1031 Exchange Properties

1031 Exchange Properties - For those that are not aware of a 1031 exchange, in short, it’s a way to avoid capital gains tax when you sell a home or property. From the mortgage side of things, these transactions are always classified as investment properties, meaning that the rate is higher than for a primary residence.

When I was on the phone talking to people, I had a genuine interest in their work. At the time, I wasn’t actively looking for another job, but I was doing loans for people that made over $50,000 in a month. Prior to getting this job, I didn’t know such things existed. Plus when you get to look over someone’s financial situation you get to see how they manage their funds. From all the people I did loans for, one sticks out in particular. They were doing a loan for their son, who would take over the loan after a few years. This couple had many homes, most of which they were renting out. They also had their own corporation that was doing well.

Their method of operation was that they only did 15 year loans. It was paid off quicker and then it would become an income property.  Although they were a hardworking family, at this point in their life, they didn’t have to work if they didn’t want to. The money from investment properties was more than enough to sustain them. Ultimately, I want to do the same thing, they were a great inspiration to me… I am still working on getting my first home. Then after a few 1031 Exchange Properties, I might be on my way.

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