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Aug. 22, 2021

56. From Commercial Investing to 1031 Exchanges with Nathan Webb

56. From Commercial Investing to 1031 Exchanges with Nathan Webb

Join Mike Cavaggioni and Nathan Webb on the 56th episode of the Average Joe Finances Podcast to discuss the nuances of performing a 1031 exchange to get the most out of your commercial investments. Nathan has been an international entrepreneur and investor for over seven years now. While running a successful business overseas, he fell in love with real estate and immediately began investment projects in the US market. At first, Nathan chose multifamily for its stability and ability to force appreciation. But eventually, he also pursued 1031 exchanges for the tremendous tax advantages and exponential growth potential they provide. Today, Webb shares how he put those two passions together, providing multifamily acquisition and 1031 exchange services.

In this episode, you’ll learn:

  • Why “Rich Dad, Poor Dad” is often recommended to people just getting into real estate
  • The benefits of falling in love with project management when renovating a property
  • What a “1031 Exchange” is and how to get the most out of your investment properties
  • When you should contact a qualified intermediary when planning to do an exchange
  • The importance of preparation in a 1031 and how to understand the nuances of its rules.
  • And much more!

 About Nathan Webb:

Nathan Webb is a 1031 Exchange Accommodator. He and his team are the qualified intermediaries required to perform your 1031 Exchange. They leverage their Exchange Software and FinTech to make clients’ exchange 100% electronic, seamless, and secure, providing over $100MM in FDIC protection. 

Nathan also provides 1031 Exchange services all over the United States, specialising in California’s highly nuanced tax code. So far, he and his team have a 20-year track record of performing successful exchanges. They pride themselves on their service, always putting the client first. As an accommodator, Nathan always makes sure to walk his clients through the entire exchange process from one closing table to another.

Find Nathan Webb on: 

LinkedIn: linkedin.com/in/nathan-webb-gcc

Facebook: facebook.com/nathan.webb.58323431

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Transcript
Average Joe Finances:

This is Average Joe Finances podcast, Episode 56. If you're watching this on YouTube, make sure you smash that like button and click subscribe. For those of you listening on a podcast platform, be sure to subscribe on whatever platform that is, and leave us a rating if you can. The more likes ratings and subscriptions that we get, the more we can spread the message and grow our community. So we also have a free Facebook group. It's called the Average Joe Finances network. Check us out, join the group, join the community ask questions, and become a part of the team. All of our other social media accounts are listed in our flow page. And we have them in the video or podcast description below.

Nathan Webb:

I knew that I was already setting myself up to be in a not such such a great place. And I you know, reading that book just helped click things for me where I was like, I can be an entrepreneur, and I can take care of my own investments. And already like real estate, this is what I'm going to do.

Average Joe Finances:

Welcome to the Average Joe Finances podcast. Are you trying to get out of debt, invest or just not sure where to start? Then this is the place for you. We discussed different ways to get out of the rat race and build your wealth. Join us on this wild ride to financial freedom. Hey, how's it going, everybody? So today's guest is Nathan Webb and he's a husband, a father for an investor, entrepreneur, real estate professional and a 1031. Exchange accommodator. He started and sold to businesses in the Middle East before moving back to the states and getting into real estate full time. He's currently licensed in California and Georgia, and spends most of his time looking at real estate. He works to grow his investment portfolio along with his wife and some close friends. He's helping to grow a privately held real estate investment trust, as they approach $4 billion in assets under management, and is consistently shuffling 1031 exchanges through. Nathan is passionate about helping investors understand the power of the 1031 exchange, so they can use it to their full advantage. So Nathan, I'm really excited to talk about this topic with you today. Thanks for joining me on the show. Thanks for having me, Mike. It's a pleasure. All right, awesome. Hey, so I want to start this off the same way I start every show off. And that's, you know, we want to know a little bit more about you. So I shared that little bit in your background. But can you get into a little bit more detail and tell us how you got started? What kicked this off for you?

