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Margo, you reached a milestone of 30 years facilitating 1031 exchanges with 1031 CORP. earlier this year. What part of your work brings you the most satisfaction?
I find immense satisfaction in helping others unlock the potential of 1031 exchanges. While many recognize it as a powerful tax-deferral strategy, fewer realize how it can support broader investment objectives. Whether it’s increasing cash flow, diversifying or consolidating assets, reducing management responsibilities, or planning for a future retirement home, a 1031 exchange offers numerous ways to build wealth and preserve equity. It allows investors to grow their real estate portfolio using pre-tax dollars. The more you understand the benefits of 1031 exchanges, the more you can leverage them to your advantage. My advice is to always consider your long-term real estate goals and explore how a 1031 exchange can help you get one step closer.
What tip would you give an investor contemplating their first 1031 exchange?
Remember that "like-kind" is incredibly flexible. Many investors mistakenly think that they can only exchange properties of the same type—like swapping a rental house for another rental house. In reality, any real property held for business or investment purposes can be exchanged for any other real property with the same purpose. You can exchange a retail building for farmland, an office space for an apartment complex, or even multiple properties at once. Properties can be located anywhere in the U.S., giving you a wide range of possibilities to fit your investment needs.
You helped the 1031 trade association, Federation of Exchange Accommodators (FEA), launch a certification and continuing education program in 2003. Why was this initiative so important to you?
The 1031 industry is largely unregulated, and it’s relatively easy for anyone to enter the field. Because of this, I felt it was critical to give investors, their agents, and advisors a reliable way to evaluate Qualified Intermediaries (QIs). That’s why I helped establish the Certified Exchange Specialist® (CES®) program. The 200 or so professionals who have earned this designation have demonstrated a deep understanding of Section 1031 through rigorous independent third-party testing. They are also bound by a Code of Ethics and required to complete 20 hours of continuing education every two years. At 1031 CORP., we're committed to ongoing education. Every member of our Exchange Team will complete at least 10 hours of continuing education by this year’s end to ensure we continue providing our clients the best service.
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