And Kevin's for the US tax code, because there's this thing
called the 1031 exchange, which allows you to sell investment
real estate, take the profits and that tax and invest it for
yourself into real estate. And when you do that, you don't
have to pay the tax. Now I think that would what that
would have meant for me 30 years ago.
I know you know how to compound interest or the rule of 72.
It allows you to take that tax and use that to purchase the new
property. So I could buy more property.
Welcome to the King Dems Podcast, where business
leadership meets growth mindset mastery and smart financial
strategies for growth and success.
We're live, ladies and gentlemen, you once again
welcome to the Kingdoms podcast and diarrhea for CFO today
fighting out of a recorder. We've got with me fighting out
of Florida, United States of America Mcwalken, Dave, the
founder and CEO of the 10th 31 Investor Forester.
How are you today, Dave? I'm doing awesome.
It's great to be here. As you well know, since I'm in
Florida, the air conditioning's turned up.
It is. What it is, well, it is what it
is. And of course, yeah, as you all
know, I'm in London, England, and it's hot, it's summer, it's
summer, we're meant to be outside.
But because of a very special human being, I'm inside today.
And of course I'm recording a very, very special guest.
I love to speak in present tense.
I love to give people their flowers while they are alive.
And of course I've prepared. I'm really interested
introduction for Dave Foster. Dave, you sit, relax and let me
read your. Introduction.
So ladies and gentlemen, once again today we are joined by
Dave Foster, Founder and CEO of the 1031 Investor.
Dave is a seasoned accountant, real estate investor, and tax
strategist with over 2 decades of experience helping thousands
of investors legally defer taxes and maximize their returns
through the power of 1031 exchanges and Section 121
exemptions. Not not only has he mastered
these strategies, but he also used them to achieve his own
dream lifestyle. I'll see the American dream
raising four boys while leaving a bird sailboat and building a
thriving real estate portfolio. Eve is here to share practical
insights that will help entrepreneurs, investors and
business leaders keep their money working for them while
navigating complex tax laws. Once again, big welcome.
The man, the myth and the legend.
Dave Foster, thank. You.
We're also Dave, a lot of people want to be like you.
You know, you, you, you. You might not do it, but I say
intentionally for you. You are leaving the dream of
many people. And of course, you are a role
model. What can you take us back to the
moment when you realize that almost 40% of your profits were
going to the IRS and how that's part of your journey into
mastery in the 10th 31 exchanges?
You know what you're taking me back to James is the worst
mistake I ever made. You're gonna make me relive
that? Are you OK?
It was about 30 years ago when I was just getting started.
My wife and I were in fairly high profile careers, but we
were getting burned out. You know it happens at that
pressure. That's the that's the thing, a
bit of professional, you know, the grind.
We had this remarkable event. We had our first child.
And all of a sudden, we realized that there was this tension
between wanting to do nothing but hang out with our child and
the pressures of work. And so we decided, you know, we
need to figure something out. So somehow, two people who had
never been in the ocean at all decided that it'd be a good
thing to buy a sailboat and sail away.
And the way we're going to do that was let's become real
estate investors. It's got to be easy, right?
Anyone can do it. So my nickname, you know, yours
is King James. My nickname is Ready, Fire Aim
Dave. Ready, Fire.
Aim. So I just went on, said yeah,
let's do this. So I bought a duplex in Denver,
fixed it up, rented it out, then got ready to sell it and
thought, how was king of the walk that I've done really,
really well until my accountant told me that I had to stroke a
check for $30,000. Now this was 30 years ago.
That was real money then, it's real money today.
It's still real money today. It's a lot of what it's day.
That was not part of the plan because we had set very
intentional goals that were ten years in the making, and if I
was going to have to do that to the government every time, just
was not going to work. As a matter of fact, today that
still haunts me and it's why I always remind people that do not
ever forget that when you're investing in real estate, and I
know it's true in the US, it's probably true everywhere.
You have a silent partner, and in America it's called Uncle
Sam. It's the government.
