Wed, 12 October 2016
CW 738 - Dr. David D'Ambrosio Client Case Study - Equity Stripping, 1031 Exchanges & Market Diversification
Investment Counselor, Sara is back on the show. She joins Jason to discuss her three new properties in Memphis, how a client beat her to the punch on other properties she was interested in and just how competitive the market is right now. And in the client case study, Dr. David D’Ambrosio shares his experiences with the 1031 Exchange on properties in the Orlando and Indianapolis markets. He shares his opinions on why more high-tax bracket professionals are not investing in real estate and he asks Jason about what his next steps should be?
The beautiful thing about real estate is you can acquire an asset, get your money back out and still own and control the asset. Plus, you pay no taxes on the money you extract.
[2:12] Sara just closed on three properties in Memphis and she wears PJ’s to bed.
[6:16] Rate locks - Should you let it float or lock it in?
[9:15] Commodities that make up a house are copper wire, glass, steel, petroleum products are independent of any currency.
[13:53] Is the Creating Wealth show the Fox News of real estate? One listener thinks so.
Dr. David D’Ambrosio Client Case Study:
[17:34] Dr. David D’Ambrosio is Radiation Oncologist living the American Dream. He has always had an interest in real estate.
[19:52] Dr. David recently did a 1031 Exchange and then purchased four properties in Orlando.
[21:34] There are two ways to diversify a real estate portfolio. One is location and the other is through cash flow and appreciation.
[23:25] The 1031 Exchange allows for only 45 days for identifying properties but up to six months to close.
[26:08] It’s frustrating more people, doctors in particular, aren’t investing in real estate. It’s an absolute no-brainer.
[32:16] Local community banks will provide financing to investors after they reach their traditional property limit.
[38:24] Is it feasible to do a cash out refinance if you can get a sizable amount of cash?
[40:27] The deferred down payment option offered a nine-year break even point.
[43:25] Equity stripping is pulling the money out of a property, having control of the cash and still own the property.
Mentioned in This Episode: