February Update: Light at the end of the tunnel

All property owners I have spoken to recently are still getting full rent payment from all their tenants. Vacancies are still difficult to fill. Reach out to me if you need any advice or help with getting new tenants.

The big question that has come a few times recently, “Is now a good time to sell?”

The answer is not a straightforward, yes or no.

If you are thinking about selling in the next 6-12 months, then starting the process now would be a good idea. The market is strong, as buyers are still paying prices based on income that are similar to Pre-Covid. Also, current interest rates for loans are so low that buyers are being aggressive.

Then the issue that has come up is: How do I defer the capital gains taxes?

Two ways:

1) Delaware Statutory Trust. Click DST Tax Deferral

2) Doing a 1031 tax deferred exchange.

With regards to doing an tax deferred exchange, I have spent some time searching in solid markets (Seattle, Austin, and Reno) for both commercial Triple Net (NNN) opportunities and multi-units that are all delivering at least a 5% CAP rate return.

Click: 1031 Exchange Opportunities

I did a presentation on increasing your rental revenue at the East Bay Rental Housing Association in last year. Click Here: Maximizing the Return on your Investment for the highlights.

Please reach out if you are interested in getting more information on the DST option or 1031 exchange.

I recently closed a Four-Plex in Oakland in the Fall, we got an over asking price offer with no inspections. Things are still closing, although it does require some creativity around inspections, appraisals, and one on one showings.

Current Market For Building Sales

For example, if you want to sell your apartment at this time, I can help you with an evaluation and guidance. I have spoken to two of the top lenders for East Bay multi-units and they are working on, and closing transactions at this time. I can forward their contact info if you want to speak with them.

Right now, If buyers have a good down payment they can get a loan and I can navigate you through the process.

It is always important to get guidance and advice from experienced multi-unit brokers who will market your property extensively to all potential buyers and brokers. Posting a new building on all websites and sending out emails blasts gives the property visibility to literally tens of thousands of potential qualified buyers.

Looking forward to a better and successful 2021!