Business
Many financial and real estate professionals out there, including CPAs and attorneys, don't know anything about real estate exchanges, and how these transactions can help their clients. While seemingly byzantine at first, this system of exchanges actually yield a lot of benefits for people who are looking to reinvest their money in different kinds of real estate, sometimes even to diversify their portfolio. IPX1031 (https://www.ipx1031.com/) , where he specializes in real estate exchanges. Luke speaks to Bob Roark about the basics of real estate exchanges, and how one can navigate the processes involved. If you're looking to reinvest your assets, don't miss this conversation. It might just be what you've been looking for! --- Watch the episode here:[embed]https://www.youtube.com/watch?v=J_YCobtceXY[/embed] Listen to the podcast here:[smart_track_player url="" title="Performing A Real Estate Exchange With Luke Hays" image="http://businessleaderspodcast.com/wp-content/uploads/2018/04/BLP-SquareLogo-WhiteBlueBG1400x1400.png" background="default"] Performing A Real Estate Exchange With Luke HaysWe're very fortunate because we have Luke Hays out of Nashville, Tennessee. He's with (https://www.ipx1031.com/) . Luke is a specialist in Real Estate Exchanges. With that being said, welcome to the show and tell us a little bit about what you do and how you got here. We're very fortunate because we have Luke Hays out of Nashville, Tennessee. He's with (https://www.ipx1031.com/) . Luke is a specialist in Real Estate Exchanges. With that being said, welcome to the show and tell us a little bit about what you do and how you got here. I was born and raised in Birmingham, and went to Alabama for undergrad. I hope that doesn't scare away some of your readers. I went to law school at Tulane and then after law school, I joined IPX. As an attorney in Tennessee, my sole practice is 1031 exchanges. In the company I work for, IPX1031, we act as a qualified intermediary. I'm sure at this point you have no idea what that is and that's most likely why I'm on here is to go over some of that terminology, as well as the 1031 exchange as a whole. I usually like to begin with a call I normally get because I give a number of continuing education classes to agents, brokers, CPAs, real estate attorneys. This is a small part of the code. I'll address the background of the 1031 exchange, why it was implemented and why I worked with IPX. The call goes something like this, “Luke Hays, IPX.” “I want to do 1055.” If someone's in a rush, if they're in a hurry, they're going to get the name wrong. They're going to call 1055, 1088. They're going to say, “I don't want to pay any taxes.” I'll say, “Where are we at in the real estate transaction?” They'll say, “I closed and I have the funds. What is my next step?” Unfortunately, the bad news is coming at this point because I have to inform them that their next step is to contact their CPA or tax advisor. The number one rule in a 1031 is it has to be set up prior to the close. You would think that would be something that everyone would understand. It goes into a lot of what I do, which is more of a teaching element. Not a lot of people know about exchanges. They don't know when the rules apply. Maybe they have some rules correct, but the other rules are incorrect. My role is the combination of an advisory role as well as a teaching role and setting up these exchanges. Many people, we all specialize and people don't know what they don't know. In the 1031 space, it sounds pretty simple to say, “Consider doing 1031.” Anything past that, even if they know that much, there's a real acknowledged gap. I would agree, particularly attorneys and CPAs. They don't have time. It's a small part of the tax code; they don't have time to comb through the way we do. If I was an attorney in private practice, I wouldn't be able to do 1031s. I wouldn't be able to apply the bonding and...