Impossible? Not with Martini
When a gentleman in his 80s came to us with two smaller dilapidated and underperforming multi-family properties. He shared with us his goal and reason for coming to us: to turn his currently unstable properties into one stable property that would provide cashflow for his children.
It wasn't going to be easy, but we knew what we had to do. We took on this nearly impossible challenge and broke it into three steps:
Step 1: Find buyers for the currently owned properties
Step 2: Identify 1031 exchange opportunities (i.e. finding a new property to purchase from the proceeds of the current ones)
Step 3: Ensure we were able to broker the sales and close on the 1031 exchange property within 180 calendar days
We listed the properties and quickly found a 1031 exchange property. We were able to find buyers for the smaller properties with expediency. After surmounting numerous challenges, such as tenant and bank issues, we we closed on both of the smaller properties.
Within weeks, we were able to close escrow on both of the smaller properties and enter into contract with the 1031 exchange property. Despite some challenges, everything was going surprisingly well.
Then, with a single phone call, everything changed. We were told we were getting kicked out of contract with the 1031 exchange property due to a rogue tenant.
Luckily, this wasn't our first time experiencing this issue. Utilizing our experience and expertise, we were able to not only solve the tenant issue, but also get back into contract at a lower price.
We closed escrow. We helped our client turn two low-performing buildings with negligible rent income and huge deferred maintenance cost into a trophy, 5-story turn-key property that more than doubled their monthly cashflow. The out-of-pocket cost for our client? $0.
Not Sure What to Do?
Not a Problem with Martini
At the height of the pandemic, a group of sibling came to us after inheriting a portfolio of real estate from their late father. They wanted to know what their options were. After delving into the portfolio, we presented them with options.
The family elected to sell the properties. To help the family sell the properties for the best possible price, we went to work underwriting, preparing, and marketing the properties. Despite unusual circumstances due to the pandemic, we were able to coordinate showings and inspections with the tenants, complete repairs, and procure highly qualified buyers with strong offers for the properties.
Timing the market, we helped the siblings sell when interest rates were low, allowing us to push for higher property values. With a little extra advising, we helped the siblings to sell the properties at fantastic prices above market-value while minimizing capital gains tax due to their stepped up basis in values. This allowed the siblings to utilize the tax-free proceeds to their liking.