A 1031 property Exchange in Texas is a guaranteed way to pay less in taxes and keep more of your money in your pocket. Texas boasts a robust economy that is true a pro-business state for both small business and corporate institutions. Can you believe there are over 20 billion barrels of untapped oil in the ground with over 7 trillion tons of natural gas yet to be extracted? I recently attended a luncheon provided by Frost Bank that included Ultra High Net Worth investors, bankers, and economists discussing the growth of Texas by the The Perryman Group. Dr. M. Ray Perryman talked about the future of business in Texas, and the future looks very bright especially for exportation and new job creation.
There are two main reasons to do a 1031 exchange in Texas, there are no state income taxes and the Texas economy has proven it is recession proof. To truly succeed in the real estate investment arena, it’s not how much money you make, but how much money you retain from both your equity value and your earned income from the rent proceeds of each asset.
Let’s say you’re unsure that you want to go into the landlord business and/or you simply want to leave a legacy behind. You don’t want to worry about your family taking on property management responsibilities, and you don’t want tenants you’re not be familiar with. In many cases, hiring a financial advisor to move your money into less risk alternatives (stocks, bonds, mutual funds, etc.), but real estate is better. We agree with having a diversified portfolio investment, but real estate has come a long way in the capital markets. Are you aware that if you invest with a REIT, you lose equity your position? Buying and owning a property yourself allows you to maintain equity and control of property, not just a return on your money. When I first went into commercial real estate, I was perplexed why somebody would give a stranger control over their Estate and/or financial future. I would love to show how easily investment grade commercial Real Estate can be managed with some smart coaching and guided direction based on my years’ expertise.
The city of Austin was named one of the fastest growing cities in 2019 and has been consistently one of the fastest growing cities for the last 8 years. Dallas, Houston and San Antonio have also been named in the top 40 fastest growing larger cities. Over the next five years, The Perryman Group’s forecast indicates that the Dallas and Austin areas will lead the way in output and employment growth, followed closely by the San Antonio and Houston areas. Put into context, the Texas economy is expected to see output (real gross product or RGP) growth at a 3.82% annual pace, while employment expands at a 2.02% annual rate.
According to Site Selection, Texas has led the nation with 6,415 corporate real estate projects. Even the ubiquitous U-Haul moving company confirms Texas’ growth. When the firm recently tracked the total number of U-Haul trucks pulling into each state versus the volume leaving, guess which state led the pack? You guessed it: Texas. (Source: Site Selection) Just 4 days ago Elon Musk hinted at plans for a GigaFactory in Texas also both Google & Apple have expanded into the state. Most recently Amazon announced it would be building one of the largest fulfillment centers in the country located just outside of Austin. There has never been a better time to get on board and start exploring the vast riches Texas has to offer. I remember someone telling me when I first entered this business “J.E. people come to Texas for two reasons number one for land & number two for wealth” that statement still holds true. I would love to share with you how easy the Texas 1031 Exchange market can be navigated. The Texas 1031 Exchange is the best kept secret, and has been amongst the ultra-wealthy and politically involved for many years.