Why You Should Care About Another Recent Acquisition
GrowAbility Equity occasionally buys properties by Joint Venture, co-owning a property with a few other active investors for a longer-term hold (5 to 10 years). Case in point is Bella Vita, a beautiful 55+ property in Waxahachie, TX, a suburb of Dallas. A few points that will be informative:
- This property was bought via a 1031 Exchange. We sold a Joint Venture property in Sioux City, IA, in March, 2022, and multiplied our initial investment by over 5 times (eg, $1000 becomes over $5000!). The 1031 Exchange allowed us to defer paying taxes on the capital gains to the extent we invested profits into Bella Vita. Whenever selling real estate and planning to buy again immediately, consult your tax advisor whether a 1031 Exchange makes sense.
- Potential multifamily joint venture investors typically need $250k-$500k or more to participate. The benefits are greater operating flexibility given a small number of owners who are all decision makers (assuming the partners are chosen well); higher profitability per property, and larger tax benefits per property. If a joint venture is of interest, let us know and we will have a chat to see if there is a fit to place you on our JV interest list!