Structured Networking and This Market

I have had anecdotal feedback from commercial real estate players like Bill Graham of Sperry Van Ness and Telly Fathaly of the Meridian Cos that even these industry veterans who have made over a half a million per year in past years selling and developing commercial real estate that they appreciate in this market they need to stay open-minded on how they get deals done. Bill suggested a current deal where he had encountered a bankrupt TIC (tenant-in-common) deal that arguably overpaid for a property. We called Deborah Froling from Arent Fox to discuss ways to convert out of TIC ownership into a partnership to make decision-making in a tough situation easier and more unified. Deborah offered great insight into the trials and tribulations of TIC ownership, DST ownership, and even lender docs that could trigger recourse liability in a nonrecourse situation. Believe it or not there are ways to trigger capital gain tax liability when getting foreclosed upon. Yes, you lose all your equity and when the property transfers to the bank you are triggering a sale and thus have a tax liability. We discussed ways to either defer taxes via reinvestment into a property or attempting to do a 1031 with the possibility (worst-case) that you push the tax liability forward into future years. These advanced situations call for a multitude of investment advisors including a tax attorney, a CPA, a broker, a financial planner, an entity attorney, and a real estate attorney. Hillary wasn't kidding when she said it "takes a village"...Sphere: Related Content