How to "Roll Up" a Single $5000 Investment . . .
Into a $1.5 Million Real Estate Fortune
And Never Pay Taxes on Your Gains - Legally!
George Windsor has $55,909 more in his investment portfolio today thanks to a largely underutilized investment strategy.
The story is the same for Denny and Lorraine Sanders . . . except their numbers are even bigger. Using the same strategy, they're ahead $900,000*.
(That's money that would have been paid in taxes if they hadn't learned the powerful strategy I'm going to tell you about. It's the same strategy highly successful investors use nearly every time they sell property.)
And just two years ago Tim P. had no money and nothing about him would suggest his situation would change.
Just 24 months later, Tim has a net worth of $396,000*.
(Only by minimizing his taxes, and maximizing his leverage through this completely legal, yet incredibly underutilized strategy has such a leap been possible for Tim.)
These are real people who put to use a real investment strategy that has propelled their wealth forward and put them on a fast track to the kind of security most people only dream of.
How To Employ This Little Known Real Estate Tax Loophole To Accelerate Your Wealth Accumulation
I know, I know...it's boring talking about taxes. But how about talking about turning a $5000 investment into $1.5million? Makes the ears perk up a little, huh?
Ok, so let's talk.
First, let me explain that serious real estate investors have been using this loophole, called a 1031 Exchange, for decades to get the most out of every dollar they invest.
But you don't have to be in a different "league" to realize thousands in gains from the exact same loophole. In fact, anybody who owns investment property should be taking advantage of 1031 Exchanges.
The loophole works exceptionally well with huge apartment complexes or hi-rise office buildings...but works just as well for single family homes and duplexes...It will save you thousands when you sell property you've owned forever, and can do the exact same for a property you buy and flip within months. It's a serious wealth building advantage for investors and one of the ways "the rich get richer..."
Why Should You Use 1031 Exchanges?
Perhaps I should first ask you, "Why are you investing (or considering investing) in real estate?"
I feel safe in assuming your answer would be "To Make Money!"
Well, simply put, 1031 Exchanging allows you to make more money, faster.
How? Normally, when you sell property for a gain, you would expect to pay taxes on those profits, right? First, there are federal capital gains taxes. If you've held the property at least for a year, those amount to 15%. Next, you'll have taxes on "depreciation recapture." That means the money you saved by claiming depreciation is now going to be taxed - at a rate of up to 25%. On top of all that, you may live in a state that has capital gains taxes of up to 10%.
All told, you could be on the hook for somewhere between 25% - 40% of your profits.
But, with a 1031 Exchange allows, you can sell your property and invest every bit of your profits - without losing a dollar to taxes - into another property. That's the "like-kind" part of the 1031 Like Kind Exchange.
But here's another great advantage. You can go from a single-family home to an apartment building, a commercial property, an agricultural or industrial property. As long as it's investment real estate, it doesn't matter the type of property you're buying or selling. You get to use all your profits to roll into a bigger, potentially far more profitable property investment.
Now, of course there are specific steps you need to follow to be in compliance with government guidelines and ensure that your exchange is successful. But once you understand how it works, it's a technique you can use over and over to accelerate your profits and quickly progress from small to larger properties... from a modest real estate portfolio to a collection of major holdings... with far greater equity build-up and income year in and year out.
|
Back in 1989, New York businesswoman Leona Helmsley was quoted as saying, "We don't pay taxes, only little people pay taxes."
Well, she caught a lot of flack over that but, of course, there was a lot of truth in it. The rich know how to make money, and take the fullest advantage of the tax loopholes available to them.
|
Beyond Simple Tax Deferment:
Total Tax Avoidance, Increased Leverage, Greater Equity and Higher Profits
On the surface, this appears to be a nifty little trick for deferring some taxes. But when you really start to think about it, you realize the true power isn't in the fact that you save a few thousand bucks when you sell a duplex.
No, the real benefit comes when you realize that those extra thousands increase the leverage you have to invest in your next purchase. It allows you "roll up" your profits at an accelerated rate, thereby allowing you to "move up" into better, more profitable properties faster.
