Real Estate’s Best-Kept Secret? Cindy Pham Explains the 1031 Exchange
In this episode of Herb’s Financial Sandbox, Herb sits down with Cindy Pham, Vice President at Legal1031.com, to unpack one of real estate’s most misunderstood tools: the 1031 exchange.
Her advice is clear—talk to your Qualified Intermediary before closing, or you could lose your ability to defer capital-gains taxes.
From forward and reverse exchanges to DSTs and “constructive receipt,” Cindy breaks down the essentials every investor should know before selling or buying property.
“Think of a QI as a specialized escrow,” Cindy explains. “We’re here to hold funds—or even title—so clients stay compliant and maximize their buying power.”
Together, Herb and Cindy explore the strategies that make exchanges work: aligning taxpayer entities, replacing equity and debt, and using DSTs as a smart backup for leftover exchange funds. Cindy also shares how baby-boomer investors are using 1031s to simplify their portfolios while preserving wealth for the next generation.
“Swap until you drop,” Herb laughs. “It’s how smart investors build generational wealth.”
Cindy Pham has been a licensed Texas real estate broker since 2003 and a dedicated 1031 exchange professional since 2018. She is a CCIM designee and active member of ICSC and CREW, and serves on the executive board of AREAA Houston. With thousands of closings completed, Cindy brings deep expertise in tax-deferred exchanges and real estate transactions. She is passionate about educating and supporting investors, brokers, attorneys, accountants, and advisors.
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This is for informational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsors Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities.This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.
There are material risks associated with investing in private placements, Delaware Statutory Trusts (“DSTs”) and real estate securities including the potential loss of the entire investment principal, illiquidity, tenant vacancies impacting income and revenue, general and real estate market conditions, lack of operating history, interest rate risks, competition, including the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and investors should read the PPM carefully before investing paying special attention to the risk section.
Risks associated with 1031 exchange- A 1031 exchange has an identification period of 45 days from the sale of the relinquished property to identify a potential replacement property or properties depending on the value of the previous property. To defer all capital gains tax, you must reinvest the entire net proceeds from the sale of the relinquished property into the replacement property and acquire debt on the new property that is equal to or greater than the debt on the property that was just sold and relinquished.
The views expressed here are solely those of the author and do not necessarily reflect the opinions of Thornwood Financial, Concorde Investment Services or any other affiliated entity. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Insurance offered through Concorde Insurance Agency Inc. (CIA). Thornwood Financial is independent of CIA and CIA.
