This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• Some Benefits Of A Tax Free Exchange

The main benefit of a tax-free exchange is just that–freedom from a tax. The gain that could be realized by one or both of the principals in the exchange transaction does not need to be recognized at the time of the closing. The gains tax is deferred until the property owner makes a taxable disposition of the new property at some later time.....(more)

• Suburban Office Buildings

With commercial real estate investing, suburban office buildings remain many investors primary acquisition target....(more)

• Office Building Comparisons

Newer office buildings may fill up at the expense of older office buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving......(more)

• Strategic ​Management Of Your Investment Portfolio

When you make your investment in real estate, it is implied that you want to make money. The cash can come from direct income from the property or from capital gains from a sale after an increase in value. Either way, the investment must be managed, considered, and watched at all times. If the owner and manager are taking care of business, there may be ways to increase the income, and the value. There is always the possibility to make a sale for the right price and terms. Keeping aware of the market might bring an opportunity to make a tax-deferred exchange into a property with more benefits for the owner.....(more)

• Commercial Real Estate Representation

When you have searched for new real estate investment opportunities, with values that have been changing, you know that finding and evaluating them is becoming more sophisticated and complex. More investors are turning to real estate consultants as a means of providing a sounding board for their ideas as well as expertise in the planning and construction stages for their projects. Today’s investor in real estate must have a grasp of market conditions and potential that is usually beyond their own available time to attain. Investors need assurance about the true condition of the market. With increased competition, the market place is becoming more complicated....(more)

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This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• Why Warehouses Are A Great Investment

When Syndicates, partnerships, investment companies and their individual participants look at investments in commercial properties, many tend to look at properties that have that bewitching charm of glamour in brochures. A beautiful office building or an enclosed shopping center seem to have a more acceptable “status” as an investment property. These buildings can be nice to drive by and point out as “our” investment. Originally, any property designated as a “warehouse” would always be located in areas zoned for industrial use. There is not nearly as much allure in a squat bulky warehouse building. The physical attractiveness is not there in color flyers and photographs. However, as money makers, these bulky buildings can be a very profitable real estate investment.....(more)

• How To Control But Not Own Property With An Option

Some investors look for the short-term investment with less of an emphasis on “doing business” and more pre-investment research on controlling property for the maximum gain in the short term. These investors often use the option or purchase-option. Traditionally, most real estate investors have been attracted to commercial real estate opportunities. Typically these investors have been well rewarded for their investment. Properties that are designed for “doing business” proliferate and succeed as businesses grow and diversify and become more and more profitable. For investors to be successful it is normally important to understand the operation of the particular commercial enterprise involved in the real estate investment.....(more)

• What You Must Know About Tax Deferred Exchanges Before Buying or Selling

The following are points that participants in a tax-deferred exchange should keep in mind when starting an exchange transaction: Even though an exchange may be tax-free at the federal level, it may be taxable at the state or local level. ...(more)

• How To Avoid Costly Mistakes In Commercial Real Estate

Investors sometime make investments in real estate that turn out badly. They may then blame the loss on the “real estate cycle” when there were mistakes that could have been avoided by better planning and analysis. Based on data obtained through interviews with more than 200 real estate practitioners, several costly mistakes were identified and discussed. Here are three of them.....(more)

• What Really Is Commercial Real Estate Representation

There are a number of ways to buy, sell or exchange investment or commercial real estate. Having the knowledge of what you can do in some tax situations can be the difference between an annual profit or loss in a property that you intend to acquire or one that you already have in inventory. The professional commercial real estate broker is in the position to represent clients in real estate transactions by setting up sales, exchanges, leases, purchase and sales of options, and management of real estate. A professional real estate practitioner must stay aware of current tax laws and court decisions in order to structure transactions, but does not give legal or tax advice (unless he/she is also an attorney or a certified public accountant). In any complex transaction that might result in changes in any owner’s legal or tax situation, the other members of the “consulting team” should be the owner’s attorney and CPA. We always recommend meeting with these other professionals during the planning and closing of major real estate transactions.....(more)

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This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• Who Will Buy When You Want To Sell?

