Burt M. Polson - Commercial Real Estate Broker

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Filtering by Tag: investment

Proforma "pixie dust"

You will find several opinions regarding a proforma financial report for an investment property. Some descriptions used may be “working magic,”  “pie in the sky,” and “using a bit of pixie dust,” to coin a few terms.

With accurate research, a proforma statement can be a valuable tool an investor can use in determining the viability of an investment.

What is proforma?

Proforma is a method applied to a financial analysis that can draw focus to a specific figure of current or future projections. A “method” is a loosely used term as some would consider this manipulation.

You will find a proforma analysis widely used when analyzing investment real estate. There are several types of metrics used over a five or ten-year period, for example, IRR, net present value, and many more.

One could consider the five or ten-year projection of an investment property’s income and expenses to be a proforma analysis.

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How to spot a scam in ten steps or less

No one wants to be taken advantage of, but there are plenty of unscrupulous people who want your money and are devising ways to get it.

Scam artists, unfortunately, have always been around us. In the past, they may have been easier to spot, but they are getting craftier and to me in more abundance.

Here is my list of how to spot a scam in ten steps or less:

Step 1 - the unconventional transaction

An unconventional method of executing the transaction could be the first sign of a scam. If the first question you ask yourself is, “That’s a strange way of doing that?” you should probably stop there.

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How is your property manager performing?

I find myself confronted with a classic example as described in my recent two-part article, "The maintenance money pit." Entering my third month of a new asset management account engagement of a portfolio of retail and multi-family commercial properties has proven challenging.

I am excited to help the ownership improve their investment, increase its value, bring

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No returns - exchanges only

The Internal Revenue Service (IRS) allows an investor to sell investment real estate and potentially pay no taxes. Using a well-known tax law called Section 1031 of the Internal Revenue Code (IRC) an investor could defer capital gains on certain real estate investments.

Without a 1031 exchange tax liability could be as high as a blended rate of up to 35 percent in California. An investor who decides to cash-out from a sale could end up paying a large tax bill.

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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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Top 10 Reasons You Should Not Sell (Your Commercial Investment)

It can be tempting to sell especially when we are told it is a seller’s market. We may feel an urgency to place our property on the market--reaching for the best possible price.

Just as there are really good reasons to sell when the market is hot there are also reasons not to sell.

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