Hello fellow BPers, a close friend of mine revealed to me recently that they are selling all their rental properties where we live and relocating out of state. They have done quite well and bought during the market down turn at its lowest points in 2011 and 2012. So he stands to have quite a bit of capital gains to which he expressed he would like to avoid paying capital gains tax. I mentioned he should look into a 1031 exchange which we discussed in length.
What he does not have is a plan for his money, he does not know what to reinvest in and his time table is about to start. I mentioned some funds which are passive and accessible whether your accredited or not.
The reason i am posting this now is that I myself may be entering the same path soon, while i may not be profiting the amount he is, my strategy and plans need to be developed now as i start to look at the game plan more closely.
So i throw it out to you guys, some of you have done very well. I read many of these forums on a consistent basis and i need to engage more to network and grow but for now this is something i wanted to share and get some opinions and facts about.
What have you done in this situation? what did you roll your proceeds into to avoid paying capital gains tax?
Did you invest in more properties? Syndication, stock market, mutual funds?
In short, what have you done, what were the results? Are you happy with the results or do you wish or know you should have invested in something different and given the times we are in and a risk tolerance of medium to high what investment vehicles would do you think would yield the best return?
I welcome your opinions and responses. . . . . .
