Real Estate Advisor
Showing 177–192 of 303 results
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Ask the Advisor – How should I handle nonrecourse loan carveouts?
January / February 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 417
Abstract: In this issue, “Ask the Advisor” addresses nonrecourse loans, in which the lender agrees that the borrower won’t be held personally liable on the loan. Theoretically, that means the lender’s only “recourse” in the case of default lies in the collateral (generally real estate). But the lender may include specific carveouts — or exceptions — that will nullify that restriction. Nevertheless, it’s possible for borrowers to minimize personal liability for violations through savvy negotiating.
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Valuation comparables in a slow market
January / February 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 577
Abstract: The unstable real estate market over the past several years has posed many appraisal challenges. In particular, low purchase prices — often resulting from “distressed” sales — and a relatively small number of transactions in some markets can make it difficult for appraisers to locate comparable transactions (or comps), a critical element in many valuations. But qualified appraisers do have ways of dealing with such situations; this article discusses some of the adjustments they can make.
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Transferring ownership interests is a snap with a GRAT
January / February 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 691
Abstract: A grantor retained annuity trust, or GRAT, can provide substantial estate planning benefits. As this article explains, a GRAT is an irrevocable trust, funded by a one-time contribution of assets by the “grantor,” that pays the grantor an annuity for a specific term. When the GRAT’s term expires, the assets remaining in the trust transfer to designated beneficiaries in a manner that can be tax-advantageous.
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Supreme Court issues pro-developer land-use ruling
January / February 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 883
Abstract: Developers applying for land-use permits often feel frustrated, even victimized, when government agencies make demands for money or property as conditions of permit approval. The U.S. Supreme Court, however, has made it easier for developers to challenge such demands in court. This article discusses a case in which a Florida real estate developer felt that the state’s conditions for granting a permit for a development project were excessive. The Court agreed, believing that the state’s stance violated the Fifth Amendment right to just compensation for property. A sidebar discusses the opposing view in this 5-4 decision.
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Ask the Advisor – Is a reverse exchange right for me?
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 400
Abstract: Real estate investors interested in enjoying the tax benefits of a like-kind exchange may consider a “reverse exchange” — where the replacement property is acquired before the investor transfers the relinquished property. These transactions come with certain advantages and disadvantages, however. This article looks at two versions of reverse exchanges and their pros and cons.
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A budding valuation consideration – Explore the world of green building features
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 629
Abstract: With sustainability becoming more common in both residential and commercial real estate, appraisers are increasingly asked to weigh in on buildings with green features. While green valuations haven’t yet come fully into bloom, the seeds have clearly been planted for environment-related features to affect property value. This article discusses why green matters, and lists factors that valuators can consider when appraising residential properties with green features.
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Stop and think before you surrender property
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 616
Abstract: Although much of the nation has seen an uptick in home sales, there are still areas in the United States that are dealing with sluggish markets. Those folks may be better off if they surrender their properties rather than try to satisfy their loan obligations. But they need to be careful. Why? Because, as this article indicates, discharging that debt may lead to unwelcome consequences.
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Tax Court finds property owner wasn’t a “real estate professional”
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 909
Abstract: A property owner who qualifies as a “real estate professional” stands to reap more tax benefits than ever these days. Those who satisfy the requirements may be able to offset some nonrental income with rental losses, as well as avoid the new 3.8% Medicare tax on net investment income. Satisfying the requirements, though, is no small task. This article looks at a court case in which the owner and manager of rental units recently learned that lesson the hard way. A sidebar discusses the tax penalty he had to pay.
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Ask the Advisor – How important is compliance with debt-related loan covenants?
September / October 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: The commercial mortgage arena is far from rosy. Lenders don’t want to expose themselves to the types of losses they sustained when the real estate market crashed. To protect their interests, many lenders are insisting on the inclusion of debt-related loan covenants. Borrowers that violate them risk costly consequences. This article explains the difference between debt service coverage covenants and loan-to-value (LTV) covenants, along with the consequences of noncompliance.
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How to ensure your QI is on the up and up
September / October 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 604
Abstract: Qualified intermediaries (QIs), which are similar to escrow companies, play an important role in Section 1031 or like-kind exchanges. Unfortunately, however, many states simply don’t pay much attention to the QI industry. That’s why it’s crucial that those exchanging business or investment property thoroughly vet the QI before signing on the dotted line. This article explains how a QI works and what to look for in one when performing due diligence.
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Appellate court rules on lease obligations
September / October 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 602
Abstract: After a lessor conveyed its interest in a property to a new lessor, a tenant completed construction work the original lessor had been obligated to perform, and then sued the new lessor for the costs. This lessor defended itself by arguing that a side agreement it had entered into with the original lessor absolved it of any and all construction-related lease obligations owed to the tenant. This article explains why that argument didn’t pass muster with an appeals court. Bright Horizons Children’s Centers, Inc. v. Sturtevant, Inc. (Mass. App. 2012).
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Caveat emptor: You might just get what you pay for
September / October 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 924
Abstract: In today’s real estate market, it’s possible to still pick up investment properties at bargain basement prices. But what may seem like a good deal could cost much more than meets the eye. This article looks at a number of factors that should be considered besides the purchase price. These include tenant lease terms; zoning and code compliance; maintenance and carrying costs; judgments, claims and liens; environmental concerns; and platting issues. A sidebar discusses the downside of reduced or free rental arrangements.
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Ask the Advisor – How can I give real estate to a charity?
July / August 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 418
Abstract: Several options are available for giving real estate to charity. Each option can produce a charitable tax deduction and help avoid taxes. Some options could even leave the donor with an income stream for a period of time. This article takes a look at outright gifts, bequests, charitable remainder trusts and “bargain sales.”
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Tax Court rules for taxpayer in self-rental rule case
July / August 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 504
Abstract: Those who rent property to their own business risk catching the eye of the IRS. But this article discusses one case in which the Tax Court found that the self-rental rule didn’t apply and the IRS shouldn’t have recharacterized the rental income as nonpassive in the first place. With the introduction of the new 3.8% tax on net investment income — which applies to certain passive income — it’s more critical than ever for taxpayers to properly identify their passive activities. Francis Dirico, 139 T.C. No. 16 (Tax Ct. 2012).
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Seller financing: It may or may not be a good idea
July / August 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 671
Abstract: The recovering commercial real estate market might be bad news for owners and investors who can’t come up with the financing they need to seal the deal. Fortunately, a handy tool known as seller financing might be just what the doctor ordered. This article explains how seller-financed transactions work and notes the many issues to address, including tax implications.
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Will you be on the hook? Tackling the new Medicare tax and rental activities
July / August 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 927
Abstract: The new 3.8% net investment income tax (NIIT), also known as the Medicare contribution tax, gives some taxpayers with rental income yet another reason to seek status as a “real estate professional.” This article gives examples of net investment income and explains that those who qualify as a real estate professional and materially participate in the business can offset nonpassive income with rental losses. A sidebar explains how taxpayers who own multiple rental properties can establish material participation.