Seminar 5: Wealth Creation Through 1031 Exchange
Channel: LMU College of Business Administration
Date: 07/03/2024

Instructor: Edgard Asensio, MBA '12, Founder, Asensio Real Estate

This course is designed to introduce students to 1031 exchanges from the vantage point of real estate investors specializing in office, mixed-use, multifamily and industrial properties. The class discusses the value proposition of engaging in a 1031 exchange as a way to unlock the existing equity in commercial real estate assets, review the set of financial models and frameworks used to assess the economics of the transactions, and assess the equal or greater value of the replacement property.

Students will be able to understand the fundamentals of 1031 exchange process, replacement property identification rules to complete an exchange, timeline to complete the exchange, applied strategies to relinquish real estate and acquire new property while deferring capital gains, depreciation recapture and net investment income on the sale of the relinquished property. Students also acquire an understanding of exchanging real estate assets to improve financial performance, quality of assets and increase value to a real estate portfolio.