Let me give you an example of a 1031 Exchange situation I closed in 2017, and how the investor is doing now.
My seller originally was selling a house they owned 50% ownership of the real property. Upon selling the real estate, the seller walked away with a little over $70,000. With that $70,000, my seller placed the funds with a qualified intermediary, and re-invested the money via a 1031 Exchange into a new property we purchased 60-days later, for $77,800. Since purchasing the new house, the investor’s netting income the first year was $8,300, and $10,400 the second and third year. This is a +10% CAP Rate annually. Today, comparable homes in that neighborhood are selling for $140,000. That’s $62,600 in capital appreciation in three years, or an 80% gain in value.
If you are looking for similar opportunities, or ideas, please give me a call today!
Below are five reasons to begin investing in real estate immediately:
• Cash Flow or Rate of Return
• Federal Tax Benefits
• Leverage of OPM (Other People’s Money)
• Principal Paydown