Pacwest Principal Broker, Bob Nelson, video series “The Income Property Expert”, is designed to get you started on the basics of income property brokerage. Each video concisely covers a concept in a short segment.
Watch the videos and learn from Bob’s 46 years of expertise and experience of brokering income property – the buying, the selling and the tax deferred exchanging of that particular type of asset.
If you have any questions, contact Bob. He would be happy to assist you.
Thinking of Working With Bob: Here Is How He Works
INVESTMENT PROPERTY VIDEO SERIES
Those that have been involved with real estate for a period of time love the tax deferred exchange.
As of January 1, 2013 the capital gains tax rates have increased 58%. Yes, 58%! The more you know about it, the more that you can structure these things to the advantage of your client, the better off you’re going to be. There are five rules to follow to qualify for a tax deferred exchange:… Read More »
The key to absolute success in the exchange deals with client counseling.
I couldn’t emphasize that enough. You would think “maybe I need to know a lot about exchanging.” You need to know a whole lot about psychology and it all starts with client counseling. Do it early, do it often. The more often and the better you perform, the more successful is your probability of doing an exchange in a very short period of time…. Read More »
Let me share with you a bit what I’m after with my client counseling sessions with my clients.
Again, I want to come at them prior to the time that we have sold the relinquished property. I need to really understand the process.
First of all, let’s take a look at the client’s decision making process. Who are the decision makers? Who are the influencers? Am I talking to the person who will actually make the decisions or am I speaking with someone who frankly doesn’t hold much water when it comes to the final maneuvers…. Read More »
What’s the major concern of a tax deferred exchange?
Lack of a good game plan that you and your client will follow and #2 lack of time. Lack of time will even potentially kill a good game plan. So, let’s go into how I go about doing that and how I go about monitoring my time and my energy.
There’s some major concerns, some major red flags to start the show. If your client does not detect or act in a manner that would show he understands or she understands the urgency of the transaction, you’re going to have a problem. … Read More »
You did everything the tax code required and you’re still paying the tax. Let’s get in to how you prevent that from happening.
As you start to counsel with the client prior to the sale of a relinquished property, you’re attempting to identify goals and objectives of that investor.
- What are they attempting to accomplish?
- What series of investment benefits are they seeking from their next property?
There’s cash flow, there’s tax shelter, there’s principal reduction, there’s appreciation of value. There’s a fifth one that’s not a financial benefit and that’s the fact. It’s a tangible asset…. Read More »
I’ve learned over my 46 years of doing tax deferred exchanges and employing the game plan that I’ve laid out, the 45-day to close game plan…there are some real danger phrases.
If I hear “I just can’t decide” or if I hear “I haven’t seen it all. Gosh you’re asking me to make a decision. I haven’t seen it all.” Hey guess what, you’re not going to see it all. That’s why you’re using me. I have screened the inventory that’s out there. You’re seeing the best of what’s available for the time frame that’s there.
And “I only like one property. Gosh, I don’t like these other ones.” The ‘one and one’ only syndrome can be really deadly. What happens if you just can’t get it done on that one property? They pay the tax. You have to force them to think there could be another property other than just this one. … Read More »
Once the game plan is formed and the client understands it, follow it as closely as you possibly can.
When you’re selling the relinquished property or the down-leg property, exchange for terminology, you have to demand a specific deadline of all offers.
Require proof of funds. How qualified is this person that’s making the offer. Also require a loan pre-approval letter. You have to do this. You have to know how solid that transaction in fact would be.
Make sure that you have waver deadlines on their due diligence process, not so much that you force them away from the property but don’t allow them to wander…. Read More »
There are types of exchanges that are really interesting.
Certainly the forward exchange, that goes without saying. I sell my relinquished property then I go out and buy the replacement property. That’s the one that everybody understands and talks about.
An improvement exchange, is rather interesting other type of exchange that is really very productive from the client’s standpoint. It could be a forward exchange, it could be a reverse exchange but the issue is you have found a property that you either have more money to spend in order to complete the tax deferred exchange or the property that you’ve selected needs help…. Read More »