Earn More with 1031 Tax Deferred Exchanges
KW, Diamond Partners, Inc is devoted to helping our agents with building both their income and their wealth. Below is a summary of the Agent Wealth Club discussion from May 22, 2025 where we discussed 1031 Tax Deferred Exchanges and Delaware Statutory Trusts. Should you have any questions in regard to these tax strategies and ways you can help your clients and benefit from doing so, please reach out to Markus Jamison or Chris Lengquist. We are here to help.
1031 Tax Deferred Exchanges
1031 Exchanges are an excellent way for real estate investors to defer taxes when selling their current holdings in order to create greater income and greater wealth building. There are so many great resources out there on the internet. Here are a few links that will help you along.
1031 Tax Exchanges is provided by Jamey Carey of Secured Title of Kansas City and is an excellent resource to understand the basics and timelines of Exchanges. It's an easy to download pdf file.
Safe Harbour Exchange, LLC works with Secured Title and has an excellent website on the subject.
If you prefer to watch a 10 minute video (and speed it up to 1.25 to make it go quicker) watch the 1031 Tax Exchanges video below. PLEASE NOTE that from the 8:00 mark until the end there is an interesting strategy to create more business for you, the real estate agent.
How to Make Money with Tax Deferred Exchanges
Do you have friends, family, customers or clients who own a rental property or two or four hundred? Would they like to get more for their investment? Give them a call and ask the following questions.
Do you still own any rental properties?
When did you purchase the investment?
About how much do you owe on the home?
Would you mind if I did a Comparative Market Analysis for you?
Then, go do the CMA. What you are looking to see is how much "dead equity" there is in the house. As an example, what if they bought the home in 2010 and have been making payments every month since while leasing out the property. It could be, in Olathe, Kansas, anyway, that they bought the home for around $173,000. Now that same home could be priced around $406,000. (Could be is the key phrase. Maybe higher. Maybe lower. But representative.)
That would mean the house has about $233,000 in equity. That doesn't even include principal reduction over the years!
You could simply educate them on the possibility of an Exchange wherein you would sell that property, split up the equity into two homes priced around the same $406,000 and then they would be getting the 4 Benefits of Real Estate Investing on two properties rather than one. Now how much faster will their net worth grow?
And, you can earn commissions on three houses! That's your fee for helping them to double their possibility towards the retirement income they are looking for. Win-Win.
Or, they may decide to simply refinance the current asset and buy one other home or they may decide to stand firm where they are and keep on keeping on. Either way, you've earned value in their eyes as a knowledgeable real estate agent looking out for their best interests.
To learn more about the Investment Math that will help you get a firm handle on the ROI of investment properties, just watch the link.
Delaware Statutory Trusts
While there may not be as many sales opportunities for the real estate agents it is still an important strategy to understand so that you can offer good counsel to your clients should it be the right possibility for them. Forbes wrote Understanding the Delaware Statutory Trusts Full-Cycle Event which will go a long way into helping you understand the advantages and disadvantages of DSTs.
Learning about 1031 Exchanges or Delaware Statutory Trusts can help you be a better, more productive real estate agent. Real estate investors cherish agents who understand their needs and can help them navigate important tax strategies. Retirees and others appreciate an agent that can explain DSTs and how it could benefit their financial futures.
To get specific training and questions answered about these important tax strategies and how you can sell more houses to meet your goals, book a time with Markus Jamison. He's here to help.
KW, Diamond Partners, Inc
13671 S Mur Len Rd
Olathe, KS 66062
913-322-7500
