1031 Exchange Geographic Arbitrage
Discover how one savvy investor used a 1031 exchange to move her San Francisco apartment complex to Georgia and tripled her cash flow while deferring all capital gains taxes.
In my upcoming Kiplinger article, I can’t wait to introduce you to the concept of geographic arbitrage. Once you read about it, you’ll understand how much sense it makes in the world of real estate investing!
For example, you’ll learn about a woman who traded her apartment complex in San Francisco for a pair of properties in Georgia. She not only deferred capital gains taxes on the sale, but also TRIPLED her cash flow.
You’ll hear about a real estate developer in New York that saved buckets of cash not only on state income tax, but also on a myriad of hidden fees and taxes he didn’t even know he was paying — all by redeploying his assets in a different, tax-friendlier state.
And you’ll read about a transaction that allows you to achieve not only geographic diversity in your real estate portfolio, but also an otherwise-impossible upgrade in the quality of the assets you own, all while increasing your cash flow and decreasing your day-to-day landlord responsibilities.
This approach to real estate investment is not for the provincial or for those who favor a cookie-cutter approach to real estate. And it’s definitely not for the hands-on landlord who likes to roll up their sleeves and tackle the proverbial three T’s (tenants, toilets, & trash) of real estate ownership. But for those who want to let their money do the work instead of them, and don’t mind seeing their dollars travel to make it happen, geographic arbitrage will be a game-changer.
All that’s required is a look at the next Kiplinger — an open mind, and a willingness to let your investment capital travel a bit, could make all the difference in the construction of your real estate portfolio.
Contact our office immediately if you’re ready to learn more or to implement these concepts into immediate and profitable action.
