Success Stories

Each month we spotlight one of our investors or partners and share their successes with the community.  This month we would like to present Matt & Kriston Smith of Hawaii. They started investing with us in our first 10/10 Group in the Summer of 2008 and have gotten off to an excellent start. In their first 6 months of the Preferred 10/10 Program they have increased their cash-flow by over $1,000 per month via two cash flow properties, and are on track to increase their returns even more in the next few years.

In addition to their monthly cash flow, Matt & Kriston have referred other investors to the 37th Parallel community, thus increasing their cash flow even more.

“Our experience with the 37th Parallel team has been great. With any other real estate transaction when you close on a property you are basically on your own. When we closed with 37th Parallel it was just the beginning, they are very accessible, had answers to our questions and offered advice that would not be found if we had tried to acquire similar properties on our own. They basically take all the guess work out of the process and most importantly offer support after the close to ensure that our cash-flow properties run smoothly. I can’t begin to tell you the peace of mind that gives us let alone the confidence to keep moving forward in our cash-flow property business.”

- Matt & Kriston S. (Lahaina, HI)

The Situation

In March of 2006 Tim & Betty R. called Ed Barriskill about selling their rental house in Bay Point California. At that time they had met with their CPA and found out that they would have to pay approximately $85,000 in capital gains on the sale of the property. After analyzing their situation, Ed told them he could sell their property, exchange the profit into one of our commercial properties (Tax Free), possibly double their income, and grow their equity. The answer was easily a “yes.”

How we helped

To make a long story short, Ed sold their property and was able to 1031 exchange their proceeds into the Freedom Center, a 7 unit retail center in College Station, Texas. Tim & Betty became one of three investors in the project and with their $200,000 invested they started making $1,950 per month income (mostly Tax Free). The income they received was more than twice what they were netting from their rental home ($833), plus they are now passive investors with no management responsibilities. Their job now is to cash the quarterly cash flow checks.

The Results

If you talk to Tim or Betty, you’ll find they are very happy they made the decision to get involved in these commercial projects. They not only didn’t have to pay $85,000 in capital gains to the government, but we have grown their $200,000 into approximately $500,000 in just 2 ½ years…plus all the cash flow.

The Situation

Jack and Beverly J. were clients who owned a condo in Walnut Creek, CA. They wanted to sell their condo because they didn’t want to be landlords anymore; they were in their 70s and were tired and worn out from being property managers.

How we helped

After analyzing the situation, we estimated that they would net approimately. $250,000 from the sale of their condo, but they would have to pay about $100,000 in capital gains to the government. Hearing this information, they literally felt sick inside. We told them we knew a way not to pay the capital gains tax and improve their monthly cash flow and equity position by exchanging their condo into a commercial property.

The Results

We helped Jack and Beverly 1031 exchange part of their proceeds of $150,000 into the Freedom Center, a 7 unit retail center where they received $1,465 per month cash flow (Mostly tax Free) and increased their equity from $150,000 to $290,000 in 2 ½ years, a handsome profit.

The second property we exchanged a portion of their funds into was the Shops on Texas, a brand-new 16 unit retail center, which when we purchased it, was 64% full. It took two years to bring the occupancy to 94%. To date we have increased the equity from $100,000 into approx. $144,000 in growth equity… not a bad return in 2 years. Jack and Beverly are now passive investors with no management responsibilities and are very happy they didn’t have to pay capital gains to the government.

By exchanging Jack and Beverly’s gain on the condo, we set them up financially both in cash flow and future equity for themselves and their children.