Interview with Dave Foster of The 1031 Investor

Passive Mobile Home Park Investing

Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. In this episode of the Passive Mobile Home Park Investing Podcast our host Andrew Keel interviews Dave Foster, Founder and CEO of The 1031 Investor.

Dave Foster, a seasoned 1031 intermediary investment professional, brings over two decades of expertise in all aspects of real estate investing, ranging from commercial to residential properties. With a degree in Accounting and a Master’s in Management, Dave possesses a deep understanding of 1031 exchanges, enabling investors to strategically leverage these funds for passive investments.

In this episode, Andrew Keel and Dave Foster dive into the complexities of 1031 exchanges. They explore the advantages of these exchanges for both active and passive investors, strategies for transitioning to passive investing using 1031 funds, and forward-thinking retirement planning, including converting properties into retirement residences. Additionally, they discuss the impact of the 2018 changes on furnishings, fixtures, and equipment (FF&E), as well as the nuances of capital gains taxes and the current tax rates.

Join the conversation today as Dave Foster shares his extensive real estate investing knowledge and offers invaluable insights into the intricacies of the 1031 Exchange.

***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any interviewee. This interview is for informational purposes only and should not be depended upon for investment purposes. ***

Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 3,000 lots under management. His team currently manages over 40 manufactured housing communities across more than 10 states. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities. Check out KeelTeam.com to learn more.

Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy, Andrew’s team usually moves on location during the first several months of ownership. Find out more about Andrew’s story at AndrewKeel.com.

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• Due diligence questions
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• Mistakes to avoid, and more!

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Talking Points:

00:21 - Welcome to the Passive Mobile Home Park Investing Podcast

01:11 - A crash course on the 1031 exchange for commercial real estate investors

08:43 - Using 1031 funds to move into passive investments

12:45 - Using 1031 funds for a (mobile home park) REIT investment.

17:00 - Planning ahead for your retirement and tips on managing the often daunting time-frame limits associated with 1031 exchanges

21:10 - Converting your 1031 exchange property into a series of retirement primary residences

23:21 - FF&E (furnishings, fixtures, and equipment), and the impact of the 2018 IRS tax law changes

26:00 - Nuances of Capital gains taxes and the current tax rate

27:34 - Getting in touch with Dave Foster of the 1031 investor

28:35 - Conclusion

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Links & Mentions from This Episode:

The 1031 Investor: https://www.the1031investor.com/

Keel Team’s official website: https://www.keelteam.com/

Andrew Keel’s official website: https://www.andrewkeel.com/

Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel

Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPinvestingPodcast

Andrew Keel Instagram page: https://www.instagram.com/passivemhpinvesting/

Twitter: @MHPinvestors

Quotes:

“If you want to put a small amount because a lot of people will test the water with syndications. If you want to put a small amount into it, do a 1031 exchange.” - Dave Foster

“With the 1031, there is an option to defer it throughout your entire lifetime. And when you die, your heirs will inherit that property tax-free.” - Dave Foster

“The 45 days, is it tight? Sure. However, but what if you thought about your 1031 before you sell your property?” - Dave Foster

“Well, one roof will wipe out 20 years of cash flow. So if I'm hanging on to that, I'm hanging on to a house of cards.” - Dave Foster