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131: 1031 Specialists with VP of Growth, Mike Auerbach
Mike Auerbach is the Vice President of Growth at 1031 Specialists, a company dedicated to revolutionizing the 1031 exchange industry with tech-forward solutions. With a background as a multifamily broker and experience on both the brokerage and principal sides, Mike has developed deep expertise in real estate investment and the intricacies of 1031 exchanges.
The discussion highlights various applications of the 1031 exchange, including its use among family offices and large investment funds, aiming to simplify and promote this advantageous strategy.
By leveraging technology to automate repetitive tasks, Mike's team focuses on improving the client service experience, fostering stronger relationships, and providing trusted advice. The conversation touches on the widespread misunderstandings about the 1031 exchange, the application of AI in their business, and the importance of creating a recognizable and respected brand in the real estate industry.
Key Takeaways:
- Underutilized Advantage: 85% of real estate professionals do not utilize 1031 exchanges despite their benefits in deferring taxes and compounding wealth.
- Tech and Service Integration: 1031 Specialist uses technology to automate 137 of 144 process steps, optimizing client service and efficiency.
- Reverse 1031 Exchange: Investors can purchase replacement properties before selling current ones, providing flexibility in competitive markets.
- Market Education: There's a pressing need to educate brokers, CPAs, and investors on the advantages and processes of 1031 exchanges.
- Transparency and Trust: Being clear about revenue models and the benefits of 1031 exchanges builds trust with clients and propels industry change.
Notable Quotes:
- “It's a gift given to us by the government for free. In my view, this should be the default option.” — Mike Auerbach
- “Attention really is the new currency today, so how do you capture it and at least get someone to spend five minutes to talk to you?” — Mike Auerbach
- “We automate all those 144 steps besides seven steps that focus on the client service experience.” — Mike Auerbach
- “Most CPAs and tax attorneys are not specialized in 1031 exchanges, so investors really need dedicated professionals.” — Mike Auerbach
- “AI is something for us. We hired an AI engineer to build our own custom solution which now smarter than me and every 1031 professional combined.” — Mike Auerbach
Resources:
- 1031 Specialist Website
- Mike Auerbach on LinkedIn
- Articles on 1031 Exchange: Basic Guides for Real Estate Professionals
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