They are your partner whether you like it or not, and they are
going to take their fair share. And.
Kevin's for the US tax code, because there's this thing
called a 1031 exchange which allows you to sell investment
real estate, take the profits and that tax and invest it for
yourself in new real estate. And when you do that, you don't
have to pay the tax. And I think that would what that
would have meant for me 30 years ago.
I know you know how to compound interest or the rule of 72.
Is one of the world. Yeah, and if I was making 10% a
year on that $30,000 thirty years ago, how much would I have
right now instead of writing a check to the government?
Almost $1,000,000 is what I'd have from one mistake.
So yeah, it keeps me up still at night.
But we've done OK because we discovered the 1031.
And since that time, that's been my mission, both for myself and
for clients. So, so for those people who are
new to this right, what exactly is a 10/31 exchange and why is
it considered such a very, very powerful tool for real estate
investors? Well, let's just imagine that.
We'll stay with my example. Let's say that after my profits
and after tax, I had $80,000 to invest in a new property.
If I put 20% down on that property, I can buy a $400,000
property, right? Well, what if I had that plus
the tax? Let's say the tax is only
20,000. Now I've got $100,000 to
purchase new real estate with. Because I'm not paying the tax,
that means that I can buy a $500,000 piece of real estate.
So if I pay the tax, I can only buy a $400,000 piece.
If I don't pay the tax and do a 1031 exchange, I can buy a
$500,000 piece of property. Now over time, over five years,
let's say, even if those two properties appreciate at the
exact same rate, if I was able to buy a $500,000 property to
start, I'm going to be selling that for quite a bit more then
if I could only buy a $400,000 property.
And that's what the 1031 exchange does.
It allows you to take that tax and use that to purchase the new
property. So I can buy more property, I
can generate more income. And that's the compounding
effect that Albert Einstein loved so much, is it allows us
to use the tax to make our money.
So are you able to do like a walk through right for the key
requirement that every investor has to meet in order to have a
successful exchange and the compliance?
Yeah, absolutely. Because that's where the that's
really where the rubber hits the road because the IRS lost a
lawsuit about 25 years ago. And when the government loses A
lawsuit, they're never happy. So they had to let us do these,
but they didn't have to make it easy.
So there are some very stranger requirements.
The first thing is you want to think about this in an order of
sell, then buy. And I know that's totally
different from regular. We always think of a real estate
as starting when I buy a piece of property.
And as a matter of fact, are you familiar with the old proverb,
you make money in real estate when you buy it?
Because the idea is that everybody's looking for
bargains. So I want to find that cheap
piece of real estate that's undervalued, that someone
doesn't know what it's worth, and I'm going to go buy it and
then I'm going to make money when I sell it.
The 1031 exchange is the exact opposite.
The 1031 exchange starts with when you sell a piece of
property. So it has to be investment real
estate that you sell and then you replace that with new
investment real estate. That's all of it qualifies for,
but it can't be any type of investment real estate anywhere
in the United States. If your property you sold is in
the United States, then there's a couple timing requirements.
You only have 45 days to find your new property and you only
have 180 days to close on it. So you don't have a lot of time.
You got to be pretty focused. Now the same taxpayer is going
to sell, it's going to buy, and you have to use.
This is the key. You have to use what's called a
qualified intermediary to do this.
You cannot do it yourself and then just report it on your tax
return. The qualified intermediary has
to be involved prior to closing your sale, which starts the 1031
and they're actually your guide through the whole process.
So all of these other requirements are you're LED
through them by your qualified intermediary.
But if at the end of the day you have followed those and you have
purchased at least as much real estate as you sold, you get to
definitely defer pay all of that tax or depreciation recapture.
So how does the 10th and one exchange compared to paying
taxes upfront? Like what's the portfolio impact
over, say, over a period of time that is more than 10 years?
Got a boy, I wish I had my my screen pulled up.
We've got some examples that we show people where over 4
transactions. That's all just four.
Every five years they sold a piece of property.
They started with $100,000 for the investor that does the 1031.
