Quick Summary: Real Estate Investment Success Story
Claudia & Julian’s Investing Journey
The Starting Point
Claudia and Julian owned a rental property in San Francisco worth approximately $1.5 million. Like many Bay Area investors, they were facing some hard choices.
- Sell and pay huge taxes: The capital gains tax bill would be substantial.
- Buy another Bay Area property: “There’s bidding wars on houses, and you might be able to get a couple houses, two maybe three houses.”
- Keep the property: Continue earning minimal cash flow in a very expensive market.
“We knew we wanted to sell it, but if we did sell it we would make a pretty good capital gains tax. So we had to do a 1031 exchange. And there’s so many rules with that.” ~ Claudia
Their Challenge: Finding a way to avoid the massive tax bill while actually growing their portfolio and cash flow. Not just trading one expensive property for another.
Quick View: From 1 Property To 20
First Steps: Trapped in San Francisco
The Breakthrough: Finding RealWealth
The Results: 1 Property Becomes 20
Why They Were Skeptical at First
When Claudia and Julian first heard about RealWealth, they had doubts.
“We heard Kathy on the radio station I listened to and it sounded too good to be true. It really did. And we were very cautious about it and took our time, but eventually we trusted them.” ~ Julian
Their Concerns:
- Could they really avoid the huge capital gains tax?
- Was it possible to buy cash-flowing properties with their equity?
- Could they trust out-of-state property teams?
- Would remote property management actually work?
What Changed Their Mind:
RealWealth’s education and transparency, and connections to trusted 1031 exchange facilitators.
“This whole program is teaching you. You’re learning a lot. I mean I’ve learned so much more in the last year than I ever knew about this.” ~ Julian
Understanding How They Did It: The 1031 Exchange Strategy
The Old Myth: You have to invest locally where you can see your properties.
The New Reality: With technology, the internet, and a trustworthy team, you can invest anywhere, and your money can go much farther if you choose the right real estate market.
Their Process:
The Result:
“We sold the one property in the Bay Area and turned it over into almost 20 properties and increased our income six times.“ ~ Claudia
Claudia and Julian didn’t just escape high California property prices—they built a strategically diversified real estate portfolio.
Benefits of Investing in Multiple States
“Our money goes a lot farther in other places. We could never have done the 1031 with that amount of money in different states without a team already in place.” ~ Claudia
Building Wealth Through Geographic Diversification
“I wouldn’t want to become a landlord and have rentals without a property management team in place that is keeping an eye on the property, taking care of all the maintenance, collecting all the rent, and screening the would-be renters.” ~ Claudia
Claudia and Julian didn’t want to invest without professional property management. That’s where RealWealth made the process seamless, as all of the recommended property providers already have property management in place.
“We don’t do a thing. We basically accept emails and direct deposits into a bank account. So it can’t be any easier.” ~ Claudia
Why Property Management Teams Are Essential
Ready To Turn Your Expensive Property Into a Portfolio?
If you own property in a high-cost area like San Francisco, Los Angeles, Seattle, or other expensive markets, you might be sitting on equity that could become 10, 15, or 20 properties in growth markets across the country.
The question isn’t whether it’s possible—Claudia and Julian proved it is.
The question is: How much longer will you accept minimal cash flow when you could 6x your income?
Join the RealWealth community today and discover how 1031 exchanges, connections to trusted 1031 exchange qualified intermediaries (we use them ourselves!), vetted property teams, and strategic market selection can transform one expensive property into a diversified, cash-flowing portfolio.
