Real Estate Advisor
Showing 209–224 of 303 results
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Ask the Advisor — How can I ensure my joint venture will be successful?
September / October 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 511
Abstract: At a time when securing bank financing is a bit “iffy,” forming a joint real estate venture could be the best answer for getting a project off the ground. But it’s important to prepare for the bumps that may occur along the way. This article explains the concept of a joint venture and how a capital call provision in the operating agreement offers some certainty and can reduce the costs and tensions associated with obtaining additional capital.
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Do your homework before investing
September / October 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 617
Abstract: It’s possible to successfully navigate the recent turbulent markets — by doing some homework before investing. This article shows that some of the best market indicators may be in the local market. It explains how to look at real operating figures when purchasing an established rental property and shows what warning signs to look out for when performing due diligence on a prospective property.
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Don’t shoot yourself in the foot — Beware of the self-rental rule
September / October 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 657
Abstract: Renting property to a business entity may seem like an innocent action, but that “self-rental” arrangement could have significant — and potentially negative — tax repercussions. To explain why, this article first discusses the passive activity loss rules. It notes that self-rental income is nonpassive, and thus can’t immediately be offset by passive losses.
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Better watch out! — Construction fraud can hurt your bottom line
September / October 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 1035
Abstract: In its 2012 Report to the Nations on Occupational Fraud and Abuse, the Association of Certified Fraud Examiners (ACFE) estimated that a typical organization loses 5% of its revenues to occupational fraud each year. When it comes to construction, the ACFE found that the median loss suffered due to fraud schemes was in the neighborhood of $300,000. This article describes some common occupational fraud schemes and how to combat fraud. A sidebar describes the three categories of occupational fraud.
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Ask the Advisor — Should I challenge my property tax assessment?
July / August 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 485
Abstract: There are a number of factors that can indicate that a property’s assessed value may be too high: dropping property values, increased assessor workloads, overly long assessment cycles, or overly broad assessment techniques. This article discusses whether it might be advisable to proceed with an appeal for a downward adjustment in a property tax assessment.
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Sec. 1031 exchanges — The ins and outs of depreciating MACRS property
July / August 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 866
Abstract: Section 1031 – or like-kind – exchanges in the commercial real estate arena often include property subject to the modified accelerated cost recovery system (MACRS). Those who receive MACRS property in such an exchange must comply with complex tax regulations for determining the amount of annual depreciation allowed. Under the regs, the basis of MACRS replacement property comprises both a depreciable exchanged basis and a depreciable excess basis. This article explains what each is and which depreciation rules apply to each. A sidebar lists types of property that qualify for bonus depreciation.
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It’s time to invest in infrastructure
July / August 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 662
Abstract: Recent natural disasters and a mounting backlog of deferred repairs and maintenance point to the need for significant infrastructure upgrades in the United States and elsewhere. With many governments still strapped for cash, the door is wide open for private investors to get involved in financing infrastructure construction and repair. Infrastructure funds can help investors do just that. This article shows that infrastructure funds may offer a safer, more dependable income stream than some other types of investment options. But these opportunities are accompanied by unique challenges. Exchange traded funds may be one answer.
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What’s recoverable when a deal falls apart
July / August 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 614
Abstract: Recently, some breach of contract defendants have argued that poor market conditions subsequent to the alleged breach undermine plaintiffs’ claims for lost profits. This article looks at one lost-profits case in which the court didn’t agree, noting that lost profits damages are measured at the time of the breach. Citation: CR-RSC Tower I, LLC v. RSC Tower I, LCC, Nos. 280, 2535, Oct. 26, 2011 (Md. App.)
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Ask the Advisor — Is structured financing right for me?
May / June 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 488
Abstract: Even in the tight credit market, many developers continue to seek financing in the form of debt and equity. But in some circumstances, it may be possible to combine different offerings from commercial capital markets, thus maximizing leverage and minimizing cash equity requirements. This article examines the benefits of structured financing, along with some critical considerations.
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C corporation acquisitions: Beware of the tax issues
May / June 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 701
Abstract: While most buyers follow the traditional path of directly purchasing real estate, some take a more round-about route: They acquire the stock of the C corporation that holds the property as its primary asset. However, as this article explains, this approach comes with several tax pitfalls and complications — such as double taxation, basis and transfer tax issues.
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LEED-ing the way in green building
May / June 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 671
Abstract: Cities, businesses and individuals are increasingly seeking out — and often happily paying a premium for — properties with Leadership in Energy and Environmental Design (LEED) certification. LEED certification offers independent, third-party verification that a building, home or community was designed and built using strategies aimed at achieving high levels of environmental sustainability. This article looks at how the LEED certification program has changed over the years, and what LEED 2012 offers when it takes effect in November.
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Repairs vs. capital improvements — IRS issues long-awaited rules on tax treatment
May / June 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 943
Abstract: The IRS has released temporary regulations on the tax treatment of expenditures related to tangible property, such as buildings, machinery, vehicles, furniture and equipment. This article discusses those regs, which directly address how to determine whether an expenditure is to be considered a repair or a capital improvement. This, in turn, affects whether the cost is deductible or is treated as a capital expenditure. The regs also expand the definition of “dispositions” and of “materials and supplies.” A sidebar discusses an exception to capitalization rules for specific acquisitions.
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Ask the Advisor — How can I build a better loan request package?
March / April 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 492
Abstract: With financing difficult to obtain, a borrower might have only one shot with a lender. But loan request packages that lack information or are difficult to sort through will likely end up behind the more complete and organized ones. So the most effective way of increasing the odds is to submit a solid package. This article provides a list of documents that a lender is likely to request.
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SMLLCs: The good, the bad and the ugly
March / April 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 976
Abstract: Real estate investors are increasingly forming single-member limited liability companies (SMLLCs) to hold properties — or interests in partnerships that hold properties — and protect themselves from certain liabilities. Part of the attraction lies in the fact that SMLLCs can be classified by the IRS as “disregarded entities,” meaning they’re ignored for income tax purposes. But investors should bear in mind that these entities can produce undesirable tax consequences if they hold partnership interests. This article examines the federal tax implications, while a sidebar looks at other taxes that may be involved.
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A loan primer — It pays to know the rules
March / April 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 720
Abstract: To help secure a construction loan, it pays to understand the lender’s mindset. This article offers a primer on how to get the job done. It explains the loan process and discusses four ratios that lenders use to scrutinize a loan request: loan-to-value (LTV), loan-to-cost (LTC), debt-service-coverage, and net-worth-to-loan-size.
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Protecting your income with business interruption insurance
March / April 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 628
Abstract: Business interruption (BI) insurance can help commercial real estate owners augment their income stream for the period that tenants can’t fully use their space or business can’t be fully conducted. This type of coverage typically isn’t sold as a standalone policy, but is instead added on to one’s property or comprehensive business insurance policy. It’s especially important for those who count on rental income to service their debts. This article explains how BI insurance works and how lost income is computed.