Wealth Strategies with Dave Foster: Growth Mindset & 1031 Exchange Insights

0:00 Now and Kevin's for the US tax code, because there's this thing called the 1031 exchange which allows you to sell investment real estate, take the profits, hand that tax and invest it for yourself and do real estate. And when you do that, you don't have to pay the tax. Now I think that would what that would have meant for me 30 years ago.

0:20 I know you know how to compound interest or the rule of 72. It allows you to take that tax and use that to purchase the new property. So I could buy more property. Welcome to the King Dems Podcast, where business leadership meets growth mindset mastery and smart financial strategies for growth and success.

0:41 We're live, ladies and gentlemen, you once again welcome to the Kingdoms podcast and diarrhoea for CFO today fighting out of a recorder. We've got with me fighting out of Florida, United States of America. McLaughlin, Dave, the founder and CEO of the 10th 31 Investor Forester. How are you today, Dave?

1:08 I'm doing awesome. It's great to be here. As you well know, since I'm in Florida, the air conditioning's turned up. It is what? It is. Well, it is what it is. And of course, yeah, as you all know, I'm in London, England, and it's hot, it's summer, it's summer, we're meant to be outside. But because of a very special human being, I'm inside today. And of course I'm recording a very, very special guest. I love to speak in present tense. I love to give people their flowers while they are alive. And of course I've prepared.

1:39 I'm really interested introduction for Dave Foster. Dave, you sit, relax and let me read your introduction. So ladies and gentlemen, once again today we are joined by Dave Foster, Founder and CEO of the 1031 Investor. Dave is a seasoned accountant, real estate investor and tax strategist with over 2 decades of experience helping thousands of investors legally defer taxes and maximise their returns through the power of 1031 exchanges and Section 121 exemptions. Not not only has he mastered these strategies, but he also used them to achieve his own dream lifestyle. I'll see the American dream, raising four boys while leaving a bird sailboat and building a thriving real estate portfolio. Eve is here to share practical

2:34 insights that will help entrepreneurs, investors and business leaders keep their money working for them while navigating complex tax laws. Once again, big welcome The man, the myth and the legend. Dave Foster. Thank you. We're also Dave, a lot of people want to be like you. You know, you, you, you.

2:53 You might not do it, but I say intentionally for you. You are leaving the dream of many people and of course you are a role model. What can you take us back to the moment when you realise that almost 40% of your profits were going to the IRS and how that's part of your journey into mastery in the 10th 31 exchanges?

3:17 You know what? You're taking me back to Dems is the worst mistake I ever made. You're going to make me relive that. Are you OK? It was about 30 years ago when I was just getting started. My wife and I were in fairly high profile careers, but we were getting burned out. You know it happens. At that pressure, that's the thing.

3:37 That's the thing. A bit of professional, you know. We had this remarkable event, we had our first child and all of a sudden we realised that there was this tension between wanting to do nothing but hang out with our child and the pressures of work. And so we decided, you know, we need to figure something out. So somehow, two people who had never been in the ocean at all decided that it'd be a good thing to buy a sailboat and sail away.

4:05 And the way we're going to do that was let's become real estate investors. It's got to be easy, right? Anyone can do it. So my nickname, you know, yours is King James. My nickname is Ready, Fire Aim Dave. Ready, Fire. Aim. So I just went out and said, yeah, let's do this. So I bought a duplex in Denver, fixed it up, rented it out, then got ready to sell it and thought I was king of the walk that I've done really, really well until my accountant told me that I had to stroke a check for $30,000.

4:37 Now, this was 30 years ago. That was real money then. It's real money today. It's a real money today. It's a lot of what it's day. That was not part of the plan because we had set very intentional goals that we're ten years in the making, and if I was going to have to do that to the government every time, just was not going to work.

4:56 As a matter of fact, today that still haunts me. And it's why I always remind people that do not ever forget that when you're investing in real estate, and I know it's true in the US, it's probably true everywhere. You have a silent partner, and in America it's called Uncle Sam. It's the government.

