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Sometimes Tax Time can be so painful…

Remember the last time your Mutual Funds took a loss and you STILL had to pay taxes. Doesn’t seem fair. AND when your stocks take a loss all you can do is write that off against your stock gains.

Have you ever thought to yourself,

"Wouldn’t it be nice to be able to get good cash flow and a generous tax deduction from the same investment?"

Think of it… a single investment offering you the best of both worlds. Is that even possible?

I have good news, because that is Exactly what direct ownership in Commercial Property offers you. AND I guarantee you this is information your Stock Broker doesn’t want you to know.

Here’s the best tax write off in Investing…

When you own Commercial Real Estate you can take as much cash flow as the property will produce as income AND use Depreciation to write off thousands of dollars of that income every single year.

Commercial Real Estate is depreciated using a 39 year tax life. This means every year you can write off one thirty ninth of the value of the building(s) against your income for the year.

It’s a leveraged write off too…

Here’s what I mean. You get to write off 1/39th of the Entire Value of the entire property, not just money you personally put in to the deal.

Check out this example…

If you put $200K cash down on a $1M Commercial Property, you can use Depreciation to write off 1/39th of the full $1M - not just the $200K you put in. This equals $29,614 per year, every year for 39 years in a row if you wish.

And it gets even better…

You can even "Accelerate the Depreciation" and take a bigger write off than this.

Certain parts of your Commercial Property can actually be depreciated over shorter tax life periods and give you an even larger depreciation deduction. It’s done using a technique called Cost Segregation.

Here’s how it works…

Some components of your Property have a tax life of five years, some seven or even 15. There are consultants who can routinely add thousands to your annual Depreciation write off by taking a week to do a Cost Segregation analysis for you.

Accelerated Depreciation is totally painless, gives the generous deduction write off a major boost and is completely accepted by the IRS.

At Tax Time it is important to remember this…

Depreciation is the #1 Tax Write Off available to investors today and just one of the reasons Commercial Property deserves a prominent place in your portfolio.

A significant number of businesses that come to market do not have consistent stream of earnings. Inconsistent earnings history makes it difficult for acquirers to predict future earnings and create a valuation challenge. Using an "industry earnings multiple", the most common metric used to value mid-market companies can be meaningless in these situations.

Which earnings number does one pick? The highest? The lowest? Most recent? The average? Weighted average?

On the surface, using weighted average may seem like an appealing answer. However, using weighted average typically leads to overvaluing or undervaluing the company by a substantial margin to the detriment of either the acquirer or the seller.

Assuming a reasonable earnings number can be picked using weighted averages, is "industry earnings multiple" a valid multiplier to arrive at a valuation? In not, how does one value these companies?

A keen appreciation of financial methods and industry knowledge are essential to answer these questions. The first step in the process is to gain a clear understanding of the reasons for the earnings variability. Some common reasons for earnings variability are:

* Economic changes in the target market

* Development phase of the company

* Large non-recurring income/expenses

* Loss/gain of large customers

* Entry/exit of major competitors

* Changes in management or key employees

* Changes in physical environment and target market

* Substantial changes in level or amount of operating equipment or people

* Changes in COGs that are out of line with changes in final product/service prices

Acquirers may see some of these reasons as problems that reduce the future earnings. They may also see some other reasons as opportunities that increase the future earnings. It is imperative that both the reasons and the impact be well understood early in the valuation process. Once the reasons are identified and their impact assessed, appropriate adjustments can be made to recast the financials to get a more meaningful picture of the company’s revenue and earnings stream. Quite often, these recasted numbers indicate a stable or predictable earnings or revenue stream.

If the earnings stream is predictable, the acquirer can use industry price/earnings multiples to arrive at a reasonable valuation.

If the earnings stream is somewhat erratic but the revenue stream is predictable, the valuation may have to rely more heavily on industry price/sales multiples.

If neither the earnings nor the revenues are predictable after recasting, the valuation process becomes highly subjective. In such a situation, the transaction price should either show a substantial discount to a market multiple or be tied to future performance of the business.