Nathan Webb:

Well, yeah, as you kind of covered, I had a couple of businesses overseas in the Middle East that I ended up selling. But what what was interesting, so I had a gym, and we were running the day to day operations of a gym. And we were contracted out to actually build some out, you know, people loved our gyms so much and said, Hey, you know, we're going to contract you guys out to, to build our gymnasiums up because we have these old buildings, they're just open spaces. You know, we want to build a gym out of it. We love what you guys did. So hey, why don't you come do this for us. So that is kind of where after building our own gym, I love doing the project management, I love making sure that everything was was outfitted correctly and looking good. So then doing that, for some other private contracts was just it was something I really like. So that was like a spin off business from what we initially created. And it was something that I just fell in love with the project management taking something that was rundown and just kind of nothing into something that was a performing business. And so that's really what kind of culminated my love of real estate. Even though I grew up working with my dad doing some construction. This was really what kind of brought it all about seeing the big picture take place and going from beginning to end that that really solidified that love of real estate for me.

Average Joe Finances:

Awesome, man. So you said you you grew up in construction, right? So you already had a good feel for how all that work. And you know, getting involved in, in like rebuilding these these buildings into gyms. You know, just that whole thing about taking something and changing into something totally different. Is is something that's that's pretty enjoyable to watch as you you know, get through and make the project happen. So falling in love with project management is probably something you have to do if you're going to do a lot of renovations on any type of real estate no matter what it is. If you're not loving the project, you're not going to be enjoying yourself too much. So that's awesome, man. So you talked about how you know this is how you got started. You had the businesses you had the gyms you you know you rebuilt those buildings. What else are you doing like on your own personal journey to are in financial freedom? Like what what are you getting yourself involved in with with your investing?

Nathan Webb:

So kind of interesting point you brought up there was you know, I was doing the entrepreneur thing I was doing the real estate on the project management side. I mean, I really love taking He thinks from beginning to end. But honestly, you know, doing this overseas and there was just a lot of finances, it was quite expensive to live over there and run our business. And while we, you know, ran a successful business, and I was well paid for what I did, because I was a partner, it was just like, this is not something that is going to fulfill my retirement, I didn't have a 401k I didn't have any, you know, investment strategies, or financial advisor over there. It was just like, pulling myself up by the bootstraps, doing the entrepreneur thing, growing my family. And so it was actually while I was overseas, that I started reading Rich Dad, Poor Dad, you know, you hear a lot about it. And I mean, it seems so cliche, but really what it was, was it changed my thinking, in terms of investment, it was no longer, hey, work really hard have this business. And that's how you're going to retire or your your job is going to take care of you, you know, you're going to have this 401k, I knew that I was already setting myself up to be in a not such such a great place. And I you know, reading that book just helped click things for me where I was like, I can be an entrepreneur, and I can take care of my own investments. And already like real estate, this is what I'm going to do. Today, it also had to also have this mentality, this spirit, I guess you could say that I had to do this quite intensely, I couldn't just kind of, you know, oh, I've already I had to really put into it and take, maybe you could say take a little more risk, but just approach it more aggressively to make the things happen that I want it to happen. But it really did. It kind of started with that book. And it's, it's grown from there.

Average Joe Finances:

Yeah, you know, it's funny, you know, you call that book which, which is well known as the purple Bible, right? They call it cliche, right, but I gotta tell you, a lot of people when they talk about what's the book that got them started into real estate, for most people, it's Rich Dad, Poor Dad. Now, the other thing about it, though, is it's not the best real estate book. However, what it does, especially for somebody who's just looking to get started, or somebody that knows that this is the route they want to go, it builds on passion, it helps you change your mindset, it helps you get you thinking in the terms of an entrepreneur, like somebody who is going to be business minded, and go out and conquer your goals. Right. And at least that's what the book did. For me. It changed the way I look at things not just exactly, but my business in general. Right, and how I promote myself and promote my own business. And yeah, that's so that that book is definitely a it's a foundation, I would call it a foundational book. So right on, man. So after that, so I know you got your real estate license, right, both in California and in Georgia. So how Where did that come into play? After you sold your businesses? And you came back? What What made you get your real estate license?

