THE PRICE IS ETCHED IN STONE BUT THE MORTGAGE ISN’T…
Paul Levine
Commercial Realtor and Real Estate Advisor | Retired CPA with over 50 years of income tax experience that no other Commercial Realtor has, Income Tax Consultant and unmatched Creatively!
THE PRICE IS ETCHED IN STONE BUT THE MORTGAGE ISN’T…
PART II of II… THE END...
So, In the end, you end up with a good piece of commercial real estate bringing good rental income to you at the right price and a loan that has a reasonable interest rate and you’ve got one of the three things that we love to have in commercial real estate, CASH FLOW!!! The other two things are appreciation and income tax benefits. Well, as the interest rates come down, which they have to before the 2024 presidential elections, the prices of commercial real estate will go up yielding appreciation and I can guarantee you wonderful income tax benefits, the hook that got the doctor interested, as I am probably the only commercial realtor in the United States with over 50 years’ experience as a practicing Certified Public Accountant who still keeps up on the latest income tax laws.
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The bottom line is that it’s a great time to buy commercial real estate if you can carry the mortgage until you can refinance it maybe two or three times and get the interest rate and the payment that you want and that makes sense. And, never forget about those income tax benefits that my partner, Fred Sams, and I can get for you through Cost Segregation Studies and Bonus Depreciation. Also, you have to remember that Bonus Depreciation is going away 20% per year until 2027 when it is supposed to hit ZERO. But, as I have said many times here, the government, CONGRESS, will have to replace Bonus Depreciation with something similar or the commercial real estate market will dry up and possibly cause a recession.
And my final point is not to be too smart and think that you know when the interest rates will be at their highest and the prices of real estate will be at their lowest. Accept the situation as it is now, or you may just outsmart yourselves and end up with nothing!!!
And my knees feel great. Thank you for asking!!! Actually, I wrote that the other day just to be funny, but my knees do feel really great!!!