How can Cost Segregation help you sell more commercial real estate as the professional commercial real estate broker?
1) Income taxes: reduced or eliminated federal & state income taxes increases available cash flow.
2) Real estate taxes: personal property taxes are lower than real property taxes by as much as 25% which increases available cash flow.
3) Use taxes: same principal as real estate taxes.
4) Property insurance: personal property is assessed at a lower “per thousand” rate than real property, typically between 10% & 20%, increasing available cash flow.
5) Lender financing: due to the increased cash flow many lenders will negotiate on their loan criteria, from reducing the interest rate up to 100 basis points to reducing the required down payment amount…again, increasing available cash flow.
In virtually every way possible, cost segregation has put a tremendous amount of “cash on the table” for any prospective buyer. The numbers increase by huge volumes as the property value increases. For every $1M of property value expect $80,000+ in additional cash flow from an income tax credit/refund alone…the savings from the other areas is gravy. Cost segregation delivers.
When listing the subject property, how do you, as the CRE pro, market a property when the buyer is willing to pay for closing costs?…or provide a set dollar amount for improvements? The cash available from cost segregation is advertised the same way, with one exception…”…buyers of subject property will receive CASH AT CLOSING via federal income tax credit or refund by choice of buyer.” Cost segregation delivers.
Will such a statement draw calls from prospective buyers? Will $400,000 cash at closing “sway a buyer” to your listing over the competition on that $5M listing? Would getting ½ to ¾ of the down payment “refunded” persuade a buyer to purchase your listing? Again, cost segregation delivers.
Cost segregation delivers results every time it’s applied!
For further details on how you, as the CRE pro, can implement this cost segregation sales strategy in your area, contact us @
[email protected], or
Tweet @SHLCostSeg, or
www.SegregationHolding.com/contact/, or
Call 972-893-9081.