Why 1031 Exchange?
Have you ever imagined how wonderful your life could be without the burden of day-to-day management responsibilities? It would be great. Isn’t it? Managing rental properties requires a considerable amount of effort and time. Plus, maintenance expenses also take away a huge part of your income. To get rid of management responsibilities associated with their rental properties, investors make use of a 1031 exchange, and we have valid reasons why you should also be doing a 1031 exchange soon.
Here’s an example:
“One of my favorite [like-kind exchange] success stories is when a man named Jacob came to our office in mid-2010. Jacob told us he had 3 properties in Dallas, Texas, worth about $400,000 each. He informed us that those properties were quite old and in need of repair. Back then, each property would make about $1200 per month in rent. Jacob wanted to retire from his job. However, he had doubts that his net income from those properties, which was about $2400/month, wouldn’t be enough for a living. (Net refers to the remaining cash flow once expenses are paid off.)
We felt great on being able to look into Jacob’s eyes and say, ‘We’ve got great news for you. You can retire today. In fact, you can retire right now.’
We explained to him how he could exchange his three old, dilapidated Dallas properties in very rough neighborhoods for five brand new California properties in highly desirable areas like Stockton or Santa Ana.
Here’s how the numbers would look: Jacob owned the 3 Dallas properties free & clear. At that time, those properties would sell for about $400,000 each. Thanks to Section 1031, Jacob could exchange those properties for $1.2 million worth of property in Stockton, California, while deferring capital gains taxes.
The average home price in Stockton, California, was $250,000 at that time. Therefore, finding five high-quality properties for or under $250,000 each wouldn’t be too difficult. More importantly, those properties would easily rent for $1200 each.
Not to mention, Jacob was getting $1200 rent on just three properties in Texas, and those properties were not in good condition. Maintenance and repair costs were consuming his income.
Fortunately, Jacob listened to me and took the leap, and the results were astounding. He sold the Dallas homes and I helped him exchange them for five Institutional-grade Stockton Properties. I also helped him put all those properties under excellent property management. As a result, he no longer had fix toilets and suffers like typical landlords.
His gross income went from $3600/month to $6000/month, and his net income went from zero (as his old properties require so many repairs) to $4500 in monthly net income. Plus, the houses he bought in California were brand new and would require little or no repair for years.”
A 1031 Success Story
“We had a house in San Ana. It was a rental property, and we were sure about selling it. But we knew, if we did sell it, we would have to pay a pretty hefty capital gains tax. So, we decided to go for a 1031 exchange. Thereafter, we came to know about the rules. Do you know how many rules there are? It’s insane. We had calculated our earning to be approx. $2.5 million. However, we couldn’t buy “like-kind property” in the Bay area and actually, make a profit. That’s when we met the experts of 1031Xchange, and what they told us sounded too good to be true. It really did.
We were very skeptical when we met them for the first time. So, we delayed a bit but eventually trusted them. Their main objective is to let you know how to be a great investor, and it really works. I mean, I’ve learned so much more about rental properties in the last year or so than I ever knew.
It was amazing how farther our money went from the Bay Area. I knew the old thumb rule, “You have to be around your rentals.” But with technology, the internet, and a trustworthy team like that of 1031Xchange.com, this isn’t true anymore. At least it wasn’t true for us.
Engage our services for a profitable 1031 Exchange
1031 Exchange enables your money to churn the maximum profit for you. However, the exchange process is extremely complex in nature, and it would be wise to seek guidance from expert professionals. We have extensive experience in handling highly profitable exchanges for our varied client base.
For consultation and assistance regarding 1031 exchange call 888-993-2835 or email us at firstname.lastname@example.org.