5:14 They are your partner whether you like it or not, and they're going to take their fair share. And Kevin's for the US tax code, because there is this thing called a 1031 exchange which allows you to sell investment real estate, take the profits and that tax and invest it for yourself in new real estate.

5:35 And when you do that, you don't have to pay the tax. And I think that would what that would have meant for me 30 years ago. I know you know how to compound interest or the rule of 72. Is one of the world. Yeah, and if I was making 10% a year on that $30,000 thirty years ago, how much would I have right now instead of writing a check to the government? Almost $1,000,000 is what I'd have from one mistake. So yeah, it keeps me up still at night. But we've done OK because we discovered the 1031. And since that time, that's been my mission, both for myself and for clients.

6:12 So, so for those people who are new to this right, what exactly is a 10/31 exchange and why is it considered such a very, very powerful tool for real estate investors? Well, let's just imagine that. We'll stay with my example. Let's say that after my profits and after tax, I had $80,000 to invest in a new property. If I put 20% down on that property, I can buy a $400,000 property, right?

6:43 Well, what if I had that plus the tax? Let's say the tax is only 20,000. Now I've got $100,000 to purchase new real estate with. Because I'm not paying the tax, that means that I can buy a $500,000 piece of real estate. So if I pay the tax, I can only buy a $400,000 piece. If I don't pay the tax and do a 1031 exchange, I can buy a $500,000 piece of property.

7:12 Now over time, over five years, let's say, even if those two properties appreciate at the exact same rate, if I was able to buy a $500,000 property to start, I'm going to be selling that for quite a bit more then if I could only buy a $400,000 property. And that's what the 1031 exchange does. It allows you to take that tax and use that to purchase the new property.

7:39 So I can buy more property, I can generate more income. And that's the compounding effect that Albert Einstein loved so much, is it allows us to use the tax to make our money. So are you able to do like a walk through right for the key requirement that every investor has to meet in order to have a successful exchange and be compliant? Yeah, absolutely.

8:04 Because that's where the that's really where the rubber hits the road because the IRS lost a lawsuit about 25 years ago. And when the government loses A lawsuit, they're never happy. So they had to let us do these, but they didn't have to make them easy. So there are some very stringent requirements. The first thing is you want to think about this in an order of sell, then buy.

8:26 And I know that's totally different from regular. We always think of a real estate as starting when I buy a piece of property. And as a matter of fact, are you familiar with the old proverb, you make money in real estate when you buy it? Because the idea is that everybody's looking for bargains.

8:45 So I want to find that cheap piece of real estate that's undervalued, that someone doesn't know what it's worth, and I'm going to go buy it and then I'm going to make money when I sell it. The 1031 exchange is the exact opposite. The 1031 exchange starts with when you sell a piece of property. So it has to be investment real estate that you sell, and then you replace that with new investment real estate.

9:12 That's all that it qualifies for. But it can't be any type of investment real estate anywhere in the United States. If your property you sold was in the United States, then there's a couple timing requirements. You only have 45 days to find your new property and you only have 180 days to close on it. So you don't have a lot of time.

9:31 You got to be pretty focused. Now the same taxpayer is going to sell, it's going to buy, and you have to use. This is the key. You have to use what's called a qualified intermediary to do this. You cannot do it yourself and then just report it on your tax return. The qualified intermediary has to be involved prior to closing your sale, which starts the 1031 and they're actually your guide through the whole process.

9:57 So all of these other requirements are you're LED through them by your qualified intermediary. But if at the end of the day you have followed those and you have purchased at least as much real estate as you sold, you get to definitely defer paid all of that tax or depreciation recapture. So how does the 10th and one exchange compared to paying taxes upfront?

10:25 Like what's the portfolio impact over, say, over a period of time that is more than 10 years? Got a boy, I wish I had my my screen pulled up. We've got some examples that we show people where over 4 transactions. That's all just four. Every five years they sold a piece of property they started with $100,000 for the investor that does the 1031. The investor that paid the taxes they went starts with $80,000 so their ferries.

