Paul Mark Morris

So if I'm paying...

$1,600 in rent.

And I look at the mortgage payment.

I'm like, yeah, but the mortgage payment's going to be two grand.

That's more, but I can't afford it.

Yeah.

So, you know, 1031 is really about pay taxes now or pay taxes later.

And if you can delay taxes, that's always a good thing because, you know, again, I'd use very, very simple math and let's say we,

got into an investment property and it was $700,000 and we put $300,000 in to make it great.

And you know, the rents went up and we waited a while and now it's worth $2 million.

Okay.

So if we sold it,

we would have to pay taxes on that one million dollar gain and that that would come out right now and then we would have let's say you know whatever it depends on what state you're in and that sort of thing but as you say now we have one and a half million to invest instead of two million to invest

If you 1031 exchange it, you can delay the taxes and then you invest the whole $2 million into a new property.

So you have more to invest.

And if you do that over time, your money will just grow much faster.

Of course.

And you're making the landlord wealthy.

You're not making yourself wealthy.

Also, there are tax benefits.