Checking Prospective Tenants For Commercial Centers

There are many vacancies in commercial properties. Owners must think about this first when checking a prospective tenant. Will the tenant's business survive? When you have a prospective tenant for a commercial center, you must consider whether that prospect would be a good tenant. There are two key standards to apply: (1) the prospective tenant's financial stability; and (2) the prospective tenant's potential for success.

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.

Lenders Need Professional Property Management

Whether times are good or bad, lenders always have foreclosed properties in inventory. During 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.

Things You Need to Know About Commercial Real Estate 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?

Q&A: Taxes And Exchanges

Q .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?

Everyone Wants Apartments

Of the housing starts and new building permits in recent quarters, 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.

Controlling Property With The Least Expense

The Purchase-Option 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.

Securing 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.

Postponement Of Federal Taxes

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.

Combining Build-To-Suit With A Tax-Free Exchange

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

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