The investor that paid the taxes they went starts with $80,000 so
their ferries. Their second purchase.
The investor that does 1031 is able to buy 500,000.
The investor that pays the tax could only buy 400,000.
At the end of 20 years and four transactions, the investor doing
the 1031 exchange will have, with everything else, stay the
same $11.8 million of real estate that they own and
control. The investor that simply paid
the tax as they went has about four and a half million.
What's the difference? The deferred tax from the 1031
exchange went to buy more real estate.
Now, at the end of that 20 years, that investor still owes
almost $500,000 in taxes, but as long as they owe the real
estate, they never have to pay it.
So I don't know, James, what would you rather be?
Own four and a half million but don't owe any taxes or owe $12
million and a half a million of taxes waiting for you.
As long as you can't, you can keep deferring it, you know?
Yeah, you're hot fee. That's exactly right.
Well, and think about this too. If I'm making 10% a year, which
is not that hard to do on my real estate portfolio, how much
I've been making each year on 12 million, I'm making 1.2 million
a year, 600,000 every six months.
I could just put away enough to pay those taxes into a bank
account with five months worth of income.
And at the end of that, I still have $12 million in real estate.
So that's the power. Smart strategy.
One exchange. Smart that that's pretty much
smart. And of course, if you if you dot
your eyes are probably of course you cross your T's your
compliance. You may never even have to pay
those taxes in your own lifetime.
But like, what are some of the advanced strategies like reverse
exchanges and of course construction exchanges?
And what should an investor consider when you know making
these strategic decisions? Right.
So reverse exchanges are really one big bucket that would
include a regular reverse exchange, a construction
exchange, an improvement exchange.
Those are all just types of a reverse exchange.
And what they're designed to do is to be a workaround from the
tight time constraints because by law, you cannot take title to
your new property until after your old property sells.
But what if you find the perfect property that you want to buy?
Well, you could do a reverse exchange, which does not change
the order. But what happens is the
qualified intermediary takes title to that new property, and
then we can hold it for up to 180 days while you get your
other properties sold so that you extend your timeline.
Proven exchanges are really neat because when we're buying, we
always like to buy bigger and better.
But what if I sold a property fixed up, multi family property
say for $500,000, but I found a really neat value add
opportunity. There was a multi family that I
could buy for 300,000 and put $200,000 in and have it be worth
a billion. That's what's that I said.
That is like an overhauling. You're basically overhauling
that particular property and it improves the value.
Exactly. And that's what we would do in
an improving exchange because remember, you sold for 500, so
you have to buy for 500. But what you're really doing is
we're buying the property for 300 and then you're putting the
improvements in it so that it works for your 1031 exchange.
But instead of at the end of the day, you get a property that
still needs improvements, you get basically a brand new
property ready to go. So those reverse type exchanges
can't be really, really welcome. You know, I love how you talked
about deferring the tax throughout your lifetime if
you're smart and then you immediately ask me about
advanced strategies. Here's the most advanced
strategy you can get. Die.
That's it. Die while you're owning your
real estate. I know you wouldn't think of
that, would you? The.
Definitely. You know, I always tell people
that the only two things that are sure in life are death and
taxes. If you die right, you're still
going to cheat the taxes because under U.S. tax code, when you
die owning real estate, your heirs inherit that property with
what is called a step up in basis.
So they inherit the property as if they paid market value for it
on the day you died. Which means would they inherit
it if it's worth $500,000? They inherit it as if they paid
$500,000 worth. All of that tax that you
deferred in your 1031 exchanges throughout the years is gone.
You never paid it. Your estate never paid it.
The air is never paid it. That's why the mantra of the
1031 exchange dams is defer, defer, defer and they die.
So. So when the hair is actually
inherited, how about the capital?
The capital gains tax. That all disappears.
It's gone when you inherit it. So when they inherit, they
inherit at the market value. About what does the US tax lower
demand of the hairs? Are they meant to pay any form
of taxes if they are to sell the property?
If they sell the property the day they inherit it, no tax.