Nathan Webb:

Yeah, well, you know, I, I had no real ambitions. You know, I knew I wanted to invest in real estate. I knew I didn't need my real estate license to do that. I think it was more just a matter of when, when I left the Middle East it was it was kind of a I mean, it was it wasn't a business problem. It was more just like residency and dealing with all the red tape that that came with being a foreigner in a foreign country running, running an international business. And it just got to be too much of a headache with with a family. And I was like, we're gonna go back to the United States. My wife's from California. So we just we went back to Los Angeles. And, you know, I just said, Hey, I'm gonna look into this real estate thing, but I'm gonna, you know, pursue, you know, what I've been doing in, you know, and managing a gym. And I was going to get a job doing that. And I actually, you know, my appendix ruptured, and it ruptured, so bad that I had to have not a minor like, surgery, but where they went in laparoscopically, but actually had to cut me open and do some repairs. And because of that, I was basically kind of bedridden for three months. And I just said, Well, I'm just going to take this time, and I'm just going to get my license. And so it was, you know, I wouldn't say it was forced, but it was an opportunity and I just got it and then was able to land a job working for a family office doing multifamily acquisitions and property, property management, project management, you know, we buy the properties, we'd renovate them, we'd lease them up, we'd sell them, some of them we'd hold on to, we'd raise investments. So basically, I just kind of hit the ground running on the investment side, because I knew that's what I wanted. I mean, I had people saying, oh, come join my real estate team. We'll sell some houses. I was like, Ah, you know, wasn't super interested in that. I was able to take my project management skills, you know, into a family office and hang my license there and get a lot of good experience.

Average Joe Finances:

Yeah, well, I mean, it was something that you were already passionate about right, taking that project management skill set that you had, and applying it into commercial real estate, you know, now that now that you've got your license, so that's awesome. Now, one of the things I want to point out here that I think is absolutely amazing, is that the whole appendix rupture, I mean, that that it had to have been an experience to say the least, right? Because you have this, you had this happen, you had to have a major surgery, it sounds like right, because they to completely open you up. And this is, this is one of those things that could be like a life altering moment, because you never know, with a surgery like that, or even if you didn't catch it on time, I mean, the worst could have happened, right? And or if I was still overseas, right? No, not not having that same access to medical care. But, you know, it puts things into perspective that not only did you, you know, you were bedridden for three months, but not only did you pursue on recovering, but you pursued getting your license, you pursued something else, you, you know, you you knew it was something you wanted to do. And you said, You know what, I'm a little messed up right now. But I'm going to still press forward with my goals, and what's what's the next step, getting my license, taking the courses, getting that stuff done? So being able to do something like that after something so major happened to you? I mean, the obviously you obviously have the right mindset to be in the business that you're in, that's for sure.

Nathan Webb:

Well, I would agree with you 100%. Because my takeaway from all of that, that whole experience was, you have to have the ability to pivot, plain and simple. If you're going to be in you know, any sort of anything that has any gearing towards being an entrepreneur, you have to have the ability to pivot. And I even think, when it comes to people who work these for these big corporations, I mean, even their jobs, not guaranteed, nothing is guaranteed, you know, and having the ability to pivot. It doesn't just serve the entrepreneur, it serves the average Joe as well.

