Using Real Estate for Wealth Preservation: A Strategic Asset in an Uncertain Financial Landscape

In an era where global markets fluctuate unpredictably and traditional investment vehicles face increasing volatility, real estate remains one of the most enduring methods for preserving and growing wealth. For investors both domestic and international, especially those considering markets like Phoenix, real estate offers a tangible, income-generating asset class that combines capital appreciation with strategic financial advantages.

Real Estate Beyond Appreciation: The Pillars of Wealth Preservation

While many view real estate primarily as a growth asset—hoping for appreciation that outpaces inflation—the full story is more nuanced. Wealth preservation through property hinges on several factors: stability of income through rentals, portfolio diversification, tax advantages, and a hedge against currency risk, among others.

Unlike stocks or bonds, real estate carries intrinsic value. You’re not just trading paper; you hold physical property. This is particularly attractive in uncertain economic times when market sentiment can drive wild swings in equity prices.

Why Real Estate Holds Its Ground

Historical data underscores real estate’s resilience. During periods of market downturns or geopolitical instability, well-chosen real estate assets tend to retain value better than more liquid financial instruments. The long-term average annual return for residential real estate in the U.S. sits comfortably in the mid-5% to 8% range, depending on location and property type—factors that contribute to steady wealth retention and moderate growth.

Arizona’s Phoenix metro area exemplifies this stability. Its growing population, favorable business climate, and relative affordability create an environment where property values and rental incomes have historically outpaced many other metros. Unlike overheated markets like Los Angeles or Austin, Phoenix offers more balanced pricing that appeals to wealth preservation-minded buyers seeking lower risk exposure.

Income Generation as a Wealth Anchor

One of the often-overlooked aspects of real estate is its ability to generate consistent cash flow. Rental income provides a buffer against market downturns, supplying liquidity that can support reinvestment, debt servicing, or personal expenses.

For international investors in particular, Phoenix’s rental market offers a compelling case. With a steady influx of residents drawn by tech jobs, healthcare expansion, and lifestyle amenities, demand for single-family rentals and multifamily units remains robust. This creates an income stream that not only protects principal but also delivers returns in real time.

Tax Considerations: More Than Just Deductions

Wealth preservation isn’t just about the numbers you make; it’s about the numbers you keep. Real estate investors benefit from a suite of tax advantages that can significantly enhance after-tax returns.

In Arizona, property taxes are relatively moderate compared to coastal states, a factor that matters over the long haul. Moreover, vehicles like the 1031 exchange—a topic well-covered on this site—allow investors to defer capital gains taxes by reinvesting proceeds from one property into another. This powerful tool enables wealth to compound uninterrupted, an essential strategy for preservation and growth.

Depreciation deductions and mortgage interest write-offs further reduce taxable income, improving cash flow and net returns. For international buyers, understanding how FIRPTA and U.S. tax treaties interact with property investments is critical—and why partnering with knowledgeable local advisors is indispensable.

Real Estate as a Hedge Against Inflation and Currency Risk

When inflation rates rise, cash and fixed-income assets often lose purchasing power. Real estate, by contrast, tends to keep pace with or exceed inflation through rent increases and property value appreciation.

For foreign investors holding wealth in non-dollar currencies, real estate in a stable U.S. market can serve as a strategic hedge. While currency fluctuations present risks, properties in markets like Phoenix offer diversification and access to an economy anchored by technology, manufacturing, and logistics—industries less volatile than purely financial sectors.

Portfolio Diversification and Risk Management

The cornerstone of wealth preservation is diversification. Real estate adds a distinct asset class to a portfolio dominated by stocks, bonds, and alternative investments. Its low correlation with equities means that real estate can cushion portfolios during stock market volatility, preserving overall capital.

Phoenix’s market offers diverse opportunities within real estate itself: single-family homes, multifamily buildings, commercial properties, and land development. Each carries different risk profiles and liquidity timelines, enabling investors to tailor exposure aligned with their preservation goals.

Local Nuances: Why Phoenix Matters in the Wealth Preservation Conversation

From my experience working with clients—both seasoned investors and newcomers—the Phoenix market’s practical advantages stand out. It’s not the flashiest coastal city with sky-high price tags but a steadily growing metro that balances affordability, economic diversity, and quality of life.

The city’s demographic trends show sustained in-migration from California, the Northeast, and increasingly international markets, driven by job opportunities and lifestyle factors. This creates ongoing demand, stabilizing both property values and rental income streams.