Frequently Asked Questions
No, RealWealth membership is 100% free. Members get access to educational resources, direct connections to vetted property team networks with turnkey properties for sale in top U.S. markets, investment counseling at no cost, and access to affordable real estate investing events. Claudia and Julian used these free resources to learn about 1031 exchanges and transform their single San Francisco property into almost 20 properties across multiple states. Join RealWealth for free→
A 1031 exchange (named after Section 1031 of the IRS tax code) allows you to sell an investment property and reinvest the proceeds into “like-kind” investment properties while deferring capital gains taxes. Claudia and Julian faced a substantial capital gains tax bill on their $1.5 million San Francisco rental. By using a 1031 exchange, they sold that one property and acquired almost 20 properties across three states—paying $0 in capital gains taxes. The exchange has specific rules and timelines, which RealWealth’s education and connections to trusted 1031 exchange qualified intermediaries can help you navigate. Connect with a 1031 exchange facilitator →
Yes. Claudia and Julian proved it’s possible. They sold one San Francisco Bay Area property worth approximately $1.5 million and used a 1031 exchange to acquire almost 20 properties across multiple states. Their assessment: “It was amazing how much further our money went outside of the Bay Area.” In high-cost markets like San Francisco, Los Angeles, or Seattle, your equity can buy many more properties in growth markets with better cash flow potential. Explore 1031 exchange replacement properties in growth markets →
It depends on your current property and where you reinvest, but the results can be dramatic. Claudia and Julian increased their cash flow six times by moving from one San Francisco rental to almost 20 properties in lower-cost markets. What was generating minimal income in the expensive Bay Area now produces significantly more monthly cash flow through strategic diversification. Your money goes “a lot farther” in markets where properties actually cash flow. Calculate potential returns with a RealWealth Investment Counselor →
Yes, especially when you work with vetted property teams like the ones in RealWealth’s network. Claudia and Julian overcame doubt by meeting the property teams in person and physically inspecting the properties. This experience allowed them to see the strategy firsthand and invest with confidence. View turnkey rental properties and connect with vetted property teams →
Geographic diversification can protect you from single-market risks while maximizing growth opportunities. Claudia and Julian spread their almost 20 properties across three states, reducing risk while capturing cash flow opportunities in different markets. “We could never have done the 1031 with that amount of money in different states without a team already in place.” Diversification protects against local market downturns while building wealth faster. Learn more about out-of-state real estate investing strategies and mistakes to avoid →
You’re not stuck—you’re sitting on equity that could become a real estate portfolio. Claudia and Julian faced the same situation with their San Francisco rental: high property value but minimal cash flow. A 1031 exchange allowed them to unlock that trapped equity and redeploy it into almost 20 cash-flowing properties. If you own property in the Bay Area, Seattle, Los Angeles, or other high-cost markets, your equity could be working much harder for you in growth markets. Schedule a free strategy call to explore your options →
A 1031 exchange has specific IRS timelines you must follow: you have 45 days from selling your property to identify replacement properties, and 180 days to complete the purchases. While the rules might sound complex, RealWealth’s recommended 1031 exchange facilitator will guide you through the process, and your investment counselor (who has also done an exchange) is there for support. Learn about 1031 exchange timelines and requirements →
No. With technology, professional property management, and vetted local teams, you can successfully invest in properties across the country. RealWealth members often invest in states with better cash flow potential than their home markets. The key is working with trusted, experienced local property teams who handle day-to-day management while you benefit from the investment returns. Learn more about turnkey real estate investing→
RealWealth has vetted property teams with turnkey rental property inventory available now, making it possible to identify 1031 exchange replacement properties within your 45-day window easily and close within your 180-day deadline. RealWealth’s network, education, and market expertise help you identify opportunities early, navigate the rules, and execute successfully—all with free membership. Join RealWealth and explore 1031 exchange opportunities →
One of the best ways to narrow down real estate markets is to talk with your RealWealth Investment Counselor. They help you choose markets based on your goals (cash flow, appreciation, or hybrid) and connect you with turnkey teams with properties available now. Schedule a strategy session with an Investment Counselor →
Yes. Claudia and Julian are living proof. With almost 20 properties across multiple states, they describe their involvement: “We don’t do a thing. We basically accept emails and direct deposits in a bank account.” Professional property management teams handle everything: maintenance, repairs, rent collection, tenant screening, and day-to-day communication. “I wouldn’t want to become a landlord and have rentals without a property management team in place.” With the right connections and property providers, real estate investing can truly be passive. Learn how turnkey investing works →
