All Forum Posts by: Alex Olson

 Wow a lot of heavy hitters at this one!

@Jimmy Bell For my simple brain, I let the CPA take care of what I would owe and don't owe. As @David M. indicates a 1031 exchange allows you to DEFER ALL capital gains tax when you sell by exchanging into a different asset. This is why you see a lot of people who have either obtained serious equity through appreciation or have owned for a long time and their depreciation recapture would be huge - they complete a 1031 exchange to utilize their untapped equity and protect their tax consequences. Happy to discuss this further. 

 Yes we do. I will DM you. 

@Emanuel Caldera Are you familiar with Return on Equity? It is a less common but equally important real estate metric for when considering a 1031 exchange. I can show you the calculation along with some examples. Could help with your dilemma but congrats on a successful investment!

@Marc Knipe I have some really good examples of real life completed 1031 exchanges where investors have exchanged out of a property in one market and exchanged into a property in another market. The hardest part is having a team lined up that can corral everything you need but there is a process for that. I can show these to you if you are interested?

I would inform them of the new lease terms (increasing rent) 45 days in advance. I am not sure what the law is in MO but you just need to give them notice per your lease. You can speak to a licensed property manager to be sure!

@Benjamin Gonzales With 0 cash flow essentially I would definitely sell your Cache OK place and 1031 Exchange into a cash flowing market. I can show you several examples of where this has worked and I have a 1031 exchange doc for that tells you the basics. The 1031 Like Kind exchange is the best tool you can use to build wealth by selling a property you don't want and can defer all capital gains (money you would make on the sale price vs equity you have in the building) into a new property that does cash flow. I hope that helps and happy to talk more via DM. 

@Brock Fitzsimmons I would advise her to sell the farms and 1031 exchange into a completely new asset and asset class to defer taxes and cash flow better. A 1031 exchange is a great tool to help investors like this get out of something and cleaning get in to something else with virtually no tax liability at the beginning. Hope that helps. 

@Gregory Kraft I can elaborate a little bit on the KC market being landlord friendly. Here are a few notes - there is no rent control, there is nothing that says you can't take any apartment anywhere in the metro directly to market rate rent once the lease expires. Low taxes comparatively speaking. Taxes do not go up immediately on sale on the MO side but do on the KS side. Still, they are reasonable. Also, you can evict tenants for non payment and failure to abide by the lease at ANY TIME and judges are typically responsive to that. There are low rental business fees in KCMO property, Johnson County and Wyandotte County. Typically around $50 per unit or less. Also, as you know good cap rates where we can project to get to 8-12% cash on cash return with hungry local lenders. Hope that helps!

@Dusty Hulet Of course it always depends on your life goals. I like the concept and execution of a 1031 exchange because it allows you to reap all rewards plus your original investment and defer 100% of the capital gains (amount of money you made on the sale) into another property. You can take your $250,000 and turn that in to a $1mm purchase and buy a lot more units and cash flow a lot more...and start over. But yes make sure you negotiate your own time on the 1031 exchange as the 45 day ID window goes fast. Happy to talk furhter!