Retire from Management, Not from Income: Tax-Smart Investing with Ray DeWitt

·26 min·2 clips

Ray DeWitt reveals how accredited investors use 1031 exchanges to eliminate tax costs and create passive income.

Jeffrey Hayzlett hosts Ray DeWitt, president and co-founder of the 1031 DST Group, to discuss tax-efficient investing. DeWitt has over two decades of experience in finance and real estate. He begins by defining a 1031 DST as a passive real estate investment that qualifies for Section 1031 exchanges, allowing investors to defer capital gains taxes. The minimum investment is $100,000, and it helps investors avoid property management headaches. DeWitt notes the market exceeds $10 billion annually but is still not widely known, relying on referrals from accountants, intermediaries, and brokers. He explains the strict 45-day deadline to identify investments after a property sale. The discussion expands to alternative investments, including oil and gas funds that offer deductions on W-2 income. DeWitt describes a wildlife conservation fund in Texas that breeds exotic animals for auction, providing tax breaks and profits. He clarifies that Opportunity Zones, renewed in recent legislation, allow tax deferral and eventual tax-free gains after 10 years. DeWitt emphasizes educating clients with simple language and transparent options. He addresses risk management through third-party due diligence and diversification across assets like storage units, apartments, and precious metals vaults in Wyoming. The episode concludes with DeWitt's advice to 'pay yourself, not the IRS' and Hayzlett's endorsement of his expertise.

As heard by us

A practical episode on tax strategy, property exits, and more passive investing.

Tax-smart investing anchors the episode, with Ray DeWitt laying out how 1031 exchanges and Delaware Statutory Trusts can help support passive income while giving investors ways to defer or reduce taxes.

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Why you'd press play

You want out of property management without giving up the passive income your assets can produce.

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