Call/Text us (818) 259-1890 or Email ray.softstorysolution@gmail.com or raymund.kwcommercial@kw.com
Soft-Story Property Owners:
Soft-Story Property Owners:
Eliminate Occupancy Permit Problems and Structural Retrofit costs
while getting 30% More income!
Repair Your Rental Property at NO COST or explore other options
No 1031 program, DST, or REIT's involved!
What is a Soft-Story building?
Soft-story buildings were popular in the 1970s and 1980s because they were considered a cost-effective way to provide more living space in urban areas. The large openings on the ground floor were often used for parking or commercial space and were intended to increase the building's usability and appeal. The building codes and seismic design standards were not as strict as today.
Example of a soft story collapse.
At that time, the focus was on providing more living space and not building resilience to seismic activity. So, many developers and architects took advantage of the less restrictive building codes to create more cost-effective buildings by adding large openings to the ground floor, resulting in these soft-story buildings' creation. However, as time passed, the vulnerability of these buildings during seismic activity became more apparent, and building codes have been updated to reflect this.
Do you have a soft story building? Watch the video below to learn more!
How does this affect you?
This puts the lives of anyone inside the building at risk and the building owner at fault.
The County of Los Angeles has set a deadline for retrofitting these buildings, and failure to comply can result in...
- Significant Fines
- Large Penalties
- Expensive Legal action
- Life-Threatening Scenarios
The fines for non-compliance can be substantial and will increase over time. If you ignore the retrofit requirements, the City may take legal action to force you to comply, putting your building and your business at risk.
The potential consequences of not retrofitting your building could be devastating, not only to the property but also to human life. It is important to protect yourself, your tenants, and the community.
The potential consequences of not retrofitting your building could be devastating, not only to the property but also to human life. It is important to protect yourself, your tenants, and the community.
Why're you reading this?
We offer solutions for soft-story building owners that include...
No retrofitting.
Receiving a steady income.
Pay significantly less in taxes.
Passing on more money to your family.
How do we do this?
We use an installment sale trust
An Installment Sale Trust is a LEGAL way to get capital gains tax relief by selling your Business or Property through a specialty trust.
First, let's talk about capital gains
Capital gains taxes are taxes imposed on the profit from selling an asset, such as a piece of real estate. The capital gain is calculated as the difference between the sale price of the property and the original purchase price, also known as the "cost basis."
For example,
if you purchase a house for $200,000 and then sell it for $1,000,000, the capital gain would be $800,000 ($1,000,000 - $200,000). In this case, you would be required to pay capital gains taxes on the $800,000 profit, which would be $288,000 in California (federal + state ~ 36%).
The capital gains tax rate can vary depending on several factors, including the time the property was held, the taxpayer's income, and whether the property was used as a primary residence. If the property was held for more than one year and was not a primary residence, the long-term capital gains tax rate could be as much as 36% with state and federal taxes combined.
Diagram of the provided example
**288k in capital gains taxes is calculated in California from a 36% capital gains (Federal + State) tax on the 800k profit.
**All numbers above are estimates; your individual circumstances may be different
**Please note that other tax considerations, such as state and local taxes and depreciation recapture, may also apply to the sale of real estate.
How does an Installment Sale Trust work?
Step 1: Seller SELLS the asset to the Trust in exchange for a Secured Note
Step 2: The Trust sells the assets to the buyer, and the proceeds come back to the Trust
Step 3: Trustee invests proceeds for a significant return
Step 4: The note pays out quarterly income
Step 5: At the 10th year, the Trust pays out the proceeds and growth returns or renews for another 10 years (Like a refinance). This can go on for generations.
It is important to note that installment sales trusts are complex financial instruments, and it is advisable to consult with a tax professional or attorney to determine if it is the right strategy for your situation.
We walk you through this process
Don't navigate the complexities of an installment sale trust alone; trust our team to guide you through the process. Please reach out to us today to schedule a consultation.
We've helped hundreds sell their rental properties over 19 years of working with the Installment Sales Trusts and 30+ years in real estate.
We can help ensure that the trust is set up and managed correctly, guiding the tax implications and trust structure to maximize the benefits for the grantor.
We take our clients' assets VERY seriously. Our primary focus is to ensure that the trust is set up and managed correctly to provide the desired tax benefits while preserving the asset's value.
Get a Free Estimate of your IST Gains!
Meet Your Dedicated Team of Experts
Raymund Ramos
raymund.ramos@cbrealty.com
Raymund has been in the real estate industry since 1990 and has negotiated a multitude of residential and commercial deals in Asia and the United States . Raymund has joined Coldwell Banker to assist clients throughout the US in buying and selling residential and commercial properties, multifamily properties, rental properties, apartment buildings as well as businesses.
Kevin Brunner
kevin@qualifiedfin.com
Kevin has helped hundreds sell their properties and businesses over the 19 years of utilizing the Installment Sale Trust and performing as a broker and financial professional. Kevin was featured in Forbes magazine in 2015 and was previously the host for The Smart Money Hour'
on KABC Radio, Bloomberg Radio, and several financial radio shows.
The Benefits of an IST
Pay no capital gains tax at sale
Create a steady income
Leave your family with more
You're only one step away
From More Income & Fewer Taxes
We have something for you!
Don't Forget Your FREE Installment Sales Trust Guide!
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