Join us via Zoom for our Comprehensive Intro to Commercial Real Estate event on Jan. 10! Professionals from every industry sector will share their knowledge as we explore commercial real estate fundamentals.
https://youtu.be/XpziGHPtksE
Monday, January 16, 2023
ICYMI Comprehensive Intro to Commercial Real Estate - eXp Commercial
In Case You Missed It Comprehensive Intro to Commercial Real Estate - eXp Commercial.
Join us via Zoom for our Comprehensive Intro to Commercial Real Estate event on Jan. 10! Professionals from every industry sector will share their knowledge as we explore commercial real estate fundamentals.
https://youtu.be/XpziGHPtksE
Join us via Zoom for our Comprehensive Intro to Commercial Real Estate event on Jan. 10! Professionals from every industry sector will share their knowledge as we explore commercial real estate fundamentals.
https://youtu.be/XpziGHPtksE
Why Should I Sell My Multifamily Property?
Why should I Sell My Multifamily Property?
There are a number of reasons why people decide to sell their multifamily property, but most can be categorized into three groups: Problems, Opportunities, and Changes.
With this decision though comes the consideration of capital gains tax and how to ensure you are getting the most for the sale of your property.
There are several reasons why people do sell:
Problems:
- Management
- Vacancy
- Maintenance
- Stress
- Health
- Debt
- Neighborhood
- Interest Rates
Opportunities:
- Strong Market Values
- Alternate Investment
- End of the Hold Period
- Tax Savings
Changes:
- Divorce
- Death
- Retirement
- Partnership Split
- Relocation
- Consolidation
- Diversification
What do I do with the sales proceeds? I don't want to pay Capital Gains Tax!
There are several options for sellers to defer or minimize capital gains taxes:
- 1031 Exchange
- Delaware Statutory Trust/Deferred Sales Trust (DST)
- Tenancy in Common Investment (TIC)
- Installment Sale
How do I know I am getting the most money for my property?
We not only market properties for sale. We make a market for properties we represent. Each offering is thoroughly underwritten, aggressively priced, and accompanied by loan quotes to expedite the sales process. We leverage our broad national marketing platform syndicating to the top CRE Listing Sites with direct outreach to our investor database and an orchestrated competitive bidding process that yields higher sales prices.
What is my property worth?
Contact Us to discuss what information is needed to complete a Complimentary Commercial Broker Opinion of Value (BOV).
I’m not interested in selling at this time.
This is understandable as only about 5% of the market trades in any given year. We are also happy discuss any purchase or refinance interests and recommend some physical and operational changes you can make to add value to your property you will appreciate when you eventually sell.
Have you thought of selling your property and would like to know what it's worth? Request a valuation for your property below:
eXp Commercial Chicago Multifamily Brokerage focuses on listing and selling multifamily properties throughout the Chicago Area and Suburbs.
We don’t just market properties; we make a market for each property we represent. Each offering is thoroughly underwritten, aggressively priced, and accompanied by loan quotes to expedite the sales process. We leverage our broad national marketing platform syndicating to the top CRE Listing Sites for maximum exposure combined with an orchestrated competitive bidding process that yields higher sales prices for your property.
https://www.creconsult.net/market-trends/why-should-i-sell-my-multifamily-property/
How to Upgrade Your Property but not Over Improve it
How to Upgrade Your Property
If you are running a Class B asset, it can sometimes be hard to compete with the newer, nicer properties. They have amenities and features (and many times, even a budget) that you just don’t have. However, as markets get more competitive, it is necessary to keep your community looking sharp and up to date in order to attract quality tenants who will care for your property.
Property improvements and upgrades can be expensive. And, it is easy to over-improve. I’ve been guilty of it several times. But, over the years, I’ve learned a few key practices and thought processes to maximize the return on your property upgrades and to help you select the improvements that will become a profit center and not just a cost. With that in mind, here are a few things to consider…
Know Your Market. A word of caution, before you start, you need to do your homework. The location of your property, the people working in the area, and the nearby amenities will all help determine what the right features should be for your property. You don’t want to waste your money on amenities that don’t add value to your tenant demographic or that won’t get used.
Not everyone wants or needs a dog walking area or a bike room. Survey your current residents for what upgrades they want – or, if you think you will be changing your tenant profile, determine your target demographic, and look to what the newer properties are offering to that market. You might be surprised at what features and amenities are priorities to your target market.
Go For a ‘Wow’ Feature. Make your property stand out. One of the first goals in adding value is to differentiate your property. Your goal is to create something at your property that the prospect wants, but that they can’t get anywhere else – at least not in your price range. This might mean, for example, creating a large, walk-in closet, complete with a high end closet organizing system versus the other properties that just have a standard closet. If you’re renovating your unit, think about how you can steal space for this. Most units these days are lacking in storage space.
It could be a unique common area amenity like a great BBQ or pool area. It could be unique services that you offer. Even doing a two color paint job vs. one color in the units can make a difference. Maybe your future residents get to choose from a palette of colors. Whatever it is, the key is to make your property stand out in the mind of the prospect.
If nothing else, I try to add a few features in the apartment that are ‘one step up’ from what the prospect might expect in comparable priced units. This might mean a nicer appliance, or electrical outlets with USB ports. The key is to be different and better in the mind of the prospect.
Think upgrades that have Operational Benefits. Think improvements like using LED lighting to save on energy bills, or adding a camera system that not only makes residents feel secure, but helps eliminate some of the problems you’ve had at your property. Perhaps upgrading the bath vent fans in the units to ones that are quieter and have stronger air flow. This not only make your tenants happier (to not have that noisy vent fan), but reduces the chance of mold developing. The list goes on and on.