Average Joe Finances:

I like that. I like that. Nice tie in. Okay, so thank you for that. But at the same time, let's let's talk about, you know, what you came on to the show to talk about, right, so we're going to talk 1031 exchanges. So for the listener that doesn't understand what a 1031 exchange is, can you just give the wave top description of a 1031 exchange,

Nathan Webb:

Right, and this is something that I ran into, while I was working in for that family office doing a lot of apartment buildings, because a 1031 exchange applies to any investment property or any property that is held for investment or income purposes, right. So a lot more things qualify for a 1031 exchange than don't. But what it is, is that allows you to basically keep 100% of your money in real estate, so long as you buy other real estate, you know, obviously like, hey, if I was in the stock market, and in a brokerage account, where you're trading crypto, like as long as you're trading from stock to stock crypto to crypto, like you're not paying those, those gains, you pay when you take out. And that's this is just the avenue for that in real estate. As long as you keep buying real estate and you play this little game that the IRS has created through the 1031 exchange, you don't have to pay those taxes until you sell in the end

Average Joe Finances:

Right on. Now, for somebody that's doing a 1031 exchange, do you have to put 100% of your proceeds into the 1031 exchange? Or can you put some of it and withdraw and pay the tax penalty on what you actually take out?

Nathan Webb:

You can, it's obviously not as advisable, because if you said, made $100,000 in appreciation, which is what you'd be taxed on, according to the federal tax code, and according to the state tax code, you know, those are various different percentages. If you're taking out $100,000, but you're leaving the initial however much you had in there and equity, you're basically paying your full tax load anyway. But there's better ways to do that. I mean, you can exchange your money into the next property, put all your value, add into an appreciate Prop, do whatever you got to do, and then refinance it and take money out and you don't pay any taxes on that money. You know, but if you do, yeah, but if you do take out money during the exchange process, or you don't account for, you know, 100% of those proceeds to some degree, then yeah, you're gonna pay tax on that, and you can, but not always the best thing to do.

Average Joe Finances:

So yeah, I wanted to ask that because I didn't know that you could do that. I thought you had to put 100% of your proceeds into a 1031 exchange, and I just heard it on another podcast the other day, where somebody explained how you don't have to put 100% and so I was just it kind of it kind of blew my mind a little bit because, you know, I guess what I thought I knew about 1031 exchanges I I didn't know enough. So So I thought that was pretty neat. Now, if someone wants to do a 1031 exchange when when should they contact you or someone like you who can help them, guide them to do it correctly,

Nathan Webb:

Right. And so what an accommodator does and a Qualified Intermediary does is they, they stand in that gap because as soon as you you want to do an exchange and sell the property, that money has to go to what's called a Qualified Intermediary, right? It's a corporation, it could be an individual, but we were a company, you know, and we, we hold the money with the insurance to make sure that you get 100% of it, you know, back should the banks fail or anything like that, so we make sure all your money's insured, and then we make sure all your timelines are taking place. And we have to do all your paperwork. So I would say if you, if you need to do an exchange, give me at least a week, you know, before closing, so you do need to be in escrow, you need to have a signed contract, they need to make sure that title is clean. And after that, you can contact me and I can set up all your paperwork, you know, a month before close a week before close, I do do them, you know, like same day or the day before close. But I'll charge it for that. Because that's a lot of paperwork to shuffle in a short amount of time. And we're doing so many of them these days. But yeah, just give me some time to do the paperwork. Now if you just want to kind of strategize and you say, Hey, I'm doing this. And I want to make sure I can do this. Just give me a call anytime I'm happy to answer those questions.

Average Joe Finances:

Right on so well, actually, I do have a question about that. Right. So if you if you do do a 1031 exchange, what can you exchange into? Let's take a brief moment to hear from our show sponsors. What's going on everybody? So today, I want to talk to you about buzzsprout. The Average Joe Finances podcast recently switched over to buzzsprout. And I got to say, I am super happy with the progress. Our podcast is now on every single major platform and reaching audiences that we couldn't reach before, which is just super awesome. So thank you to buzzsprout for being such a great platform. But also I want to say Hey, guys, if you sign up for buzzsprout, and you sign up for their paid plans using our link, you'll get a $20 amazon gift card. So go check them out. It's Average Joe finances.com slash buzzsprout. And we'll make sure the link is in the show notes below. What's going on everybody. So today I want to talk to you about the podcast editing service that we use for the Average Joe Finances podcast that is edit pods.com. And what I really like about them is it's a subscription based service. So the prices are fantastic. And not only do they do the podcast episodes for us, but they also make us videos audiograms social media caption videos, they do our show notes, thumbnails, it's just fantastic products. Go check them out at edit pods calm. Let's get back to today's episode. You're listening to the Average Joe Finances podcast, whether it's single or multifamily real estate, the stock market or side hustles we discuss it all strap in and enjoy the ride. A great question. And the answer is real estate. Let's pretty simple.

