After acquiring the first investment property, or the first dozen, the next step is always growth. How does this real estate empire extend itself, from one property, to a net worth that is ten times or even one hundred times that of the original acquisition? There is room in the world for ambition.
The IRS has listed Section 1031 in the Internal Revenue Code. In layman’s terms, this allows for the transfer of one property for another property of greater value, while avoiding some or all capital gains taxes. This can wind up being a significant chunk, and may end up saving enough money for a down payment on another one of the foreclosures in Chicago
It might be time for a team huddle with your realtor, lawyer and financial planner. Keep a move like this in mind as your investment strategy grows, as this move is one of the best investment-boosters available.