If you are new to investing in income property, you may have made a choice in advance of the type of investment property that you wish to own. There are many good types of investment properties: apartments, office buildings, shopping centers, high rise parking garages in downtown areas, warehouses, resort rentals and many others.....(more)

• Space Sharing Executive Suites

With the revolution in communications, building owners must keep up with the changing needs of the corporate tenant. Often the larger, well-organized businesses do not need the space that was necessary just a few years ago. Electronic communications to and from employees have substituted for leased office space. Managers are more willing to grant favorable lease terms to operators of shared space. The operator sometimes receives a monthly management fee for operating the shared space plus a portion of rent revenues over a certain amount....(more)

• Condominiums Built For Business Owners

Like apartment dwellers who are finding that it is less expensive to buy than to rent, business and professional firms are moving toward buying offices rather than leasing. While buying or constructing an entire building is an option for major corporations or for smaller firms outside metropolitan areas, owning commercial space generally means being part of a condominium structure....(more)

• Suburban Office Buildings

With investment capital becoming available, demand for commercial real estate continues. Suburban office buildings remain many investors primary acquisition target.....(more)

• Exchanges Of Mortgaged Property

In the straight equity for equity exchange of properties that are of like kind and held for investment or business use, there is no income tax liability at all. But there can be a tax liability when the exchange involves mortgaged property unless the right, tax-saving technique is used.....(more)

• Investment Decisions - High Rise Or Garden Apartments

There are distinctions between garden and high-rise apartment buildings when viewed as investments.....(more)

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This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• Hidden Benefits of the Tax Deferred Exchange

The main benefit of a tax-free exchange is just that–freedom from a tax. The gain that could be realized by one or both of the principals in the exchange transaction does not need to be recognized at the time of the closing. The gains tax is deferred until the property owner makes a taxable disposition of the new property at some later time. An owner can make a series of exchanges and can defer tax indefinitely. Upon death, if the property ends up in the estate of this owner and a stepped-up basis is achieved, some tax may be avoided permanently....(more)

• Management Of Your Investment Portfolio

When you make your investment in real estate, it is implied that you want to make money. The cash can come from direct income from the property or from capital gains from a sale after an increase in value. Either way, the investment must be managed, considered, and watched at all times. If the owner and manager are taking care of business, there may be ways to increase the income, and the value. There is always the possibility to make a sale for the right price and terms. Keeping aware of the market might bring an opportunity to make a tax-deferred exchange into a property with more benefits for the owner. Real estate investors often own various kinds of properties. They may have a mix of commercial, residential income, land and groups of houses. These owners have an extensive portfolio of investment real estate......(more)

• Office Building Comparisons

Newer office buildings may fill up at the expense of older office buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving. In many areas, there are still a number of vacancies reported in office buildings. Most of this available space is in the newer properties. One of the most important jobs of a leasing agent for a building with this available space is to analyze other buildings to see if any tenant could be induced to move.....(more)

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This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• Lenders Need Professional Property Management

Whether times are good or bad, lenders always have foreclosed properties in inventory. During a recession the inventory may be high. One of the problems that banks and insurance companies have is disposing of this real estate owned (REO). They are faced with the decision of whether they wish to dispose of the property immediately or hold it for a period of time to hope for an increase in value. They would like to see the value of the REO increase to equal the loan amount......

• Having Knowledge About Commercial Leases

A lease is an integral part of many real estate investments. It should outline all the obligations of the tenant and of the landlord. This sounds simple, but many questions arise. If, for example, property taxes increase, does the tenant pay all of the increase or only part of it? If the property must be modernized, who pays for the improvement? Can the tenant be moved out during the renovation? If the costs of servicing the property rise, should the tenant pay none, all, or part of the increased costs? How should inflation be handled—with automatic rental increases? With increases tied to some index, perhaps the Consumer Price Index? Kinds Of Leases.....