Additionally, Arizona’s legal environment supports investors with transparent regulations, efficient permitting, and relatively straightforward landlord-tenant laws—factors that matter when wealth preservation is at stake.

Real Estate Is a Foundation, Not a Fad

Wealth preservation demands discipline, foresight, and a clear-eyed view of risk. Real estate, especially in markets like Phoenix, offers an asset that has withstood the tests of time, economic cycles, and geopolitical shifts.

For those with significant capital to deploy, it’s not about chasing the latest hot market or headline-grabbing return. It’s about placing bets that withstand the inevitable market noise, delivering income, stability, and—most importantly—security.

If you’re serious about protecting and growing your wealth through real estate, understanding the nuances of the market, the tax implications, and the local economic fabric is essential. Phoenix’s market may not scream headlines, but it quietly offers one of the more compelling propositions for wealth preservation in the American Southwest.

What Is Escrow, and How Does It Work in Arizona?

For anyone stepping into the real estate market—whether for a primary residence, a second home, or an investment property—“escrow” is one of those terms that quickly becomes unavoidable. Despite its frequency in contracts and discussions, the process remains a bit opaque, especially for international buyers or those new to Arizona’s market. Yet, understanding escrow is fundamental to navigating property transactions smoothly, avoiding costly missteps, and appreciating the safeguards embedded in the system.

Escrow: The Mechanism Behind Secure Real Estate Transactions

At its simplest, escrow is a neutral holding account overseen by an impartial third party during a real estate transaction. Its purpose is straightforward: protect all parties involved by holding funds and documents until all contractual conditions are met. Think of escrow as the trusted intermediary ensuring no money changes hands prematurely and that the transfer of ownership happens only when everything is in order.

In Arizona, escrow is typically managed by licensed escrow companies or title agencies, distinct from real estate agents or lenders. This separation provides an additional layer of impartiality and protection, especially valuable in a state where out-of-state and international buyers represent a significant portion of the market.

The Arizona Escrow Process: Step by Step

Once an offer on a property is accepted, the buyer deposits earnest money into escrow—a good-faith sum signaling serious intent. Rather than immediately transferring these funds to the seller, the escrow holder safeguards the money while the transaction proceeds through a series of checks and balances.

The standard escrow period in Arizona ranges from 30 to 45 days, depending on the transaction specifics. During this time, buyers arrange financing, conduct home inspections, order appraisals, and review disclosures provided by the seller. Sellers, on their part, are expected to address any contingencies, make necessary repairs, and supply clear title documentation.

Only after all contractual conditions are satisfied does the escrow officer close the escrow. At this point, funds are disbursed accordingly, the title is legally transferred, and the buyer takes possession of the property.

Why Escrow Matters More Than Ever for International Buyers

Phoenix and greater Arizona have become increasingly attractive to international investors—whether from Canada, Europe, Asia, or Latin America—drawn by comparatively affordable prices and favorable economic conditions. But buying property from overseas introduces complexity: currency exchange fluctuations, FIRPTA (Foreign Investment in Real Property Tax Act) compliance, and unfamiliar tax implications can all complicate a deal.

Escrow, in this context, acts as a critical buffer. By holding funds securely until all regulatory and contractual conditions are met, it reduces the risk inherent in cross-border transactions. Buyers often find reassurance in the escrow process, knowing that their funds won’t be released until every “i” is dotted and “t” crossed.

Escrow Fees and Costs: What Buyers and Sellers Should Know

In Arizona, escrow fees typically range between $500 and $1,500 per transaction but vary depending on property price, company, and negotiated terms. Customarily, these fees are split between buyer and seller, though that arrangement can shift based on local practice or negotiation.

Besides escrow fees, buyers should anticipate additional closing costs such as title insurance premiums, recording fees, transfer taxes, and lender fees if financing is involved. Understanding these costs upfront—and their allocation—is essential to avoid surprises at closing.

Local Nuances in Arizona’s Escrow Landscape

Unlike some coastal states where escrow processes can be bogged down by bureaucracy or protracted due diligence periods, Arizona benefits from a relatively streamlined system. The state’s regulatory environment supports efficient permitting and straightforward property transfers, which help expedite escrow timelines without sacrificing thoroughness.

