one 1031 exchange with $500k profits and $500k cash
@Andrew Nguyen you're about to get dozens of suggestions, and potentially scammers reaching out to you, so be careful. The most important things to consider are what is your experience, what are your goals, and how much involvement do you intend to have?
@Yonah Weiss Thank you for the heads-up!
What market(s) are you looking at? How many years till retirement? Passive or active investments? My advice is to find a financial planner. Pay the fee and let an expert help you.
You can learn and invest on the path to retirement. Jumping head first into real estate is dangerous.
Updated almost 2 years ago
If you did a 1031 you probably know what you're doing.
Originally posted by @Dan Handford :
@Andrew Nguyen I’d suggest moving it into a multifamily syndication. Many operators accept 1031 exchange money but just be sure on the timing.
I’m sure @Yonah Weiss can vouch that I’m not a scammer. :-)
Dan is the man! Multifamily syndication is definitely a great option, and you should reach out to Dan, :)
I would so your homework and see what opps. Are out of there. Also, you could buy your own small complex.
@Andrew Nguyen not all Syndicators will accept 1031 money, and even those that do will typically only do so if it's a significant amount, say $1M for example. It complicates things, adds some expenses, and frankly most of the good Operators that have a deal worth investing in simply don't need that money that badly to take on the complications.
That said, if you can find a solid Operator that you trust and you are willing to invest a good chunk of that capital into one deal, it's a route very much worth considering. Depending on your experience you might also consider rolling that into your own complex at a price point of $3-4M.
@Michael Bishop thank you for your advice.
1) I wouldn't post on social media how much money you have to reinvest. I'd actually take down the post and do a search by reverse-engineering it and looking through the old posts.
2) Consider multiple options offered pros and cons, and decide what's more important to you: the control, your time, or perhaps, lowering your tax bill. Maybe opportunity zones, or even DST's is your answer.
I second what @Michael Bishop stated about syndications. So you got to do your due diligence to find a quality operator. Here's an article to give you more guidance on syndications:
I think you should answer @Jaron Walling and follow most of his advice with the customary grain of salt. Financial planners, lawyers like myself, it's always about the relationship and expectations.
I think if you post more about your typical strategy, past deal size, maybe even location/interests, that would help the community make a better suggestion. We're really guessing without enough information to speak to the best way for YOU to maximize a $1M investment w/ 50/50 prof/cash.
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