Now if they hang on to the property and say that property
appreciates another $100,000 from that date, then they're
going to pay tax on that $100,000.
So that funds their own capital gains.
Unless they do what Dave's. They they, they, they die as
well. Or they do 1031 exchange.
Yeah, they, they keep, they keep.
Converted. I have one family of clients
where we started doing 1031 exchanges for the grandfather 25
years ago. He passed away after 5 or 6
years and his son inherited all of the real estate.
Now because he inherited it tax free, we did not see the son for
a few years but then he started after a while doing his own 1030
ones because they had appreciated.
He passed away about six years ago.
His children inherited the property and we're starting to
see them again just now doing their own 1030 exchanges.
So through process of 1031 exchanges of death, we've seen 3
generations. Generations.
Never pay a penny. Yeah, real estate hates tax.
Come on. That is 3 smart generations.
That's really, really wild. But what would you say the
common mistakes that you have seen investors bake while trying
to execute 1/10 at one exchange? And how can they possibly avoid
those music? Yeah, The first exchange is
simply not knowing that you have to have a Qi at place prior to
selling the property. I get calls still every month
and it'll say, Dave, I sold my property last week, the bodies
at the escrow company ready to do it to 31 exchange.
And I have to say, well, unfortunately you can't because
it wasn't documented on the settlement statements.
And more importantly, according to the IRS, even though you
haven't got the money in your account, you have constructive
receipt on it and so your opportunity to exchange is done.
So not planning ahead and having the Qi in place is a big
mistake. The second one that I see is not
researching and planning ahead of time.
Everything in life is so much better if you do it
intentionally. And intentionality involves
planning so ahead of time. If you sell your property and we
start the exchange that day and you're still you're telling me
that that next week, Dave, I'm looking at commercial properties
in New York and vacation rentals in Las Vegas.
And I'm not sure if I may want to do it in San Diego.
And I'm still trying to figure out where I want to go and what
I want to buy. I could just about guarantee
your exchange is going to fail because you're not going to be
able to be focused to find the properties you want in the
demographic and sector that you want and underwrite that those
in time. You just aren't going to be able
to do it within that 45 day period.
So planning way ahead to figure out what you want to invest in
next and where you want to invest next.
And that's one of the biggest strengths of the 1031 anyways,
is that you could react to whatever the market is telling
you. So if you were one of our
clients in San Francisco in 2013, 2014 Silicon Valley was
blowing up and it was just going crazy.
Well, as rents got controlled, people were making less and less
money off rents. So even though the appreciation
was great, wasn't such a good investment anymore.
But because a lot of our clients were following the market, they
watched and saw this guy named Elon go down and buy a couple
$1,000,000 of Austin real estate.
And so they sold their San Francisco investment properties
and did 1031 exchanges to go buy West Texas land near the mega
factory. And that's how they use the 1031
exchange to really ramp up their portfolios.
But the only way they could do that was by planning and
anticipating where the market was going next and then
obviously doing their research. So I would say those are two big
things, not starting early enough and about doing enough
advanced planning. So like you asked me prior to
Stutton dessert episode, it's very important for us to know
the composition of the audience, right?
And the the data at the back end on Spotify, YouTube purchaser
tells us that over 75% of our audience are persons between the
ages of 28 to 45 years old and the mostly professionals, right?
And more than 40% of the people that watch or lease into this
podcast have a university degree or higher.
And most of them are professionals and entrepreneurs
first before investors second. So how can these people
integrate tax strategies, you know, like the 1031 exchange
into their overall wealth building plants?
Of course, if you don't plan, or would we say if you fail to
plan, it means you plan to fail you?
Plan to fail. I love that.
Yeah, that is the greatest softball question ever, because
let's talk about that demographic games.
So the first thing we know is we're dealing with professionals
that have less time, but probably more money.
So the first thing I would say is don't delay.
Start now #1 because real estate investing in general, as with
any other type of investing, is not a Sprint.
It's going to generate momentum as it goes.