10:59 Their second purchase. The investor that does 1031 is able to buy 500,000. The investor that pays the tax could only buy 400,000. At the end of 20 years and four transactions, the investor doing the 1031 exchange will have, with everything else, stayed the same, $11.8 million of real estate that they own and control.

11:22 The investor that simply paid the tax as they went has about four and a half million. What's the difference? The deferred tax from the 1031 exchange went to buy more real estate. Now, at the end of that 20 years, that investor still owes almost $500,000 in taxes, but as long as they owe the real estate, they never have to pay it. So I don't know, James, what would you rather be? Own four and a half million but don't owe any taxes or owe $12 million and a half a million of taxes waiting for you. As long as he can't, he can keep deferring it. You know your your hot fee.

12:01 That's exactly right. Well, and think about this too, if I'm making 10% a year, which is not that hard to do on my real estate portfolio, how much I've been making each year on 12 million, I'm making 1.2 million a year, 600,000 every six months. I could just put away enough to pay those taxes into a bank account with five months worth of income. And at the end of that, I still have $12 million in real estate. So that's the power.

12:27 Smart strategy. One exchange. Smart that. That's pretty much smart. And of course, if you if you don't, your eyes are properly, of course, you cross your teeth, your compliance, you may never even have to pay those taxes in your own lifetime. But like, what are some of the advanced strategies like reverse exchanges and of course, construction exchanges?

12:50 And what should an investor consider when you know making these strategic decisions? Right. So reverse exchanges are really one big bucket. That would include a regular reverse exchange, a construction exchange, an improvement exchange. Those are all just types of a reverse exchange, and what they're designed to do is to be a workaround from the tight time constraints because by law you cannot take title to your new property until after your old property sells.

13:25 But what if you find the perfect property that you want to buy? Well, you could do a reverse exchange which does not change the order, but what happens is the qualified intermediary takes title to that new property and then we can hold it for up to 180 days while you get your other properties sold so that you extend your timeline. Improvement exchanges are really neat because when we're buying, we always like to buy bigger and better. But what if I sold a property, fixed up multi family property, say for $500,000.

14:00 But I found a really neat the value add opportunity. There was a multi family that I could buy for 300,000 and put $200,000 in and have it be worth a bill. That's what's that I said. That is like an overhauling. You're basically overhauling that particular property and it's improves the value. Exactly.

14:24 And that's what we would do at an improvement exchange because remember, you sold for 500, so you have to buy for 500. But what you're really doing is we're buying the property for 300 and then you're putting the improvements in it so that it works for your 1031 exchange. But instead of at the end of the day, you get a property that still needs improvements, you get basically a brand new property ready to go.

14:47 So those reverse type exchanges can't be really, really welcome. You know, I love how you talked about deferring the tax throughout your lifetime if you're smart, and then you immediately ask me about advanced strategies. Here's the most advanced strategy you can get. Die. That's it. Die while you're owning your real estate.

15:04 I know you wouldn't think of that, would you? Definitely. You know, I always tell people that the only two things that are sure in life are death and taxes. If you die right, you're still going to cheat the taxes because under U.S. tax code, when you die owning real estate, your heirs inherit that property with what is called a step up in basis.

15:26 So they inherit the property as if they paid market value for it on the day you died, which means would they inherit it if it's worth $500,000? They inherit it as if they paid $500,000 for it. All of that tax that you deferred in your 1031 exchanges throughout the years is gone. You never paid it. You're a state never painted.

15:50 The air is never painted. That's why the mantra of the 1031 exchange dams is defer, defer, defer and they die. So. So when the hair is actually inherited, how about the capital? The capital gains are toxic. That all disappears. It's gone when you inherit it. So when they inherit, they inherit at the market value. About what does the US tax lower demand of the hairs? Are they meant to pay any form of taxes if they are to sell the the property?

