Your client has reached a point where they’re tired of landlording and the headaches that come with it. They are considering selling their current property, but assume their only options are to either pay the taxes or buy another property that requires management. 

What few investors know is that there are passive options within a 1031 Exchange.

The Legacy team will guide you and your client through the important details of a 1031 Exchange to help determine a suitable option. With your client’s unique needs in mind, we create a proposal and plan to help achieve their investment goals. We make the process seamless and simple by handling all investment paperwork. 

With 100% of the property management obligations taken care of by the sponsor company within the various exchange replacement options, your client’s end result could be an investment portfolio with zero management obligations, ever.

You or your client are wondering if an opportunity for increased income is being missed – especially if previous investment goals have been investing for growth instead of income. 

We are here to help uncover opportunities for higher income potential that might exist for your client.

We can run a cash flow analysis of your client’s current investment and help model several scenarios to determine if it may give them the best potential income at a suitable risk level. Using this information and our 40+ years of real estate investment experience, we help determine if a 1031 Exchange into other property(s) would be beneficial.

You already know it is risky for your client to have all of their eggs in one basket, but the current price of real estate can make it difficult to diversify.

Fractional ownership can often accommodate investment minimums of $100,000. This can make it easier for your client to spread their wealth and diversify across property types, geographies, and management companies.

The tax liability on the sale of an investment property varies by state and income. No matter where your client lives though, the hit to their equity can be staggering. In some cases, the sale of an investment property can lead to out-of-pocket expenses, leaving them with no net equity and an additional loss. 

They'd like to potentially defer the tax liability, but aren’t sure what options are available. 

Our experienced team is aware of 1031 options that many investors and advisors are not. We can help you and your client compare all of the options–– including keeping their current property, paying the taxes, or executing a 1031 Exchange. If they choose to defer the taxes and execute a 1031 exchange, we will seamlessly guide you and your client through the process to ensure all regulations are followed and no taxes are owed.

There are several circumstances when passing on real estate to beneficiaries can be burdensome or complicated – including If there is more than one heir, the heirs have full time jobs and no time to manage real estate, or your client is concerned that decisions will have to be made together, which can be hard when involved parties have different needs, goals, and preferences.

We can help determine a desirable option to facilitate and help streamline your client’s estate planning. There are exchange options where beneficial interests can be bequeathed to different individuals or organizations in varying amounts.

Heirs/Beneficiaries will inherit their prorated share of ownership interests, pursuant to your client’s estate plan. Each beneficiary’s ownership will be entirely separate from the other, eliminating the need for beneficiaries to agree on what to do with the proceeds.

Your client is a high income earner and has already maxed out their 401k contributions and the “traditional” investment options. They’d like to continue investing and take advantage of market opportunities while diversifying from the “traditional” investments in their current portfolio.

Many of the funds offered at Legacy can often accommodate investment minimums of $25,000. This makes them more accessible to investors that want to include passive real estate in their overall investment diversification strategy or investors looking to take advantage of market opportunities, imbalances, or “black swan” events. We will work with you and your client to create a plan tailored to their specific financial goals.

Your client has received a step up in basis on their real estate holdings after the death of a spouse or family member. They’d like to discuss if they should keep (and manage) their current real estate or transition into passive real estate.

Our experienced team can help you and your client compare all of the options – including keeping and managing the current property or executing a 1031 Exchange to transition into a management-free, passive real estate investment. 

If they choose to execute a 1031 Exchange, we will seamlessly guide them through the process to ensure all regulations are followed and no taxes are owed.

Your client has a self-directed retirement account, such as a self-directed IRA or 401(k) and wants to take advantage of the account as a way to add private real estate investments into their portfolio.

Many of the funds offered at Legacy qualify for retirement accounts and allow investors to potentially grow their retirement savings through tax-advantaged, passive real estate investments. We will work with you and your client to create a plan tailored to their specific retirement needs and financial goals.