If you have rentals that are free and clear or nearly so, then you have been smart and worked hard, and chances are, it has significantly improved your net worth. But eventually, we usually loss the desire to manage property or pay property management fees, to deal with tenants, and to surprised repair bills.
One of the main reasons we get into rentals is for cash flow, so when property taxes, vacancy, insurance and the cost of supplies and labor double, squeezing our profits, it is not so profitable anymore. The net rent does not even carry the property, and the purpose of that rental is to pay for itself at least.
Real estate is not a liquid asset. Even in the hottest market, it can easily take months to complete a sale. And if your timing is driven by an emergency or other unexpected event, your need to sell fast and might not be the best price.
If you sell the property, what are you going to do with the money? If your plan is to sell for cash and stick the money in T-Bills at 5%, keep in mind that you are probably going to have to write IRS a big fat check at closing. So, if you sell for $700,000, after closing costs and capital gains you might only end up with $450,000 to invest in your T-Bills.
We can help you to:
• Eliminate property management, taxes, insurance, repairs, and tenants.
• Eliminate liability associated with renting.
• Consistent cashflow-2X to 3X rental income
• Use your equity like an ATM. Get cash for unexpected situations.
• Defer capital gain taxes
If you would like to learn more about this strategy, please contact us NOW at 800-339-8105