Nathan Webb:

And I mean, some people think that you know, because it's typically called a like kind exchange, right? So they're like, Oh, well, I sold the duplex, therefore I need to buy a duplex. And that's not the case, the reason we call them like kind exchanges, because you used to sell a business and buy a business, or you sold real estate and bought real estate. So you had you couldn't cross those over. And now it's just real estate. So as long as you have a property, you hold title to it, you can sell that, as long as you can take title and the other thing. Okay, so what are the raw land? It could be an apartment building, it could be a, you know, a warehouse, it doesn't matter.

Average Joe Finances:

Well, what so you can you 1031 exchange, like let's say you sold a single family home, and you wanted to 1031 that into a commercial real estate property? Can you do that?

Nathan Webb:

Absolutely. You can sell five single family homes and go into a commercial property. You can, you know, sell one single family home if it was worth enough, like in California and go into two commercial properties if they were the right size and price. You can do all of that.

Average Joe Finances:

I guess I guess one single home in California can get you there probably.

Nathan Webb:

Maybe in Malibu.

Average Joe Finances:

Right? Or the Bay Area. So

Nathan Webb:

yeah, right shad in the Bay Area garage.

Average Joe Finances:

Awesome. So So what about like, what if, like, let's say I sold a single family home and I wanted to 1031 that into a syndication as a limited partner. Can I do that?

Nathan Webb:

That is possible. But as we kind of covered previously, whatever you're selling, you have title being held usually as your own name, or as a trust or as a limited liability company, for example. You also have to take title in that same entity, whenever you purchase a property so you're not actually buying shares. heirs of the syndication as a limited partner, there is an avenue in which you can purchase a portion of the real property as an undivided interest of percentage, and therefore take title to a percentage of the property. And that's through tenants in common or commonly called a tick. There's also another way that it's structured call a Delaware statutory trust, which is a little more, there's a little more legal involved in the sense of it's a, it's considered a security. So there's, there's more of that. But a tic is kind of kind of the Wild West. But you know, as long as you meet the rules that the IRS has laid out that this is a safe harbor property to exchange into via a tick, then you're good to go. And I do those all the time. So

Average Joe Finances:

Awesome, man, that's, that's good to know. So I asked that question, you know, because it gets a little more complicated when you when you start looking at it that way, and you're not able to buy in, you know, like, as a normal, you know, limited partner buying your, your shares, right. So

Nathan Webb:

Right, there's a, there's actually a lot of rules. So before people think, Hey, can I sell my, my little house here that's got like, 50 or 100, grand in equity, and go into the syndication? Come talk to me first, it depends a lot on the syndication, and what those those managing partners are saying, and how much they can need for their investment, because there's a lot of lot of nuances there. So make, basically make sure you got a little more equity than that before you you started thinking along those lines. That's usually the most helpful thing.

Average Joe Finances:

For sure. For sure. Yeah. I asked that question, because I've had a lot of multifamily investors on my podcast lately. So you know, this, this is probably something that's in the back of a lot of people that are listening to this right now. It's probably in the back of their minds, when we're talking about 1031 exchanges. So all right, so with all the nuances of a 1031, exchange, all the paperwork, all the legalities, the the timelines and everything that you have to meet, is it really worth performing a 1031 exchange?

