Would You Put All of Your Equity Investments Into a Single Stock?

Or liquidate a stock portfolio without detailed tax planning? Probably not. Yet, when it comes to investment properties, we see investors who don’t apply sophisticated wealth strategies in pursuit of after-tax, risk-adjusted returns.

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Wealth Management Gap - Real Estate Investor

 

Why Don’t People Manage Their Investment Property Wealth Like They Do Their Other Assets?

Property Investment Complexity

When seeking the unique tax benefits and potential risk-adjusted returns available with investment properties, a complex set of interdependencies should be weighted and factored*.

* Costs associated with a real estate transaction may impact investor’s returns and may outweigh the tax benefits. All real estate investments have the potential to lose value during the life of the investment.

Looking for help managing your real estate wealth?

Your real estate broker probably isn’t a tax expert. Your advisor, accountant, or attorney? May not be real estate investors. Realized may be able to bridge that gap.

When Your Life Priorities Shift, Your Investment Property Wealth might need a review

As you approach retirement or other life milestones, properties may need to be sold or exchanged to meet changing income needs, risk preferences, and investment goals.

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01

Unnecessary Taxes

Having a portfolio strategy could help you avoid taxes that could undermine cash flows and risk-adjusted returns, even if you do a 1031 exchange.*

*The actual amount and timing of distributions paid by programs is not guaranteed and may vary. There is no guarantee that investors will receive distributions or a return of their capital.


02

Concentration Risk

When you exchange one individual property for another, your wealth may not be diversified to manage risk tied to geography, property type, or other economic factors.

03

Investment Quality Risk

Some investors do not have the deep expertise to properly assess individual opportunities and sponsors, nor the buying power to access commercial real estate like those which might be found in a public REIT.

04

Continued Landlord Burdens

Passive property investments can remove landlord burdens that keep you away from the people and activities you love.

Unaware of 1031s

Some investment property owners aren’t aware of 1031 exchanges and the tax benefits and potential returns they can support over time.

What is a 1031 Exchange?

Wasted 1031 Opportunities

Some investors who complete 1031 exchanges don’t always take full advantage of their power, which could limit their potential tax benefits, creating potential unintended risk, and may affect potential returns.

Why is Realized Different?

A wealth management strategy for your investment properties could help protect the wealth you’ve worked so hard to accumulate.