For example, let me tell you about Dave Lindahl. Dave started out as a landscaper who got into rehabbing homes. He was doing well, but then he saw a story on Harry Helmsley, the real estate mogul and husband of the famous Leona Helmsely, the "Queen of Mean." Dave saw that Harry Helmsley - like Donald Trump's father - made his fortune in apartment buildings. So that's where Dave started focusing his efforts.
But he wasn't quite sure how to move up to the higher class of investment. He knew the money was there. After all, if you sell a property after three years for 50% profit... it's $50,000 profit if you bought a $100,000 house. But it's $500,000 profit if you bought a $1.1 million apartment building!
Same work basically... but a lot more profit.
So how to move up? The 1031 gave him the answer. When he discovered the 1031, he says, he said it was like discovering "the Rosetta Stone."
So Dave went right to work. He sold a single-family home, didn't pay a penny in taxes on it, and rolled every single dollar of the gains into a bigger, 6-unit apartment building. Soon after that, he took large gains on the 6-unit building and rolled it 100% tax-deferred into a $1.1 million 40-unit apartment building!
And Dave was on his way...
He went on to do many more 1031 exchanges and today Dave owns tens of millions of dollars worth of apartment buildings with over 660 units!
|
"Friends Don't Let Friends Pay Taxes"
"One day, a client called me with a referral and his friend was about to sell a New York City rental for $600,000, and buy an investment property in Los Angeles with the proceeds. Neither his New York nor California real estate agent had suggested a 1031 Tax Free Exchange, so he was going to pay $55,909 in capital gains and recaptured depreciation. I rushed to the phone, and luckily was able to reach him in time to help him organize a 100% tax-deferred deal. As a result, he was able to purchase a $600,000 property in Los Angeles, instead of one worth just $488,000." Thomas Phelan, author of The 1031 Exchange: How to Buy and Sell Real Estate and Never Pay Taxes Legally!"
|
His equity is in the millions. He never deals with tenants because he has property management companies doing it for him. And he receives automatic income every month that is more than most people make in a year!
Does It Really Make That Big of A Difference?
Let's see how much of a difference using this technique can really make to your bottom line.
Take a look at this chart, it tells the story of two investors: Harry and Sally. They each purchased a duplex with $5000 down as their first investment property. They each decide to sell when they realized they had accumulated $75,000 in equity. Harry pays 25% in taxes to Uncle Sam, takes his remaining $56,250 and uses it as a down-payment on his next purchase. Sally, on the other hand, employs the 1031 Exchange strategy, thereby keeping all $75,000 in profits. As a result, assuming a 20% down-payment, she is able to qualify for a $375,000 property (vs. poor Harry, who was only able to qualify for $281,250).
Watch how differently their fortunes grow, assuming they each see 5% appreciation per year, and sell and reinvest the proceeds every 5 years.
|
|
Harry Doesn't Use 1031
|
Sally Always Uses 1031
|
| After Tax Profits and the Sale of Property One
|
$56,250.00
|
$75,000.00
|
| Maximum Purchase Price Of Property Two
|
$281,250.00
|
$375,000.00
|
| Value After 5 Years
|
$358,954.19
|
$478,605.59
|
| After Tax Profits and Sale of Property Two
|
$ 58,278.14
|
$ 103,605.59
|
| Maximum Purchase Price Of Property Three
|
$291,390.71
|
$518,027.93
|
| Value After 5 Years
|
$371,896.59
|
$661,149.50
|
| After Tax Profits and Sale of Property Three
|
$ 60,379.41
|
$143,121.57
|
| Maximum Purchase Price Of Property Four
|
$301,897.05
|
$715,607.83
|
| Value After 5 Years
|
$385,305.64
|
$913,317.08
|
| After Tax Profits and Sale of Property Four
|
$ 62,556.44
|
$ 197,709.25
|
| Maximum Purchase Price Of Property Five
|
$312,782.21
|
$988,546.25
|
| Value After 5 Years
|
$ 399,198.17
|
$1,261,663.35
|
| After Tax Profits and Sale of Property Five
|
$ 64,811.97
|
$ 273,117.10
|
| Maximum Purchase Price Of Property Six
|
$ 324,059.84
|
$1,365,585.51
|
| Value After 5 Years
|
$ 413,591.60
|
$1,742,871.60
|
Sally ends up with over $1.7 million in property, while Harry has only graduated to $413,000!
