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What You Need to Know About 1031 Exchanges

Michael Brady & Alex Schandrovsky

Michael Brady & Alex Schandrovsky are both members of the Madison 1031 Exchange whose business is to help taxpayers defer capital gains and taxation by swapping one property to another. An attorney by training, Michael Brady is currently the Executive Vice President of Madison 1031 and spends a lot of time in public speaking, seminars, and marketing efforts. On the other hand, Alex Schandrovsky is a seasoned Silicon Valley entrepreneur who ran a large catering company that employ second chance employments, mostly people from prisons. He spends most of his time teaching about business and entrepreneurship and building multigenerational wealth for driven real estate investors. Listen as they walk us through what a 1031 exchange is, its process, and the two sides of a 1031 exchange. They also shed some light on the challenges investors might encounter when doing a 1031 exchange. If you are interested in this type of exchange, it is important that you learn from the experts. Be sure to tune in today!

Important Points in This Episode

  • Mike and Alex’s background
  • What is a 1031 exchange
  • Capital gains taxes
  • Internal Revenue Code 1031
  • Process of a 1031 exchange
  • Role of Madison 1031 play in making these exchanges
  • States that do not recognize 1031 exchanges
  • Who is a qualified intermediary
  • Qualifications for a 1031 exchange
  • Process of becoming a qualified intermediary
  • Federation of Exchange Accommodators
  • Kinds of exchanges Madison 1031 is doing
  • Two sides of a 1031 exchange
  • Challenges of bringing a 1031 investor to a syndication and bringing 1031 money into a syndication
  • Problems a syndication might encounter with trying to do a 1031 exchange
  • Brief explanation of the structure of a tenants in common (TIC)
  • Like-kind properties
  • Madison 1031 and the challenge of Covid019