HomeBlogPersonal FinanceHow to Reinvest Home Sale Proceeds in Brentwood, MO Share on Like what you see? Share with a friend. How to Reinvest Home Sale Proceeds in Brentwood, MO Chris Kirshenboim | September 21, 2020 Last updated August 9, 2026 Once the sale closes, the question is where the money sits next. Sellers in Brentwood reinvest home sale proceeds in six common places: another house, a smaller house with no mortgage on it, retirement accounts, high interest debt, a college fund, or plain cash reserves while they decide. Each has a different trade. Buying again keeps you in the market. Paying off a card at twenty percent is a guaranteed return nothing else matches. Parking it earns less but keeps every option open. A 1031 exchange can defer capital gains when the property was held for investment rather than lived in, and the rules on that are strict enough that it is worth an hour with a CPA before you commit to anything. These ideas for reinvestment work in any order, and the right order is the one that fits your age, your debts, and how settled you want to feel next year. If the sale itself is the part that has not happened yet, read how we buy houses, or see what other sellers have said about the process. There are all kinds of things you can do with the extra cash you get for your Brentwood, MO home. Paying off debt and reinvesting into something more lucrative are just the beginning! Below Are Our Favorite Ideas For Reinvestment In Brentwood! Buy A New House In Missouri! Take the cash you receive for your current property and reinvest in a property you actually love! You can take advantage of the 1031 exchange, which states you do not have to pay capital gains tax on a property you sell, so long as you reinvest in a "like" property. So in theory, you could sell a condo, and buy a different one without a tax penalty. There are certain restrictions, such as you will have needed to live in the home you are selling for the past 2 out of 5 years. You can get creative with this too. Sell a residential home, and swap it out for something you can live in, but also has additional space to rent out! Before you commit to a sale, make sure you thoroughly understand the requirements involved in a 1031 exchange. Reinvesting in real estate you love can be a game-changer! Both financially and for your overall happiness! Start A Business In Brentwood, MO Have you always dreamed of starting your own business? Maybe it was never the right time, or the funds just weren't there. Selling your Brentwood, MO home can help to make your dream a reality! The old, run-down house you had written off, might be the key to your entrepreneurial future! For many businesses, start-up costs can be pretty low. Selling your house can give you the cushion you need to start your business with confidence! Go To School In Brentwood, Missouri No matter how old you are, it is never too late to learn something new! You don't have to be any particular age to begin your academic journey! Take your extra cash, and invest in yourself! The reward will greater than any property you could ever own! Travel The World From Missouri There is no time like the present to get out and see the world. One thing many people regret when they are older is not traveling more. Take your extra cash, and have an adventure! The memories you make will be irreplaceable. The Stock Market In MO You don't have to be a top stock broker to get started. A small investment can quickly grow into something more valuable. If you are brand new to investing, we suggest you work with a profession, at least until you have a better grasp of what you are doing! It can be risky, so never invest beyond your means. Buy Yourself A Toy In Brentwood We would never encourage reckless spending, however, indulging once in a while can make life more fun. Imagine a new boat, jet ski, or camper. It's not just about material possession, rather the memories you will make. Having something fun you and your family can enjoy will create a lot more memories than an old, run-down Brentwood, MO house! Be responsible, but don't forget to have a little fun too! That's what life is all about right?! Sell My House In Brentwood, MO We buy houses all over the country, including Brentwood and surrounding areas. We know the area, which means our team of Missouri home buyers can help you sell your house in St. Louis fast no matter where it is or what condition it’s in. We are ready to help you with a solution! Are You Ready To Sell Your Home Fast? Send Us An Email Or Give Our Office A Call Today! We Can’t Wait To Talk To You! (314) 334-1481 FAQs Frequently Asked Questions What is the smartest way to reinvest home sale proceeds? + There is no single answer, but paying off high interest debt beats almost every alternative on pure math. After that it comes down to whether you want to be back in the housing market or want the money liquid. Will I owe capital gains tax on my Brentwood, MO home sale? + Often not on a primary residence, because the federal exclusion covers a large share of the gain for sellers who lived in the home two of the last five years. Investment property is a different calculation and a CPA should run it. Can I use a 1031 exchange on the house I lived in? + No. A 1031 exchange applies to property held for investment or business use, not to your own residence, and the replacement purchase has to follow strict deadlines that start the day you close.