Moreover, Arizona’s competitive escrow market fosters responsive service. Many local escrow companies have developed expertise dealing with international clients and complex investment transactions. This local knowledge helps smooth potential wrinkles, whether it’s navigating FIRPTA withholding or facilitating wire transfers across multiple currencies.

From my experience working with buyers both domestic and abroad, the professionalism of Arizona escrow officers is a notable advantage. It’s one of those behind-the-scenes factors that often goes unnoticed until it matters most—the day ownership changes hands.

Escrow Is Not Just a Process, But a Foundation of Trust

The transactional rigor that escrow brings is often underestimated. It is not merely a bureaucratic hurdle but a fundamental pillar that upholds confidence and fairness in real estate deals. Without it, large sums could change hands without safeguards, leading to costly disputes or delays.

Arizona’s system, anchored by independent escrow agents and clear statutory guidelines, plays a crucial role in making the Phoenix market accessible and trustworthy. It particularly benefits investors looking for stable, predictable transactions amid a dynamic market.

The Bottom Line

For anyone engaging in Arizona real estate, especially international buyers unfamiliar with U.S. property law, escrow should be understood not as a vague “middle step” but as the critical mechanism that protects your interests. It assures that no funds are exchanged prematurely, all conditions are met, and ownership is legally transferred with certainty.

Phoenix’s relatively straightforward, efficient escrow process—backed by experienced local professionals—adds a layer of security that makes investing here not just feasible but strategically sound.

If you are considering a property purchase in Arizona or want to understand how escrow fits into your specific transaction, reaching out to a trusted local expert can provide clarity and peace of mind in what is otherwise a complex process.

Why Phoenix Still Offers Real Value in a Post-Boom Market: A Measured Comparison to L.A. and Austin

There’s a certain fatigue that sets in when discussing U.S. real estate markets—particularly among buyers who have the means and experience to read past the headlines. The idea that any one city is “next” or “undiscovered” rarely holds up to scrutiny anymore. But once the promotional gloss is stripped away, what remains are cities that either still make sense economically—or don’t.

Phoenix, as it happens, still does.

In the shadow of louder markets like Los Angeles and Austin, Phoenix has evolved from a “budget alternative” into a market with its own investment logic—less reliant on hype and more on consistent fundamentals. While price appreciation has cooled from its pandemic-era surge, the city remains uniquely positioned: relatively affordable, well-located, demographically strong, and—importantly—not overextended.

Comparative Price Realities

Consider the numbers. As of mid-2025, median home prices in Los Angeles hover around $930,000. That’s the average—meaning many starter homes in desirable neighborhoods exceed the $1.2 million mark. For that, buyers may still be facing aging infrastructure, seismic retrofitting requirements, dense zoning restrictions, and significant holding costs (property taxes, insurance, and maintenance).

In Austin, once considered the poster child for millennial migration and tech spillover, prices remain high relative to pre-pandemic norms, even as demand has thinned. What was once a market driven by true undersupply has turned speculative in parts, with more volatility than many investors are comfortable underwriting.

By contrast, Phoenix’s median home price remains in the mid-$400,000s, with inventory spread across well-established submarkets. A buyer with $1M in capital here isn’t entering a bidding war over a two-bedroom fixer. They’re purchasing newer construction, additional land, better amenities, or a second property entirely. From an allocation perspective, that delta matters.

Value Isn’t Just Price—It’s Utility

Price alone doesn't make a market undervalued. What matters is what the capital buys—and how reliably it performs over time.

Phoenix benefits from a few rarely aligned advantages: a strong job base in healthcare, aerospace, and logistics; a steady pipeline of in-migration from high-cost coastal metros; and relatively business-friendly governance that doesn’t penalize property owners through layers of bureaucracy or taxation. That means whether a property is used as a primary residence, a second home, or a long-term rental, it tends to function well.

Speaking from experience, buyers I work with—particularly those coming from abroad—often comment on the ease of doing business here. The process isn’t perfect, but it’s straightforward enough to avoid the endless red tape they’ve faced elsewhere. That clarity helps build confidence, especially when making decisions across continents.

Moreover, Phoenix doesn’t saddle buyers with the kind of “friction costs” that cities like L.A. or San Francisco do. Landlord rules are clearer. Permitting, while imperfect, is not a chronic bottleneck. And carrying costs are comparatively modest—especially when viewed through the lens of an international buyer navigating foreign currency transfers, FIRPTA compliance, and tax implications.

