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

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

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 risk-adjusted returns available with investment properties, a complex set of interdependencies must be weighted and factored. If not, all of those benefits can be lost.

Shortage of Sophisticated Advice

Your real estate broker isn’t a tax expert. Your advisor, accountant, or attorney? Not real estate investors. Without a trusted partner, it’s easy to make decisions that destroy returns and undermine your plans for the future.

When Your Life Priorities Shift, Your Investment Property Wealth Is at the Greatest Risk

As you approach retirement or other life milestones, properties must be sold or exchanged to meet changing income needs, risk preferences, and investment goals. That’s when you’re most likely to pay a painful price.

bulidings-sky-clouds-section

01

Unnecessary Taxes

Without a sophisticated portfolio strategy, you can pay avoidable taxes that undermine cash flows and risk-adjusted returns, even if you do a 1031 exchange.

02

Concentration Risk

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

03

Investment Quality Risk

Most investors do not have the deep expertise to properly assess individual opportunities and sponsors, nor the buying power to access institutional quality investment property offerings.

04

Continued Landlord Burdens

Without the ability to move into passive property investments as you enter retirement, you may be stuck with landlord burdens that keep you away from the people and activities you love.

The Shift to Investment Property Wealth Management Starts With the 1031 Exchange

Unfortunately, the vast majority of those preparing to sell or exchange investment properties don’t capture the full benefits available with 1031 exchanges.

section-wealth-management-gap-exchange-example-2

* Hypothetical example, for illustrative purposes only.

Unaware of 1031s

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

What is a 1031 Exchange?

Wasted 1031 Opportunities

Most investors who complete 1031 exchanges don’t take full advantage of their power, limiting their tax benefits, creating unnecessary risk, and undermining risk-adjusted returns.

Why is Realized Different?

Without a sophisticated wealth management strategy for your investment properties, you risk sacrificing a large portion of the property wealth you’ve worked so hard to accumulate.