Nathan Webb:

That does depend on the situation, sometimes people have not seen enough appreciation to make a 1031 exchange worth it, you know, I have people who, not that my fees are outlandish or anything but you know, your your tax basis is maybe 1000 2000, a few $1,000, that you've ended up paying in capital gains tax? And it's like, I don't know, do you tell me is it worth the hassle of the timeline and the stress and, you know, for some people, it's not. And I totally understand that, I'm happy to kind of help you walk through that thought process too. But for other people, for example, had had a family inherit property from their mother. And their mother bought it back in the day for $10,000. And it was now worth 4 million. And this is in California. So their tax basis was $1.5 million. And I bet just about anyone can think of a better place to go put that then sending it to the IRS. But it does depend on the situation.

Average Joe Finances:

Yeah, so so what what should someone do if they're, if they're close to their 45 day deadline, and they haven't found a property yet. So you know, you're going through this whole entire process, and it's, it's got to be stressful when you're, you're nearing the end, and you don't have anything to exchange this money into.

Nathan Webb:

And the first thing I always tell people is, before you even start your timeline, before you even sell, there's nothing that prevents you from looking and making offers, actually. So you can try to get under contract, try to get under contract and a couple things, you know, you can always back out, right. But try to have that next property lined up and in the apartment space, that's what I have people do. And that's what they're, they're good at doing. They, they they find the property that they know they want. And then they list their their property for sale. You know, and you might take a little bit of a hit on the price to make sure that it closes in time. But usually in the commercial space, you know, you can get those extensions a little easier than the residential space. But there's nothing there's nothing holding you back. So from doing that, so when it gets close to the 45 day, that's when I start like calling people say, Hey, you know, do you know what you're doing yet? And if there's really, really nothing like you were kind of down to like one property and nothing else is out there and nothing else is gonna work. Understand the market at the time of this podcast is crazy. And I have had people say, you know, I'm just not gonna identify anything. And so they fail their exchange, and that's okay, we give them their money back on day 46. You know, they just say as a failed exchange, they're going to pay their capital gains taxes and go on their way, you know, but other people, they really, really don't need to pay those taxes. And then there's other options. It's like if for as aggressive as you want to be I mean, would you rather not pay the taxes and make like Five to 7% return, there's always an option available for you. Right is there, you just really think that you're going to get this property. And if you don't, you need to have those backups, we can always put in backups, we can structure your your designation, notice, to just try to be as strong as it can protect him as it can for you.

Average Joe Finances:

Yeah, and sometimes, though, that that can be a real tough pill to swallow. If you're, if you're having to rely on you know, if your goal was to get yourself something that was like a 10 to 12% cash on cash return. And now, you're, you're stuck in a spot where you're making offers on properties that are going to get you a four or five 6% this is definitely a tough pill to swallow. But if you think about, you know, especially if it's a significant amount of money, of what you're going to save in taxes, it could be worth it, especially if you're gonna wind up like you, like you said earlier refinancing and pulling, pulling that out, and then go finding, you know, an actual better deal that's going to get you that 10 to 12% cash on cash return. And, you know, that's, that's another thing to take into consideration too, because, you know, if you're gonna, if you're gonna put a large down payment on on another property, you know, you can turn around and refinance it and pull that equity right back out, and go get, you know, now you can take the time, now you've got time to go find that other property. So maybe, maybe it is, you know, if if the numbers work out, and, you know, now you just acquired yourself two more properties versus, you know, just just one

Nathan Webb:

exactly, there's, there's a lot of options that every situation is so different, different strategies, right,

Average Joe Finances:

having different exit strategies in your back pocket that's important.

Nathan Webb:

With the 1031 preparation is absolutely the key to success. You know, I don't I don't have very many people, the people who go in there, just kind of like, okay, yeah, sure, I need to do an exchange, and then, you know, day 15, they haven't even figured out what their game plan is yet. And I'm like, Man, this one's not gonna go, this one's not gonna work, or they're not going to be happy with what they buy. Whereas the people who, you know, they literally send me the replacement property before they, you know, before their property they're gonna sell has even sold, I'm just like, yeah, it's a done deal. It's just a matter of shuffling paperwork.