Institutional vs. Individual Opportunity

Another factor often overlooked is the character of the competition. In L.A. and Austin, many of the most promising investment segments have been heavily targeted by institutional buyers. Hedge funds and REITs purchasing single-family homes at scale have introduced unnatural pricing dynamics, particularly in suburban rental markets. For individual buyers, this often means higher entry points and thinner margins.

Phoenix, while not untouched by this trend, has shown more resilience in preserving opportunity for individual and small portfolio investors. There is still room for targeted, high-yield acquisitions in neighborhoods with strong fundamentals, without needing to scale operations to justify returns.

Not Flashy—But Functional

To be clear: Phoenix is not the most glamorous city in America. It doesn’t market itself with the same bravado. There’s no ocean, no major media hub, and no grand mythology tied to its real estate. What it offers is more practical: modern homes with usable space, neighborhoods that evolve without overreaching, and a quality of life that aligns well with where wealth migration is actually heading.

It’s a metro where capital behaves predictably, where a $1M property doesn’t require a five-year exit strategy to make sense, and where residents—many of whom arrived from the coasts—often stay longer than they expected.

The Bottom Line

As real estate markets around the country recalibrate, Phoenix remains notable not because it’s undervalued in some absolute sense, but because it still offers value relative to what else is out there. It doesn’t rely on wishful thinking, urban mythology, or unsustainable growth narratives.

From what I see working with buyers and investors daily, Phoenix simply pencils out—and in 2025, that kind of rational opportunity is rare enough to matter.

Can Foreign Buyers Use 1031 Exchanges? What to Know Before Investing in Phoenix

As the world becomes more interconnected, the appeal of the United States, particularly Phoenix, grows stronger for investors seeking to diversify, expand, and find new opportunities. With its economic stability, long-term growth potential, and a real estate market that increasingly attracts a global audience, Phoenix is a destination worth considering for those outgrowing the confines of their home countries.

If you're one of these savvy investors looking to take advantage of the U.S. market, you may have already come across the term "1031 exchange." For those unfamiliar, it’s a tax-deferment strategy that has drawn the attention of many seasoned investors, particularly those in search of long-term, strategic growth. The question that often arises is: can foreign nationals take advantage of this tax deferral strategy? The short answer is yes, but as with most things in real estate, there’s more beneath the surface.

A 1031 exchange, rooted in Section 1031 of the Internal Revenue Code, allows investors to defer capital gains taxes on the sale of one investment property by reinvesting the proceeds into another like-kind property. This process isn’t a loophole—rather, it’s a structured mechanism that encourages ongoing investment in real estate. For international buyers, this can present an enticing opportunity to maximize their returns, but only if the exchange is executed correctly.

The good news for foreign investors is that U.S. tax law doesn't prohibit them from utilizing a 1031 exchange. However, it does come with its own set of complexities. The Foreign Investment in Real Property Tax Act (FIRPTA) requires that a percentage of the sale price be withheld when a foreign seller sells U.S. property, and this can add a layer of complication. While FIRPTA doesn’t directly prevent an investor from completing a 1031 exchange, it’s an added step that must be carefully navigated. The right planning can reduce or even eliminate this withholding—but only if all the requirements are met and deadlines adhered to.

This is where Phoenix comes into play. A city with a reputation for stability and growth, Phoenix offers a variety of properties that fit the "like-kind" criteria of a 1031 exchange. Whether you're interested in luxury condos in Scottsdale, new developments in Uptown, or income-producing properties in areas like Tempe or Arcadia, the market here is diverse, resilient, and ripe with opportunity. Add to that a legal and real estate infrastructure that is well-versed in the needs of international investors, and it’s easy to see why Phoenix is so attractive.

Of course, timing is everything. A 1031 exchange hinges on two critical deadlines: you have 45 days to identify replacement properties and 180 days to close on one of them. These deadlines apply to all investors, regardless of their nationality. For foreign buyers, coordination becomes key—having experienced U.S.-based advisors in legal, financial, and real estate matters can ensure that you don’t miss out on a prime opportunity.

Another important factor for international buyers to consider is the structure under which the property is held. Many foreign investors use LLCs, trusts, or partnerships to hold U.S. real estate, which can provide liability protection and estate planning benefits. However, this can complicate the 1031 exchange process if the property isn’t held in the same name or entity as the relinquished property. This continuity is essential for the exchange to qualify.

