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Showing posts with the label commercial real estate valuation

Do YOU Know Why Real Estate is so IMPORTANT?

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  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-...

How Can Cost Segregation Help Minimize Your Tax Burden

  One of the most thriving industries these days is real estate. For many investors, maximizing their returns or make their income flow quickly for their commercial real estate project. Projects like these often include buying a property, remodeling, expanding or constructing any kind of real estate. In order to do this, they will need a professional to assist them with cost segregation. What is Cost Segregation? Cost segregation is an IRS-approved method that allows investors to increase their cash flow or maximize their returns by accelerating the deductions or the depreciation as well as deferring the federal and state income taxes. If you, an investor, purchases a property, the value does not just come from the structure itself.  As much as 20% to 40% of both these components fall under tax categories that can be written off much quicker than the structure itself. Any type of commercial property can be a candidate for cost segregation, especially when it has been in servic...

Five points to consider when buying a commercial property

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  Buying commercial properties is riskier than buying  a residential property. It requires complete analysis and comparison about the property. Only in depth analysis of commercial property will help you to succeed in the real estate industry . Here are some points to consider before buying commercial properties. Do your analysis  Location is the key Budget Physical condition of the properties Availability of amenities Do your analysis                            Before buying a commercial property, you should have knowledge about the property value and how it is being calculated. Try to study about the current market value and keep yourself updated. Buying a commercial property isn’t like buying a home. You can make a final decision after looking at the clear records of the property. Because, it is very important factor to buy a new property. If an...