16:23 If they sell the property the day they inherit it, no tax. Now if they hang on to the property and say that property appreciates another $100,000 from that date, that they're going to pay tax on $900,000. So that funds their own capital gains. Unless they do what names? They they, they, they, they die as well.

16:43 Or they do 1031 exchange. Yeah, they, they keep they. Keep I have one family of clients where we started doing 1031 exchanges for the grandfather 25 years ago. He passed away after 5 or 6 years and his son inherited all of the real estate. Now because he inherited it tax free, we did not see the sun for a few years, but then he started after a while doing his own 1030 ones because they had appreciated. He passed away about six years ago. His children inherited the property and we're starting to see them again just now doing their own 1030 exchange. So through process of 1031 exchanges of death, we've seen 3 generations.

17:33 Generations. Never pay a penny. Yeah, real estate hates tax. Come on. That is 3 smart generations. You know that that's, that's really, really wild. But what what would you say are the common mistakes that you have seen investors bake while trying to execute 1/10 at one exchange? And how can they possibly avoid those mistakes?

17:55 Yeah, The first exchange is simply not knowing that you have to have a Qi at Blinks prior to selling the property. I get calls still every month and it'll say, Dave, I sold my property last week, the bodies at the escrow company ready to do it to 31 exchange. And I have to say, well, unfortunately you can't because it wasn't documented on the settlement statements. And more importantly, according to the IRS, even though you haven't got the money in your account, you have constructive receipt on it and so your opportunity to exchange is done. So not planning ahead and having the Qi in place is a big mistake.

18:33 The second one that I see is not researching and planning ahead of time. Everything in life is so much better if you do it intentionally. And intentionality involves planning so ahead of time. If you sell your property and we start the exchange that day and you're still you're telling me that that next week, Dave, I'm looking at commercial properties in New York and vacation rentals in Las Vegas. And I'm not sure if I may want to do it in San Diego. And I'm still trying to figure out where I want to go and what I want to buy.

19:08 I could just about guarantee your exchange is going to fail because you're not going to be able to be focused to find the properties you want in the demographic and sector that you want and underwrite that those in time. You just aren't going to be able to do it within that 45 day period. So planning way ahead to figure out what you want to invest in next and where you want to invest next. And that's one of the biggest strengths of the 1031 anyways, is that you could react to whatever the market is telling you.

19:43 So if you were one of our clients in San Francisco in 2013, 2014 Silicon Valley was blowing up and it was just going crazy. Well, as rents got controlled, people were making less and less money off rents. So even though the appreciation was great, such a good investment anymore, but because a lot of our clients were following the market, they watched and saw this guy named Elon go down and buy a couple $1,000,000 of Austin real estate. And so they sold their San Francisco investment properties and did 1031 exchanges to go buy West Texas land near the mega factory.

20:25 And that's how they use the 1031 exchange to really ramp up their portfolios. But the only way they could do that was by planning and anticipating where the market was going next and then obviously doing their research. So I would say those are two big things, not starting early enough and about doing enough advanced planning.

20:44 So like you asked me prior to Stutton dessert episode, it's very important for us to know the composition of the audience, right? And the the data at the back end on Spotify, YouTube purchaser tells us that over 75% of our audience are persons between the ages of 28 to 45 years old and the mostly professionals, right? And more than 40% of the people that watch or listen to this podcast have a university degree or higher. And most of them are professionals and entrepreneurs first before investors second.

21:33 So how can these people integrate tax strategies, you know, like the 1031 exchange into their overall wealth building plants? Of course, if you don't plan, what would we say? If you fail to plan, it means you plan to fail you. Plan to fail. I love that. Yeah, that is the greatest softball question ever because let's talk about that demographic. Games.

21:58 So the first thing we know is we're dealing with professionals that have less time, but probably more money. So the first thing I would say is don't delay. Start now #1 because real estate investing in general, as with any other type of investing, is not a Sprint. It's going to generate momentum as it goes.

