This page is intended as a resource to help clarify any questions that may arise from viewing this website. If you have any further questions, please do not hesitate to contact us.
Section 1031 of the IRS code allows you to defer capital gains tax by reinvesting all of the equity from the sale of an investment or real estate property into a replacement property.
Asset management refers to the practice of managing one or more commercial real estate assets to maximize their value and profitability. At 1031 Equity Exchange, LLC, we conduct a thorough review of all of our clients’ assets to maximize their profitability. This review includes, but is not limited to:
- Reviewing all existing leases to determine increases, unpaid share of expenses and lease negotiation renewals.
- Performing a professional measuring of the building to determine common area load factors.
- Allocating the necessary budget for improvements to attract new tenants and increase occupancy to full capacity.
- Negotiating with subcontractors and supervise the completion of all necessary improvements.
- Planning an accelerated marketing campaign to lease all vacant space and increase Operating Income.
- Analyzing expenses to eliminate waste and increase Net Operating Income.
A brokerage firm can be thought of as an intermediary between a buyer and a seller. In commercial real estate, a brokerage firm help connect buyers and sellers.
A tax levied on the profit from the sale of an investment or real estate asset.
In commercial real estate, a capital investment is an initial investment with the expectation of turning profit over a long period of time.
Also known as investment or income property, commercial real estate refers to any building or land that is intended to generate a profit, either from capital gain or rental income.
Deal structuring is an important part of any 1031 Exchange involving multiple investors. In simple terms, deal structuring refers to the basic structure of any commercial real estate investment deal; how many parties are involved and what responsibilities (both financial and otherwise) these parties will assume.
Often, large-scale commercial real estate deals require additional financing. Generally, this financing is procured through a lender, such as a bank or financial institution.
Operating expenses are a measure of how much money it costs to run a building. This figure includes maintenance costs, advertising, tenant procurement, property taxes, utilities, improvements and more.
As the name implies, any trophy asset is a piece of commercial real estate or property that is particularly important to an investor.
A building’s net operating income (or NOI) is calculated after all operating expenses are subtracted, but before taxes and interest are deducted. In simple terms, it is the net income generated by a building after all operating expenses have been deducted.
The capitalization rate of an asset is the ratio between its net operating income and the capital cost or current value of that asset. Also referred to as the CAP rate of an asset, this ratio can be expressed as:
Capitalization rate = annual net operating income/capital cost (or value).
Wealth management is the practice of securing a lifetime of wealth for you and your beneficiaries. At 1031 Equity Exchange, LLC, we are dedicated to helping you protect and preserve your wealth by guiding you through complicated 1031 Exchanges.
As the name implies, any trophy asset is a piece of commercial real estate or property that is particularly important to an investor.