By: Nic Abelian
Real estate transactions can be intricate, especially when handling processes like a 1031 exchange. Barbara, a client of RealE Happy, sought assistance in selling her home and purchasing a new construction rental property. With the help of RealE Happy, Barbara was able to complete the 1031 exchange and move forward with her plans. This is her story of how RealE Happy supported her throughout the process, helping her navigate the steps involved.
Barbara’s Real Estate Journey
Barbara had been contemplating the sale of her home for some time. The property had increased in value, and she saw an opportunity to sell it at a high price. However, she didn’t want to face the hefty capital gains taxes that could eat into her profits. That’s when she learned about the 1031 exchange, a tax-deferred option for property owners to sell one property and purchase another of equal or greater value without immediately paying capital gains taxes.
To navigate this process, Barbara turned to RealE Happy, a real estate team brokered by eXp Realty and led by founder Hawk Mikado. RealE Happy specializes in helping clients like Barbara manage the sale and purchase of properties efficiently. With over a decade of experience, the team’s expertise covers everything from traditional home sales to rental property management, Airbnb setups, and tax-related real estate strategies.
RealE Happy’s Expertise in 1031 Exchanges
The 1031 exchange is a valuable tool for property owners looking to reinvest the proceeds from a sale into another property without facing immediate tax consequences. However, the process is highly regulated, requiring precise timing and compliance with IRS rules. This is where RealE Happy’s knowledge and attention to detail were crucial for Barbara.
RealE Happy began by helping Barbara list her property. Thanks to their innovative marketing strategies and extensive market knowledge, the team ensured her home was positioned to attract competitive offers. As a result, Barbara sold her home at a value, giving her the financial leverage needed for her next purchase.
Once the sale was complete, RealE Happy guided Barbara through the intricacies of the 1031 exchange, ensuring she met the IRS requirements, including the 45-day identification period and the 180-day closing period. By adhering to these guidelines, Barbara successfully deferred the capital gains taxes she would have otherwise owed.
Securing a New Construction Rental Property
With the proceeds from her home sale in hand, Barbara was ready to purchase a new property. RealE Happy helped her identify a new construction rental property that aligned with her financial and long-term goals. Their experience in the market allowed them to negotiate a significant discount on the purchase price, further increasing the value of Barbara’s transaction.
This discounted purchase price was a key factor in Barbara’s long-term financial strategy. Not only did she acquire a high-quality rental property, but she also minimized her upfront costs. The team’s ability to secure this favorable deal played a pivotal role in ensuring Barbara’s transition into her new property was financially sound.
A Reduced Loan Rate and Long-Term Savings
One of the impactful aspects of Barbara’s transaction was the reduced loan rate that RealE Happy helped her secure. Through careful negotiation and lender partnerships, the team was able to obtain a competitive loan rate, significantly reducing the overall cost of Barbara’s mortgage.
Over the course of 30 years, this lower interest rate will result in substantial savings on Barbara’s mortgage payments. These savings, combined with the discounted purchase price, position Barbara to maximize her rental income and build long-term financial stability. The reduced interest payments alone will allow her to save tens of thousands of dollars over the lifetime of the loan, money that can now be reinvested in her future or provide financial flexibility for other endeavors.
RealE Happy’s Client-Centered Approach
What sets RealE Happy apart is their commitment to personalized service and tailored strategies for each client. Barbara’s journey is a testament to the team’s dedication to understanding her needs and finding solutions that aligned with her goals. Whether it was selling her home at top dollar, managing the intricacies of the 1031 exchange, or negotiating favorable terms for her new property, RealE Happy’s client-centered approach ensured that Barbara received the support she needed every step of the way.
Under the leadership of Hawk Mikado, RealE Happy continues to provide unparalleled service to a diverse range of clients. With a focus on creative marketing strategies and expert negotiation, the team delivers value beyond just buying and selling properties. They offer a comprehensive understanding of market trends, tax strategies, and investment opportunities, empowering clients like Barbara to make informed decisions.
RealE Happy: A Trusted Partner in Real Estate
Barbara’s story highlights how effective real estate guidance can lead to meaningful financial outcomes. With RealE Happy’s expertise, she successfully navigated a 1031 exchange, sold her home at premier value, and acquired a new rental property at a discounted rate, all while securing a reduced loan rate that will save her significant money over time.
RealE Happy, brokered by eXp Realty, continues to serve clients with the same dedication, helping them achieve their real estate goals with innovative strategies and personalized service. Whether guiding clients through a 1031 exchange or assisting with managing Airbnb properties, the team’s comprehensive approach ensures successful outcomes in every transaction.
For more information about RealE Happy and how they can assist with your real estate needs, visit their website at RealEHappy.com or follow them on social media at @RealEHappy on Facebook, Instagram, and YouTube.
Published by: Nelly Chavez