The longer you're able to keep the taxes deferred, the more
income you're going to generate, whether it's two years or 20
years. But if you could structure your
life to start investing now, you're more likely to get 20
years of tax deferral and appreciation.
So it's that much more gained for you.
So start now. It's the perfect time.
Here's the prototype investor that you just described.
They're what I call the accidental investor.
Then to. Now I say that because the
average buried age, you know, generally happens after college,
and 28 seems like it's fairly normal.
Well, if 28 and post college means that I already have a
career, when I get married I probably already own a house
because I bought a house to live in.
Well, when I get married, they've got a house because we
typically marry people like us, so they've got a house as well.
They're 28. They're a professional with a
career. Well, we're only going to live
in one house, right? Exactly.
By the way, do you know which one you move into?
Well, it's likely. It was likely.
Let's let's, let's not talk about that because we were going
to be causing some gender sensitivity.
Oh yeah, the risk of being cancelled.
We're not going to talk is going to be the swab.
You got it. OK.
So you move into one of those properties, you just became a
real estate investor because you have a property over here you
have to rent. A couple years goes by, all of a
sudden you're a little addicted to that rent, right?
You just like that sugar taste, you know that?
Carbohydrates. Yeah, exactly baby.
That rent check every month is awesomely nice it.
Was awesome. And so then you start to think
about expanding that, hey, wouldn't it be cool if we sold
this and bought 2 using the proceeds as a down payment and
your spouse agrees and so off you go.
You do a 10/30 one exchange. All of that profit is deferred.
You go buy 2 new properties and a few years later you sell
those. You buy 4.
Or you decide be kind of fun to move into multifamily, let's go
buy a duplex. Or it's time for us to shift
into commercial properties. Maybe we buy a vacation rental
because now we're having kids and we want to start building
family memories as well as generating income.
Those are all examples of what our clients have done throughout
their years as real estate investors, all starting to
remember as accidental investors.
And in one day games, they wake up and they're tired.
You know why? Because they went from 1:00 to
2:00 to 4:00 to 8:00, they got 16 properties and they've all
got plumbing issues and angry. Tenants, it's it's difficult to
deal with, very difficult. So what they do is they sell 4
properties for $100,000, you know it's just called $100,000
each and they go buy one property for $400,000.
So they start to consolidate their portfolio.
That reduces effort, could increase income, but it also
starts to set them up for retirement when they can move
from active investing to passive investing and then finally, of
course, back to the whole dye thing.
They die out of their real estate.
But one of the greatest hacks that very few people know of is
that you can tip them in a vacation rental.
You love to ski. You want to ski in Colorado.
You're not your retirement years.
So you buy vacation rental and they when you're ready to
retire, you can't convert that property from investment real
estate to your primary residence without having to pay tax
because the only thing that triggers the tax event is
selling the real estate. So if you simply change the use
of it, it changes where it's reported on your tax return, but
you don't pay the tax. So you could actually set
yourself up to retire in a beautiful vacation rental tax
free. Interest in strategic planning
is very, very, very important. But you know, at some point the
the active investors want to transition into like a more
passive approach, right? So how can the 1031 exchanges
help investors see from active management to that passive
income stream? Yeah.
Well, you know, first of all, just in general, the next step,
let's think of this as a spectrum.
So on one end, we've got active taking all the calls, fixing all
the repairs, doing everything. On the opposite end, never touch
it. Go to the mailbox and get a
check. Hey, I want that spectrum.
The first thing you could do is hire a management company to
manage your properties. We get mixed reviews on that for
people because you still have to manage the managers right?
So you got to watch out for that.
The next thing down would be to transition from single family
properties into larger multi family properties.
Dollar three or four single family rentals and buy a 12
Plex. Maybe one of those units you can
hire, you can give to a manager in lieu of management fees.
So you're concentrating and reducing the effort there while
at the same time hopefully generating more income.
So that's the next step down towards passive.
The move from commercial into commercial real estate and
what's called triple net commercial can be really
beneficial here because triple deck commercial simply means
that you have one piece of property, you own it, and the
tenant is responsible for taxes, insurance and maintenance.