I have been a Realtor for more than 20-years. During that time I have safely shown thousands of properties to interested parties. Intermittently during my career, however, there have been reports of crimes against other real estate agents. These crimes are often committed by potential buyers or renters who lure agents into remote areas with no communications available.

More and more women today are showing commercial and industrial property to potential leasing prospects. The very nature of vacant or semi-vacant warehouse and industrial property often makes it either remote or physically separated from occupied office space.

The separation from other people can pose a threat, particularly to commercial real estate agents. Although this is true for both male and female agents, the biggest risk appears to be for the ladies.

Following are Seven Safety Tips from my own experience and adapted from the National Association of Realtors.

Tip #1 Choose to Run and Never to Fight

The primary objective in any threatening situation is to escape from the immediate danger and then call for help. You may fancy yourself as being a great fighter but do not try it! RUN

Tip #2 Cary a Charged Cell Phone and Always Rely On It

Clip your phone on your belt or carry it in a purse or briefcase. Your cell phone should always be part of your everyday apparel. It must be for immediate accessible. Always make certain your mobile phone is fully charged before showing property.

Tip #3 When you get to your destination, check out potential dangers:

• Do you see or sense any questionable or outright suspicious activity in the area?

• Is your vehicle parked in a visible spot with plenty of lighting?

• Can your car or truck be blockaded and trapped by a prospect’s vehicle?

Tip #4 Be Prepared at All Times and Dial Before Danger.

Pre-program emergency and important numbers into your mobile phone. For example, include your office, your roadside assistance service or garage, and even 911.

Tip #5 Never Walk Ahead of a Prospect.

When showing a commercial property, always have your prospect walk in front of you. Direct them along from a position slightly behind them. You can gesture for them to go ahead of you and say, for example, "The loading dock is in the back of this area."

Tip #6 Check Your Cell phone Signal.

When showing commercial and industrial property always remember that thick walls and/or remote locations may interfere with mobile phone reception. Be sure your phone has a good signal in the area in which you are showing the property.

Tip #7 Saying NO to Vacancy.

When describing a commercial listing, never say that a property is vacant. Instead, say that you will need to clear a showing time with the people in the area. Saying a property is vacant may be an invitation to criminals.

By always following these Seven Safety Tips Realtors can bank on staying safe and hopefully banking a nice commission.

Sick and tired of working for someone else? Looking to make the next move in your career and purchase your own business? Buying a business is one of the most important, life changing decisions you will ever make in your life. It is a decision that you and your family will have to make together. This way all family members can have their say and explain how this decision will affect their lives.

Buying an established is regarded as being a safer bet then starting a business from scratch.

To help you determine what type of business would be right for you, you need to ask yourself what industry would you be most suited to you? What industry would you be most qualified to run and have the most experience in, and most importantly, what would you enjoy the most. Determine what niche will give you lifestyle you desire. As the new owner, ultimately you want to wake up every morning saying to yourself "I can’t wait to go to work today!"

Unless it is an online business, the location is another very important point. The last thing you want is to have to drive for 2 hours to work every day if you are currently driving 20 minutes to work at the moment. If this is the case, and you feel that this business is right for you, then selling up and changing residency might be the best option. It could save you a lot of time and money i.e. fuel, car expenses and public transportation.

When you find a potential business for sale, and if all family members are in agreeance with the purchase of the new business, the next step is the make sure financials are up to scratch. Make an appointment to see the accountant for the businesses. He will be able to give you an honest run down of the businesses current financial situation. You need to make sure that the business is generating enough funds to keep the business afloat and to supporting the business, paying wages, supporting you as the owner and covering all business loan repayments.

Would you buy a new car without ever taking it for a test drive? Absolutely not, and nor should you buy a business with out learning the ropes before the purchase. If the seller is serious about the sale, they should not have a problem with you working the business for a minimum of 1 week, and if you are serious about the purchase, you will have be happy to do this free of charge. This is a perfect way to determine whether or not this is the right business for you.

