All Forum Posts by: Jake Anderson

I have a client that I will be relinquishing a $5 million property in the next month. It is under threat of condemnation so it falls under IRC 1033 and therefore she has three years to find replacement properties and does not require in intermediary.  My questions relate to investment ideas for the $5 million. If she fails to acquire replacement properties she'll owe roughly $1.5 million in taxes.  Her goals are two fold, 1) expand her portfolio on a yearly basis and 2) income producing properties that she can live off the returns ($250,000 annually).  I am aiding her with the relquishment transaction and would love to give her some strategy options.  I am NOT looking for people telling her to invest in their specific properties, but for strategies or investing plans.  If you had $5 million dollars you were required to invest in real estate what would you do?  Commercial? Multi-Family? REITs? Short-Term Rentals? Debt? Combination of everything?  Open to all ideas!

Looking for ideas, not specific investments but general ideas, on sheltering income from tax by investing in real estate.  I will be earning some significant sums of income over the next two years.  Unfortunately none of this income will qualify for a 1031 exchange.  I looking for ideas to reduce my tax consequences through investment in rental properties (multi-family, single family, commercial or vacation rentals).  Not looking for anything shady just legitimate ideas.