In practice, a 1031 exchange often serves a larger purpose than simply deferring taxes. It’s about repositioning capital, optimizing asset performance, or expanding into a more desirable submarket. In Phoenix, this could mean selling a passive rental property and upgrading to a multi-unit development near key employment areas, or transitioning from an aging asset to something newer and more efficient. A 1031 exchange becomes an opportunity for growth, an evolution rather than just a tax strategy.

However, a 1031 exchange doesn’t eliminate taxes altogether. It only defers them, and when the final property is sold without being reinvested, capital gains taxes become due. Many investors continue exchanging indefinitely, a strategy known as "swap ‘til you drop." For international investors, this can be a complicated process, as cross-border estate planning laws can significantly impact the outcome.

For those looking to enter the U.S. real estate market for the first time, Phoenix’s predictable, stable investment environment is a major draw. And if you’re considering a 1031 exchange, having the right team in place to guide you through the process will ensure that your investment strategy is executed seamlessly.

While a 1031 exchange may not be suitable for everyone, it offers a powerful way for foreign investors to strategically grow their portfolio in Phoenix’s thriving real estate market. For those serious about long-term investment goals, it can serve as a bridge to greater financial success.

If you’re ready to explore the potential of a 1031 exchange and make your move into the U.S. market, it’s time to reach out to an experienced real estate professional who understands the complexities of international investment. Contact Castillo Real Estate today to begin your next strategic investment.

Disclaimer: For educational purposes only. Orlando Castillo is a licensed real estate agent in the state of Arizona, not a tax advisor. Always consult a qualified tax professional for advice regarding 1031 exchanges and tax implications.

The Ultimate Checklist For First-Time Home Buyers

Buying your first home? This is what most people learn the hard way.

1. The listing agent doesn’t work for you.

They might smile, answer your questions, even walk you through the house. But legally, their job is to get the best deal for the seller—not you. That means they’re not going to point out hidden costs, structural issues, or negotiation leverage. Want someone who actually protects your side of the deal? That’s what a buyer’s agent does—at no extra cost to you.

2. Homes don’t sit on the market like they used to.

You see a house on Saturday, think about it Sunday, and it’s pending by Monday. Especially the ones that are priced right or move-in ready. If you’re not prepped with your financing, timeline, and paperwork, you’re already behind. The buyers who win don’t necessarily offer more—they’re just better prepared.

3. Your loan approval is not a green light to relax.

Lenders can re-pull your credit and check your job status days before closing. Big purchases, late payments, or switching jobs mid-escrow can blow the whole thing up. Most first-time buyers never hear that until it’s too late. You need someone watching those landmines for you.

4. The inspection is not just a formality.

It’s the only shot you get to uncover what’s behind the walls, under the roof, and beneath the surface. Missing small red flags can mean big repair bills after move-in. A solid agent doesn’t just schedule the inspection—they help you understand what’s normal, what’s risky, and what’s negotiable.

5. The “perfect home” isn’t found—it’s built.

You’ll almost never find a house that checks every box. But if the location, bones, and price are right, you can make it yours over time. The key is knowing which imperfections matter and which ones don’t. That comes from experience—and guidance.

You don’t need to know everything. You just need to work with someone who provides clarity and support throughout every step of process.

How to Generate Cash Flow in Phoenix with Single-Family Homes: A Guide for International Investors

Phoenix, Arizona, has emerged as one of the most attractive markets for single-family rental investments in the U.S. With a growing population, strong job market, and relatively affordable home prices compared to coastal cities, Phoenix offers international investors a prime opportunity to build long-term cash flow. Here’s what you need to know.

Phoenix’s rental market benefits from steady demand due to its status as a major Sun Belt destination. The city’s population growth, driven by domestic migration and a business-friendly environment, supports consistent occupancy rates for single-family rentals. Investors can expect stable returns, particularly in suburbs with good schools and employment hubs.

Key factors make Phoenix ideal for cash flow. First, home prices remain lower than in many competitive U.S. markets, allowing for favorable entry points. Second, Arizona’s landlord-friendly laws provide investors with strong protections, including relatively quick eviction processes and minimal rent control restrictions. Third, property taxes are reasonable, enhancing net returns.

Location selection is critical. Areas like Gilbert, Chandler, and Scottsdale offer strong rental demand from families, while emerging neighborhoods in the West Valley may provide higher appreciation potential. Proximity to major employers, such as Intel, TSMC, and healthcare systems, ensures tenant demand. Investors should prioritize properties near good schools, as these attract long-term tenants.

