A former pro athlete sought to purchase a multifamily property and diversify his investment portfolio. Real estate investment can be a game-changer with the right strategy. Guided under the mentorship of Charles Patawaran (Managing Founder, CCIM Candidate, M&A Advisor), Ludgier Rington, a commercial realtor with Gatsby Advisors Brokerage, not only found the perfect property for his client but also utilized innovative financial strategies to optimize his client’s investment potential.
Initially, the plan was straightforward: use personal reserves for a down payment on a multifamily property. But Charles & Ludgier saw a smarter play – a 1031 exchange. Instead of tapping into his reserves, the client owned three rental properties ripe for the exchange. By swapping 2 of the rentals for the multifamily property, he could defer taxes and invest the equity in his new venture without the immediate tax hit.
The concept of a 1031 exchange might sound complex, but these expert Commercial Advisors’ guidance simplified the process for the client. This smart move helped him keep his money available and also positioned him for long-term financial growth.
The Neuens property emerged as the ideal investment opportunity, boasting a gross monthly operating income of $30,000. Charles & Ludgier’s keen eye for value and market insight led them to identify this existing income-producing business as a prime asset for his client's portfolio expansion. They negotiated not only a competitive loan rate but also a stable 5-10 year ownership contract.
This strategic move not only secured the client's investment but also ensured a steady income stream for years to come - the perfect embodiment of the Gatsby treatment we provide to our clients. With the right guidance and foresight, the possibilities for wealth creation are limitless!
Ludgier Rington, Charles Patawaran, Carl Landry at Closing Table!
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