Tired of tenants, bathrooms, and garbage?

Wouldn’t you rather go to Tahiti? Are you a landlord with a rental property that has appreciated significantly in value? Are you ready to cash in on those winnings and take that trip to Tahiti?

Before selling your property, check with your accountant that

tell you that you will pay $ 60,000 in principal

Earn taxes for Uncle Sam. Your accountant will also tell you

that adding another $ 20,000 to your income from that sale is

called recovered depreciation. This will collide with him

next tax bracket and sentence it on April 15 to send

the IRS a check for maybe another $ 7,000.

Are you still ready to sell that property?

It seems that this trip to Tahiti will be sometime in

the far future …

But wait! You decide to consult with your real estate agent and then

Find out about a 1031 exchange to defer your capital gains.

Your real estate agent tells you if you buy another type of similar rental

property of equal or greater value, they won’t hit you with

the income tax on the sale. All of that is fine and fine but

doesn’t really get you out of the associated headaches

with collecting rent, keeping your unit occupied, finding

clean / elegant tenants who will not trash the place, or

prevent you from getting that 2am call to fix an overflow

lavatory. To top it off, now you have to pay more in

property taxes and must charge a higher rent.

Hmm … maybe this idea is not the ticket to that South Pacific

neither is paradise.

This is the dilemma I heard from my financial clients again

and again. They were frustrated and felt trapped in their

Current situation. So what is a frustrated income property?

owner what to do? After much research and hurdles, I found

the perfect solution that has changed my life

customers and removed stress to bring enjoyment of life.

For anyone who is tired of owning and has a

rental / commercial property that has gone up a lot in value,

take heart.

A 1031 exchange for a tenant in common property can be your


There are very specific rules to follow set by the IRS, and

the entire detailed process is the subject of a future

article, but here is the gist:

1-Sell your current income


2-Before the closing of the guarantee deposit, declare through a

Intermediary (also called usher, which is a

qualified third party) who intends to do a 1031 exchange

in a tenant in common property;

3-Work with a recognized

company to identify a property you would like

buy an interest in;

4-At the closing of the escrow, your

the income is transferred by the usher to buy

your proportionate share of a larger “A” rated commercial ad


5-You can choose a business center, a

high-end office building or similar property; and finally,

6-You get a deeded interest in this property, so you can

keep it, resell it, pass it on to your heirs or even give it away

to charity after your death.

The way this works is all new fractional owners, or

The “joint tenants” hire an excellent management company to take care of

all property management tasks. The company finds and

maintains high-quality tenants, performs maintenance and

upgrade, pay property taxes, and drive around the clock

up to date the crises that arise. Probably the three most important

The factors in this whole process are:

1-Your choice of company

offering the properties for sale;

2-the usher,


3-the management company.

Make sure each of the three parts is top-notch

tracking records. Anything less could spell disaster.

When this 1031 option is successful, your benefits


Deferral of all capital gains,

A monthly contractual income (generally based on a yield of 6-7%

on equity),

Depreciation of buildings for tax savings,

Unlimited potential for property appreciation, and

No more property management headaches.

Goodbye to tenants, trash, and toilets!

Hello Tahiti!

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