Now, you may have a small building that a National
Insurance Company has their offices in or a regional tire
company, but all you're responsible for is is the lease
itself. They're responsible for
everything else, and usually the leases of triple that.
Commercial properties are 15 to 25 years.
So it's a lot less work, isn't it?
That would be the next step. The furthest you can get on the
passive end would be probably a product called a Delaware
Statutory Trust. Now, these are fractional
ownership of actual real estate, but because the IRS has blessed
them officially for 10:31, you can buy that fractional
interest. So you might buy 1% of an Amazon
distribution center and you do nothing other than give them
your money and you sign the membership agreements.
And from that moment on, you walk to the mailbox every month
to pick up a check. Every five to seven years that
company will sell that asset and you'll do another 1031 exchange
that's as passive as a kids so. You know, The Kingdom's podcast
is about growth mindsets, leadership and business
insights. And I very much appreciate the
fact that you are a guest that aligns with the three major
themes that we have set out on the podcast.
And also when you look at the diary of a CFO, right?
So the diary of a CFO actually sets out to provide, you know,
smart financial strategies for business growth.
So it's very important that we have those financial strategies
to help us to achieve smart business growth.
So with that said, I know that you've seen with your wealth of
experience, when I see thousands and millions of businessmen,
entrepreneurs, professionals that have succeeded.
And of course, you have seen those ones that have also
failed. And the difference can be
attributed to one thing, which is mindset.
So what would you say is the mindset that separates, you
know, the good from the great, right and that mindset that
helps to build lasting wealth, you know, over time.
Wow. We can do a whole podcast just
on that, you know. Well, I would say there's,
there's, there's three things we've already talked about.
The first one, which is intentionality.
Success doesn't just happen accidentally to most people.
Sometimes, yes, but you better not count on it.
I couldn't count on it. Intentionality and planning is
so huge. Pick a goal and then start
working backwards from them. The second thing is true
success. And man, I know this is not the
mantra that the TikTok generation is promoting, but
success is a slow cooker. It's a crock pot, not a
microwave. So you've got to be patient.
You know, if you heard the phrase, it's not timing the
market, it's time in the market that determines your success.
So, and then the third thing, I think it, this is going to be
very counterintuitive. Although we read the story of
self-made millionaires and billionaires, I think the
greatest mindset you can have is that of giving.
And I really believe that with all my heart because for the
compared to the few people who can make it all on their own,
there are so many more people that achieved success because
they shared their dream, they shared their success with others
and that simply propelled them further.
And sharing your success, having a sharing mindset is going to
make a lot more successful people.
You know what I'm just about? There's an African proverb, does
it come from Nigeria that says if you want to go fast, go by
yourself, If you want to go far, take a village.
Yeah, well, we we have scenes like that.
Similar. Yeah, we, they, they, they say
where I come from in Yorba land, they say Iggy called Daboshi,
meaning one, she doesn't make a forest so.
Yeah, exactly. I can't.
That's the people that have helped to spur my success.
We're already successful and it's up to me to pay that
forwards to help others become successful.
And then when we become successful, we continue to be
blessings to those who have helped us.
That's that's what's going to make the world a better place.
Yeah, you know that that also reminds me of another proverb
from Nigeria. They say Karen Kapoor, meaning
like when we walk in company, when we walk in groups, right,
It brings honor to us as a people, right?
Yeah. So basically you, you, you move
together and of course you achieve success together.
But a lot of people have that individualistic mindset and it
baffles me because, yeah, the the, the as, as human beings,
right? Our instinct is self
preservation, right? Yeah.
And it's counter intuitive. And for the lack of a better
word, in, in some sense, it's sort of foolish if you think
about just yourself and think, oh, you, you want to be greedy.
And you can achieve a lot by being greedy or being of
personal hearts right? Like you can't go far that way
because you will definitely need people.