Make sure you will truly enjoy your new business and career choice as you will hopefully own this business for many years to come.

Commercial equity loan line of credit can make access to cash quick and easy for your business or other investment goals.

Both owner-users and investors can tap into the equity of their commercial property. In addition, many types of properties qualify for this commercial line of credit.

I will highlight three main features of a commercial real estate equity loan, namely:

1. Main loan features

2. The type of commercial properties that qualify

3. Qualifying guidelines

#1 Main Loan Features

• Available in all 50 states
• Owner occupied and investor properties qualify
• Obtain an equity line from $100,000 to $1-million or more
• This is a Full Doc program, so you need to provide 3 years of business and personal tax returns
• Borrow up to 80% LTV based on the equity value of the property
• The equity line can be in 1st position for free and clear properties
• Interest rate based on the Prime Rate

#2 Types of Commercial Properties That Qualify

• Office
• Light industrial
• Warehouse
• Retail
• Mixed use
• Multi-family 5+ units
• Special use property: auto repair, auto sales, mini-mart, self-storage, fast food restaurant, gas stations less than 10 years old, daycare or preschool, convalescent homes, nursery, theatre, and bowling alley

#3 Qualifying Guidelines

• This is a Full doc program - You need to provide 3 years business and/or personal tax returns
• Good credit is needed with a personal credit score of 660 and above
• Repayment based on the tax returns, personal credit report and appraisal
• A Debt Service Coverage Ratio of 1.1 to 1.25 needed
• Title can be in business or personal name
• Be sure to verify that the 1st lien on the property does not have a clause prohibiting 2nd loans

Secured Business Line Option

If you are a business owner, a variation of this credit line will allow you to obtain a business line of credit secured by real estate assets including:

• Primary residence
• Second home
• Investment property
• Income generated from other owned property

Summary

Commercial property owners and business owners have more options than ever before to get cash out of their equity when they need it using a commercial equity loan line of credit.

Despite the current downturn in the residential real estate market, and mortgage industry woes nationwide, Orlando’s commercial real estate sector is alive and well, primarily due to investors eager to fulfill a continuous and growing demand for Orlando commercial real estate, particularly office and retail space.

A prime example of the confidence shown in Orlando, Fl. Commercial real estate is the recent purchase by the Maryland based realty firm Bavar Properties Group of a 34 acre parcel close to the Orlando International Airport, where a 375,000 square foot office complex is scheduled to be built. Additionally, construction has begun on a 336,000 square foot multi-use development project of office and retail space in the Lake Nova area, that further demonstrates the vibrancy of the Orlando commercial real estate marketplace, and the optimism shown by investors who remain confident in the long-term prospects of the Central Florida region as a whole.

As the residential market continues to falter, many builders specializing in this segment of the industry are looking toward the commercial market, and possibly will compete on future projects. However, at this stage of the game, it appears that commercial builders have little to fear from residential builders who are considering a move into the commercial sector to offset the stagnant prospects in residential housing. The problem many of these builders will encounter, will be in obtaining funding from lenders wary of financing construction firms with little or no experience in commercial project construction.

To find out more about new commercial developments that are in the planning phase please visit http://www.cflcommercialre.com/commercial-real-estate-blog/

Increase Your Profits With Sustainable Commercial Building

In 2007 green building practices are gaining popularity at an accelerated rate. The American consciousness of environmental issues has changed and the financial benefits of building, living and working green are becoming more attractive to residential and commercial real estate investors. Green design spotlights a variety of environmental and human health concerns.

- Reduction of exposure to toxic materials

- Conservation of non-renewable energy and materials

- Minimization of the ecological impact of building

- Utilization of renewable energy and recycled or earth-friendly materials

- Protection of local water, air, soil, plants and animals

- Support of transportation alternatives including walking, bicycles, mass transit and alternative fuels

Many people are also surprised to discover that in 2007 green design and building often costs the same as building more traditional designs. According to the July 2007 issue of Today’s Buyer’s Rep, in an article entitled Housing Trends Worth Watching by editor Julie Collins, a recent survey by the National Association of Home Builders (NAHB) shows that 97,000 homes have been built and certified by green building programs around the U.S. This is a 50% increase from the last survey conducted in 2004. The Santa Monica Green Building Program, reports, "Buildings have impacts on health as well as the environment. It is estimated that half of all commercial buildings suffer from air quality problems, resulting in poorer health of workers and other occupants".

