Each of your investment properties is an asset that should be evaluated for performance, just like any other investment. By understanding how your properties are performing, you can make informed financial decisions. With the right tools, you'll be able to easily identify opportunities to trade up to higher-performing properties. Knowing how to measure performance effectively is crucial for maximizing the potential of your investment dollars.

An Asset Performance Test is a calculation that helps you assess the relationship between the income generated by your property and its overall value.

Depending on the asset, you may use either a Cash on Cash return or Cap Rate to measure performance.

This provides a baseline for evaluating potential investments that align with your objectives and offer better performance.

Savvy investors are constantly looking for ways to maximize their investment dollars. The Asset Performance Test allows for a financial comparison between multiple properties. By understanding the returns of each investment, you’ll be able to act quickly when better opportunities arise.

Capital Gains Taxes can be one of the biggest hurdles to achieving your investment goals and building wealth for future generations. A 1031 exchange allows you to defer some or all of the capital gains taxes when selling a property. This strategy lets investors sell one or more investment properties and reinvest in "like-kind" properties that better align with their objectives. Understanding the opportunities a 1031 exchange offers, as well as the strict rules for executing one, is essential to avoiding an unexpected tax bill.

A 1031 Exchange enables you to swap your properties for those that qualify as "Like Kind," including single-family homes, multi-family housing, commercial buildings, and other asset types. When looking to maximize your investment returns, it's important to consider a range of opportunities. Together with your tax advisor, we’ll help you explore various investment options and create a real estate plan tailored to your specific goals.

While investment returns are a key factor in deciding whether to keep your current portfolio or exchange into a new property, other elements such as location, time commitment, and your family's long-term goals should also be factored into your decision.

With a customized Real Estate plan, we collaborate with your trusted team of advisors to ensure your investments align with your overall financial and real estate objectives.

*Please consult with a qualified Tax Advisor for expert guidance.