All Forum Posts by: Leslie Pappas

Hi Sylvestre, sounds like you are doing pretty well with taking all the right steps. This site is great for networking and getting a ton of real estate information. Best of luck!

Hi Diran, there plenty of other opportunities outside of California, my clients are involved in institutional grade properties across the country. We also have investors making investments into funds, which are small portfolios of properties. 

There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country.

A very good source of local analysis, rereport.com.   

Hi Gail, if you're an accredited investor who is seeking to defer your capital gains tax but doesn’t want to be a landlord anymore you might consider reinvestment into DSTs (Delaware Statutory Trusts). They are hands-off, institutional grade real estate investments, and they allow you the option to diversify. You can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse.

Happy to answer any questions you have.

https://www.biggerpockets.com/member-blogs/7993-cashingin-ta...

Agree with Dan and Zachary, there are a lot of options and it depends on how active of an investor you want to be.

If you’re looking to take a more passive role in your real estate and want the benefits of diversification there are funds available to accredited investors that are designed to allow investors the opportunity for ownership of institutional investment grade property that is occupied by regional, national, and Fortune 500 credited companies. This might be something for you to look further into based on the goals you’ve shared.

Welcome Brock, sounds like you are doing pretty well with taking all the right steps. This site is great for networking and getting a ton of real estate information. Best of luck!

Yes, taxpayers who hold their relinquished property for two years satisfy the requisite intent for a 1031 Exchange (or two tax reporting periods, since in an audit the IRS may look backwards and forwards two tax returns). A holding period of over a year has generally been accepted, but may be subject to review by the IRS. A much shorter holding period has been accepted, where a change in circumstances indicates that the taxpayer had intended to hold the property for a longer period. The IRS will look at ‘investment intent’ and will call a taxpayer quickly flipping property a ‘dealer’ vs. an ‘investor’.

Best bet is to consult with your tax advisor

Hi Jane, I've helped many CA investors take their hard earned equity and 1031 into different markets. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key. Hence I recommended looking at institutional real estate (DSTs, written several blogs on here), if you are qualified as an accredited investor. DSTs can help you diversify into many markets with your gains, and 1031 exchange will help you defer taxes as you diversify for more safety.

Also a very good source of local analysis, rereport.com. 

Eileen, if you ever want to take your appreciation out of CA and defer your capital gains, make sure to look into a 1031 Exchange. There plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country.

A very good source of local analysis, rereport.com.

Hello Chris,

Jason is correct, any funds left over is boot and taxed at Capital Gains rate. Keep in mind you can NOT replace cash with debt, meaning you can not replace the cash you will be pocketing from the sale with a greater mortgage on the two replacement properties. All cash from the sale must be used to purchase the replacement real estate in order to defer all the capital gains. Good luck!