Energy savings is a great area to look at. Smart lighting systems or thermostats not only save money and energy, but also have a ‘cool’ factor (pun intended). How nice would it be for your resident to be able to turn on their air conditioning 30 minutes before getting home. Or, with a smart lock, to be able to let in their guest, even when running late.
I once rented an office at a co-working space. The hallway lighting was motion activated, and monitored what times people tended to be in the offices and when they left. This helped keep the hours that the heat and air conditioning were on to a minimum, while still keeping us, as tenants, comfortable. You can do something similar at your property.
Think Amenities that Bring People Together. Renters today are looking for a sense of community. You want that too – encouraging connection amongst your residents keeps them happier and keeps them longer. That means less turnover for you and a building that becomes more in demand as residents encourage their friends to move to your property as well.
People spend so much time on technology these days, that they are looking for more human interaction in their community. Providing an amenity that aids in the meeting of fellow residents is the type of thing renters are looking for in their living experience.
You might have unused or underutilized outdoor space that could be converted into an area for social gatherings. Common cooking spaces, dog parks, community gardens, or rooftop decks and coffee bars are all places residents can gather to get to know each other. Creating great community amenities that encourage mingling and socializing is a great use of your renovation dollar.
When planning your renovations, always select your projects with intention. When it comes to attracting and keeping quality residents, the amenities and upgrades you choose make a big difference. Residents today are looking for amenities that provide convenience and a sense of community. Your goal is to meet those needs and do what you can to keep them longer. Remember, reducing turnover makes you money in the long run.
A word of caution - Always keep the base level of your competition and the reputation of the neighborhood in mind. People will only look in a certain price range in any given neighborhood. Above that, they go to the ‘next best’ neighborhood to look. I wish you great success in your next renovation.
Source: How to Upgrade Your Property but not Over Improve it
https://www.creconsult.net/market-trends/how-to-upgrade-your-property-but-not-over-improve-it/Commercial Real Estate Cost Segregation 2022 Tax Deadlines
Cost segregation is the method of re-classifying components of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5-, 7-, or 15-year schedule instead of the traditional 27.5- or 39-year depreciation schedule of real property. Thus, your current taxable income will be greatly reduced, and your cash flow could increase by 5% – 8% of your building’s cost.
Please see below eXp Commercials' Cost Segregation national partner's internal deadlines for the upcoming tax season for those who file timely:
March Tax Deadline (3/15/2023)
Internal Deadline is 1/20/2023 - All relevant data to complete the project must be received by this date in order to ensure timely delivery of the study for the March tax deadline. Relevant data needed includes the site survey, building cost basis/depreciation schedule, blueprints (if available), appraisal (if available), and construction/improvement cost detail (if applicable).
April Tax Deadline (4/18/2023)
Internal Deadline is 2/20/2023 - All relevant data to complete the project must be received by by this date in order to ensure timely delivery of the study for the April tax deadline. Relevant data needed includes the site survey, building cost basis/depreciation schedule, blueprints (if available), appraisal (if available), and construction/improvement cost detail (if applicable).
Please Contact Us to order your Cost Segregation Study.
https://www.creconsult.net/market-trends/commercial-real-estate-cost-segregation-2022-tax-deadlines/
Commercial Real Estate Cost Segregation 2022 Tax Deadlines
Cost segregation is the method of re-classifying components of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5-, 7-, or 15-year schedule instead of the traditional 27.5- or 39-year depreciation schedule of real property. Thus, your current taxable income will be greatly reduced, and your cash flow could increase by 5% – 8% of your building’s cost.
Please see below eXp Commercials' Cost Segregation national partner's internal deadlines for the upcoming tax season for those who file timely:
March Tax Deadline (3/15/2023)
Internal Deadline is 1/20/2023 - All relevant data to complete the project must be received by this date in order to ensure timely delivery of the study for the March tax deadline. Relevant data needed includes the site survey, building cost basis/depreciation schedule, blueprints (if available), appraisal (if available), and construction/improvement cost detail (if applicable).
April Tax Deadline (4/18/2023)
Internal Deadline is 2/20/2023 - All relevant data to complete the project must be received by by this date in order to ensure timely delivery of the study for the April tax deadline. Relevant data needed includes the site survey, building cost basis/depreciation schedule, blueprints (if available), appraisal (if available), and construction/improvement cost detail (if applicable).
Please Contact Us to order your Cost Segregation Study.
https://www.creconsult.net/market-trends/commercial-real-estate-cost-segregation-2022-tax-deadlines/
Tuesday, January 10, 2023
Commercial Real Estate Cost Segregation 2022 Tax Deadlines
Cost segregation is the method of re-classifying components of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5-, 7-, or 15-year schedule instead of the traditional 27.5- or 39-year depreciation schedule of real property. Thus, your current taxable income will be greatly reduced, and your cash flow could increase by 5% – 8% of your building’s cost.
Please see below eXp Commercials' Cost Segregation national partner's internal deadlines for the upcoming tax season for those who file timely:
March Tax Deadline (3/15/2023)
Internal Deadline is 1/20/2023 - All relevant data to complete the project must be received by the CSSI home office by this date in order to ensure timely delivery of the study for the March tax deadline. Relevant data needed includes the site survey, building cost basis/depreciation schedule, blueprints (if available), appraisal (if available), and construction/improvement cost detail (if applicable).
April Tax Deadline (4/18/2023)
Internal Deadline is 2/20/2023 - All relevant data to complete the project must be received by by this date in order to ensure timely delivery of the study for the April tax deadline. Relevant data needed includes the site survey, building cost basis/depreciation schedule, blueprints (if available), appraisal (if available), and construction/improvement cost detail (if applicable).
Please Contact Us to order your Cost Segregation Study.
https://www.creconsult.net/market-trends/commercial-real-estate-cost-segregation-2022-tax-deadlines/
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