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Note: Majestic Investment Group does not provide any financial, legal or tax advice. Each individual scenario is different, please consult a professionals, lawyers, CPA, or other advisors to decide which vehicle is the best choice for your circumstances.

Qualified Opportunity Zone vs. 1031 Exchange: Which is better?

Majestic investment group currently has 9 self storage facilities in its portfolio 4 in Texas 2 in Missouri and 3 in Arkansas. Self storage is known as #1 recession resistant asset class.  

Below explanation is just for sake of education and to understand concepts, it should NOT be considered as tax or financial advise. Please consult your personal CPA and tax advisor as each persons income and tax situation is unique. Tax laws are rules can change totally or be amended therefore its a must to work with qualified professional to implement any of these tax strategies. Article written and published on Jan 17, 2020

Plenty of professionals (Engineers, Architects, Doctors, Lawyers, Business Owners) living in Silicon Valley, CA and other locations make very high income, and they feel they have made it in America. However, some high net worth individuals never take time to reflect on the fact where is money is going out.

If one adds up all the taxes, income, property, sales, capital gains, short term gain etc very quickly the realization hits home that close to 35% to 50% of annual gross income may be going out of the door. 

During the pursuit of learning wealth building stra...

Reading the above quote was an AHA moment. 

The vast majority of people spend their lives working full-time jobs to earn a “steady” paycheck. Meanwhile, the wealthy have somehow unlocked the secret to working less while making their money work for them. So what is it that the wealthy know that the rest of us don’t? 

One of the biggest secrets that the wealthy tap into is the incredible power of real estate. Real estate has the ability to generate passive income and provide a path toward building wealth. 

Every dollar invested in real estate works for you in these five star ways:

• Cash flow

• Leverage

• Equity

• Appreciation 

• Tax benefits

Let’s look at these a little more …

Cash Flow 

The greatest benefit of investing in real estate is passive cash flow. When an asset is purchased and rent is collected from tenants, the remaining value after property expenses are paid is your cash flow. If you put down $50,000 to buy a rental for $200,000, your mortgage ...