Point Acquisitions Blog

The art of commercial real estate valuation is a critical skill in an industry teeming with over $1 trillion in yearly transactions. Our detailed guide on how to value commercial property is designed to elevate your expertise and give you a deep understanding of the valuation process. Gain insights into the most effective valuation methods used by seasoned professionals. We’ll explore practical examples illuminating the intricacies of the income approach, which translates rental income into property value and is essential for evaluating properties like office buildings and retail spaces. Unravel the subtleties of the sales comparison technique. This technique involves…

In a 1031 exchange, when you sell a property and use the proceeds to buy another, you defer capital gains taxes. This simple process lets business owners reinvest without immediate tax consequences, making it easier to upgrade or diversify their property portfolio. Selling a 1031 exchange property isn’t just a sale; it’s a strategic move in real estate investment. Nearly a third of real estate transactions involve 1031 exchanges, highlighting their significance in the industry. This article will explore what happens when you sell a 1031 exchange property. From tax benefits to important timelines, we’ll provide essential insights. This knowledge…

With over 36% of Americans invested in real estate outside of their primary residence, understanding the nuances of a 1031 exchange is more than just a niche interest—it’s a financial imperative for a growing number of investors. Imagine deferring thousands, if not millions, of dollars in capital gains taxes; that’s the power of a well-executed 1031 exchange. Picture this: You’ve just sold an investment property and are ready to reinvest in a bigger, better option. But without proper guidance, you could miss critical deadlines, misclassify properties, and face hefty tax liabilities—turning your dream of financial growth into a costly nightmare.…

Attention commercial real estate investors, according to the National Association of REALTORS®, 12% of commercial real estate transactions in 2022 used a 1031 exchange. This powerful strategy could be your key to unlocking significant tax deferrals when selling your properties. This article is tailored specifically for you. It will guide you through the critical timelines and deadlines of a 1031 exchange with precision, making sure you can manage your property exchange with confidence and capitalize on the tax-deferral benefits. If you desire more control over your investment portfolio, we’ll provide the insights you need. Let’s dive into the step-by-step process…

Learning how to preserve wealth and minimize taxes is crucial in commercial real estate. However, many real estate investors face the challenge of high capital gains taxes, especially when it comes time to sell their valuable investment property. These tax implications can be daunting for a Limited Liability Company (LLC), potentially eating into the profits generated from years of strategic investments. The complexity of navigating through tax regulations adds another layer of stress, especially for LLCs dealing with large-scale commercial properties. Enter the 1031 exchange – a lifeline for real estate investors. This provision under the Internal Revenue Code offers…

The pulse of a property’s economic health in real estate is Net Operating Income (NOI). What is NOI? Calculating NOI simply involves subtracting operating expenses from generated income, excluding major one-time costs. It’s a clear-cut figure key for investors to evaluate property performance and make informed decisions. This piece will unravel the complexities of NOI, stripping away the jargon and providing you with the essential knowledge needed to confidently deal with the real estate landscape. Defining NOI: Net Operating Income in Real Estate Net Operating Income, or NOI, is an essential metric in real estate investing. It evaluates the profitability…