Executive Summary OFF MARKET! TFS Properties is pleased to present a 9.5% cap rate return on actual rent in Blythe, CA. This is an excellent opportunity to acquire rental property...
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Written by Rusty Tweed I am about to go out on a limb here and speculate what affects SARS CoV-2 (technical name for COVID-19) will have on the economy. This virus is something new and we have yet to experience anything like this in our lifetimes. It’s a wonder that at the time of this writing (April 13th) we’ve watched…
On March 4, 2020, Governor Gavin Newson of California released THE Executive Order N-37-20 with the aim of minimizing evictions during this critical time in California. Among other things, it seeks to protect residents who may be unable to pay their rent as a result of the economic effects of the pandemic. While Executive Order N-37-20 does not imply rent…
IRS EXTENDS 1031 EXCHANGE PERIOD April 1st and July 15th, If you’re in a 1031 Exchange, don’t forget these dates. Recently the IRS offered property owners in the middle of their 1031 exchange some much-needed relief with the release of Notice 2020-23. Under this notice, the IRS granted automatic extensions to: • Anyone that sold (relinquished) property with their 45-day…
Written by Rusty Tweed Many of the people that come into my office have a huge misconception of what types of properties they can exchange into. Most people I’m dealing with are selling multi-family rentals, for example, a four-plex or 6-unit apartment building. They think that the IRS definition of “like-kind property” is another four-plex or 6-unit building. The…
Written by Rusty Tweed In the commercial real estate market, you’ll commonly hear the term, “cap rate.” The full term is actually “Capitalization Rate” and is used to compare the value of a rental property on an “apples to apples” basis to other investment properties. The term “cap rate” can only be used with regards to income-producing or rental…
Written by Rusty Tweed Many of you have heard the term “Triple Net Lease” but I’ve found a lot of people don’t fully understand what that means. First of all many of you have owned and managed your own rental properties, mostly apartments and rental homes. In that market, you have short term leases, higher turnover and you as…
Written by Rusty Tweed It’s obvious that today’s interest rates are dramatically low. With one-year CDs paying 1.05%, 10-year US Treasuries paying 2.19% and 30-year mortgages at 4.07% (as of December 1, 2015, see www.bankrate.com) it’s close to the lowest rates that we have seen in our lifetime. This is great for borrowers, but is horrible for savers and…
Written by Rusty Tweed Savvy real estate investors have long used periodic 1031 exchanges to maintain leverage, increase income and equity, and eventually divest themselves of “tenants, toilets, and termites” by exchanging into professionally managed properties. What Does 1031 Refer To? 1031 refers to Section 1031 of the U.S. Internal Revenue Code, which allows real estate owners to exchange…
Written by Rusty Tweed Once an investor understands what a Cap Rate is and how to calculate it, he can then use it to compare properties and the risks involved. Generally, the higher the risk, the higher the return, in this case, the higher the Cap Rate. We see many investors “chasing income” and going for the highest cash…
