Real Estate News

3 days ago
1 min

What is a reverse build to suit?

A reverse build to suit is where the tenant builds the building to suit their needs/business and the commercial property landowner reimburses the tenant for the costs. The benefit is the commercial property landowner now owns the building, gets depreciation, has a tenant in place, and didn’t have to personally go through any of the permitting and entitlement process with the local government agency. #cre #commercialrealestate #marcperlofgroup

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Time frame for a 1033-tax deferred exchange?

marcperlof

Mar 14
1 min

Time frame for a 1033-tax deferred exchange?

For Commercial Real Estate… What is the time frame for a 1033-tax deferred exchange? If your property has been taken via Eminent Domain by a governmental authority (city, county, state, federal), you have up to 2 years from the closing of the sold property to exchange and close Escrow on a new property. There is no identification period as there are no requirements for an investor to identify. This allows a 1033 investor to select any number of properties or investments to co

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What is a 1033-tax deferred exchange and how can I benefit?

marcperlof

Mar 3
1 min

What is a 1033-tax deferred exchange and how can I benefit?

For Commercial Real Estate… What is a 1033-tax deferred exchange and how can I benefit? A 1033- tax deferred exchange is similar to a 1031 tax deferred exchange in that you are deferring your capital gains tax that is owed if you cash out of the property. The major differences are 1) a government entity takes your property through Eminent Domain, 2) the time you have to identify a new property, and 3) the time to close on that new property. #cre #commercialrealestate #marcp

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How does capital gains tax work with a 1031 tax-deferred exchange?

marcperlof

Feb 27
1 min

How does capital gains tax work with a 1031 tax-deferred exchange?

For Commercial Real Estate… How does capital gains tax work with a 1031 tax-deferred exchange? The Seller is deferring the capital gains tax to be paid at a later date. That date can be anytime in the future when the Seller or their heirs sell the property that has been exchanged into. You will need to know the basis of the original property and the value of the current property. #cre #commercialrealestate #marcperlofgroup

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I don’t want to carry back financing because if the Buyer defaults then what?

marcperlof

Feb 24
1 min

I don’t want to carry back financing because if the Buyer defaults then what?

For Commercial Real Estate… I don’t want to carry back financing because if the Buyer defaults then what? Fantastic! You get to sell the property again and make more money. If the Buyer defaults, and you have properly served the Buyer notification of the past payments not being paid, you can foreclose on the Buyer. There will be legal fees to pay for this process and to get the property back. It will also take some time. The benefit is you get to sell the property again and y

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marcperlof

Dec 20, 2022
1 min

Add Value to a property Part 1 of 3

For Commercial Real Estate… When you add value to a property, what are some of the expenses to account for to determine the price to pay? Part 1 of 3 Carrying costs for property tax Carrying costs for property insurance #cre #commercialrealestate #marcperlofgroup

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When you buy commercial real estate, should you rely only on the Capitalization (“Cap”) Rate?

marcperlof

Dec 15, 2022
1 min

When you buy commercial real estate, should you rely only on the Capitalization (“Cap”) Rate?

Part 1 of 2 If you are going to hold the real estate for +/- 1 year, YES! Otherwise… #cre #commercialrealestate #marcperlofgroup

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What are the risks of the different types of real estate ownership? Part 3 of 3

marcperlof

Dec 15, 2022
1 min

What are the risks of the different types of real estate ownership? Part 3 of 3

Leasehold- Loss of the building to the landowner at the end of the lease term. #cre #commercialrealestate #marcperlofgroup

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What are the risks of the different types of real estate ownership? Part 2 of 3

marcperlof

Dec 15, 2022
1 min

What are the risks of the different types of real estate ownership? Part 2 of 3

Ground lease (land only)- No depreciation. Rents are typically below market. Major cost upgrades to the building when the tenant leaves. #cre #commercialrealestate #marcperlofgroup

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What are the risks of the different types of real estate ownership? Part 1 of 3

marcperlof

Oct 23, 2022
1 min

What are the risks of the different types of real estate ownership? Part 1 of 3

Fee Simple- Rents can be above market and may not be replaceable. #cre #commercialrealestate #marcperlofgroup

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