Whether you’re a business owner looking for space to run your company or an investor seeking out a commercial real estate investment, understanding the variances on commercial long-term leases is essential.
Single Net Lease – You will be responsible for the basic monthly lease payment plus other limited obligations spelled out in the lease.
Double Net Lease – You will have a monthly lease obligation that is slightly smaller, but also be responsible for… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 30, 2017 at 7:21am —
With both Florida and Georgia declared major disaster areas, residents in those states are entitled to important tax relief relative to filing deadlines for tax returns (especially those who previously sought an extension and have due dates coming up in September or October for personal and business tax returns, respectively).
But beyond general tax deadline relief, those who were in the middle of a section #1031 like-kind exchange are also getting relief. For taxpayers who entered… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 29, 2017 at 6:17am —
Added by Realty411 Magazine on September 28, 2017 at 6:14am —
Credit bureau Equifax has just been hit with what could be the biggest data breach in history. How will it change the investment landscape? And what does that mean to us as investors?
The Equifax hack may not only prove to be far more widespread than first announced by the credit bureau, but is likely to force many to seek out new investment strategies.
Equifax finally revealed that around 50% of Americans had their personal information stolen through their firm’s database… Continue
Added by Fuquan Bilal on September 27, 2017 at 8:07am —
Investing in NNN properties is often a sound strategy for the savvy investor. But before you jump in to this type of investment, it pays to understand the what/why/how behind these more sophisticated investment vehicles.
I recently came across this article provides a succinct summary of all the important facts you need to…
Added by Dr. Robert G. Hetsler, Jr. on September 26, 2017 at 10:54am —
Not every #1031 exchange is created equal. While they all provide deferral of capital gains (when done correctly), there are many ways to achieve this result. Far from a one-size-fits-all approach, the IRS has made allowances to cover a variety of situations where a taxpayer can trade investment or business property and defer capital gains taxes.
Which one is right for you depends on your individual circumstances.
This occurs when… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 25, 2017 at 11:13am —
Recently we introduced an innovative way for individual investors to join the lucrative world of self-storage facility ownership. Through our new investment vehicle - self-storage TICs, individual owners can become partial owners of self-storage facilities, and reap the rewards that these unique investments offer.
And while we think self-storage TICs are a very solid investment option, there are always pros and cons to every type of investment including… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 21, 2017 at 12:51pm —
Earlier in the year some real estate experts speculated that the supply of self-storage facilities outpaced demand. However, the recent spate of natural disasters, including two major hurricanes, has spurred demand for temporary storage in a storm’s aftermath.
This comes as no surprise to those involved in the self-storage industry. Historically, hurricanes are favorable to boosting demand for self-storage, according to industry specialists. So with demand at a high, is this the right… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 20, 2017 at 11:09am —
Anyone who wants to complete a #1031 exchange to defer capital gains taxes must understand IRS timing rules. Internal Revenue Code requires that you identify your replacement property (or properties) within 45 days of closing on the sale of your old property. You must then close on the property within 180 days, a time period that runs concurrently with the 45 days.
But how are those days calculated? Does it include weekends? Holidays?
The IRS is clear that the 45 & 180 days… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 19, 2017 at 9:56am —
How can mortgage note investors best navigate major storms and hurricanes?
This is a great time to be a note investor. Yet, situations like the major hurricanes we are dealing with now can call for extra preparedness. What can you do to be ready and best deal with any storms that hit areas you have assets in?
Lines of Communication
One of the most critical factors for note investors to get a handle on in the face of big storms is lines of communication.… Continue
Added by Fuquan Bilal on September 18, 2017 at 6:58pm —
One of the biggest obstacles in any #1031 exchange is finding suitable replacement property. Sometimes the ideal property will come along right away – sometimes even before the relinquished property is sold – but unfortunately this is not the case for most exchanges.