And this chart does not even show you another very important element:
Use the 1031 as a Cash Flow Accelerator Too
Assume both Harry and Sally receive 6% net rents (after all expenses) on their properties. Harry will end up seeing a respectable $24,815.00 annual cash income. Sally, on the other hand, will be raking in $104,572.00 a year!
Are you beginning to understand how this technique is going to dramatically accelerate your ability to build a formidable real estate portfolio? With just one single investment, Sally was able to "roll up" her initial $5000 investment into a $1.7 million property, generating $104,572 cash flow a year, without ever investing any additional money, or paying a dime in taxes.
Imagine if, instead of just one property, you purchased one new property a year, and followed the same conservative reinvestment strategy as Sally, simply reinvesting your proceeds "rolling up" into better properties every five years.
Even at a modest 5% appreciation rate, eventually you'd end up sitting on nearly $23,000,000.00 in property!
At 6% net rents, that's $1,380,000.00 annual cash income!
I guess that's what Leona Helmsley meant when she said, "only the little people pay taxes..."
Three Ways The Tax Man Wants to Cut into Your Profits and Slow Your Progress
Whenever you sell a profitable real estate investment, Uncle Sam wants to sit right alongside you at the closing table, hand out, looking for his share...
1. Capital Gains "15% Federal
2. Depreciation Recapture " up to 25% all by itself
3. Possible state capital gains taxes of up to 10%
The situation could be very grim. You could easily have as much as 25% to 40% taken from you every time you sell a property! And the sad truth is, many investors just don't know about 1031 Exchanging and the tax deferment benefits it can offer. Just as unfortunately most realtors know little more than investors, which doesn't help.
And while I find that many people are familiar with the term 1031 Exchange, and perhaps even have a general idea what it's about, very few have taken the time to learn the intricacies, benefits and how the loophole can apply to them. After all the hard work investors do to find the best properties, find quality tenants, keep good records and maintenance...it's a shame to see all that well-deserved profit go to Uncle Sam when it just doesn't have to.
Paying any tax is unpleasant to say the least...but it is far worse when you learn it was totally unnecessary.
|
"The Grand Slam of Real Estate Deals: Saved over $900,000!"
"I once met an elderly couple at Denny's to discuss the sale of some property. I watched in amusement as they delighted in what a bargain the $3,99 Grand Slam was, knowing that meanwhile they were about to unnecessarily pay over $900,000 in taxes on the sale of their $6,000,000 family ranch. I assured them that if they thought the Grand Slam was a good deal, they would be ecstatic about the 1031 Exchange. We structured an exchange that allowed them to sell the ranch, and purchase a smaller ranch plus three homes for each of their children...all without paying a dime in taxes." Thomas Phelan, author of The 1031 Exchange: How to Buy and Sell Real Estate and Never Pay Taxes - Legally!"
|
How to Turn $5,000 into $1.5 Million
And Pay Zero Taxes Along the Way
So, let's recap how you're going to take a single $5000 investment and "roll it up" into a $1.5 million property, without ever paying a cent in taxes.
You buy a single-family home in an up-and-coming neighborhood. It's worth $125,000 but you buy it under market value for $100,000 and you buy it with just $5,000 down.
The rent from the house more than pays for the mortgage and all expenses. And the house is in a rapidly appreciating area. So two years later it's worth $150,000.
You sell the property and take $55,000 (your original $5,000 down payment plus the $50,000 in appreciation) and use it as a down payment on a multi-family building selling for $500,000.
