Long-Term Real Estate Ownership: The Opportunity & the Challenge

Long-term real estate ownership can present a unique set of challenges. After 30 years of ownership, how does an owner unlock their equity safely and maximize the value of their investments while minimizing risk and tax implications?

THE GOAL

The primary goals were to maximize the current value by improving cash flow, ensuring that the property could be sold for top dollar, all while considering the following:

Deferring Taxes

Utilize a 1031 exchange to defer capital gains taxes.

Reducing Direct Responsibility

Transition to an investment and a team that requires less direct involvement and responsibility.

THE CHALLENGE

After three decades of real estate ownership, the property owner confronted two central challenges:

Maximizing Unrealized Equity and Improving Cash Flow

The first challenge was how to extract the unrealized equity accumulated over the years.

Safety and Tax Considerations

The second challenge was the need to unlock equity safely, with minimal risk and tax consequences.

SUCCESS | THE OUTCOME

By using AGM Real Estate Group's strategic management approach, the property owner realized the following:

Maximized Asset Value

Through careful assessment and negotiation, we increased the owner’s sales price from $4M to $5M.

Tax Deferrals

The utilization of 1031 exchanges allowed the owner to defer capital gains taxes.

Reduced Responsibility

By choosing to work with the Lee team, the owner realized more free time and less direct involvement in asset management.

Cash flow increased from $80,000 per year to $240,000 within the first year of ownership.

LEE & ASSOCIATES PACIFIC NORTHWEST

Lee & Associates offers an array of real estate services tailored to meet the needs of the company’s clients, including commercial real estate brokerage, integrated services, and construction services. Established in 1979, Lee & Associates is now an international firm with offices throughout the United States and Canada. Our professionals regularly collaborate to make sure they are providing their clients with the most advanced, up-to-date market technology and information.

For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.

Contact

Troy Gessel
Principal
📞 C: 425.301.4422
✉️ E: troy@agmrealestate.com