22:20 The longer you're able to keep the taxes deferred, the more income you're going to generate, whether it's two years or 20 years. But if you could structure your life to start investing now, you're more likely to get 20 years of tax deferral and appreciation. So it's that much more gain for you. So start now. It's the perfect time.

22:43 Here's the prototype investor that you just described, but they're what I call the accidental investor. Then. Now, I say that because the average married age, you know, generally happens after college, and 28 seems like it's fairly normal. Well, if 28 and post college means that I already have a career, when I get married, I probably already own a house because I bought a house to live in.

23:10 Well, when I get married, they've got a house because we typically marry people like us, so they've got a house as well. They're 28, they're a professional with a career. Well, we're only going to live in one house, right? Exactly. By the way, do you know which one you move into? Well, it's likely.

23:26 It was likely. Let's, let's not, let's not talk about that because we were going to be causing some gender sensitivity. Oh yeah, the risk of being cancelled. We're not going to talk is going to be the swab. You got it. OK. So you move into one of those properties, you just became a real estate investor because you have a property over here you have to rent.

23:49 A couple years goes by, all of a sudden you're a little addicted to that rent, right? You just like that sugar taste, you know that? Carbohydrates. Yeah, exactly baby. That rent check every month is awesomely nice. That's awesome. And so then you start to think about expanding that, hey, wouldn't it be cool if we sold this and bought 2 using the proceeds as a down payment and your spouse agrees and so off you go. You do a 1031 exchange.

24:16 All of that profit is deferred. You buy 2 new properties, then a few years later you sell those, you buy 4. Or you decide be kind of fun to move into multifamily, let's go buy a duplex. Or it's time for us to shift into commercial properties. Maybe we buy a vacation rental because now we're having kids and we want to start building family memories as well as generating income.

24:39 Those are all examples of what our clients have done throughout their years as real estate investors, all starting to remember as accidental investors. And then one day, games, they wake up and they're tired. You know why? Because they went from 1:00 to 2:00 to 4:00 to 8:00. They got 16 properties and they've all got plumbing issues and angry.

25:01 Tenants, it's it's difficult to deal with, very difficult. So what they do is they sell 4 properties for $100,000, you know it's just called $100,000 each and they go buy one property for $400,000. So they start to consolidate their portfolio. That reduces effort, could increase income, but also starts to set them up for retirement when they can move from active investing to passive investing.

25:32 And then finally of course back to the whole die thing. They die out of their real estate. One of the greatest hacks that very few people know of is that you can tip to a minute vacation rental. You love to ski. You want to ski in Colorado, You're not your retirement years. So you buy a vacation rental and they when you're ready to retire, you can't convert that property from investment real estate to your primary residence without having to pay tax because the only thing that triggers the tax event is selling the real estate. So if you simply change the use of it, it changes where it's reported on your tax return, but you don't pay the tax. So you can actually set yourself up to retire in a beautiful vacation rental tax free.

26:18 Interest in strategic planning is very, very, very important. But you know, at some point the the active investors want to transition into like a more passive approach, right? So how can the 1031 exchanges help investors see from active management to that passive income stream? Yeah. Well, you know, first of all, just in general, the next step, let's think of this as a spectrum. So on one end, we've got active taking all the calls, fixing all the repairs, doing everything.

26:51 On the opposite end, never touch it, go to the mailbox and get a check. Hey all on that spectrum, the first thing you could do is hire a management company to manage your properties. We get mixed reviews on that for people because you still have to manage the managers, right? So you got to watch out for that.

27:09 The next thing down would be to transition from single family properties into larger multi family properties. Dollar three or four single family rentals and buy a 12 Plex. Maybe one of those units you can hire, you can give to a manager in lieu of management fees. So you're concentrating and reducing the effort there while at the same time hopefully generating more income.

