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15 October 2024 | 0 replies
Here’s an example of bonus depreciation.Here are some of the current trends that are highlighting the importance of a cost segregation study.Contract Logistics Expansion: Experiencing growth in contract logistic divisions leading to outsourced warehousing and distribution activities.Warehouse Technology Advancements: Integration of AI, robotics and IoT allows for operational efficiencies including reduced labor costs and improved safety.Warehouse Automation Growth: Significant growth signals a need for efficiencies and the adoption of new technology.Warehouse Space Expansion: There are ongoing developments in the warehouse space to help support the growing demand for infrastructure and warehouse space.Robotics and AI investments: There is a demand for faster throughput and immediate fulfillment which is causing investors to invest more into AI and robotics.Cost segregation becomes an even more critical tax strategy as there is an increase in investments in automation and technology as it frees up cash by creating additional tax savings.Some of the financial benefits that a warehouse investor can expect from a cost segregation study include:An increase in cash flow for automationImmediate tax savingsEnhanced warehouse property valueImproved warehouse ROI by reducing tax liabilities and increasing cash flow.There are many items that can be reclassified for accelerated depreciation through the use of a cost segregation study.
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15 October 2024 | 3 replies
If so, issue a 30 day or whatever your area requires (with specific violations and expectations to improve) and plan to do another inspection.
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14 October 2024 | 9 replies
@Kenneth P Ford they are a national franchise with great marketing.They also have some national support for their individual franchises, but it all depends on the local team.Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
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18 October 2024 | 37 replies
but it sounds like your mind is made up on this mentor.. flipping right now is a pretty tough gig for a beginner depending on market. very low inventory then sky high rates for your buyers. so use caution be careful also make sure you have a GREAT RE Broker who knows the values and what you should and shouldn't do in the rehab to maximize your returns. these things are very market specific U simply need to make sure your matching what is expected in the market you choose..
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16 October 2024 | 7 replies
I appreciate the info provided so far, but I have more questions and I don't expect freebies from pros like yourself.I'm looking to get together a semi-solid idea of how this all works before I drill down, in depth with my usual accountant in a couple weeks (if I still decide to drill down with my usual accountant after learning more info on what I'm trying to do - from you or someone else.)My usual guy can't get to me right away and I'm in a time crunch, if this deal is going to happen the way I want it to (bonus depreciation decreasing by another 20% on Jan 1st)I really just need to understand Bonus Depreciation, in detail, and as it applies to my situation.I'm brand new to all of this.
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16 October 2024 | 21 replies
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
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15 October 2024 | 7 replies
I would like to see some reserves but being class c I’m not sure if I should expect that or use it as a criteria to disqualify.
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15 October 2024 | 2 replies
For a $35M property, this equates to about 1.43%, which is slightly higher but still reasonable.Market Norms:In some cases, commissions for very large transactions can be negotiated lower, especially if the property is expected to sell quickly or if the broker anticipates minimal effort to close the deal.The presence of a flat fee for properties above certain thresholds is not uncommon and can provide predictability for both the seller and the broker.Conclusion:The commission structure provided in the image appears to be fair and within the typical range for large commercial real estate transactions.
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15 October 2024 | 4 replies
@Sephr BemanpourRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?
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15 October 2024 | 6 replies
The experts at BP were my 2nd stop as I wanted to confirm my calculations and assumptions on expected returns were in the ball park.I've been a member of BP for a while and you've always had great input.