So You’re a Land Academy Member Now What (LA 1402)

So You're a Land Academy Member Now What (LA 1402) Transcript: Jack Butala: Steve and Jill here. Jill DeWit: Hi. Jack Butala: Welcome to the Land Academy Show. Entertaining land investment talk. I'm Steven Jack Butala. Jill DeWit: And I am Jill Dewit, broadcasting from sunny Southern California. Jack Butala: Today. Jill and I talk about, so you're a Land Academy member now, what's next? Jill DeWit: It's beginning to look a lot Christmas. You don't like that, I'm sorry. It's Christmas Eve. Jack Butala: I mean, I just said there's the reason there's two of us. Jill DeWit: All right. One of us is in vacation mode. Jack Butala: One of us is a happy person in general and one of us is not. You guess. Jill DeWit: Goodness. I promise I will take this topic seriously. I wrote down five notes. I have things I want to cover, but I thought just for a moment, I wanted to celebrate that it's Christmas Eve. Can I have that? Jack Butala: Do you think that all our kids are going to get what they want? Jill DeWit: Oh my gosh. Yes. I know they are. Jack Butala: Have they ever not? Jill DeWit: Oh, I'm sure. I'm sure. But usually they get what they want. It always works out. Jack Butala: You think any of them are in therapy over their parents? Jill DeWit: Oh, I'm sure. Yes. That is a gift that keeps on giving. Okay, this year kids we're giving each of you a bundle of 10 therapy sessions to the counselor of your choice. Jack Butala: Can you buy that? I will buy that. If you can't buy that I'm going to start a company for that, ready for next year. Jill DeWit: Prepaid therapy for your children, for your spouse, for your best friend. Whoever's driving you nuts, buy them therapy. This is a Saturday Night Live skit. Jack Butala: You can buy a subscription legal advice like this. Why not therapy? Jill DeWit: Yeah, why not? Hey, we're doing it for Land Academy stuff now. We're doing bundle, work and bundle consulting things. We're just going to roll in counseling. Jack Butala: That's what this is anyway. A lot of it. Jill DeWit: Exactly. That's awesome. Okay. Jack Butala: Before we get into it, let's take a question posted by one of, which won't top Jill's comments there, posted by one of our members on the landinvestors.com online community. It's free. Jill DeWit: Anthony wrote, "My understanding is that raw land qualifies you or qualifies for a 1031 exchange." Jack Butala: Any type of real estate does. Jill DeWit: Thank you. "Anyone here ever use this?" Jack Butala: Yes. Jill DeWit: "It seems like you could roll up some very expensive ranch or something and delay the taxes owed on the flips that you've got there." And then John wrote, are there more than one comments or just one? Jack Butala: No, it's just John because he answered the question perfectly. Jill DeWit: So I'm sure there's plenty in there, but we picked you, John. John wrote, "We've done a ton of 1031s, but mostly in the apartment space. The basics you need are define a 1031 intermediary. You have 180 days to close on the transaction, 45 days to identify and then 135 days to close. And there's a specific way you have to identify the properties." Jack Butala: That's right. Jill DeWit: "When you 1031, you need to have a whole intermediary hold the funds. You can never touch the money or it will blow up the exchange." At the end of the day, it's more complex than this, but it can be a great tool for deferring taxes. They do have costs associated, so depending on the profit or may or may not make sense. You can always reach out= if you have any questions. That was very nice of John to share. Jack Butala: At least 1031s, I haven't done one in a lot of years, they cost at least $1,500 to do. So here's the idea, you buy up, in Anthony's case, you buy a ranch, you take $200,000 out of your savings and you buy it and you sell it for 400,000. You don't want to pay taxes on that $200,000 gain at all. So you do a 1031, you identify another ranch and now your money's...