27:35 So that's the next step down towards passive. The move from commercial into commercial real estate and what's called triple net commercial can be really beneficial here because triple deck commercial simply means that you have one piece of property, you own it, and the tenant is responsible for taxes, insurance and maintenance.

27:58 Now you may have a small building that a National Insurance Company has their offices in or a regional tyre company, but all you're responsible for is is the lease itself. They're responsible for everything else, and usually the leases of triple that. Commercial properties are 15 to 25 years. So it's a lot less work, isn't it?

28:24 That would be the next step. The furthest you can get on the passive end would be probably a product called a Delaware Statutory Trust. Now, these are fractional ownership of actual real estate, but because the IRS has blessed them officially for 10:31, you can buy that fractional interest. So you might buy 1% of an Amazon distribution centre and you do nothing other than give them your money and you sign the membership agreements.

28:56 And from that moment on, you walk to the mailbox every month to pick up a check. Every five to seven years, that company will sell that asset and you'll do another 1031 exchange. That's as passive as it gets. So you know, the Kingdom's podcast is about growth mindsets, leadership and business insights. And I very much appreciate the fact that you are a guest that aligns with the three major themes that we have set out on the podcast.

29:29 And also when you look at the diary of the CFO, right? So the diary of the CFO actually sets out to provide, you know, smart financial strategies for business growth. So it's very important that we have those financial strategies to help us to achieve smart business growth. So with that said, I know that you've seen with your wealth of experience, when I see thousands and millions of businessmen, entrepreneurs, professionals that have succeeded.

30:04 And of course, you have seen those ones that have also failed. And the difference can be attributed to one thing, which is mindset. So what would you say is the mindset that separates, you know, the good from the great, right, and that mindset that helps to build lasting wealth, you know, over time?

30:25 Wow, we do all podcast just on that. You know, I would say there's there's there's three things we've already talked about The first one, which is intentionality. Success doesn't just happen accidentally to most people. Sometimes, yes, but you better not count on it. I couldn't count on it. Intentionality and planning is so huge.

30:49 Pick a goal and then start working backwards from them. The second thing is true success. And man, I know this is not the mantra that the tick tock generation is promoting, but success is a slow cooker. It's a crock pot, not a microwave. So you've got to be patient. You know, if you heard the phrase, it's not timing the market, it's time in the market that determines your success. So, and then the third thing, I think it, this is going to be very counterintuitive.

31:21 Although we read the stories of self-made billionaires and billionaires, I think the greatest mindsets you can have is that of giving. And I really believe that with all my heart because for the compared to the few people who can make it all on their own, there are so many more people that achieve success because they shared their dream, they shared their success with others and that simply propelled them further. And sharing your success, having a sharing mindset is going to make a lot more successful people. You know what I'm just about?

32:00 There's an African proverb. Does it come from Nigeria that says if you want to go fast, go by yourself, if you want to go far, take a village? Yeah, well, we we have scenes like that. Similar. Yeah, we they, they say where I come from in Yorba land, they say Iggy called Dabushi, meaning one she doesn't make a forest so. Yeah, exactly.

32:26 I can't. That's the people that have helped to spur my success. We're already successful, and it's up to me to pay that format to help others become successful. And then when we become successful, we continue to be blessings to those who have helped us. That's that's what's going to make the world a better place. Yeah, you know that that also reminds me of of another proverb from Nigeria, they say Karen Kapoor meaning like when we walk in company, when we walk in groups, right, It brings honour to us as a people, right?

33:02 Yeah. So basically you, you, you move together and of course you achieve success together. But a lot of people have that individualistic mindset and it baffles me because, yeah, the the, the as, as human beings, right? Our instinct is self preservation, right? Yeah. And it's counter intuitive. And for the lack of a better word, in, in some sense, it's sort of foolish if you think about just yourself and think, oh, you, you want to be greedy.

