The Realized Team’s Picks
What Is Improvement Value in Commercial Real Estate?
A property’s assessed value is calculated for tax purposes and comprised of improvement value and land value. When speaking of improvement value in commercial real estate, improvements include all accessible buildings and structures on that land, not necessarily that recent improvements have been made.
Can An Irrevocable Trust Do A 1031 Exchange?
Yes, an irrevocable trust can do a 1031 exchange under certain circumstances.
What Is the 10% Rule in Real Estate Investing?
The 10% rule actually consists of three rules. They are meant to be a quick and minimal way for real estate investors to check that they are getting a good deal on their investment. Having some simple-to-follow rules in your back pocket is always a helpful tactic to eliminate potential bad deals early on and with little effort.
Can I Buy a House in an Opportunity Zone and Call It an Investment?
Since the 2017 launch of the Opportunity Zone program, investors have placed their capital gains into any number of available Qualified Opportunity Funds (QOFs). Those funds, in turn, invest in projects ranging from apartment and office renovations, to ground-up retail centers.
Upleg vs Downleg in a 1031 Exchange
When undertaking a 1031 exchange, the property you are relinquishing is called the downleg, while the property you are acquiring is called the upleg. The downleg must be of equal or greater value than the upleg, and the two properties must be of like kind. This allows investors to potentially defer capital gains taxes on the sale of the downleg property.
1031 Exchange: What It Is, How It Works, and What to Consider
Navigating the world of real estate can present you with numerous opportunities that could result in a profit. However, one of the most common “necessary evils” of real estate investment is capital gains tax.
What Documents are Needed for a 1031 Exchange?
Real property acquisition and disposition requires a variety of steps. With those steps comes required documentation; a paper trail involving forms and legal paperwork to ensure that the transaction is completed to everyone’s satisfaction, without ambiguity or confusion.
What Is a Good FFO for a REIT?
One common metric used to measure a stock's financial performance is EPS, or earnings per share. This metric divides a company's net income by the number of outstanding shares. Basically, it lets investors know the value of each share. Investors can determine the company's growth rate by looking at EPS over time.
How Banks Manage Liquidity Risk
Banks, like businesses and individual investors, face the challenge of liquidity risk. The principle of managing liquidity risk for banks involves ensuring that cash inflow, or income, is timed appropriately to meet upcoming financial obligations. Banks employ a range of strategies to ensure adequate liquidity, including maintaining reserves with the central bank, borrowing on the interbank market, leveraging intra-group borrowing, or investing in readily marketable assets like government bonds.
Deferred Sales Trust: What It Is and How It Works
In our published articles, we talk extensively about Delaware Statutory Trusts. However, there is another “DST” that investors can leverage in case they do not qualify for a 1031 Exchange but still want to enjoy tax deferrals — a deferred sales trust. In this scenario, you “sell” your property to a trust, and the trust will pay you in “installments” over an agreed-upon timeframe. This legal contract has a few major differences from exchanges, so investors must have an in-depth understanding of how it works before they commit.
