All Forum Posts by: Senthil Akasham

@Gary F., I recently sold a highly appreciated rental property in the Bay Area (CA) last year using the Monetized Installment Sale approach. This deal structure let me get cash at closing and defer the capital gains and depreciation recapture for 30 years. This gives me flexibility in choosing "where" to invest, and not stuck with another real estate purchase in a red hot market (which is what a 1031 will force you to do).

Hi @Victoria C., I just sold a highly appreciated rental property in the Bay Area last year using a "Monetized Installment Sale". This deal structure let me get cash at closing and defer the capital gains and depreciation recapture for 30 years.  This gives me flexibility in choosing "where" to invest, and not stuck with another real estate purchase in a red hot market.

Hi @Greg Ford, there is a better alternative to 1031 exchange.  I just sold a highly appreciated rental property in the Bay Area last year using a "Monetized Installment Sale". This deal structure let me get cash at closing and defer the capital gains and depreciation recapture for 30 years.

Hi @William Salas, I just sold a highly appreciated rental property in the Bay Area last year using a "Monetized Installment Sale". This deal structure let me get cash at closing and defer the capital gains and depreciation recapture for 30 years.

@Christian Mendonca, why not do a M453 sale (monetized installment sale)?  You can sell any non-primary residential property now, and defer the tax on "all of your capital gain" for 30 years.  That's exactly how I sold my own rental property.  Not many people know about this type of transaction, but it's been around for many decades, and the super rich use this approach.  Let me know if you're interested.  

@Logan Jorns, if I understand you correctly, I think you want to continue with the flipping business, but you're also looking for a way to defer paying capital gains taxes without having to wait two years to sell, correct?  Why not do a M453 (monetized installment sale)?  You can sell your property now (or whenever you want) and defer capital gains taxes for 30 years.  I'm a flipper too, and that is what I just did to sell my own rental property.

@Alex Corral, don't feel bad.  You can still sell the property "now" and defer the capital gains tax for 30 years.  Just do a M453 sale (monetized installment sale) like I did to sell my own rental property here in California.  Let me know if you're interested.

@Josh Little, I'm in Bay area, and I was in the exact same situation just a few months ago, and I ended up selling my rental property (SFH) as an "installment sale". Now, I can defer paying capital gains taxes for 30 years, and I can do whatever I want with that money. This is not the right time to buy real estate pretty much anywhere in the country where the property would appreciate significantly. I am just going to keep the money I made, and wait for the opportune time to "buy low".

@Rob Saunders, 1031 makes sense if your goal is to buy a bigger property to generate more revenues, and of course also to reap the side-benefit of deferring capital gains taxes.  Even if that were the case, in the current market, you would be buying high which is something I personally wouldn't want to do.  If, on the other hand, your goal is to simply dispose of your property and still would like to defer capital gains taxes, why not do a M453 sale?  The smartest thing to do, as a real estate investor is to sell high, park the money in a safer place (and may be even grow it), wait for the market to crash and then buy low.  If your goal is the latter, let me know, and I would be happy to share my personal experience with M453 sale.

@Chad Walker, the problem with 1031 exchange is that you buy the new property at the same market rate as the property you are selling, and some of the problems (depreciation recapture, debt, etc.) you have with the original property "carry over" to the new property !  Instead, why not do a M453 sale (monetized installment sale) and just unload your property (I'm assuming that's what you really want to do and defer paying taxes)?  With this type of sale, you still get to defer capital gains taxes for 30 years, and you don't have to exchange your property with anything.  I know because that is how I sold my rental property just a few months ago (and, like you and many others, I too considered 1031 exchange).  Mind you, I am only sharing my experience her as an ordinary homeowner who has done it before, but I did do my research.  Let me know if you're interested.