December 26, 2009
What’s the Most Favorable Commercial Real Estate to Buy ?
Lyn asked:
I have a chunk of money , as a result of the DOT taking part of my property - which happens to be zoned commercial - even though I Iive in the house on the land ( I don't have to move as a result of the takeover ) . Anyway - so I must purchase like property - namely commercial , to avoid losing a good bit in taxes . So , so far , I've been looking at rental property , or houses to convert to rentals , and undeveloped land . I happen to live in an area of Florida that is a rapidly growing boomtown right now . What might be the wisest choice/best investment - perhaps even something I'm not yet familiar with ?
I have a chunk of money , as a result of the DOT taking part of my property - which happens to be zoned commercial - even though I Iive in the house on the land ( I don't have to move as a result of the takeover ) . Anyway - so I must purchase like property - namely commercial , to avoid losing a good bit in taxes . So , so far , I've been looking at rental property , or houses to convert to rentals , and undeveloped land . I happen to live in an area of Florida that is a rapidly growing boomtown right now . What might be the wisest choice/best investment - perhaps even something I'm not yet familiar with ?
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 Coconut Mallory Resort Timeshare Key West Florida US $627.00 |
 HARBOR HEIGHTS 2 GULF ACCESS LOTS PUNTA GORDA FLORIDA US $1,157.00 |
 ORANGE LAKE ORLANDO FLORIDA DISNEY TIMESHARE DEED US $1.00 |
 FLORIDA LAND 125 ACRES Daytona Beach ORLANDO US $1,215.00 |
 MYSTIC DUNES DISNEY ORLANDO FLORIDA ANNUAL TIMESHARE US $1.00 |
 ORANGE LAKE Florida 3BR Red Week GOLD CROWN Timeshare US $397.00 |
 WYNDHAM PALM AIRE POMPANO BEACH FLORIDA TIMESHARE US $1.00 |
 RCI POINTS Gold Crown 2BR Lockoff FLORIDA Timeshare US $1,597.00 |
 2BR Red Week SHERATON Orlando 5 STAR Florida TIMESHARE US $1,997.00 |
 LIKI TIKI ORLANDO FLORIDA TIMESHARE 2B 2B DISNEY RED US $.25 |
 Timeshare Pompano Beach 2BR 2BA Florida RCI Prime Week US $99.00 |
 Beautiful Florida 2Bedroom Silver Crown Timeshare US $1.00 |
 Summer Bay Resort Orlando Florida RCI Points Timeshare US $1.00 |
 2 Bedroom Florida Disney Timeshare FOR SALE US $1.00 |
 Vistana Disney Florida 5 Star 2 Bedroom RED Timeshare US $1.25 |
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Filed under Renting & Real Estate by on Dec 26th, 2009. Comment. 
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Comments on What’s the Most Favorable Commercial Real Estate to Buy ?
!!! PAY ATTENTION TO ME !!!
immediately call your real estate attorney and ask about what you MUST do, and do NOW, to effectuate a “1031 Starker Exchange,” which is a tax-deferred exchange of LIKE KIND PROPERTY. (like kind does not mean that you must buy exactly the same type of real estate, it only means that you must buy investment real estate that draws income).
BUT THE TIMING IS WHAT IS GOING TO KICK YOU IN THE FANNY. that’s why i tell you that you had better call your attorney immediately. if your real estate attorney hasn’t done about 3 of these exchanges in the last 12 months, ask for a referral !!!
if you do not follow the specific time rules set forth by the irs, you stand to lose a whole lot of money via payment of taxes on capital gain.
now then, if you CAN do the exchange, go for it. start to look at like kind properties and designate (write up a contract) on one, two, three of them, but you must do it within the time specified!
your worry NOW is that your gain is not inside of an escrow account. you are not supposed to use any of your gain as your personal income! that’s why it would be put into an escrow at the closing of the real estate taken by means of condemnation by the DOT, a public body that is able to buy you out if it can show you the public need to do that.
in buying any sort of income property, you have to know all sorts of things, such as the cost basis of the old property, its adjusted cost basis, and what depreciation was taken on the investment property, which is recaptured by the irs or by you, depending on how you structure your 1031 exchange.
for that, you truly need a tax ATTORNEY, or, ask your exchangor and attorney experienced in these exchanges: do you need a tax attorney, a CPA, an estate planner, or just plain old joe blow tax preparer? i think you need at least the CPA and estate planner.
HURRY UP. i’ll try to edit later to let you know what like kind property is. feel free to ask at, but i strongly suggest you do the above way before you talk to me.
Sounds like you are talking about a 1031 exchange. If you have not already done so you need to get some some good tax/legal info immediately. There are parameters there that you MUST follow to avoid the capitol gains tax.
That being said – I like multi-family units for rental income. Senior citizens or mature indiviuals are the least trouble. Higher end renters are less trouble than lower end…depends on your management situation. Too expensive to build right now. Lots of good deals on existing structures. Again, the 1031 requirements should affect your decision. Good Luck.
I would buy a multi-unit type property. Could be as little as 6 units you have that are paying you a monthly rent. Really take advantage of it, and live in one of the units.
It all depends on you; there are so many real estate investments out there. Don’t limit yourself just locally there are so many good investments nationwide. I would stay away from land if you don’t have any experience in development and many people are unload there land because the resent slow down across the country.
Check out the website I included in my resource box. You might be able to find some info on different part of the country. The site is maily concentrate on commercial real estate. Good luck!