Average Joe Finances:

Yeah, you had mentioned that earlier to, like, you know, a lot of the folks you see in the commercial space will have already have identified the property that they're gonna purchase next, before they even sell their their property that they're going to 1031 exchange. So you know, that, that whole thing, it's the same thing with with anything that you do in real estate, it's preparation, and, you know, putting in the work to make sure that you, you do all the right things, the due diligence, that you're making sure that you've identified everything. I mean, there's there's so many little nuances to it, but as long as you have the the mindset of preparation, and, and going forth, and not being afraid to do the work ahead of time. It shouldn't be an issue

Nathan Webb:

and have your people have your people set up, you know, taught me I just, I got I got my broker, it's like, you mean your brokers? Get those people working for you? They want to, they want to make money, put em to work.

Average Joe Finances:

Yeah, for sure, for sure. Awesome. And so, this has definitely been some great information on 1031 exchanges. You know, learning a little bit more about them as as we talk, you know, stuff that I didn't even know before. So that's really awesome. So I want to go back to Nathan web himself and ask you so you know, because this podcast isn't just about real estate. We talk about you know, our own personal journeys to win in financial freedom. Besides what you do with commercial real estate, you know, your own investments and being a 1031 exchange accommodator? Is there any other asset classes that you personally invest in, that you do to get yourself more financially free?

Nathan Webb:

Yeah. You know, I dabbled in crypto a little bit. And, you know, wasn't wasn't looking to get Yeah, I got out in time, don't worry about it. I made out okay. But it's, that's never something. Samba, I'm a fan of the 10 8010 portfolio. If people have heard about that, you know, and I liked I do, I like to have 10% precious metals, you know, something that I don't feel can go to zero 80% things that pay me to hold it, whether it's a dividend stock, you know, real estate is obviously my jam. You know, it could be a franchise, I pay, I did that. But, you know, I only I only put a little bit of money in the speculation in that final 10% and I was like, Hey, you know, this, you know, Bitcoin and aetherium. And these things could can really skyrocket and I was like, thinking I was, you know, I'm not I'm definitely no expert. I was like, I think, you know, I'm getting in at a good time. And, you know, I just want to make sure that I'm not keeping it in there. I'm pulling out the right time. And you know, I did okay, I could have done a lot better, but I could have done a lot worse too.

Average Joe Finances:

Yeah, for sure. All right, right on me. I like The 10 8010 strategy I mean, that's that's a good way to do it and having 80% of your your assets pay you. That's that's a pretty safe bet right there. Because now Now you've got some cash flow going. Yes, cash flow is king regardless. So like, the things that I've had a lot of people asking me recently, especially, you know, with my realtor hat on, you know, hey, is it worth buying a house right now, while the markets so hot? And you know, I want to buy an investment property? Is it worth it? Well, you have to look at it from the perspective of, will it cash flow, right, if you're gonna buy a property, and the value goes down, but it's cash flowing, guess what that means, if it's cash flowing, you can hold it till the value goes back up, because it will eventually go back up. So even when the markets dip, even in the stock market, you see the stock market drop, it comes back. Now, normally, it doesn't come back as quick as it did this past go around normally takes like two to three years. But, you know, none of us are psychics we can't, you know, predict what's going to happen or exactly going to happen. But you look at the indicators, right, then you can put a good picture together. Right? So, you know, so for those of you that are listening and looking, you know, thinking about, you know, should I invest is now a good time, it's I've said it before on this show, and guests have said it and and this is a famous quote too. But you know, the best time to invest was 20 years ago, the second best time is today. So definitely, definitely go for it. So Alright, so enough about that, I'm glad to see you know, that you have these different assets, and you have good diversification, right? So you're definitely going about it the right way to, you know, support yourself and your family and get yourself to a spot of financial freedom. Now, you have any last tips or tricks that you would recommend to somebody, you know, to the average Joe, that's just getting ready to get started, they just got themselves out of debt, and they've got some cash and they don't know what to do, what would you recommend,