For investors who relinquish before finding a replacement property, there are several important requirements that must be followed with regard to identifying replacement property in order for the 1031 exchange to succeed… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 18, 2017 at 1:31pm —
For many non-professional investors, #1031 exchanges are used primarily for real estate transactions. However, the IRS code also allows for a variety of personal property to qualify, too. In fact, personal property exchanges are just as common as real property exchanges.
Where it gets complicated, though, is application of the “like-kind” rules. The IRS regulations establish safe harbor definitions related to like-kind personal property. The key is that the replacement property must… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 16, 2017 at 12:08pm —
Summer is over, and Washington is starting to buzz again. Legislators are returning from break, and the atmosphere of change is starting to ramp up. One area that anyone involved in real estate or real estate investment is keeping a close eye on is, of course, tax reform.
And while nobody is certain how broad a brush the administration will use when trying to enact changes to the current code, section #1031 keeps popping up on the radar. But what will the real-world impact be if 1031… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 13, 2017 at 8:15am —
A successful #1031 exchange can offer powerful tax-deferral benefits to an investor. However, whether an exchange is successful depends on whether it follows the strict rules laid out by the IRS.
One of these requirements is that the relinquished property and replacement property involved in the 1031 exchange is “like-kind.” Which sounds simple, right?
In many transactions, it is. For example, an investor relinquishes one multi-family rental property and replaces it with… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 12, 2017 at 11:15am —
Looking for new real estate investments this year? Make sure you understand the dual markets we are juggling.
This is both a great and tougher year for investing in real estate and related assets. It all depends on how much you know about what’s really going on in the market, and how well connected you are. Here’s what you need to know…
The Public Property & Mortgage Market
As a consumer or newer individual investor the public view of the current real… Continue
Added by Fuquan Bilal on September 12, 2017 at 9:20am —
When it comes to deferring capital gains taxes via section #1031 of the IRS Code, the items that qualify are quite broad – property that is held for business or investment. So far so good, right? That sounds like it covers just about everything in one way or another.
But not so fast. Even if some things seem to initially appear to meet these general criteria, the item you want to exchange still may not qualify for a 1031 exchange.
So what are these non-exchangeable… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 9, 2017 at 9:31am —
In today’s uncertain economic times, traditional investments don’t necessarily provide the stability or meaningful returns that investors seek. Perhaps that is why interest in net-leased, single-tenant real estate is skyrocketing. But for the casual investor, these properties – commonly called NNN or STNL in the industry – remain somewhat of a mystery.
Defining NNN Properties
Typically, the types of real estate considered triple net lease investments are… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 8, 2017 at 1:37pm —
As more and more non-professional investors move into the world of #1031 exchanges, one of the most common questions asked is what property qualifies under the tax code. While it seems straightforward as to what types of property qualify, too many unwary investors have had their 1031 exchange declined by the IRS for failing to satisfy this basic requirement.
Step one in any potential 1031 exchange is ensuring that the relinquished property meets the requirements of being “qualified… Continue
Added by Dr. Robert G. Hetsler, Jr. on September 7, 2017 at 9:44am —
There is one essential skill that many real estate investors and companies are lacking today. What is it? How can you get more of it?
Being good at analyzing the data and making good investment decisions is arguably the first and most valuable skill in real estate today. That applies whether you are buying a house to live in for yourself and your family, if you are looking for flip deals or rental properties, or are investing in mortgage loan notes. However, this has become much… Continue
Added by Fuquan Bilal on September 6, 2017 at 1:25pm —
The whole point of a #1031 exchange is to defer tax liability on the transaction in order to free up equity to purchase more valuable property and grow investments. Unfortunately, some investors don’t fully understand the requirements for full tax deferral, and make common mistakes that lead to unintended immediate tax liability on their investment transactions.
To qualify for full tax deferral, an investor must meet two basic requirements in a 1031 exchange:
Added by Dr. Robert G. Hetsler, Jr. on September 5, 2017 at 10:51am —