Jeff Bemis runs 1031 Specialists. 1031 Specialists help real estate owners swap one investment property for another to defer taxes and grow rich.
Summary of the PodcastIntroduction to 1031 SpecialistsJeff Bemis, co-founder of 1031 Specialists, is introduced. 1031 Specialists helps real estate investors in the United States leverage a tax code section called 1031 to defer capital gains taxes when selling and reinvesting in investment properties.
Overview of 1031 ExchangesJeff explains how 1031 exchanges work - if an investor sells an investment property and reinvests the proceeds into a new investment property, they can defer paying capital gains taxes. This provides a unique tax advantage compared to other financial assets like stocks. The 1031 code has existed for over 100 years and is widely used by real estate investors.
Benefits and Rationale of 1031 ExchangesThe 1031 code was originally intended to encourage the productive use of farmland by allowing farmers to defer taxes when expanding or relocating. Over time, it has expanded to incentivize real estate investment and development in underserved areas. The deferred taxes must eventually be paid, but the ability to build wealth through tax-deferred reinvestment is a major benefit.
Comparison to UK Tax RulesKevin compares the 1031 exchange rules in the US to the capital gains tax rollover relief in the UK, noting that the US has a much higher estate tax exemption limit compared to the UK, making 1031 exchanges even more advantageous for building generational wealth.
1031 Specialists' Business Model1031 Specialists' core business is acting as a qualified intermediary to facilitate 1031 exchanges, safeguarding client funds and ensuring transactions comply with IRS rules. They have built a team with deep expertise in real estate and 1031 exchanges to provide efficient service to clients.
Competitive Landscape and Growth OpportunitiesJeff notes that while there is competition, 1031 Specialists has become one of the larger players in their niche. They see significant white space in the market, as many individual real estate investors are unaware of or underutilize 1031 exchanges. Educating this market is a key focus for their growth.
Leveraging Technology and AI1031 Specialists has built their own AI tool to provide automated answers to common 1031 exchange questions, recognizing that while AI can be helpful, the real estate industry tends to be a late adopter of new technologies. They are focused on using technology to improve internal efficiency and client experience.
The Next 100 Days Podcast Co-HostsGraham Arrowsmith
Graham founded Finely Fettled ten years ago to help business owners and marketers market to affluent and high-net-worth customers. He's the founder of MicroYES, a Partner for MeclabsAI, where he introduces AI Agents that you can talk to, that increase engagement, dwell time, leads and conversions. Now, Graham is offering a Generative Engine Optimisation Website Auditor that gets you ready to be found by LLM search.
Kevin Appleby
Kevin specialises in finance transformation and implementing business change. He's the COO of GrowCFO, which provides both community and CPD-accredited training designed to grow the next generation of finance leaders. You can find...