Passive Real Estate Investing How I Deferred Over $150,000 in Capital Gains Taxes using a 1031 Exchange
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Dec 9, 2025 In this talk, real estate investment professional Dave Foster reveals the magic of the 1031 exchange, a strategy that has been empowering investors for over a century. He shares practical tips on the timeline rules, the critical role of a qualified intermediary, and how the right team can save you big bucks on taxes. Get insights into financing hacks, including second-home loans, and learn how to reinvest wisely to maximize your savings. Dave emphasizes viewing tax rules as beneficial incentives for long-term wealth building.
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1031 Exchanges Defer Tax And Keep Money Working
- A 1031 exchange lets you sell investment real estate and defer tax by rolling proceeds into new investment property.
- Dave Foster notes this deferral can keep tax money working for you indefinitely instead of paying it now.
Biggest Early-Career Regret
- Dave shares his biggest real estate mistake: his first sale triggered a $30,000 tax bill because he didn't 1031.
- He illustrates lost compound growth on that tax money as a long-term regret.
Loop In Your QI Before You Sell
- Involve your qualified intermediary (QI) early—ideally before you decide to sell—so they can plan timelines and off-ramps.
- Dave recommends adding the QI to your team alongside your accountant and market analyst.