Family Portfolio Reallocation

Atlas Real Estate Advisors  /   July 15, 2025

Strategic Reinvestment for Long-Term Income and Estate Planning

In 2018, a multigenerational family came to us at Atlas Real Estate Advisors to evaluate the performance and sustainability of several residential rental properties they had owned for years. While those assets had appreciated, the day-to-day burdens of tenant turnover, maintenance, and management had become increasingly taxing.

After a full analysis, our recommendation was clear: sell the residential portfolio and reinvest the proceeds into passive, income-generating commercial assets—all while deferring capital gains through a 1031 Exchange.

Phase I: Transitioning to Commercial Income

We advised the family to divest their residential holdings and reinvest in commercial properties that would deliver:

• Minimal hands-on management
• Consistent, long-term cash flow
• Significant tax benefits through a 1031 Exchange

We facilitated the sale of their residential portfolio, then sourced and closed on multiple commercial properties that aligned with the family’s long-term goals. Each new asset was selected for its income stability, low operational demands, and potential for long-term value.

Phase II: Unlocking the Value of Legacy Land

In 2021, the family returned to us with a new objective: determine how best to handle a tract of land that had been in the family for decades. While the property had appreciated, it wasn’t generating income—and annual taxes and upkeep were draining resources.

We recommended listing the land for sale and using another 1031 Exchange to reposition those funds into additional income-producing properties.

Within the 1031 timeline, we:

• Listed and sold the land in under 90 days
• Identified and secured four income-producing commercial assets
• Completed the exchange, allowing the family to fully defer capital gains taxes

Results: $50,000/Month in Passive Income and a Sustainable Legacy

Through this multi-year strategy, the family achieved:

• Full capital gains deferral through 1031 Exchanges
• A diversified portfolio of professionally managed commercial properties
• Approximately $50,000 per month in passive income
• A long-term estate plan that reduces tax burden for future generations

A Lasting Investment Strategy, Fully Managed

Today, our Atlas Management team handles the ongoing operations of their portfolio, including:

• Rent collection
• Tenant communication and lease oversight
• Bill payment and maintenance coordination

What started as a conversation about property performance has evolved into a fully managed, generational wealth strategy—one that will continue to serve the family well into the future.

If you’re looking to simplify your real estate portfolio while increasing income and preserving wealth, we’re here to help you take the next step.

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