Real Estate Advisory for a Growing Portfolio
Real Estate Advisory for a Growing Portfolio
A successful real estate investor with a growing portfolio of multi-family properties across the West Coast approached Cobalt CPA for strategic guidance. The client faced rising tax liabilities and wanted to explore ways to optimize their investment structure while positioning their portfolio for future growth.
Client Overview
A successful real estate investor with a growing portfolio of multi-family properties across the West Coast approached Cobalt CPA for strategic guidance. The client faced rising tax liabilities and wanted to explore ways to optimize their investment structure while positioning their portfolio for future growth.
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Challenges
- Increasing tax exposure due to expanding property holdings
- Complex compliance requirements across multiple states
- Uncertainty about how to structure a 1031 exchange to minimize tax impact
- Need for improved cash flow management and long-term growth strategy
Our Approach
- Portfolio Review and Structuring
We conducted a full analysis of the client’s portfolio, identifying opportunities to restructure property ownership to improve tax efficiency. - 1031 Exchange Strategy
We advised the client on executing a 1031 exchange to defer capital gains tax while upgrading to higher-yield properties. - Tax-Efficient Structuring
Our team developed a strategic tax plan that leveraged depreciation, real estate tax incentives, and pass-through entity structures to reduce overall tax burden. - Compliance and Multi-State Filing
We streamlined the client’s multi-state tax filings and ensured they remained compliant with varying local regulations. - Cash Flow and Growth Strategy
We provided detailed cash flow projections and advised the client on reinvestment opportunities to support long-term growth.
Results
- $250K+ in tax savings through strategic restructuring and tax incentives
- Successfully completed a 1031 exchange that improved cash flow and property value
- Increased portfolio value by 12% over 18 months
- Reduced administrative burden with simplified compliance across multiple states
Client Testimonial
Cobalt CPA helped us see the bigger picture and take advantage of opportunities we didn’t even know existed. Their strategic advice has been a game-changer for our portfolio’s growth and long-term value.