Nathan Webb:

I would say, you know, if you have some cash, all your, you know, your job is providing for your expenses, don't go into debt to start investing. That's never the right course of action, I think I think you're just always got to handle your money, handle your finances, handle your business, you know, and then invest into something that you feel that you don't, you would not need that money right away. So if you're putting whether it's $10 100 1000 $100,000 into anything, if you need that money, like the next day, don't play that game, like put put everything should be kind of like long term, I believe, something that you feel like, hey, if I put $1,000 and I don't get $1,000 back, right, it goes to zero, or, you know, I can't pull out for 10 years or something like that, you know, and you feel that you can make that investment, make it that way. Don't, don't just be like, Hey, I got 100 bucks, I'm just gonna throw this up. I mean, you can always invest, you can invest with any amount of money, right? But just make sure that you're investing into something that obviously do your research, obviously, I want you to make a sound investment. But don't stretch yourself in the sense that you don't have enough savings to to live through an emergency or something like that. Or you have to sell those assets at an inopportune time to pay for that emergency. Right? Because you're you're investing in that thing, whatever that may be to see the appreciation down the road. So it should be a five or 10 year investment. It should not be a one week investment. You know, some people may disagree with that. But that me for the average Joe, I mean, you're investing for the long term, I think,

Average Joe Finances:

yep. No, I like that, you know, and it's, it's one of the things I I push to is, you know, you need to have some emergency fund set to the side anyway. So if there is an emergency, you've got that, and you're not dipping into your investments or anything like that. So yeah, fantastic, man. Alright, so I feel like you know, Nathan, this has been an awesome conversation, and people are probably going to want to know more about you and what you're doing. So where can they find some information about you? Do you have a website, some social media that you could share with us today?

Nathan Webb:

Yeah, I'm happy I have a LinkedIn, I have a Facebook. Mostly people really want to just talk to me, when it comes time to like, Hey, I have some questions about something. I mean, you read earlier that my title is a real estate professional. I only say that, because I just look at real estate all the time, whether it's a 1031 exchange, whether it's for the wreath that I'm working with, whether it's for my own portfolio and the friends that I'm investing with, I'm always looking at real estate, I'm always happy to just you know, offer advice, because I think advice should be free. And you know, you should you should take it with a grain of salt too, because I may be wrong. But I'm happy to just kind of lend my experience. So I'm happy to share an email address where you guys can schedule a phone call with me. Typically, it's a 1031 call, but if you just email info at a 1031 calm I'll get you set up with a within 15 minutes. Strategy call. Yeah. And otherwise find me on Facebook, find me on LinkedIn. Nathan Webb, you'd probably do that with 1031 you'll probably find me.

Average Joe Finances:

Awesome, man. Yeah, I'll definitely I'll make sure I have all your social media links in the show notes, as well as your email address. So if anybody wants to reach out to you and figure something out, or get on a strategy call with you, they can do that. So really appreciate you sharing all that with us. All right, man. I really feel like I learned a lot today about 1031 exchanges. You probably saw me sitting here taking notes. I love to take notes while I'm sitting here talking to my guests. I have this little black book of I call it my little wealth of knowledge my little Average Joe Finances brain, I guess you could say. So thank you for contributing to that today. And contributing to our show and and to our listeners. I really appreciate the information that you share with us today, man, and thanks for coming on the show.

Nathan Webb:

Well, thank you for having me. I really enjoyed it. And we haven't even begun to go down the rabbit hole of 1031 yet.

Average Joe Finances:

I know this again, this is just wave top stuff. I mean, well we'll probably have to have you back on in the future and really get into it you know and dive a little bit deeper. Happy to do that. Awesome, man. Thanks for listening to the Average Joe Finances podcast. Your source for beating debt, saving money and investing Learn more at AverageJoefinances.com. The Average Joe Finances podcast is for informational and entertainment purposes only. Do not use this for any real estate or investment making decisions.