33:33 And you can achieve a lot by being greedy or being of personal hearts right? Like you can't go far that way because you will definitely need people. And I don't personally do not like the idea of a self-made whatever self-made millionaire self-made billionaire because it is a fallacy. Are you telling me that nobody ever helped you on the way up? Like I've never seen that one person that did not need the help of anybody to achieve whatever it is that they've achieved.

34:04 So I wonder why people like to promote the concept of being a self-made millionaire or self-made billionaire. Come on, some somebody along the way helped you. Did you just drop from heaven or something? Like growing up you had parents, you had uncles, guidance, aunties that took care of you that make sure you did not die as a child right? You went to school or you were taught a trade by people. So how come the concept of being self-made? I don't understand.

34:38 I stand to be corrected, but to be honest I don't understand the concept. OK, here's what you're going to. This is going to resonate with you, my friend. Even a lion by himself can't be killed. Yeah, you see. The lions you see, the lions of my home. Where he is surrounded by his pride. Yeah. Nothing. Can't touch him.

35:00 Yeah. So I very much love that. And you know, I very, very much appreciate you. And there's something that always see that an attitude of gratitude is good attitude. And when a person shares their time with you, they share their life with you because the SI unit for measuring life this time. So for me to you to love and respect, you know, for, you know, joining us on the podcast today, but I will not let you go without putting you through the Pacific Ring of Fire.

35:28 It's like you say, hurricane season. Let's have the quick fire around. Thank you. Ask you 5 questions that give me the first answer that comes to your mind. Are you ready to rumble all? Right, let's do this. OK, So what is one book on wealth or strategy that changed your life? Whatever happened to penny candy? Interested in it?

35:51 Now I know it's a book by Richard Marbury written for 14 year olds, but it's the best primer on inflation and inflationary monetary policy you've ever read. Well ET say everything for 40 years 40 year olds in my country in Nigeria this there's a popular say in the city full of 40s a fool forever. Well, I'm a four year old that appreciates 14 year olds. So the second one, what is the biggest myth about taxes or 1031 exchanges?

36:19 Biggest myth about 1031 exchanges is going to be that you could simply sell a piece of property and without planning, make it succeed. That goes back to our old. Game. This whole thing, yeah. And if you fail to plan, you plan to fail. Think about it, Link to Plan is even a plan on its own, because it means your plan to fail. So don't blame people who fail to. Plan well, you'll be a success at least just a. Way a reverse engineering world.

36:49 It's a What's your dream destination you'd love to sail to next? I would love to sail to Georgetown in the Bahamas every week. About 600 I. Had that on my mind. You read my mind. Yeah, 600,000 boats congregate there all winter. Yeah. They, yeah, they have a great time. Would not want to go there this week with that hurricane out there, but yeah. Well, you read my mind because the Bahamas is 1 a fantastic coastal island that that I've always appreciated. And of course, God rest his soul. There's this guy who was very popular from Bahamas, Miles Monroe.

37:32 Yes, I had the opportunity to meet him before his demise. Very great guy, you know, highly, highly resourceful and loaded well. So one daily habit that keeps you financially shocked. That keeps me financially shocked. OK, this one's counterintuitive. I make the bed every day. Yeah, I like. What does that do financially for me?

37:54 It's my way of telling my wife I love her so she goes out and works extra hard. Poppy wife Hopper. Exactly. Guys out there, I hope you're taking notes. You need to take notes from Dave Foster. Yeah. That that's, that's our, would I say our foster father now, right. So you need to take the notes from Dave Foster in order to succeed faster.

38:20 Make with that information whatever you wish to do with it. So the very last one is if you had to start all over again today with just $10,000, how would you invest it? Again, a really counterintuitive question. I would invest in a membership being Toastmasters and anything education wise, not liberal arts, technically technical education. So whether that's Microsoft Suite or some sort of AI or SEO training is public speaking where you learn? Because I think I think one of the things that we're great danger of losing the Society of the day is the ability to communicate face to face.

