Real Estate Advisor
Showing 33–48 of 303 results
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Is bridge financing right for you?
January / February 2020
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 444
Abstract: Bridge loans can supply short-term financing before developers and investors cement long-term financing. Their popularity surged during and in the wake of the Great Recession — and that popularity has yet to retreat. For those considering obtaining a bridge loan as part of a new deal or a refinancing, or for on-site improvements, this article discusses the potential pros and cons.
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Greening your projects can bring in more green
January / February 2020
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 562
Abstract: Whether developing commercial or residential projects, tenants and future owners are increasingly prioritizing environmentally friendly features. To avoid falling behind the competition, it’s important to stay on top of the latest sustainable features. This article provides four current trends to consider for current and future building projects.
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Don’t get taken – What you need to know about parcels in eminent domain
January / February 2020
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 707
Abstract: Eminent domain — when a government pays “just compensation” to take property from a private landowner for public use — is unpleasant enough without ending up being shortchanged in the bargain. Often, the government takes a small portion of a larger property. In these situations, the owner may receive the value of the acquired parcel, as well as economic damages on the property that wasn’t acquired by the government. This article reviews how quantifying the effects of eminent domain on the property’s unacquired portion can help maximize compensation.
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Making the most of ADUs
January / February 2020
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 835
Abstract: Accessory dwelling units (ADUs) are all the rage in urban areas, such as Los Angeles, Denver, Washington, D.C., San Francisco and Portland. The demand is expected to climb as the population ages and younger would-be homeowners are priced out of traditional houses. Not surprisingly, an ADU can boost a property’s value, depending on certain factors that appraisers consider. This article summarizes the basics of ADUs and reviews valuation basics, while a short sidebar covers the differences between ADUs and two-unit properties.
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Valuation matters – Appraisers apply 4 tests to determine highest and best use
November / December 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 438
Abstract: An important factor for an appraiser to consider when valuing real property is its “highest and best use.” This may not necessarily be its current use, though. The Appraisal Institute defines highest and best use as “the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible and that results in the highest value.” This article reviews the four tests appraisers typically apply to determine that use.
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Multifamily developers may want to consider short-term rentals
November / December 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 557
Abstract: Developers of multifamily projects are always looking for innovative ways to reduce vacancies and improve cash flow. This article examines how savvy developers in urban markets with an oversupply of multifamily housing and/or an undersupply of hotel rooms can benefit from a nontraditional tool to accomplish these goals: short-term rentals.
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LLCs: How limited is your liability?
November / December 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 672
Abstract: Many real estate investors hold title to their investment properties through a limited liability company (LLC). While LLC rules vary by state, this structure protects real estate investors from personal liability beyond the member’s equity investment. An LLC’s administration is fairly uncomplicated, and it offers potential tax benefits. However, this article reminds readers that liability protection under an LLC isn’t unlimited, and the Tax Cuts and Jobs Act (TCJA) made both positive and negative changes to the tax rules that affect LLCs.
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Related parties’ property exchange doesn’t qualify as like-kind
November / December 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 793
Abstract: Like-kind exchanges under Internal Revenue Code Section 1031 provide a valuable tool for taxpayers to defer taxes on capital gains. The exchanges are subject to some strict rules that are intended to prevent tax avoidance scams. This article discusses a recent U.S. Tax Court case in which the parties to a like-kind exchange ran into one of those restrictions — the related-party limitation — and ended up with a higher-than-expected tax bill. A short sidebar reviews how the Tax Cuts and Jobs Act (TCJA) affected like-kind exchanges. The Malulani Group, Limited, and Subsidiary v. Commissioner, No. 16-73959, Ninth Cir., Oct. 9, 2018
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Developer’s yacht deductions run aground
September / October 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 446
Abstract: Many businesses have stretched the definition of “marketing” to claim some questionable federal income tax deductions. This article reviews a recent case involving a real estate developer that illustrates how the IRS — and the U.S. Tax Court — generally see through these tactics. Becnel v. Commissioner, T.C. Memo. 2018-120, Aug. 2, 2018
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Will you be ready? Now’s the time to prepare for the next recession
September / October 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 579
Abstract: Markets tend to be cyclical. It’s likely that the U.S. economy will see another recession at some point in the coming years, and real estate will probably take a hit. Investors who take steps now can help insulate themselves from major losses in the event of an economic slowdown or recession. This article looks at what real estate investors can do now and how they might even end up positioned to seize the opportunities that downturns can produce.
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Finding the optimal balance between debt and equity financing
September / October 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 718
Abstract: Virtually all real estate investors use leverage, or borrowed money, in their business. It allows them to reach for higher priced property than they’d be able to afford by using just equity. But can real estate investors have too much of a good thing? What happens if investors can’t cover the principal and interest payments? This article looks at what investors should consider when searching for the right amount of leverage.
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QOZ update – IRS issues additional proposed regulations
September / October 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 828
Abstract: The IRS has released a second set of proposed regulations on the new tax incentives for investments in Qualified Opportunity Zones (QOZs). The incentives, created by the Tax Cuts and Jobs Act, permit taxpayers to defer, reduce and even permanently exclude capital gains on their investments. This article highlights the proposed regulations — most of which real estate investors can rely on until final regulations are published — including several provisions that are favorable for real estate investors. A short sidebar covers several transactions that can result in the loss of the QOZ tax deferral.
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Using cost segregation studies for like-kind exchanges
July / August 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 441
Abstract: Property owners have long turned to cost segregation studies to take advantage of accelerated depreciation methods, including bonus depreciation and Internal Revenue Code Section 179 expense deductions. Accelerated first-year deductions don’t change the total amount of tax that’s owed over an asset’s useful life, but they do change the timing of deductions, which lowers taxes and generates extra cash flow in the year an asset is placed in service. This article examines how, thanks to the Tax Cuts and Jobs Act (TCJA), the studies may also help taxpayers secure greater tax savings in so-called “like-kind” exchanges under Sec. 1031.
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When it rains, it pours – Consider an IRR waterfall for your next development project
July / August 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 640
Abstract: The internal rate of return (IRR) waterfall arrangement has gained popularity in recent years as a way to shift risk from equity investors, while rewarding developers for strong results. But no one should enter into such an arrangement without a firm grasp of how it works. This article looks at how these arrangements can benefit real estate professionals.
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M&A due diligence – Is this bargain-priced property a diamond in the rough?
July / August 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 631
Abstract: With real estate values holding fairly steady over the past several years, investors are quick to jump on a perceived bargain. While getting rock bottom pricing isn’t a bad idea, investors need to be careful about doing their homework before closing. A bargain can quickly turn into a problem if you fail to consider more than just the price. This article presents five other factors to consider.
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Rental activities qualify for new tax break
July / August 2019
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 935
Abstract: The Tax Cuts and Jobs Act (TCJA) created a significant new tax deduction for qualified business income (QBI) for so-called “pass-through” entities for 2018 through 2025. But it also created uncertainty about whether owners of rental real estate were eligible for the deduction. This article reviews recent IRS guidance addressing this gap, including a proposed safe harbor that allows certain real estate enterprises to qualify as a business for purposes of the deduction.