Once again, you've bought the property under value and in a fast rising area. And the rents pay for the mortgage and all carrying costs. Two years later, you sell for $750,000. Now you have $305,000 to invest. That's your $55,000 down payment plus the $250,000 you just picked up again in appreciation.
You use the $305,000 as a down payment on a $1.5 million apartment building.
Within a few years, it's worth $2.7 million. Your equity is $1.5 million (the $1.2 million in appreciation plus your original $305,000 down payment). And you're also collecting tens of thousands in rent checks month after month.
And here's one of the keys that made it happen...
At every step of the way, you didn't pay a penny in taxes on your gains.
That's why... when you sold the first property for a $50,000 gain... you had the full $50,000 to invest. And when you sold the second property, you had the full $305,000 to invest.
Uncle Sam never showed up at the closing table to reduce the amount you could reinvest. And that meant you could build wealth that much faster.
This is possible using the 1031 Like-Kind Exchange tax loophole .
You can't use it with stocks or bonds. But you can use it with real estate... and you can use it to build far greater wealth faster than you may have ever thought possible.
Make Sure You See The Highest Return On Every Dollar You Invest
You put too much hard work into choosing and maintaining your real estate investments. Follow through by making sure you don't pay unnecessary taxes that stunt your wealth accumulation. Take the time to go over our just revised report, "The 1031 Exchange " How to Buy and Sell Real Estate...and Never Pay Taxes, Legally!"
In this report, you'll learn how to keep reinvesting all of your real estate profits and, like the title says, NEVER PAY TAXES, LEGALLY! You'll learn in clear, concise language, exactly how to use the 1031 laws to your highest advantage including:
As George Windsor, Dave Lindhal, and famous real estate investors from Donald Trump ($2 billion in real estate), John Sobrato ($1.5 billion), Thomas Flatley ($1.2 billion) and Melvin Simon($1.9 billion) can tell you first hand, the proper use of 1031 Exchanges can add millions to your portfolio accelerating your wealth accumulation at an exponentially faster rate.
More money, faster. And in an easy-to-understand step-by-step format.
"The 1031 Exchange: How to Buy and Sell Real Estate... and Never Pay Taxes Legally!" is written by Thomas Phelan, one of the top experts in the field. Thomas is a national speaker on 1031 Exchanges and buying real estate with your IRA. He has also personally facilitated millions of dollars worth of 1031 transactions. And he's an active real estate investor himself, having bought and sold over 75 properties all over the US. He has the perfect combination of personal investment and professional experience to give you all the details you need in the simplest, most direct manner possible.
|
A $15,600 Return!
"$15,600 isn't a bad rate of return on my investment for your material... I wish I had known the specifics of 1031 exchanging years ago... Thanks for every thing, Tom."
Gerald Potts, San Diego, CA
|
And I'm excited, because I get to offer you a chance to master this powerful strategy at our lowest price ever offered. The 1031 Exchange Report normally sells for $99. Yet, order within the next three days, and I'll knock $60 off the cost of the report. You get your satisfaction-guaranteed copy for just $39!
If you are dissatisfied in any way with "1031 Exchange", let me know within 30 days of ordering, and I'll immediately refund you all of your money no questions asked. But I expect you'll find this to be one of the most valuable reports you've ever owned. It will change the way you look at real estate investing and help you reach your wealth goals much faster than you may have imagined possible.
How much wealth you accumulate from the comprehensive knowledge it contains, is completely up to you.
|
Don't miss out on what has been called "one of the last goodies in real estate". Experts agree, this report reveals the single most effective wealth accelerator available to real estate investors.
Forbes magazine calls the techniques in this program a "lucrative loophole". It allows you to rapidly expand your success the same way the rich and powerful have for decades.
CNN/Money describes it as "a little-used tax shelter for investment real estate owners", and the "obvious" way to wealth.
Fortune magazine says it's a "gold rush" with "rapid appreciation".
Kiplinger's Personal Finance equates it to winning the lottery.
Business 2.0 suggests there's nowhere to go but up.
And the Wall Street Journal calls it "an extremely tax-advantaged activity".
