IRC section 1031 exchanges are used by owners of appreciated investment property to defer the capital gain tax (both state (if applicable) and federal 15% and depreciation recapture) by purchasing another investment property within 180 days. Previous blog posts go into all of the details and rules of the exchange process.
The question is: "So, now that I've attended a 1031 Exchange Seminar, how am I going to use that information to build my business?"
First, focus on educating your clients who own non-owner occupied property of the benefits of an exchange:
"I noticed that you're selling non-owner occupied property, have you discussed with your tax advisor whether a 1031 tax deferred exchange is appropriate for this sale; you could potentially defer 100% of your capital gain tax due on the sale." Notice that you are not telling the client they should or should not do an exchange (tax and/or legal advice). You are making them aware of a tax deferral mechanism in the tax code.
The next step is asking all of your clients, not just your investor clients whether they have:
1. CPA or accountant
2. Financial Advisor
3. Real Estate Attorney
4. Business Attorney
If they do, ask for their advisor's name. Tell your clients that you like to keep a list of good advisors available for clients who do not have an advisor. Ask the client for permission to call their advisor because you would like to interview them as a potential referral for your other clients who may need their expertise. Once you've received your client's permission, call the advisor.
Mention that his client is a client of yours and that you are always looking for a good referral for those clients who don't have that type of advisor. Ask if there's a time when you could meet with them in person because you don't refer to people you have not met.
Have a list of questions that you would like them to answer. Think about the qualities you value in other professionals. How do you want your clients to be treated by an advisor.
The result of this process: First, you are creating a list of referrals that may assist your future clients; Second, you are introducing yourself to these professionals as another professional (you will be the kind of agent to whom another professional will refer their business.
I'll post again about some additional ways of using your 1031 knowledge and expertise. If you would like to learn more about 1031 exchanges, go to www.apiexchange.com there is a 40 minute webinar that takes you through all the basics. You can also find an Asset Preservation division manager who may be offering live seminars for continuing education credit.
I am offering an Advanced 1031 Exchange Seminar in Fresno on Thursday, March 27th from 12:30 - 3:30. You can contact me at LisaL@apiexchange.com
Comments(2)