Bill Exeter has spent over 40 years on the tax side of real estate. On this episode, host Abel Pacheco and Bill break down the 1031 exchange and the simple idea behind it: defer the tax and keep the money working.
In this episode:
- The 40 year comparison: "The family that does the tax deferral is by far gonna have a much, much larger net worth than the family that just paid taxes as they went."
- The wrinkle most people miss. High earners may be sitting on suspended passive activity losses that could offset the gain, so they may not need a 1031 at all, and "only your accountant is really gonna know that."
- Why taxes are the largest recurring expense most investors never treat as one.
- Abel's rule when the detail runs deep: "Let me just partner with the expert." You do not have to master every domain yourself.
- How deferral keeps more of the net working and compounding deal after deal.
Abel Pacheco is a San Antonio real estate operator who went from 8 single family houses to a share of roughly 1,500 apartment doors, and now works as a fractional Chief AI Officer helping small and mid sized businesses put the back office on autopilot.
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