WHAT SETS US APART?

OUR SERVICES

1. ADVISORY SERVICES
2. PROPERTY EVALUATION
3. SELLER REPRESENTATION
4. BUYER REPRESENTATION
5. LENDER SERVICES
6. FOR BROKERS
7. 1031 EXCHANGE

I. ADVISORY SERVICES

Through specialization in product type, local market expertise, and a macro understanding of the business, we help devise an effective buy-sell or hold strategy for our clients’ assets and/or portfolios. Additionally, through a range of advisory and consulting services, we provide our clients with real time market data to help formulate individual investment plans. By listening to one’s needs and understanding one’s objectives, we offer custom advisory and consultative services to help our clients make informed decisions and create winning strategies.

II. PROPERTY EVALUATION

It is important to continuously monitor your asset and/or portfolio in order to get a better understanding of where you stand and determine if you need to make adjustments to your investment strategies. By continually evaluating your investments, you will discover if you are making true financial progress or not.

During our property evaluation, we will thoroughly analyze your property (ies) by precisely reviewing and dissecting all leases, profit and loss statements and other pertinent financial information. Along with underwriting the financial component of the subject, we physically drive the property and compare the subject to similar properties by means of both rent and sales comparables. Through this process, growth patterns and market conditions become apparent. We combine comprehensive market research, state-of-the-art technology and our local knowledge to compile this information efficiently and effectively into a custom package which includes a comprehensive pricing and financial analysis, complete property description, on market and recent sales comparables, market overview, and demographic analysis to present you with an honest evaluation of where your property stands in the marketplace today.

Through this entire process, we collaborate with you to discuss any recommendations and/or suggestions towards improving or stabilizing the property for long-term appreciation, potential refinance and/or preparing the asset for sale.

For an evaluation of your property, please call us at 972-755-5200 or e-mail Jason.Vitorino@marcusmillichap.com

To create an accurate evaluation, we need several pertinent documents. Please see the DUE DILIGENCE check list for the required documentation.

III. SELLER REPRESENTATION

By use of exclusive representation, we offer services that align our focus to represent our clients’ best interests. With cooperative sharing of information internally and access to 70+ offices and approximately 1,400 agents throughout the nation, as well as externally to the outside brokerage community, we provide the resources to import and export capital throughout the country and into specific markets. Not to leave any stone unturned, we pioneer the industry’s most powerful marketing system and truly “make a market” for each property through expanded market exposure, which ultimately generates the broadest buyer interest and results in maximum value.

Our Client's benefit from:

1. Individual Specialization
   1. Retail Investment Sales
   2. Local Market Knowledge
2. State-of-the-Art Market Research and Information
3. The Industry's Most Powerful Marketing System
4. Making a Market Through Information Sharing
5. Access to the Largest Pool of Qualified Buyers

IV. BUYER REPRESENTATION

We have the largest exclusive inventory and most up-to-date market research to help Buyers make informed decisions, ensuring we accurately match each individual or company with the property that best suits their investment needs.

V. LENDER SERVICES

Through our REO sales and marketing services, we maximize value and minimize losses in the targeted markets of our clients by leveraging our market expertise in investment sales and cooperating with local leasing and management companies, and we provide detailed assessments of a property’s market value through a Broker’s Opinion of Value.

VI. FOR BROKERS

We share Fees! We pride ourselves on cooperating with all licensed real estate brokers throughout the country, treating them fairly and equally as our peers. We automatically share marketing packages with brokers, even without a Confidentiality Agreement or Buyer Registration. Please contact us if you need individual property packages or need information on any of our exclusive listings.

• Commission Split Agreement
• Letter of Intent
• W-9 Form

VII. 1031 EXCHANGE

Every Section 1031 Exchange transaction is different. These "Frequently Asked Questions" are intended to answer general inquiries. The application of these principles will depend on the specific facts of each transaction. Always consult a competent Qualified Intermediary, attorney, or tax advisor to determine how an exchange may best be structured to accomplish your investment objectives.

FAQ's

1. WHAT IS AN IRC 1031 TAX DEFERRED EXCHANGE?

Taxpayers have had the option of deferring the recognition of a capital gains tax by Exchanging real property, rather than engaging in a sale and subsequent purchase, since 1921. And although much has changed since then, the basic concept remains: A properly structured Tax Deferred Exchange under Section 1031 of the Internal Revenue Code of 1986, as amended, allows an owner of real property, the Exchanger, to defer the recognition of a capital gains tax normally recognized on the sale of real property, if the exchanger buys a like kind property of equal or greater value and uses all of its cash equity in the subsequent purchase.