39:06 We could do it over screens. We can read text. We do all this, but being able to communicate face to face and honestly, what I think is the people that I've done business with overtime, that I've chosen to do business with overtime, it's people that could look me in the eye while speaking and maintain their credibility. Yeah, and composure.

39:27 Yes. Yeah, people, people are fast losing it in this age and time. And I wonder like what is happening, what is happening? But I think it's really best to to have that hybrid, you know, being able to communicate in person and of course, you know, communicate via digital tools. And it involves putting yourself in those situations over time, over time. I remember in university I was an MC, I'm called advance conferences, right?

39:58 Spoke in front of large audiences and I did not realise that me putting myself in those uncomfortable situations. Was preparing me for bigger and greater leadership roles, you know in yes to come. So when I see people being scared, you know, to present in front of an audience of 502 hundred people, say even 1000 people, I laughed because like back in university, I was doing presentations in front of 5000 people. So why would 100 people intimidate me, right? So I think it's important for people to put themselves out there, especially very early in life, right? It helps you to be able to have that confidence, right? To to be able to excel and being able to communicate is very, very important because no matter

40:47 the level of technical skills that you have, right, you need to be able to comfortably and confidently communicate the knowledge of those technical skills. And that's what is going to take you, you know, far and help you to, to achieve things with those skills that you have. So I don't know what you what, what you would say regarding these things. Well, you're absolutely right.

41:12 It's Warren Buffett. Actually. That quote's been running around. Now, if you're going to invest, first invest in yourself. Invest in education. Absolutely, absolutely. Like a very, very important. I remember, you know, like I remember somebody when I was investing in my MBA, this one was like, oh, why don't you invest in probably like a property back home in Nigeria or something like you doing more education. And I'm like, excuse me, do do you understand what it means to have an MBA?

41:41 I don't know, like the biggest investment you can possibly invest is investment in yourself. And investing in yourself helps you to exponentially increase the capacity of revenue that you can possibly earn overtime. And yeah, I'm I'm not a multi millionaire now, but you are. So I love it to come from you to advise that the younger people out there letting letting them. Go look at the zeros today, tomorrow. Yeah, very, very important because I think a lot of young people in this age and time because that investment in education does not bring the immediate, you know, gratification.

42:25 Just like TikTok behind the TikTok generation, we want to like, just think we we can put in X and get XYZ immediately after. It doesn't work that way, but it's difficult explaining it. But when they see established figures like yourself reiterated these things that you know, millennials like myself are saying, I think he hits a home run better. Of course I can't be saying it to my generation. You won't be saying it to your generation if it's not true. Lived it.

42:57 Yep. Absolutely. And of course, that's why I very much appreciate having, you know, great individuals like yourself who are role models and mentors to the up and coming generation from me. To you. It's a love, respect, appreciation. I do not take your time for granted. And of course, I wish you the very best. And my prayer for you is that, you know you keep being successful in health and in wealth. So before you leave, do you want to leave a shout out to anybody? Well, thank you for having me.

43:30 This has been absolutely awesome. Well, I thank you. I love your mindset because that's, that's really where it's at. We the 1031 exchange is just a tool. It's a tool that you could use to do some great things in real estate, but the greatest tool in the world is of no value unless there is a willing hand that's going to wield it.

43:52 And that hand has to have the education to do it, the mindset, the drive and the desire to use it. And if you've got those things, and that's what I love about what you and I have talked about with what you're doing so. I thank you very much. I hope people can come and find us at That's It 31 investor.com. I know you're gonna put it in the show. Yeah, it's gonna be in the discussion. So guys, look into the description and get it. Well, it's time to go.

44:19 And of course, I wish we can have you on a gain on the podcast. And of course, guys do the right thing like comment, share it with your network. And of course to like come your weight gain. Always go for something in your life. Remember, I always say conceive, believe, strive to thrive and go achieve. And of course, till we meet again next time. It's goodbye for me.

44:43 And all the way from Florida, United States of America. It is a faster goodbye from Dave Foster. Thank you.