Estate Planning & Simplifying Generational Wealth Transfer
For decades, Michael built an impressive portfolio of 14 single-family rental homes, each owned for over 10 years. While the returns were strong, the portfolio had become increasingly difficult to manage, especially since his wife had never been involved in day-to-day operations.
Client:
Michael Ruiz
Website:
N/A
Date:
November 22, 2020
Category:
Real Estate
01. Сhallenge
Turning 14 Single-Family Rentals Into a Passive, Transferable Portfolio
Client: Michael Ruiz
Profile: Early 70s, lifetime real estate owner, transitioning assets for estate planning
For decades, Michael built an impressive portfolio of 14 single-family rental homes, each owned for over 10 years. While the returns were strong, the portfolio had become increasingly difficult to manage, especially since his wife had never been involved in day-to-day operations.
Each home individually was worth $250K–$500K with debt—making it impossible to exchange into high-quality institutional assets unless he lumped them together. However, that would have forced him to sell properties on someone else’s timeline.
His goals:
- Reduce management burden
- Simplify his estate for his heirs
- Maintain strong returns
- Avoid forced consolidation of properties at sale
02. Solution
Over two years, we designed a phased plan:
- Sell each property individually, maximizing price
- 1031-exchange each sale into its own DST
- Build a strategic, diversified portfolio across multiple sponsors, sectors, and states
03. Outcome
- Michael now controls a professionally managed DST portfolio without the headaches of scattered rentals.
- His wife and children will inherit simple, fractionalized interests, not dozens of deeds and property files.
- He maintained—and in some cases improved—his net income.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS:
The case study does not reflect actual clients. Any reference to securities is based upon historical data that is publicly sourced. No statement made herein is to suggest stock market performance or future performance, and no case study is used to imply future performance.
The case study is intended to illustrate services available through the adviser. They do not necessarily represent the experience of any clients.