It's the single most effective way to dramatically accelerate the growth of your real estate portfolio, your gains in equity and your monthly passive income. Put the 1031 Exchange Program to work for you immediately by ordering your risk-free copy of "The 1031 Exchange: How to Buy and Sell Real Estate... And Never Pay Taxes Legally!"
|
*** Get Three Powerful Complimentary Bonus Real Estate Reports If You Order within the Next 72 Hours***
Order quickly, and I'd also love to send you three bonus reports, completely free of charge. Written by two well respected, active investors with years of experience and millions in profits between them, you're sure to benefit from the explosive ideas they propose most of which you won't find in typical real estate courses.
1. "How to Create Massive Passive Income Without Hassling With A Single Tenant," by the "Apartment King," Dave Lindhal. With over 650 rental units under his belt, he's the perfect investor to show you how to add an extra $153,000 plus to your annual income...without the usual headaches that come with landlording.
2. "Take the Money! How to Finance Cash-Flow Churning Real Estate Investments Regardless of Your Income or Credit Situation" Justin Ford, active real estate investor and editor of Main Street Millionaire, reveals the top 5 ways to secure financing for all of your real estate dreams, no matter what your financial status. You'll learn, among other things, the powerful strategy that Eddie Popkins used to develop over $500million in residential property.
3. "How to Time the Real Estate Market for Maximum Gains" Can an individual investor learn to time the real estate market the same way institutional investors have been doing for years? Dave Lindhal shows you how to do just that, including simple ways to identify the 4 major phases of a real estate cycle and which phase is the "millionaire maker" you should be watching for.
No matter what your personal real estate goals include, the information you'll find within the pages of these reports will help you realize the full potential of every investment you consider. You'll discover specific techniques to advance your investments, and results, that most people will simply never consider. The value of the information is well beyond the $19.95 apiece they normally sell for, but you'll receive them all - absolutely free - with the purchase of our 1031 Exchange program.
Get Started Quickly and Easily, Just Minutes from Now
I want to get these reports into your hands as soon as possible, because the best time to get started in real estate is always "right now." So here's the deal...
We put everything you need to know to build massive equity and income with 1031 Exchanges on two CD's. We also made the key stuff - what you need to get going right now - just one mouse click away. Order right now and you can immediately download...
Meanwhile though, we'll also rush to you via US Mail high-quality CD Audio files of "1031 Exchange."
This way while you're driving, working out, or walking the dog...you can also be planning your steps to healthy positive cash flows and "working" towards the high income and security you'll have before long.
So, you can download and read the programs on your computer in convenient PDF format right now, or in a few days, listen to them on any CD player... you decide!
You get the complete set including "1031 Exchange" ($99 value) and all 3 Bonus Real Estate reports (a $59.85 value) for just $39. That's a savings of over $119.00 to receive important information that no real estate investor should be without.
But you have to act now. This is a limited time, introductory offer (one that, quite frankly, just can't last!).
And don't forget...if you want to get started today, no problem... Immediately after you order, we'll email a link so you can download the PDF files to your computer over the Internet. It's that simple.
Our Rock-Solid, Iron-Clad, No-Questions-Asked Guarantee
I truly want you to profit from investing in real estate. That's why I'm willing to extend this ironclad guarantee.
|
*** OUR UNCONDITIONAL ROCK-SOLID GUARANTEE ***
"The 1031 Exchange How to Buy and Sell Real Estate...and Never Pay Taxes, Legally!" comes with a guarantee that eliminates any risk to you. I'm so convinced you'll find it to be everything I've said - and more - that we fully and completely guarantee your total satisfaction.
If you're not 100% thrilled with the program and the investments you'll be able to make, just let us know within 30 days of ordering, and you'll get a complete refund of your full cost - every penny.
No questions asked, and no delays. It's that simple. You risk nothing.
|
I urge you to order "1031 Exchange" right now. Unlock the full potential of every investment you make, "rolling up" your full profits into greater equity and cash flow. Act now...click below to receive your program.
Sincerely,
MaryEllen Tribby, Publisher Early to Rise
|