Green Building and Design Options for Commercial Property Investments

In the commercial real estate industry economics and financial profit play an important part in green building. Businesses, corporations and investors are more likely to invest in green building if they know it will increase their bottom line. According to Commercial Investment Real Estate Magazine, "When analyzing green economics, commercial real estate professionals should consider long-term operating and maintenance costs. These factors are beginning to affect leases, insurance rates, loans, and other real estate practices as tenants, owners, banks, and communities recognize energy efficiency’s value". As technology advances and improves the performance of lighting, heating, cooling and water systems the operating costs of buildings will decrease. This will attract tenants and increase the value of your commercial property to future investors. When building or purchasing a green commercial design look for the following:

1.Energy Efficient Lighting Systems

2.High Performance Glazing

3.Ventilation Systems

4.Water Efficiency Systems

5.Green building materials (i.e. recycled materials or materials from renewable resources)

Incentives for Commercial Green Building

Increased profitability is the number one reason commercial real estate investors are moving towards more green building and design features. According to Building Momentum: National Trends For High Performance Green Buildings, a report prepared by the US Green Building Council for the US Senate Committee on Environment and Public Works, "Design features that enhance energy efficiency and indoor air quality are cost effective strategies for improving worker productivity and product quality. An increase of 1 percent in productivity (measured by production rate, production quality, or absenteeism) can provide savings to a facility that exceeds its entire energy bill".The report provides examples such as Lockheed, an engineering development and design facility in Sunnyvale, California and the Postal Sorting Facility in Reno, Nevada. Lockheed built a high performance green facility and experienced a 15% decrease in employee absenteeism that recuperated the extra costs of their facility within the first year. The Postal Sorting Facility in Reno experienced a 6% increase in the number of items sorted per hour when an alternative lighting system was installed.

In addition federal, state and local governments are now also offering incentives to commercial builders and investors interested in a green approach. According to the Building Momentum report "public and private entities offer financial and regulatory incentives. New York, Maryland and Oregon offer tax credits for LEED (Leadership in Energy and Environmental Design) certified buildings. Portland (OR) and Seattle (WA) offer grants for energy modeling, commissioning and related costs." The report continues to explain that, "Arlington County (VA) links preferred zoning considerations for LEED projects. Santa Barbara (CA) and Scottsdale (AZ) are some of the first jurisdictions to offer expedited permit reviews for buildings with certain high performance features. Tax credits and other incentives are part of broader green building assistance programs offered by a growing number of state and local governments across the country." Green building programs have been developed in California, Colorado, Maryland, New York, Pennsylvania and Wisconsin. As the green building and commercial investment trend continues tax incentives will increase and green building and design will continue to pay for themselves in more ways than one.

When you are in the market to purchase a skidsteer loader, you will find that your options are infinite. There are many manufacturers that build skidsteer loader, so you may ask yourself "Where do I begin" . Well here are some of the things to think about when purchasing a skidsteer.

You first will need to decide whether your needs would be filled by a used unit or if you are at a point that a new unit would be best suitable for your needs, secondly you will need to determine the proper size machine for your application, depending on the type work you do, the largest or highest horsepower machine isn’t always the most efficient machine.

You will also need to decide if you were going to set a budget to spend or if you are going to be financing this unit. If you intend to purchase a unit outright, you will need to set your budget realistically. Some of the aggravation may stem from not being able to find a machine in the size range that also fit in the price range you are looking to spend. When shopping for a used unit, you must really pay attention to the unit, sometimes folks will let the glitter blind them, a machine with the best aesthetic value may not always be the best mechanical value. You need to look past shiny paint and new tires, you should do a complete evaluation on the machine, key points to check are as listed below.

