Burt M. Polson - Commercial Real Estate Broker

Guiding you through the real estate part of your life™

Commercial Sales, Leasing, and Consulting

Private Equity Real Estate Funds

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House hacking - part 1

Have you ever considered an owner-occupied multi-family property? My clients Steve and Cheryl did, and it worked out well for them.

It seems that everyone is “hacking” something--house hacking has been around for decades, it is buying a one to four unit multi-family property, living in one of the units and renting the others.

Steve and Cheryl bought a four-plex ten years ago for 500 thousand dollars. It was a fixer-upper in need of upgrading and cosmetic improvements.  Today the property is valued at double what they paid, and now the rent income had doubled as well from what it was when they started.

You may not see such a massive return as Steve and Cheryl, but with a bit of work in finding the right property at the right price, and securing the right loan, you may be able to come close.

What is house hacking?

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Become a real estate millionaire in five easy steps - part 2

Do not get ahead of your emotions. Watching those house-flipping shows, hearing the real estate guru’s tell you about how many millions they make and counting the success stories of other investors is far from reality in the real estate investment world.

In part one of this series, we discussed how not to get caught in the real estate guru trap, which is step one. There are many excellent real estate seminars available you just need to take time and research the company before you reserve your space--even if it is free.

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Become a real estate millionaire in five easy steps - part 1

If you are looking for a quick and easy way to become a millionaire, real estate is probably not the answer. If your entire focus is the money, investment real estate in most likely not for you. Investment real estate definitely can be rewarding, but if you do not have the time, perseverance or focus like in most businesses your success will suffer.

To risk not sounding like a self-proclaimed real estate guru here are five easy steps to break into investment real estate. These may all seem like “easy” steps, but reading them and doing them are two very different things.

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I Wish That I Knew What I Know Now

I am sure you know the song Ooh La La; it’s a catchy melody about a conversation between a grandson and a granddad about life that has been remade by many artists. The nugget of truth the granddad offers in the end to the grandson is that he will just have to learn the hard way like he did.

I’ve heard the song several times, but most recently was taken back almost 24 years ago to reminisce on my career path transitioning from a promising career as an engineer in the tech field in Silicon Valley to real estate.

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Becoming a Millionaire: 5 Compelling Ways Real Estate Can Make You Wealthy - Part 3

I am going to wrap-up my three part series on the 5 compelling ways real estate can make you wealthy by taking a final look at Pete’s case study. Unfortunately,Pete still has not found a tenant to lease his office building and is being patient while continuing to look at his options.

The last two ways real estate can make you wealthy are tied together: disposition strategies and tax strategies. These strategies can be complicated, so always have a tax professional, exchange professional and real estate broker on your team.

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Becoming a Millionaire: 5 Compelling Ways Real Estate Can Make You Wealthy - Part 1

Making good choices, with the help of your broker and taking some risk can have you on your way to creating wealth. I have had the pleasure of watching several clients meet or exceed their goals, but it isn’t always a monthly trip to the bank to deposit rent checks.

Pete is a great client who purchased his first investment property through me about ten years ago. I actually have his office building currently available for lease. Unfortunately, the office leasing market is soft right now so it is still vacant after two months

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Retirement, taxes and warm fuzzies - part 2

In my previous article, John and Martha’s desire in their retirement was to refocus their energies from managing their large home and investment real estate. They sold their family home pocketing $1.8 million from the sale. They purchased a condo for $600,000 and invested the balance in a combination of stock and bond ETFs.

The next step in their strategy is to lessen their level of management of their real estate investment portfolio.

Their portfolio provides them stable income of $280,000 per year. This is derived from an 8,000

sq. ft. strip center bringing in $150,000 per year income and a 10 unit apartment building, $130,000 per year. They wish to keep this level of income, pay less in taxes and eliminate the hands-on approach to their investments while maintaining stability.

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10 hidden costs of commercial real estate - part 3

In my first article, I highlight three of the lesser known costs of commercial real estate we sometimes forget about: city business license fee, sewer fees and environmental cleanup fees. The second article discussed other costs: capital expenditures, commissions & readying the space, vacancies, prepayment penalties and building code upgrades. In my third article of the series we will talk about two costs, both tax related: special assessment districts and income tax misconceptions.

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10 hidden costs of commercial real estate - part 2

In my previous article we discussed the first three hidden costs of commercial real estate: city business license fee, sewer fees and environmental cleanup fees. In this second article of a three part series we are going to highlight other not-to-thought-of costs: capital expenditures, commissions & readying the space, vacancies, prepayment penalties and building code upgrades.

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What Makes a Good Commercial Real Estate Investment?-Part 1

You have $500,000 cash, experience in residential rental real estate and a desire to purchase your first commercial investment property.   Or, you are tired of the minuscule returns from the bank and investment institutions and don't have the temperament for the stock market.  You hear other investors who makes a smart move only to make multi-millions of dollars on a commercial real estate investment and you want a part of the action.  You are ready to venture into the realm of commercial real estate investing.

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Taxing Changes | Learn how new laws could affect commercial real estate decisions

In the wee hours of Jan. 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 and the tax changes that resulted will drastically alter the way commercial real estate professionals plan for major transactions. Additionally, tax provisions written into the Patient Protection and Affordable Care Act, which went into effect Jan. 1, 2013, will affect some taxpayers’ real estate decisions. This synopsis focuses on the impact of ATRA and the Affordable Care Act on real estate-related tax issues.

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