Self-directed IRAs give investors the ability to move beyond Wall Street and invest in real assets like real estate, private notes, and alternative investments—but that control comes with important rules and risks.

In this episode, we break down what investors need to understand before using retirement funds outside traditional brokerage accounts, including how Required Minimum Distributions (RMDs) work, when they should be taken, when an IRA holds illiquid assets, how valuations are handled, and why certain mistakes inside an IRA cannot be undone.

01:00 – 2026 IRA Contribution Limits Explained
02:00 – Required Minimum Distributions (RMDs): What Triggers Them
03:00 – Valuing Real Estate & Alternative Assets Inside an IRA
05:15 – What Happens When Your IRA Has No Cash for an RMD
05:40 – In-Kind Distributions: Taking Assets Instead of Cash
06:10 – What Is a Checkbook IRA (IRA LLC)?
09:10 – Annual Valuations vs. RMD Valuations
12:45 – IRS Scrutiny, In-Kind Distributions & Audit Risk
16:25 – DIY IRA LLCs, Prohibited Transactions & Costly Mistakes

This conversation is for investors who want flexibility and control in their retirement strategy, while staying compliant and avoiding unnecessary taxes and penalties.

If you’re considering real estate or alternative investments inside an IRA, this episode provides practical insight to help you make informed decisions before moving forward.

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In this episode, David and Tom of the Exchange Bros discuss year-end planning for 1031 exchanges, focusing on deadlines, tax reporting, and strategies to manage multi-year tax exposure.

They break down boot, debt relief, partial exchanges, installment sales, seller financing, and refinancing strategies, and explain how timing and intent can impact tax outcomes. The conversation also covers combining Section 121 and 1031 exchanges, converting investment properties into future primary residences, and why thoughtful planning matters more than automated solutions.

The episode closes with a reminder that in real estate tax planning, tax exposure is not the same as taxes owed.

01:10 Year-end 1031 Exchange Deadlines, Extensions & Tax reporting
03:58 Understanding boot, debt relief & when 1031 taxes are triggered
07:09 Installment sales, seller carry & common tax misconceptions
09:26 Full vs partial 1031 exchanges: value, equity & mortgage rules
14:27 Tax exposure vs taxes owed: portfolio planning & ROI strategy
19:27 Cash-out refinancing before vs after a 1031 exchange
28:42 Using Section 121 with 1031 exchanges (primary residence strategies)
40:03 Why experience matters: planning vs AI & automated exchanges
47:53 Seller financing in 1031 exchanges: notes, deferral & pitfalls

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In our latest episode of the Exchange Brothers, David and Tom dive into Appreciation Homes and the Direct Title Security (DTS) model, a new approach that gives investors direct ownership of real property with the passive benefits of a triple-net lease.

Tune in as Derek Vogel and Forrest James of Appreciation Homes cover how the DTS works, how it could solve major pain points of the traditional DST, and how investors can use it to gain control, liquidity, and flexibility, without sacrificing passivity. The DTS also gives investors the ability to cash-out refinance post-acquisition, a feature many want, but often can’t access in traditional deals.

01:28 – What Are Appreciation Homes?
04:30 – How the DTS Model Was Created
07:20 – DTS vs. DST Explained Simply
08:18 – How DTS Works (Ownership + Long-Term Lease)
10:29 – Property Types, Markets & Inventory
11:31 – Key Benefits: Control, Liquidity & Risk Reduction
18:07 – Debt, Leverage & Cash-Out Refi Options
23:03 – Returns & Who This Is Best For
58:56 – Closing Thoughts & Next Steps

Have questions? Drop them in the comments, we’re planning a follow-up episode!

📞 Connect with our guests:
Forrest James – FJames@emersonequity.com
Derek Vogel – Derek@appreciationhomes.com

🎙️ Hosted by David & Tom Moore, The Exchange Brothers | Equity Advantage 1031Exchange.com

1031 Risk Disclosure:

There is no guarantee that any strategy will be successful or achieve investment objectives;
Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
Potential for foreclosure – All financed real estate investments have potential for foreclosure;
Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

For more information on Emerson Equity, please visit FINRA’s BrokerCheck website. You can also download a copy of Emerson Equity’s Customer Relationship Summary to learn more about their role and services.

General Disclosure:

Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only.

Securities through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

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