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Point Acquisitions Blog

What Does a Commercial Real Estate Broker Do?

August 27, 2023
A commercial real estate broker handing keys to a client

In the world of real estate, a commercial real estate broker plays a crucial role. They serve as the connection between people who want to buy or rent properties and those looking to sell or lease them.  However, it’s not just about putting properties up for sale or rent; they also help work out with lease agreements, figuring out how much a property is worth, and giving advice to ensure everyone’s making appropriate choices. There are around 120,000 businesses in the US commercial real estate brokerage field, according to the Commercial Real Estate Brokerage Industry Profile on FirstResearch.com. They bring…

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Reverse 1031 Exchange: What It Is and How It Works

August 22, 2023
Four wooden commercial real estate buildings on a brown table

 A 1031 exchange is a powerful tool for wealth preservation and growth by offering investors a unique opportunity to defer capital gains taxes and unlock the full potential of their real estate investments. While many individuals are familiar with the conventional forward 1031 exchange, a lesser-known but increasingly intriguing option has piqued savvy investors’ interest: the reverse 1031 exchange.  In this alternative approach to tax-deferred real estate transactions, the sequence is reversed, prompting investors to sell or acquire properties in a manner that might seem counterintuitive at first glance. In this article, we delve into the intricacies of the 1031…

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Commercial Real Estate: Definition, Types, & How to Make Money

August 14, 2023
a commercial real estate buildings with a crane and a blue sky background

Real estate refers to property ownership and can be divided into two main types: commercial real estate and residential real estate. While residential properties are meant for living and housing, commercial real estate is focused on business activities. These commercial properties play a vital role in commerce, providing spaces for businesses and economic activities. Commercial real estate property stands as a beacon of profit in the investment landscape. A CBRE report from 2023 shows more than $1 trillion was invested in commercial real estate transactions by the end of Q4 in 2022. Although down from 2021, this is still a…

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How to Find and Attract Commercial Real Estate Buyers

August 9, 2023
A commercial real estate buyer shaking hands with an agent in a suit inside an empty room in a building

Are you looking to sell your commercial property and attract the right buyers? Finding and enticing commercial real estate buyers is crucial for any property owner or real estate professional.  5.64 million existing properties were sold in 2020, according to data from the National Association of Realtors. Whether you’re dealing with seasoned commercial real estate buyers, eager commercial property buyers, or potential investors seeking lucrative opportunities, understanding the strategies to appeal to a diverse range of property buyers can make all the difference in securing a successful and profitable transaction. This article will delve into the essential steps and effective…

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What Qualifies for a 1031 Exchange?

August 2, 2023
A document with a checklist beside a black pen on a table

If you’re contemplating a 1031 exchange, you’re likely aware of the significant benefits it offers to real estate investors. We’ll explore the requirements and guidelines for a successful 1031 exchange transaction, equipping you with the essential knowledge to make informed decisions. In this article, we’ll provide a detailed overview of the qualifications needed for a 1031 exchange, shedding light on the requirements set forth by Section 1031 of the Internal Revenue Code (IRC). We’ll discuss how an exchange allows investors to defer capital gains taxes, ensuring a higher amount of capital available for reinvestment in a replacement property. By understanding…

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A Guide to the 95% Rule in 1031 Exchange

August 2, 2023
A commercial real estate agent showing property to a client holding a document

Are you a real estate investor eager to discover a powerful tax strategy to help you defer capital gains taxes and reinvest your profits into new properties? Look no further! This comprehensive guide delves into the fascinating world of the 95% rule in a 1031 exchange.  By understanding and harnessing this rule’s potential, you can unlock many benefits while navigating the complex realm of real estate taxation. Whether you’re a seasoned investor or just starting, this article will equip you with the knowledge and strategies to make informed decisions and maximize your tax benefits.  What is the 95% rule in…

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1031 Exchange Improvements: Definition, Requirements and Deadlines

August 1, 2023
construction cranes are silhouetted against a blue sky and a building under construction

Welcome to real estate investment, where opportunities abound, and savvy investors seek to maximize their returns through ingenious strategies like 1031 Exchange Improvements. Commonly referred to as Construction 1031 Exchanges, these transactions offer a unique chance for astute investors to craft their perfect replacement property from the ground up. By harnessing the power of Improvement Exchanges, you can utilize the proceeds from a 1031 Exchange to acquire new property and allocate a portion of these funds to enhance and improve said property.  This article will delve into the definition, requirements, and deadlines surrounding this innovative approach, unraveling its potential for…

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12-Step Guide to the 1031 Exchange Process and Tips to Follow

July 8, 2023
A commercial real estate agent handing keys to a client while they are holding a model house on a table

Welcome to our comprehensive guide on the 1031 exchange process, a highly promising tax-deferral strategy that can potentially benefit real estate investors. In a thriving real estate market, it is crucial for investors to meticulously explore every available avenue to maximize their returns and effectively manage their tax obligations. The 1031 exchange, recognized as a like-kind exchange under the Internal Revenue Code’s provisions, allows investors to defer capital gains taxes upon selling an investment property by acquiring a similar or like-kind replacement property. We will meticulously delve into the intricacies of the 1031 exchange process, expertly guiding you through the…

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1031 Exchange: Converting Investment Property to Primary Residence

July 4, 2023
a real estate broker writing on a document in a blue clipboard with a black pen

Investing in real estate can be lucrative, but circumstances may change, leading you to consider converting your investment property into your primary residence. While this process can have significant financial and lifestyle benefits, it’s essential to understand the concept of a 1031 exchange.  This post explores the ins and outs of a 1031 exchange for converting investment properties into primary residences. We’ll delve into how the IRS permits almost any exchange of qualified properties held for investment, making any investment property eligible for a “like-kind” swap with another.  Additionally, we’ll discuss the scenarios where circumstances change, allowing investment properties to…

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1031 Exchange Identification Rules You Need to Know

June 27, 2023
a magnifying glass and a wooden house with a document background

Understanding and complying with the identification rules is crucial for a successful 1031 exchange. These rules outline specific requirements for identifying and acquiring potential replacement properties, and failing to comply can jeopardize the entire exchange process. As a new investor venturing into real estate, it is essential to grasp these rules to ensure a smooth and advantageous exchange. We will explore the top 1031 exchange identification rules you need to know. By familiarizing yourself with these guidelines, you can confidently navigate the property identification process and maximize the tax benefits of your investment. Like-Kind Property Rule The like-kind property rule…

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