CASE STUDY

Bill has been a real estate investor for over 40 years. During the early years of his investment history, Bill owned and asset managed several apartment buildings in the Inglewood and Gardena areas of Los Angeles County.

Bill became our client in the early 2000’s. At that time Bill had tired of the day-to-day demands that his apartment buildings had placed on him. He was interested in repositioning the equity that he had amassed in the smaller apartment buildings and acquiring interests in larger properties that would be professionally managed on his behalf and that would provide him and his family with equal or better cash flow. Any additional tax shelter acquired in the exchange transactions would be appreciated.

After numerous planning meetings where we reviewed, analyzed and compared various investment alternatives, Bill decided to effectuate the exchanges that we were engaged to structure and coordinate.

Bill’s re-invested his sales proceeds in 2002 from the smaller apartment buildings into a total of three properties. Two apartment buildings and one commercial grocery anchored shopping center. Bill and his co-investors held on to the new properties until they were sold in 2012, 2014 and 2015. During his holding years Bill and his family realized significantly better tax sheltered income than with their prior holdings. Upon the sale of the replacement properties acquired in 2002, Bill and his family achieved an almost 300% growth in their invested dollars that they were able to reposition once again via tax deferred exchanges.