The Property Purchased & The Plan & What Unfolded With The Rapid Appreciation With Stormy Aikins
“The timeline knows it was six months, we would have been definitely up against the Capital Gains Taxes. I had listened to actually a podcast with you, and I believe it was Buck Joffrey because he’s in the healthcare field too, and so it was something that was very interesting and just realized what a gem and what a unique find this capital gain solution was.” – Stormy Aikins
You’ve come and you buy a property, and tell us a little bit about the property that you purchased? What was the plan and what unfolded with the rapid appreciation?
Realizing the Sedona was a very desirable place, and just being, a family looking for rentals in places that were fun to just getaway for the weekend. It was really difficult to find anything. The thought was, well, if there’s a market out there, let’s see if we can purchase something. Looking in the Sedona area, we put in bids on multiple houses, and it was really challenging to get anything if you weren’t a cash buyer. We found a new subdivision and it was a beautiful property that had, Oak Creek running through it, and we purchased a home up there, and I’m looking to do Airbnb, some rentals with that, and then be able to use that as a weekend retreat every once in a while so that we could have that opportunity since it was really challenging to compete with all the other people that were trying to get rentals as well. Branched out into that purchase of the home, and then it actually ended up being more challenging than we had thought for this new community. The neighbors were, it was a high-end community. It was really nice. But it was a difficult rental because just the neighbors were challenging.
It always challenges me, when you’re buying houses, and you’ve got the folks that are doing some rentals. You can understand where they’re coming from, but at the same time it can mess up the plans a little bit, because you had a certain potential income stream coming there, and Airbnb is so popular right now, and rates are way up.
Having those challenges, and we’re like, we can navigate this, we had a great property manager. It would just be working with the HOA and things like that. But fortunately, in the interim, there was a gentleman who I believe was from Silicon Valley as well, and he found the area to be very enticing, and so he bought the house on the hill above us for I believe it was like $4 million double what the asking price was, and really liked the community. He started buying up houses in the community. We posted ours, we purchased it for $1.3M, and posted it that for $2M, and ended up selling it for $1.8M to this gentleman who bought it for I believe it was his mother in law, and he had bought four or five other houses in the community. So we’re like, “Hey, this is perfect.” The timeline though it was six months. We would have been definitely up against the capital gains taxes. I had listened to actually a podcast with you, and I believe it was Buck Joffrey, because he’s in the healthcare field, too. It was something that was very interesting and just realized what a gem and what a unique find this Capital Gains Tax Solutions was. I’d looked into that originally for selling the business because growing it from a family-owned business, it was a significant amount of capital gains involved, and so looking at that, and then actually was able to reach out to you and say, we have this property, we’ve sold it and the rest is history and worked out beautifully. Save hundreds of thousands of dollars in taxes by being able to work through this Capital Gains Tax Solutions, and then actually ended up being able to purchase a small lot to build on in the future. It worked out beautifully.
It’s a nice thing, when you can have an extra, typically 30 to 50%, depending on the depreciation, recapture what state you’re in. Biden’s proposal goes through considering doubling from 20% to basically 40% on the federal it should be 50 to 70%. To think about that is staggering. You buy something you take the risk, it doesn’t necessarily work out on the rental side but you have the appreciation is so high and now that huge amount is just going to be gone versus being able to defer that and build and create preserve more wealth. Which is really fascinating and really amazing. It’s why we believe what we’re doing.
Closed Deal Story
Selling Bitcoin, Ethereum Capital Gains Tax-Deferred Using the Deferred Sales Trust
I believe that is where we’re at with cryptocurrency’s current marketplace. We closed the first Bitcoin and Ethereum case for $5 million and helped the client defer around $1.5M in capital gains tax. Now we’re getting a wave of individuals who are finding us. You might be finding us right now.
One of the biggest challenges with folks who are selling cryptocurrency is they want to be able to diversify, they want to be able to time the real estate market and or even the crypto market, they want to be able to have some liquidity, some cash flow, and so part of this vision is taking helping our clients who are in cryptocurrency, buy an investment, real estate, all tax-deferred, using the Deferred Sales Trust, also invest with Jake Mellor as the financial advisor to in a diversified investment grade security or start a business. Whatever the outcome that you want to do. Why is it that you’re investing with any type of asset? What if you could sell high, diversify, and buy back in whenever you’d like to? This is what we’ve already done and we’re doing, we’ve already proven it.
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Want to learn more? Check Out The Blogs Below!
- Can a Deferred Sales Trust Be Used for Mergers and Acquisitions?
- How to Defer Capital Gains Tax When Selling Your Cryptocurrencies
- Need An Exit Strategy? The Deferred Sales Trust Might Be the Answer