MMM Recap - Marissa LoCasio
If you missed the Multifamily Mastery Meetup this month (10/3), you missed a great talk with an industry expert. This month we featured Marissa LoCasio who spoke about her experience as a Certified Exchange Specialist, specifically with 1031 exchanges.
Marissa is a paralegal and Certified Exchange Specialist® (CES®). After facilitating thousands of like-kind exchanges, she was named Director of Operations in 2016. Marissa served on the CES® Certification Council from 2010 – 2018 including a term as co-chair. In 2019, Marissa was elected to the Federation of Exchange Accommodators (FEA) Board of Directors and will serve a 3-year term.
Marissa works with 1031 CORP in Collegeville, PA who we have worked alongside in several transactions. Marissa was a wealth of knowledge and talked about the ins and outs of these exchanges. We talked about the requirements to do a 1031 exchange, the timetables you have to work with, the dos and don'ts, and the possibilities of using them in almost any scenario.
Marissa also talked about the 3 golden rules...
1) Starting at closing, the seller has 45 days to identify the property they will exchange into. The entire process can take a maximum of 180 days total to close on the identified property.
2) There is some calculous involved in maximizing your tax savings. To maximize savings, reinvest your net selling price. Contract sales price - closing costs = net selling price. (Mortgage payoff does not count)
3) Same taxpayer requirement: The taxpayer who owns the property being sold (individual, LLC, corporation, partnership, etc) must also be the same taxpayer who is purchasing the new property.
Here are some major takeaways we learned:
Planning ahead is what separates the best from the mediocre
Have the team set up BEFORE you go into an exchange for best results.
The stories of working with clients are the most rewarding aspect of these exchanges.
Continuous education and learning are essential
Dont make or do major legal things without consultation with an expert
You can do a 1031 perpetually - even into the grave.
1031 Exchanges are an "I owe you" to the IRS
What's coming up!?
Nov 7th @ 6:30 - Coming soon...
Real Estate Moguls
Industry Professionals and Panels
More to come...