Happy Friday. This is The Shake 🤝: the weekly newsletter that doesn’t take MDW off… unlike 90% of CRE brokers that won’t answer our calls this weekend.

Here’s what we got for you this week:

• Uno Reverse 1031

• ICSC: Value or Vacation?

• Weekly Giveaway 🎰 

MARKET RADAR

Uno Reverse 1031

Real estate investing is one of the best ways to lower or completely avoid paying taxes. As a listing agent, there isn’t a better phone call than the “We have a California 1031 buyer interested in your property” one.

Sellers when they get the call

1031 exchanges are fairly straightforward.

Cliff notes: it’s when an investor sells a property and reinvests the proceeds into a like-kind property within a certain timeframe, usually 180 days. The friction in this process is properly identifying and executing a purchase within that time frame.

Reverse 1031 exchange has entered the chat

A reverse 1031 exchange is a real estate transaction that allows an investor to defer capital gains taxes by effectively swapping or exchanging properties. Basically, the order of the transactions is reversed.

In a reverse 1031 exchange, an investor acquires a replacement property before selling their existing property.

It’s valuable in situations where the investor has found a kick-ass replacement property but hasn't yet sold their current property.

By using this tactic, the investor can acquire the replacement property and defer the capital gains taxes that would be due upon the sale of the relinquished property.

The reverse 1031 exchange process involves several steps:

• Engage a Qualified Intermediary (QI): A QI is a third-party intermediary who facilitates the exchange process and ensures compliance with IRS regulations.

• Set up an Exchange Accommodation Titleholder (EAT): The EAT is an entity that holds legal title to either the replacement property or the relinquished property during the exchange process. The EAT is typically set up by the QI and serves as a temporary holding entity.

• Identify the replacement property: The investor must identify the replacement property within 45 days of acquiring the EAT. This is similar to the identification period in a traditional 1031 exchange.

• Acquire the replacement property: The EAT acquires legal title to the replacement property on behalf of the investor. The investor provides the necessary funds for the purchase.

• Sell the relinquished property: After acquiring the replacement property, the investor has 180 days to sell the relinquished property. The proceeds from the sale are used to repay any loans associated with the reverse exchange and cover other costs.

• Transfer the replacement property: Once the relinquished property is sold, the EAT transfers the legal title of the replacement property to the investor.

By using this strategy, investors can take advantage of tax deferral benefits while securing a replacement property without the pressure of selling their current property within a strict timeframe.

ICSC: Value or Vacation?

Ah, Las Vegas—the glittering oasis in the middle of the desert where dreams are made, and wallets are mercilessly emptied. Every year, the International Council of Shopping Centers (ICSC) descends upon this gambling mecca to host its Real Estate Convention, a gathering of retail enthusiasts, industry professionals, and some brokers who need a quick vacation before completely taking the Summer off. 

Let's be honest, this convention is less about unveiling groundbreaking retail strategies and more about Vegas-style excess and a whole lot of window shopping. So grab your oversized novelty dice and join me as we delve into the delightfully absurd world of the ICSC Real Estate Convention.

Forget about insightful keynote speeches or educational workshops; the real highlight of the ICSC Real Estate Convention is the abundance of freebies.

Exhibitors compete fiercely to outdo each other with flashy swag. From branded fidget spinners to miniature shopping cart keychains, you'll amass an impressive collection of useless trinkets that will clutter your desk until the end of time.

Who needs practical knowledge when you can have a drawer full of stress balls? I mean come on, we’re trying to shape our communities here!

In the dark corners of the convention hall, you'll find a breed of retail enthusiasts who are desperately seeking solutions to their fading fortunes.

These lost souls wander aimlessly, clutching stacks of brochures and pleading eyes, hoping to stumble upon the secret formula for revitalizing their brick-and-mortar stores. Unfortunately, they're more likely to find Elvis impersonators and magician wannabes than the elusive elixir of success. Curious to think if they’re the same people who are calling office brokers morons though?

While the event promises groundbreaking insights, it often delivers more smoke and mirrors than actual substance.

Amidst the glitz and glamour of Sin City, the convention becomes a delightful sideshow of overpriced cocktails, extravagant parties, and hollow promises of retail salvation. What better place to discuss the future of retail than in a city built on gambling?

The ICSC Real Estate Convention offers the perfect opportunity to roll the dice on your business ventures. Just imagine, you can spend hours at the blackjack tables in the evening, and then during the day, make reckless investment decisions that are about as predictable as a roulette wheel.

It's a win-win, right?

WEEKLY GIVEAWAY 🎰

Threshold is disrupting property management. They're 100% owner-aligned and you only pay based on net distributions: no leasing commissions, kickbacks, or hidden fees. Plus they've built a sweet owner platform that's like Robinhood for your rentals.

Shake readers get Threshold Management free for two months 🤝 

This month’s giveaway item is an OrbitKey 

How do you win?

We are going to post a closed transaction with some high-level details and whoever can guess the right sale price, wins.

If nobody gets it right, the closest guess wins. If two people get it right (screw us right?!) we will hook you both up!

Let’s kick it off 👇️ 

This Vegas SFH put more effort into the backyard than the kitchen. This 4 bed 3 bath has over 2k sqft. Seems perfect for a partygoer 🍾 

FIN 🤝 If you enjoyed this week's edition, don’t be selfish — share with a friend!

^{DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.and how regu06}