All Forum Posts by: Phillip Wright

I have a family business that is being sold, it consists of two funeral homes… we will be doing an asset sale sometime in the near future.

We would like to purchase a real estate portfolio with the money from the sale.

My question is:

If we sell the company as an asset sale, can we 1031 the real estate separate from the other aspects of the company? I have a portfolio of 13 doors that I could purchase and would like to 1031 into that portfolio. The portfolio would be roughly the same amount possibly less and the rest we would look for another property to purchase. So we’d certainly be purchasing something of equal or greater value. 

Thanks 

 Taxed as s corp 

So I have a business that we are looking to sell. There are also two residential properties within the llc that the business is owned by, but we don’t want to sell those properties. Is there a way to transfer those two properties out of that llc into another/ sell the business without selling the residential properties? (In a way that avoids taxes)

Thanks.

So I have a business that we are looking to sell. There are also two residential properties within the llc that the business is owned by, but we don’t want to sell those properties. Is there a way to transfer those two properties out of that llc into another/ sell the business without selling the residential properties? (In a way that avoids taxes)

Thanks.

Hello,

So long story short I know someone who has a portfolio of 25 doors, 10 duplexes, 5 single family, all in the same town, each property worth around 300-350k. Talking to her about real estate she mentioned that she wants out, the properties were her husbands who passed away and she just doesn’t want the stress anymore…. They bought them for like 50-60k each years ago. They all pretty much need some type of work. She said “I’m not looking to make a ton of money on them I just want to be done with them, ideally I can find an investor to buy all of them at once.” 

I believe I can get these properties for very cheap compared to their actual value. I wouldn’t be surprised if she accepted 50-60% of their value if the portfolio was bought as a whole. 

Let’s say she would accept an offer of 2.5 million for the portfolio. How would you fund this? 

Thank you everyone for the input.

@John Malone

It is an s corp with 1 shareholder. 

Hello,

My family will soon be selling the family business, roughly 3-4 million dollars is the estimated sale price. We hope to purchase/build residential rental properties with this money, we already own outright two plots of land in a very HCOL area so building 2 duplexes would be the ideal next step.

How do we go about selling the company in a way that minimizes capital gains taxes and open the funds up to be used for residential purchases/builds?

I have been researching and some recommend a deferred sales trust, monetizes installment sale, 1031 exchange (though im not sure the commercial business sale allows for the transfer into residential, i could be wrong ?)

Disclaimer, we will be talking with multiple CPA's, financial advisors, and real estate attorneys, just wanted to get some initial points of view on the topic.

Thanks.