This month’s newsletter has just been released!
Check out the latest tips for tenants and users of commercial real estate space.
In this issue
- How To Secure Land For Any Project
- Types Of Apartments and How To Invest In Them
- Tax Deferred Exchange and Important Tax Events
- How To Control Property With The Least Expense
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…….
Of the housing starts and new building permits in recent times, 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.
A new buyer of apartments must think “management”. Good management has always been the most important point in increasing or maintaining annual operating profits. Being a skillful manager requires intelligent handling of the functions of buying and selling properties, rent collections, maintenance, leasing, controlling expenses, refurbishing, management accounting and more. All of this requires long “hands-on” experience in the field with plenty of assistance from the latest in operational and administrative hardware and software. Professional management companies usually do a much better job than owners and more than earn their fees. Here are a few tips on types of apartments and ways to invest in them……
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?…….
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.The biggest differences between the purchase-option and direct ownership may be two advantages from the viewpoint of the investor: First, the short term (6 to 24 month) purchase option contracts can be an outstanding way to control property without assuming the responsibilities of ownership. Second, the contract enables the optionee to receive all of the benefits from appreciation in market value of the property. Here are the others…….