Financing options for foreign buyers vary. Cash purchases are simplest, but some U.S. banks offer mortgages to international investors with significant down payments (typically 30-40%). Portfolio lenders and private financing may also be options, though rates are higher. A strong U.S. credit history helps but isn’t always required.

Tax considerations are important for non-resident owners. Rental income is subject to U.S. taxation, and FIRPTA (Foreign Investment in Real Property Tax Act) applies upon sale. However, tax treaties between the U.S. and many countries may reduce withholding rates. Consulting a cross-border tax specialist is essential to optimize returns.

Property management is key for remote investors. Reputable local management companies handle tenant screening, rent collection, and maintenance, typically charging 8-10% of monthly rent. Self-managing from abroad is impractical due to time zones and legal complexities.

Exit strategies should be planned upfront. Phoenix’s market has shown steady appreciation, but holding for at least 5-7 years is advisable to ride out cycles. A 1031 exchange can defer capital gains taxes when reinvesting in another U.S. property.

Disclosures and Disclaimers

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Real estate investments carry risks, and market conditions may change.

The author is a licensed real estate agent in Arizona. International investors should consult local legal and tax professionals in their home country and the U.S. before making investment decisions.

Past performance does not guarantee future results. Rental income and property values are not guaranteed. Financing terms are subject to lender approval and market conditions.

For personalized assistance with Phoenix real estate investments, consult a licensed professional familiar with international transactions.

Orlando Castillo, MyHomeGroup

Arizona Licensed Realtor

August/ 2025

Understanding FIRPTA: What Foreign Sellers of U.S. Real Estate Must Know

Foreign investors selling U.S. real estate are subject to FIRPTA — and while the law isn’t new, its execution continues to be a friction point for non-resident sellers moving capital out of the country.

Under FIRPTA (Foreign Investment in Real Property Tax Act), the IRS requires a 15% withholding on the gross sale price of U.S. real estate owned by a non-resident. It’s not based on gains, it’s not net proceeds — it’s the full contract price. That’s the part that still catches investors off guard, particularly those accustomed to tax systems that apply withholdings at the realized-gain level.

The withholding is triggered at closing, handled by the buyer or escrow agent, and remitted to the IRS within 20 days. It applies whether the property is held personally, through a foreign corporation, or via a pass-through structure. Unless the seller qualifies for a valid exemption or a pre-approved reduction, the funds are withheld automatically.

What many investors don’t realize until too late is that the 15% can often be reduced or avoided — legally — but only if addressed before closing. The most direct path is via IRS Form 8288-B, which requests a withholding certificate based on the seller’s actual projected tax liability. If approved prior to close, the sale can proceed without the standard FIRPTA holdback. The timeline here matters: once funds are withheld, they stay with the IRS until the seller files a U.S. return to reconcile and request a refund — which can take months.

There are limited exceptions. For example, a sale under $300,000 may be exempt if the buyer intends to use the property as a primary residence. Some bilateral tax treaties reduce effective tax liability, but they don’t override FIRPTA withholding unless properly structured into the transaction. And while some investors use trusts, LLCs, or installment sale structures to navigate around FIRPTA, these approaches only work with precise legal and tax coordination well in advance.

A common issue in practice: local real estate professionals often don’t have deep FIRPTA experience. Title companies may delay closings while navigating the paperwork, and buyers can become liabilities if they fail to withhold properly — the IRS can pursue them directly. For sellers, the result is delayed closings, locked-up capital, or irreversible withholding if the process isn’t controlled.

In states like Arizona, where international ownership is increasingly common — particularly in the Phoenix metro — sophisticated foreign sellers are moving early to address FIRPTA on their terms. Whether liquidating a long-term hold, rebalancing a U.S. portfolio, or preparing for a 1031 exchange into a larger asset, FIRPTA shouldn’t be an afterthought. It’s simply part of the exit math.

The investors who get this right aren’t necessarily paying less tax — they’re avoiding unnecessary delays, optimizing cash flow, and maintaining full control over the disposition process. Those who don’t are often left chasing refunds or explaining to partners why 15% vanished from the wire.

Need help with an Arizona real estate transaction? Contact us for expert guidance.

By Orlando Castillo, MyHomeGroup, Arizona Licensed Realtor

(This article is current as of August 2025. Regulations may change—verify with a professional.)