Listen to the Podcast Here: On today’s Best Deals episode of The Real Estate Nerds Podcast, we will hear about some of the ways investors can capitalize on tax strategy. Dave Foster’s best deal story is an example of exactly that, and he is all too keen to share his methods with our listeners. Description Useful Resources Dave Foster on 1031 and Tax Free Investing Tactics Our host and attorney Scott Smith welcomes Dave Foster. The two investors chat about Dave’s background and the strategy that led him to a string of best deals. [1:00] Dave has been a “deal junkie” for over a quarter century. He began investing in Denver following economic collapse in the 1980s. He describes this as a cowboy era rife with both booms and busts. [3:45] Scott probes Dave’s strategy further. Dave bought his first fix-and-flip in 1996. It was a success until tax time came. The amount of tax liability lowered the overall quality of the deal. [5:30] Dave points out some of the larger context of his story involving 1031 Exchanges and tax-free treatment. He describes how he was able to capitalize on saved tax dollars, putting them instead toward the growth of his portfolio. [9:00] Scott and Dave dive deeper into his 1031 strategy. He includes a type of tax exemption that, when combined with a Tax Code update in 1987, allows for substantial savings. The exemption applied to primary residences. [12:00] Dave explains how he was able to capitalize on these tax exemptions by moving into his investment properties every couple of years to convert tax deferred dollars into tax free dollars. [13:30] Scott points out how Dave’s strategy is particularly smart in an appreciating economy. It has worked out for him. Dave currently lives on a sailboat–giving this investing story a somewhat idyllic ending. Lessons Learned From Dave’s Strategy Brian and Scott conduct a quick post-mortem to see what other investors can learn from Brian’s mistakes with this property. [14:00] Scott points out that these are basic investment strategies anyone can take advantage of, even with a smaller portfolio. [15:20] Dave points out that setting up entities and hiring an appropriate team of professionals can be essential for real estate success. [17:00] Scott and Dave share about BiggerPockets, and the tools this online community offers investors. Scott regularly contributes asset protection content to BiggerPockets. [18:43] On the topic of asset protection and long term real estate success, Dave comments: “Having great people on your team is so huge.” Connect with Dave Foster Connect with Dave on hard money lending or 1031/tax free investing via his web site, The1031Investor.com or by phone at 850.889.1031. Listener Resources Thank you for joining us on today’s episode of the Real Estate Nerds Podcast. For even more free educational resources on real estate investing and the law, check out the Royal Legal Solutions blog. You can also reach our host Scott Smith directly, connect with him on LinkedIn, subscribe to the Royal Legal Solutions YouTube channel, or join our investor community on Facebook. Don’t forget to subscribe to stay up to date and have the most current episodes of the Real Estate Nerds Podcast directly in your listening library. Every subscription helps us create new, custom content for you. What did you think of today’s episode? What would you like to hear more about in the future? Leave your thoughts and questions in the comments section below, or leave us a review in the iTunes store. We love hearing your feedback, so fire away. Join us again next time for another fascinating conversation and compelling story with experienced investor Trevor Robinson. Thanks for listening and joining us on our journey to become better investors! Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions. Schedule your personal consultation now. If you have questions about our content or suggestions for future episodes or guests, reach our podcast team at [email protected].