. He's a very smart guy.

I've gotten to know him a little bit over the last few weeks. Jeff then worked as a consultant to small and mid-sized companies through a PE firm specializing in real estate and in the services based business. Then in 2006, Jeff joined Rim Rock Capital. Boy, I remember those guys. Rim Rock Capital Management, a California based absolute return hedge fund with $4 billion under management. Jeff has got a lot more in his bio here, but today Jeff is the co-founder and partner of 1031 Specialists. And it's something that I'm taking a very, very close look at because I've been talking about 1031 exchanges on this show for a long time, and how you can tap into your existing equity in your properties and leverage that up into a larger portfolio, into increasing your cash flow, into increasing the appreciation potential gains that you can get. And so what we want to talk about today is two things, how to defer capital gains,