And I don't personally do not like the idea of a self-made
whatever self-made millionaire self-made billionaire because it
is a fallacy. Are you telling me that nobody
ever helped you on the way up? Like I've never seen that one
person that did not need the help of anybody to achieve
whatever it is that they've achieved.
So I wonder why people like to promote the concept of being a
self-made millionaire or self-made billionaire.
Come on, some somebody along the way helped you.
Did you just drop from heaven or something?
Like growing up you had parents, you had uncles, guidance,
aunties that took care of you that make sure you did not die
as a child right? You went to school or you were
taught a trade by people. So how come the concept of being
self-made? I don't understand.
I stand to be corrected, but to be honest I don't understand the
concept. OK, here's what you're going to.
This is going to resonate with you, my friend.
Even a lion by himself can't be killed.
Yeah, you see. The lions you see, the lions of
my home. Where he is surrounded by his
pride. Yeah.
Nothing can touch him. Yeah.
So I very much love that. And you know, I very, very much
appreciate you. And there's something I always
see that an attitude of gratitude is good attitude.
And when a person shares their time with you, they share their
life with you. Of course, the SI unit for
measure and life is time. So for me to you to love and
respect, you know, for, you know, joining us on the podcast
today. But I will not let you go
without putting you through the Pacific Ring of Fire.
It's like you say, hurricane season.
Let's have the quick fire around.
Thank you. Ask you 5 questions that give me
the first answer that comes to your mind.
Are you ready to rumble? All right, let's do this.
OK, So what is one book on wealth or strategy that changed
your life? Whatever happened to penny
candy? Interested in it?
Now I know it's a book by Richard Marbury written for 14
year olds, but it's the best primer on inflation and
inflationary monetary policy you've ever read.
Well ET say everything for 40 years 40 year olds in my country
in Nigeria this there's a popular say in the city full of
40s a fool forever. Well, I'm a four year old that
appreciates 14 year olds. So the second one, what is the
biggest myth about taxes or 1031 exchanges?
Biggest myth about 1031 exchanges is going to be that
you could simply sell a piece of property and without planning,
make it succeed. That goes back to our old.
Game. This whole thing, yeah.
And if you feel to plan, you plan to fail.
Think about it. Link to Plan is even a plan on
its own because it means your plan to fail.
So don't blame people who fail to plan.
Well, you'll be a success at least just a way.
A reverse engineering world. It's a What's your dream
destination you'd love to sail to next?
I would love to sail to Georgetown in the Bahamas every
week. Wow 600 bucks I.
Had that on my mind. Do you read my mind?
Yeah, 600,000 boats congregate there all winter.
Yeah. They, yeah, they have a great
time. Would not want to go there this
week with that hurricane out there, but yeah.
Well, you read my mind because the Bahamas is 1 a fantastic
coastal island that that I've always appreciated and of
course, God rest his soul. There's this guy who was very
popular from Bahamas, Miles Monroe.
Yes, I had the opportunity to meet him before his demise.
Very great guy, you know, highly, highly resourceful and
loaded. Wow, so of 1D habit that keeps
you financially shocked. That keeps me financially
shocked. OK, this what's
counterintuitive. I make the bed every day.
Yeah, I like. What does that do financially
for me? It's my way of telling my wife I
love her so she goes out and works extra hard.
Happy wife. Exactly.
Guys out there, I hope you're taking notes.
You need to take notes from Dave Foster.
Yeah, That that's, that's our would I say our foster father
now, right. So you need, you need to take
the notes from Dave Foster in others to succeed faster make
with that information whatever you wish to do with it.
So the very last one is if you had to start all over again
today with just $10,000, how would you invest it?
Again, a really counterintuitive question.
I would invest in a membership being Toastmasters and anything
education wise, not liberal arts, technically technical
education. So whether that's Microsoft
Suite or some sort of AI or SEO training is public speaking
where you learn? Because I think I think one of
the things that we're in great danger of losing the Society of
the day is the ability to communicate face to face.
We could do it over screens. We can read text.