1. Check for wear on key hinge point of the machine. Check for abnormal play in pinned joints on the boom lift arm. Check the bucket hinge pins and all bucket and lift cylinder pinned joints, always be sure to check both ends of the hydraulic cylinder ends.
2. Check for cracks or broken welds on structural components of the machine. You will want to inspect the boom lift arm, axle tubes and housings, check around hydraulic cylinder pinned joints. Also pay attention to the bucket. If you see multiple post manufacture welds, this may be an indicator that the machine has been used in an abusive manner, such as ramming machine into large masses.
3. Check for excessive oil or fuel leaks. Look over engine compartment, if accessible check under the cab of the unit as well. Don’t count on finding a used machine that is perfectly dry, but you don’t want oil standing in the belly of the unit either. Also keep in mind that just because the a unit has an oil leak doesn’t mean the unit has problems, it can be as simple as a lose hose fitting, or a failed
4. Check the steering and drivability of the machine. This could be one of the more important parts of the inspection, due to the nature of the problem these can be a more expensive fix and worse, it could be a safety issue as well. Drive the unit fully engaged forward, check that the machine tracks straight. You will also want to be sure that there isn’t a lot of slop in the chain case by driving the machine from reverse to forward and vice verse. When machine is in the neutral position be sure that the unit isn’t creeping (still moving), this can be very dangerous as it could run into something or if you are work with laborers it could cause injury.
5. Check for engine wear. Keep in mind most Skidsteer loaders are powered by diesel engines, much different than conventional gasoline engine. Diesel engines are much louder than gasoline engines, they have a noticeable clatter at lower rpm’s. Diesels may also smoke a little grayish-black smoke when first started or while warming up, this is normal especially in a used unit. Check for power loss under a light load, you may do this simply by driving the machine up a slight incline, the rpm’s will drop some but they shouldn’t drop more than 50 % of full throttle rpm’s just from driving alone. Keep in mind that diesel engines make the most power at lower rpm’s under a load, just because the engine is losing rpm’s dose not necessarily mean your losing power
6. Lastly, check the overall condition of the machine. This step of the evaluation is important in the sense that you will want a machine that looks professional and you will base a portion of your decision off your findings from this step. If you do buy a machine in which the paint and decals show excessive wear, it may be a good idea to touch up heavily scratched areas with paint and replace decals. This is usually inexpensive and will give your machine a better aesthetic value, especially important if you are a contractor, You want customers to feel confident in the equipment your using to complete their projects

As you begin your search to purchase a new Skid steer Loader, you will quickly find that that there are many manufacturers of skid steer loaders. You will find that there are infinite options, from engines to operator control options. As with the purchase of any piece of equipment you need to start by purchasing the right unit to complete the application you will be using it in, don’t ever think that because you have purchased the largest or highest horsepower machine that it will complete the job more efficiently. Below are some of the key objectives for purchasing a new Skid steer Loader.

1. Budget vs. financing. You will need to start the buying process by determining whether you will need to finance the equipment or purchase outright depending on your financial situation. Even if you have available funds to purchase the equipment, don’t rule out financing. With current programs manufacturers are offering 0 - 4% interest programs on new equipment. You may be able to put as little as 1% down and keep your working capital for if or when you or your business is having a slow time and the income isn’t coming in the same as it had been. The worst time to try and get money is when you need it. With this decided, you will need to determine a dollar amount or payment that fits your needs. Leasing is also another viable option that many construction businesses are utilizing. Typically, leases have better tax structures, lower payments and can help you avoid too much exposure on your financial statements because true leases can typically be shown as an "off-balance sheet" transaction. If a bank sees that you have too much debt, they may begin to stop loaning you money. Leases can help prevent that from happening.

