Commercial Real Estate Tax

Commercial real estate finance does not require an advanced degree from an Ivy League school, but it’s a very complex process.  In any given situation, there are many opportunities and pitfalls. Owners choosing to structure a loan themselves or work with a professional involves considering trade offs of time, money and, especially, risk. To get the best result, specialized insight is ESSENTIAL. Here is a look at the seven key steps required to put together a deal. (we will go into more detail concerning each step in future blog posts) Assemble Complete Financial Data a. Organizing and preparing financial data is the first step in obtaining a commercial real estate (CRE) loan. This will require financial data both about the property (assuming it is an income property) and the sponsor. Sponsor is the term used by lenders to describe the person who is responsible for the property. Put Together a Pitch book a. A pitch book is the jargon used to describe the property package, which is n...

  The short answer is no.  It appears the initial values and hearing results are based on business as normal. Early data from 2021 informal and commercial appraisal review board (ARB) hearings indicate there will be a record level of judicial appeals in 2021. Considering the following: We believe appraisal districts grossly over-assessed commercial property in 2021. The “canary in the coal mine” is the hotel assessments.  If appraisal districts had substantially reduced 2021 hotel property tax assessments, it would indicate they understood the market.  However, most appraisal districts either: 1) left hotel values flat or 2) increased them.  Since hotel revenue were down 48% across the county, the logic in valuing hotels seems bizarre. The bizarre hotel valuation is indicative of appraisal districts not understanding how to value commercial property in 2021, or possibly some other explanation. While it is early in the season, the initial commercial hearing resul...

  W hy has real estate ownership been   SO IMPORTANT   to the human race? If you have been in real estate for some time, you probably have heard Mark Twain’s opinion, “Buy land, they’re not making it anymore.” REAL ESTATE IS A TANGIBLE ASSET . You can touch it, see it, build on it, enhance it and manage it. Renters provide a return “on” and “of” the investment. Return on investment is a profitability measure, calculated by taking the profit and dividing it by the cost or value of the asset. The return of the investment is the rate at which the cost or value of the asset is returned to the owner. The  COMBINATION  of return on and of the investment provides the basis for determining investment-real-estate-purchase decisions. So, let’s assume you have already purchased a real estate investment and you want to be the next millionaire. The local market is in a stability stage (i.e no measurable changes in values). Few listings on the market and foreclosures are non-...