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Updated over 4 years ago on .
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Need money for estate taxes
Hello everyone,
This is my first post on BP, and sadly it isn’t even for me. But I’ll get right into it and hopefully I can describe everything appropriately and accurately for everyone to understand.
I have a mentor and dear close family friend who is nearing the end of his life. He has been an extremely successful real estate investor and has amounted between 30-35 properties, all SFH. In his estate planning his advisors have calculated out that he will need to pay in the ballpark of 1.5 Million in taxes/fees/whatever else. However, while he does have more than enough assets to cover this amount. He does not want to sell any of them for he wants to pass them on to the next generation so that they can become wealthy just as he did.
He has gone to a few banks to try to refinance a few of his houses to come up with the cash, but the banks aren’t willing to work with him because he has too many properties (never new that would be a problem).
My first thought is he is going to the wrong credit unions and he needs to find one that is a portfolio lender and maybe they can help him out.
Another option is to maybe do a hard money loan (I have never done one and I have no clue if this would even work).
But he needs help in this matter. Any advice that you all can give would be greatly appreciated. Thank you!
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#5 Tax, SDIRAs & Cost Segregation Contributor
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#5 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- Atlanta, GA
How much are these 30-35 SFR properties worth?
The estate tax exemption in 2020 is $11,580,000...
If his net worth is that high, his advisors, the ones that calculated the projected estate tax, should have pro-offered potential mitigation strategies. e.g. gifting, trusts, FLPs, etc If not, they really missed the boat.
He does not want to sell any of them for he wants to pass them on to the next generation so that they can become wealthy just as he did.
No to be argumentative, but they're not becoming wealthy "just as he did". It sounds like he built this from the ground up (e.g. "extremely successful"). They would be inheriting this large RE empire. Not quite the same...