1. Purchasing the Equipment that will best suit your applications. This is by far one of the most important steps of this process. You will need to provide the equipment sales company with accurate information about the type of work you will be doing, this will allow them to provide information and pricing on the unit that meet all your need on the job. Utilization is key when purchasing a piece of equipment, the more task you can complete with owned equipment the less you will have to rent equipment from an outside source, again saving you money in the long run. You will need to know information such as lifting capacities(especially if you intend on using the equipment to handle material), you will need to have an idea of what the weight is of the material. Next you will need to consider lift and dumping heights. If you need to load into truck you will need to know how tall the bedsides are. You will also need to know if you are restricted by the physical dimensions of the equipment(are you working in confined spaces that a large loader would not be able to maneuver safely). Another key is properly equipping the unit that you .purchase, think about thing that you may need or want as far as options. Many time consumer will buy a base model machine to later find that they better utilize the equipment if it were equipped with heat and air conditioning or foam filled tires, many times consumers are restricted on the attachment they are able to run based on whether or not they have high flow hydraulics opposed to standard flow hydraulics. Transport is also a major concern, do you have the capabilities of transporting the equipment from project site to project site without buy larger truck and/or trailers.
2. Comparing various models. When you begin comparing different models, be sure you understand how the various manufacturers rate their equipment, when you are comparing horsepower rating be sure that you are not comparing net horsepower to gross horsepower. Some manufacturers rate their machine by gross horsepower and others rate theirs by the net horsepower, the same will apply with lifting capacities. The rated operating lifting capacities are figured as a percentage of the machine tipping load, again the different manufacturers rate their machines differently, some will use 50% of the tipping load and others may only use 30%. Just be sure to compare apples to apples for the best value. Another good idea is to ask about resale on the equipment, Ask what a comparable machine that is a few years old would be sold for, this will give you a rough idea of what you may be able to sell this unit for when it is time to upgrade.
3. Warranty and Service after the Sale. When purchasing a new piece of equipment be sure to ask about warranties, you should determine what is covered and how long the warranty is in affect. Be sure to find the closest warranty repair center before you purchase. Ask if a service loaner will be issued incase of mechanical breakdown. You may also want to ask if the dealer stocks parts for the unit. Before the sale is final be sure to ask the dealer how they would handle the situation if a month or so after you purchase the equipment, you decide that you are not satisfied with it.

Is it a hard task for you to estimate properly on your construction projects? Are you juggling money between projects because you just don’t have enough? Do you use present job payments on previous job expenses? If this is true of you, you’re not making estimates correctly because you are estimating improperly and not covering costs, as well as ensuring a profit.

Do You Guesstimate or Do You Estimate?

In order to estimate properly for your construction jobs, you have to take some time and effort to go into detail. You can’t just look at what has to be done and guess what costs and time are required to do the job properly. If you guesstimate, it’s very likely that you’ll get in trouble because not only will you only be doing a very rough estimate, but it’s likely that you’ll overlook some areas you should include in your estimate. Actually sit down and work out construction estimates so that you take everything into account and make a profit instead of actually going into the red. If you want every project to be a success and earn you money, you have to make sure your construction estimate is accurate and fair. In order to plan the project properly, you have to estimate the cost of materials and hours accurately so that you cover these expenses thoroughly but fairly and are left with a profit after the project is complete. As an example, if you have a wall that you need to frame and drywall, you can’t just look at it and throw out a guesstimate. You might actually underestimate not just what you have to do, but the materials and man-hours involved, and come out with a loss.

When you make a construction estimate, to do so accurately, you have to consider the time it will take, the material you’ll need, and other costs involved such as labor, equipment and so on. If you guesstimate, you can actually overestimate and lose the contract to someone else who can undercut your costs, or you can underestimate the total cost and actually come out in the red on the job.

Compare your construction estimates thoroughly and carefully, based upon scientific techniques and methods. The results should be qualitative. If your estimate is correct, you’ll come out with a good profit and will be able to complete work on time as per the schedule you come up with. To draw up the right estimates, you need to understand what each job requires and then plan properly. A correct construction estimate is necessary for you as a contractor so that you understand just the type of work the job requires. This is also of benefit to the customer, because he or she will have a clearer idea of the work involved and the cost he or she will be required to pay, as well as the time it will take to complete the project.