Do you only work with California property owners?

No. Qubera Wealth Management is based in Pasadena, California and works with clients nationally. California owners are a large part of our practice because the state's combined tax rate on a property sale is among the highest in the country, which makes the planning especially valuable. But the federal rules are identical everywhere and we regularly work with owners in other states.

Is there a minimum property value to work with you?

There is no hard minimum, but the math has to make sense. Delaware Statutory Trusts typically require at least $100,000, and below roughly $250,000 of proceeds the fees and complexity of an exchange start to outweigh the benefit for many owners. If your numbers are small, we will tell you that on the first call rather than after.

I inherited a rental property. Do I need a 1031 exchange?

Often not, and this is important. When you inherit property you generally receive a basis stepped up to its fair market value on the date of death, which means selling soon afterward produces little or no taxable gain. The 1031 exchange exists to solve a problem you may not have. If you inherited recently, get your date-of-death appraisal before doing anything else.

Fit

Who we work with, and who we are not right for.

We would rather have a short honest conversation than a long expensive one.

Six situations

If one of these sounds like you, we can probably help.

Most common

The long-time landlord who is done

You bought one or two rentals decades ago. They have appreciated enormously. Your basis is near zero. The tenants and the maintenance stopped being worth it years ago, and you are now looking at a tax bill that makes selling feel impossible. This is the situation the whole strategy was built for.

The out-of-state owner

You moved. The rental did not. You are managing a property two time zones away through a manager you have never met, dealing with a market you no longer understand. Exchanging into professionally managed real estate ends the distance problem permanently.

The investor trading up

You own several doors, you know exactly what a 1031 exchange is, and you want a better replacement property or a partial allocation into DSTs to reduce concentration while keeping your operating portfolio. We are useful here mainly for the DST side and the coordination.

The partnership that is breaking up

Three siblings inherited a building and want different things. One wants cash, one wants to keep operating, one wants passive income. This requires a drop-and-swap structured well in advance, and it is one of the situations where getting advice early genuinely changes the outcome.

The exchange that is running out of time

You are on day 31 and your primary deal just fell apart. We can identify and close a DST quickly. Call now rather than on day 43. The number of good options shrinks every single day.

The owner planning ahead

You are not selling this year, but you are thinking about the next three to five. This is the best possible time to talk. Almost every expensive mistake in this field comes from starting the conversation too late.

Who we are not right for

Being clear about this saves everyone time.

Owners who inherited recently. If you received the property through an estate, your basis was likely stepped up to fair market value at the date of death. There may be almost no taxable gain to defer. Get the date-of-death appraisal before you do anything, and be skeptical of anyone selling you an exchange you may not need. We wrote a whole page on this →
Small gains. If your total tax exposure is under roughly $50,000, an exchange often is not worth the cost and complexity. We will say so.
Anyone who needs the cash. An exchange requires reinvesting everything. If you are selling to fund a home purchase, a business, or care for a family member, the conversation should be about after-tax planning, not deferral.
Owners who enjoy the work. If you like being a landlord and the returns satisfy you, keep going. The tax tail should not wag the dog.
Anyone looking for guaranteed returns. DSTs are not guaranteed. Distributions are projections. Principal is at risk. If that is not acceptable, this is the wrong strategy and we would rather you hear it now.

Where we work

Qubera Wealth Management is based in Pasadena, California and works with clients nationally. California owners make up a large part of the practice, for a simple reason: California taxes the entire gain as ordinary income at rates reaching 13.3 percent, on top of federal capital gains, depreciation recapture, and the net investment income tax. The combined bill on a long-held Los Angeles or Bay Area rental frequently exceeds a third of the sale price.

State guides: California · Washington · Oregon · New York · New Jersey

The federal rules are the same everywhere, though. We work regularly with owners in Washington, Oregon, New York, Texas, Arizona, Nevada, and Florida, and the property itself can be anywhere in the United States.

What working together looks like

A free 30-minute call

You describe the property and roughly what you paid, what it is worth, and how long you have owned it. We tell you what the tax would be and whether an exchange is worth considering. No pitch, and no obligation.

A written analysis

If it looks promising, we build out the actual numbers with your CPA's depreciation schedule and compare your realistic options side by side, including doing nothing.

Setup before you close

We introduce you to a qualified intermediary, coordinate the exchange language with your agent and escrow, and align your CPA and attorney on the plan. This all happens before the sale closes.

Replacement property selection

We review current DST offerings against your proceeds and your debt replacement requirement, read the private placement memoranda with you, and build a mix across sponsors, property types, and regions. Backup identifications included.

Ongoing management

Most clients stay. We monitor the DST portfolio, coordinate the annual tax reporting including California FTB Form 3840, and plan the next step when a sponsor sells a property and the exchange decision comes around again.

Not sure if you fit?

That is exactly what the first call is for. Thirty minutes, no cost, and a straight answer about whether we can be useful to you.

Book a free 30-minute call