We do all this, but being able to communicate face to face and
honestly, what I think is the people that I've done business
with overtime, that I've chosen to do business with overtime,
it's people that could look me in the eye while speaking and
maintain their credibility. Yeah, and composure.
Yes. Yeah, people, people are fast
losing it in this age and time. And I wonder like what is
happening, what is happening? But I think it's really best to
to have that hybrid, you know, being able to communicate in
person and of course, you know, communicate via digital tools.
And it involves putting yourself in those situations over time,
over time. I remember in university, I was
an MC, I anchored events, conferences, right?
Spoke in front of large audiences.
And I did not realize that me putting myself in those
uncomfortable situations. Was preparing me for bigger and
greater leadership roles, you know in yes to come.
So when I see people being scared, you know, to present in
front of an audience of 502 hundred people, say even 1000
people, I laugh because like back in university, I was doing
presentations in front of 5000 people.
So why would 100 people intimidate me, right?
So I think it's important for people to put themselves out
there, especially very early in life, right?
It helps you to be able to have that confidence, right?
To to be able to excel and being able to communicate is very,
very important. Of course, no matter the level
of technical skills that you have, right?
You need to be able to comfortably and confidently
communicate the knowledge of those technical skills.
And that's what is going to take you, you know, far and help you
to, to achieve things with those skills that you have.
So I don't know what you what, what you would say regarding
these things. Well, you're absolutely right.
It's Warren Buffett. Actually, that quote's been
running around. Now, if you're going to invest,
first invest in yourself. Invest in education.
Absolutely, absolutely. Like a very, very important.
I remember, you know, like I remember some of the when I was
investing in my MBA, this one was like, oh, why don't you
invest in probably like a property back home in Nigeria.
So I'm going to argue doing more education and I'm like, excuse
me, do do you understand what it means to have an MBA?
I don't know, like the biggest investment you can possibly
invest is investment in yourself.
And investing in yourself helps you to exponentially increase
the capacity of revenue that you can possibly earn overtime.
And yeah, I'm, I'm not a multimillionaire now, but you
are. So I love it to come from you to
advise that the younger people out there letting letting them.
Know look at the zeros today, tomorrow.
Yeah, very, very important because I think a lot of young
people in this age and time because that investment in
education does not bring the immediate, you know,
gratification. Just like TikTok behind the
TikTok generation, we want to like, just think we we can put
in X and get XYZ immediately after.
It doesn't work that way, but it's difficult explaining it.
But when they see established figures like yourself reiterated
these things that you know, millennials like myself are
saying, I think he hits a home run better.
Of course I can't be saying it to my generation.
You won't be saying it to your generation if it's not true.
Lived it. Yep.
Absolutely. And of course, that's why I very
much appreciate having, you know, great individuals like
yourself who are role models and mentors to the up and coming
generation from me. To you.
It's a love, respect, appreciation.
I do not take your time for granted.
And of course, I wish you the very best.
And my prayer for you is that, you know you keep being
successful in health and in wealth.
So before you leave, do you want to leave a shout out to anybody?
Well, thank you for having me. This has been absolutely
awesome. Well, I thank you.
I love your mindset because that's, that's really where it's
at. We the 1031 exchange is just a
tool. It's a tool that you could use
to do some great things in real estate, but the greatest tool in
the world is of no value unless there is a willing hand that's
going to wield it. And that hand has to have the
education to do it, the mindset, the drive and the desire to use
it. And if you've got those things,
and that's what I love about what you and I have talked about
with what you're doing so. I thank you very much.
I hope people can come and find us at That's It 31 investor.com.
You're gonna put it in the show. Yeah, it's gonna be in the
discussion. So guys, look into the
description and get it. Well, it's time to go.
And of course, I wish we can have you on again on the
podcast. And of course, guys do the right
thing like comment, share with your network.
And of course, till I come, your weight gain always go for
something in your life. Remember I always say conceive,
believe, strive to thrive and go achieve.
And of course, till we meet again next time, it's goodbye
for me. And all the way from Florida,
United States of America, it is a faster goodbye from Dave
Foster. Thank you.