• Combining A Tax-Free Exchange And A Leaseback

Here is a moneymaking transaction that can be used by many business owners who also own the real estate where that business is located. In any community there are dozens, even hundreds, of property owners who can utilize this formula.....

• Important 1031 Exchange Rules and Timelines

There are 2 timelines that anybody going for a 1031 property exchange should abide by and know......

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This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• How To Secure Land For Any Project

Land is always at the top of investments by real estate professionals. Before any building project can be planned, the land must be available. At all times, real estate assemblers are looking at and acquiring under-utilized sites within cities or in suburbs. Here are some ideas on how those professionals do it. A thorough knowledge. Only purchase or option property in well-known localities to reduce the risk of unexpected surprises. If the locality is not familiar, seek out local professionals for their opinions.......

• Types Of Apartments and How To Invest In Them

Of the housing starts and new building permits in recent times, apartments outnumbered single-family homes. The demand for rentals remains very strong. Owners of foreclosed homes have added to the demand, moving from homes to apartments. Although most people favor detached home ownership, many in the population cannot afford a single-family home. A new buyer of apartments must think “management”. Good management has always been the most important point in increasing or maintaining annual operating profits. Being a skillful manager requires intelligent handling of the functions of buying and selling properties, rent collections, maintenance, leasing, controlling expenses, refurbishing, management accounting and more. All of this requires long “hands-on” experience in the field with plenty of assistance from the latest in operational and administrative hardware and software. Professional management companies usually do a much better job than owners and more than earn their fees. Here are a few tips on types of apartments and ways to invest in them......

• Tax Deferred Exchange and Important Tax Events

We are making a tax deferred exchange of our commercial property up into a large apartment property. The apartments have some deferred maintenance so we would like to take some cash – about $40,000 - out of the transaction for some upgrades. My accountant now tells me that any money taken out of the transaction will be taxable to me. Is this true?.......

• How To Control Property With The Least Expense

A purchase-option contract lets the buyer-optionee purchase a property at a specific price within a certain period of time. If the option is exercised, a closing is held and the property is purchased at the price previously agreed upon. There is no legal obligation to buy the property. But, if the optionee does not exercise the option, the deposit paid to the seller-optionor is forfeited.The biggest differences between the purchase-option and direct ownership may be two advantages from the viewpoint of the investor: First, the short term (6 to 24 month) purchase option contracts can be an outstanding way to control property without assuming the responsibilities of ownership. Second, the contract enables the optionee to receive all of the benefits from appreciation in market value of the property. Here are the others.......

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This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• Postponing Taxes On Real Estate

The Internal Revenue Code contains two provisions that permit the postponement of tax on the exchange of business or income real estate. Even though the term “tax-free exchange” is commonly used to describe such exchanges, tax merely is deferred on such exchanges until the chain of exchange cycle is broken by a sale. The only exception occurs when the exchange cycle is unbroken throughout the investor’s lifetime, in which case the real estate receives a stepped-up basis upon the death of the taxpayer so that no tax is ever payable on the appreciation to that date........

• Shopping Center Lease Standards

When leases for shopping centers are being drafted, they can be more difficult than most other commercial leases. In a shopping center, the owner wants the leases to be as uniform as possible, but knows that each lease must have variations to meet the individual tenant’s particular problems in business and in certain size or shaped spaces.....

• How To Combine A 1031 Exchange with a Build To Suit

There is a great deal of control that can be exercised over the type of property to be received in a tax-free exchange. In one case, the taxpayer designed a brand-new building for himself to replace property to be given by him in exchange. In addition, the taxpayer provided financing for the new building’s construction.......

• Important Factors When Choosing The Right Real Estate Investment

No single property can fit all of the investment goals and rules an investor has set. Even if the investor tried to build a property to specifications, he would find some things “not quite right.” The investor is, therefore, wise to anticipate problems and have some basic strategies for dealing with them. Here are some suggestions to help the investor devise other approaches to meet special needs........

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