All Forum Posts by: William Englehart

A good estate attorney and tax CPA can help you structure a charitable remainder trust to  gift the property and then sell thereby eliminating the capital gains and depreciation recapture. This strategy is often used by wealthy families.

Mark, If you client doesn't need the proceeds from the sale of his property and can take payments over the next ten years, I can help him avoid the capital gains hit.  This tax advantaged strategy may work for him.  I'm an independent investor but work for a tax planning and advisory firm.  Send me a private message and we can discuss the details.  There is no reason your client must become a landlord if he doesn't want to.

The strategy requires the creation of a special trust and the distribution of the proceeds of the sale over time.  The proceeds are invested during the distribution period.  If you are in a position to take 10% distributions each year and meet some other qualifications, you can legally avoid the capital gains tax.   It's a complicated financial and legal structure that needs to be done by a licensed attorney, CPA and investment advisor.  Even with the setup and advisor fees, you are most likely money ahead in the long run.  Some situations may not pan out but those I have looked at have all proved advantageous.  Hope this helps, but the details would be overwhelming.  If you want to know if your scenario would work, send me 4 pieces of information; Sale Price, Original Purchase Price, Depreciation (if any), Remaining Mortgage (if any).  I'll send you the results.

If you are an investor who is looking to "cash out" of one or more of your real estate investments but concerned about the tax impact of realizing capital gains from highly appreciated and/or depreciated assets, I may have a solution for you.  This is not a strategy for the primary residence of individuals as they would utilize the $250K/$500k Section 121 exclusion nor investors who plan to reinvest the proceeds into another property as you would simply use the 1031 exchange for that purpose.  

If you are a realtor with a potential sale held up because the owner is reluctant to sell the property due to capital gains tax implications, this strategy will help resolve the seller's issue with selling the property now.  You can secure more sales with this strategy.

Send me a note if you have a situation you believe to be a fit for this and I'll see if there is a good fit.

I looked into HU, talked with a representative over the phone and finally reviewed the contract.  After reviewing all of the details I opted not to invest under the terms and conditions along with the fee structure.  I couldn't make the numbers work to my satisfaction and simply felt, as the property owner, had little input or control over costs.  They make everything very easy.  To the point that all you do is supply the funds to get things started then sit back.  As with everything, more effort yields higher income.  It's really a personal choice.

I spent some time reviewing their program, talking with their representative on the phone and then reviewing their contract.  After reviewing their terms and conditions along with fee structure I concluded I would not sign up for their program.  I can't see how anyone makes money with them.

Hi Tim!  Like you, I am new to the BP forum and looking forward to making connections and moving out of the corporate rat race at some point.  I spent 29 years in the Richmond area (12 in Chesterfield and 14 in Henrico) before moving to Ft. Myers, FL last year.  Lots of opportunities in both counties around Richmond.  I haven't found the city of Richmond ripe with real estate deals.  Still have family in Richmond and get back there a couple times a year to visit. Let me know if you have some questions about the area or want to bounce ideas off each other.