For example: If an investor is selling an apartment building for $900,000, and has a net adjusted basis of $500,000, the investor will have a gain of $400,000 upon the sale of that building. A full capital gains tax that an investor might realize upon the sale of the property is made up of several different components. For the federal capital gains tax the investor will pay 15% tax on the amount the property has appreciated in value. The investor will also pay a tax known as depreciation recapture at the rate of 25% for the amount the property has been depreciated during its ownership. In addition, there may be a state or local capital gains tax. Many investors multiply the gain by 25% to get a rough estimate as to the amount of tax they might realize if they do not structure the transaction as an exchange. In this example the gain would be approximately $400,000. Accordingly, if we multiply this amount by 25% the estimated capital gains tax if this sale were not structured as an exchange would be $100,000. If this transaction were structured as an exchange, the $100,000 could be applied toward the purchase of a new like kind property.

2. WHAT IS A QUALIFIED INTERMEDIARY?

A Qualified Intermediary is an independent third party to the transaction whose function is to prepare the documents necessary to create the exchange, as well as to act as the independent escrow agent for the exchange funds. The Qualified Intermediary is defined by the Treasury Regulations and may not give tax or legal advice.

A Qualified Intermediary may not be a "disqualified person" as further defined in the Treasury Regulations. A disqualified person normally includes, but is not limited to, your attorney, CPA or accountant, realtor, agents, employees, relatives, and entities in which you have an interest. A Qualified Intermediary should also be someone with the knowledge and experience to prepare the exchange documents and work with your tax and/or legal advisor; able to provide you with a copy of their Fidelity Bond and Errors & Omissions policy; and provide you with good service.

3. WHAT IS LIKE-KIND PROPERTY?

At the heart of the exchange transaction is the requirement that properties must be of "like-kind" in order to qualify for exchange treatment. The rule that property be "like kind" is somewhat misleading because like kind encompasses much more than what it sounds like. Like kind does not mean that if you are selling an apartment building you must also buy an apartment building if you wish to structure the transaction as an exchange. Like-kind property is defined as property held for productive use in a trade or business, or for investment purposes, that is exchanged for property which is also held for productive use in a trade or business, or for investment purposes. IRC 1031 (a)(1). Like-kind refers to the nature or character of the property, and "[t]he fact that any real estate involved is improved or unimproved is not material, for that fact relates only to the grade or quality of the property and not to its kind or class." Treas. Reg. 1.1031 (a) 1(b). Any property conforming to this definition will be considered like-kind.

For example, vacant land which is held for investment purposes can be exchanged for industrial property held for business purposes. There is no requirement that properties be similar in type or class. However, real property must be exchanged for real property

1031 Timeline

1. HOW LONG DO YOU HAVE TO IDENTIFY PROPERTY?

All the benefits associated with an Exchange do come with a few restrictions. When completing an Exchange, an Exchanger has 45 days from the date of the sale of the first relinquished property to identify potential replacement property or properties; and a total of 180 days from the original sale date to purchase the replacement property or properties.

Identification rules make it easy for Exchangers to pick multiple properties that they might purchase, but the fact is, once their 45 days are up, the Exchanger's choices on that list are set in stone.

In short, the Exchanger may: 1. identify three properties of unlimited value; 2. identify an unlimited number of properties whose aggregate fair market values do not exceed 200% of the value of the properties sold in the exchange; 3. or lastly, if the Exchanger identifies more than three properties and their aggregate fair market value is in excess of 200%, the Exchanger must purchase at least 95% of the value of the properties identified.

Of these three rules, the three property rule usually affords the Exchanger the most flexibility, and as such, it is the most widely used. The Exchanger should work closely with its realtor and tax and/or legal advisor to decide which rule is best.

2. HOW LONG DO YOU HAVE TO COMPLETE YOUR EXCHANGE?

To obtain the benefit of tax deferral, taxpayers must adhere to a strict schedule of identifying and purchasing replacement property. These requirements sometimes leave taxpayers scrambling and, on occasion, unable to complete an exchange. Taxpayers must identify potential replacement property (one or more) within 45 calendar days and acquire the replacement property within 180 calendar days, both periods running from the date of closing the relinquished property. IRC 1031(a)(3)(A)-(B). In addition, to obtain a complete deferral of the capital gains tax, the taxpayer must acquire replacement property of equal or greater value, obtain equal or greater debt on the replacement property, reinvest all the net proceeds realized from the sale of the relinquished property, and acquire only like-kind property. Treas. Reg. 1.1031(d)-2 and IRC 1031(a)(1).