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Denver Metro Commercial Property Investment Advisors Are Your Source For Expertise
When looking to purchase or sell commercial real estate investment properties, savvy investors seek out an industry partner to provide relevant market intelligence, best-in-class financial analysis, and effective negotiation strategies so an investor can make the best decision to complement the overall investment strategy. With almost 20 years in the industry, CCIM designated advisor, Lowrey Burnett, has made a name for himself as a trusted investment property advisor. Learn how Fountainhead Commercial can help you make your first investment or modify your existing portfolio of investment properties.
When Is The Right Time To Buy Or Sell?
Navigating and understanding the current market conditions, as well as accurately forecasting future market conditions is, hands-down, the most difficult part of buying or selling an investment property. No one has a crystal ball that always accurately predicts future events or market conditions. However, our experienced real estate investment advisor, who has also attained the prestigious Certified Commercial Investment Member (CCIM) designation, can help you gain an intimate understanding of the then-current market nuances while receiving reasonable market projections such as "most likely," "most conservative," and "most aggressive" outcomes. In doing so, each client can confidently make the decisions that align with their overall investment strategy.
Buying Or Selling A Commercial Property For The Owner/Occupant
At Fountainhead Commercial, we specialize in office and industrial properties. If your business is seeking to sell or purchase this type of commercial space, you want to talk to our investment broker. Whether it is your 1st location or your 50th location, you want an experienced commercial real estate broker to represent your interests and minimize your commercial real estate costs while maximizing operational efficiency for your business.
Acquisition Or Disposition Of An Income-Producing Real Estate Investment
As a CCIM-designated commercial real estate investment advisor, our industry expert at Fountainhead Commercial will provide sound guidance while standing by your side throughout the entire acquisition or disposition process. This includes, but is not limited to, the following actions that will benefit each investor during the decision-making process:
- Determine investor's risk tolerance
- Determine investor's yield and income expectations and requirements
- Determine property-type, geographic preference, and tenancy characteristics desired by investor
- Identify qualified buyers or suitable investments that align with client's criteria
- Develop a comprehensive financial analysis for each investment option
- Create and discuss comparison matrix for each option
- Submit and negotiate proposals, counter proposals, and LOIs
- Arrange tours of short-list investment properties, as necessary
- Purchase and Sale Agreement (PSA) review and negotiate final deal terms
- Compile or review all Due Diligence documents
- Closing with title company
Additionally, our real estate investment advisor can help a seller navigate the 1031 Exchange process to relinquish an investment property and defer 100 percent of all capital gains taxes.
An Investment Broker You Can Trust
Fountainhead Commercial is proud to offer commercial real estate investment property representation for investors and owner/occupants who are considering buying or selling commercial real estate. Our investment property expert is well-versed in the nuances of both sides of a real estate transaction and will advocate on your behalf to ensure each client is buying, selling, or exchanging at the right time, to the right entity, and at the right price.
If you are considering investing in commercial real estate, contact Fountainhead Commercial today to learn more.
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1031 Exchange Expert Is Your Source For Unparalleled Industry Prowess In The Denver Market
Investing in commercial real estate can be highly lucrative. Should you choose to sell an investment property that has increased in value since originally purchased, you’ll want to work with an experienced 1031 Exchange broker to protect your gains. A 1031 Exchange is a strategy to defer paying large capital gains taxes when you sell an investment property by reinvesting the proceeds into another investment property. Though based in Colorado, Fountainhead Commercial has the experience and ability to complete the 1031 Exchange transaction process in all 50 states.
Fountainhead Commercial is proud to be your local 1031 Exchange expert. Let’s talk about how this process works and what you can expect from us as your 1031 Exchange broker.
What Is A 1031 Exchange?
A 1031 Exchange, also known as a Starker Exchange or Like-Kind Exchange, is a powerful tax-deferral strategy defined and allowed under section 1031 of the IRS Code. It is important for an investor to understand their potential capital gains tax liability, which varies state to state. Long-term capital gains are currently taxed at the Federal level at a rate as high as 20 percent, depending on the taxpayer's income. An additional 3.8 percent capital gains tax is also applicable at the Federal level due to the implementation of Obama Care. Furthermore, at the State level, an investor's gains can be taxed as high as 12.3 percent in California or as low as 0.0 percent in Texas. Some local municipalities, like New York, also have additional capital gains taxes. In general, most Colorado tax payers can estimate that they will incur as much as a 30 percent tax liability on any long-term capital gains.
A Simplified Example Of A 1031 Exchange
Speaking in round numbers, consider you made an all-cash purchase of an investment property or property used for your business for $1,500,000 and after at least one year of ownership a buyer offers you $2 million. That equates to $500,000 in capital gains realized after closing. Assuming your tax liability makes up approximately a third of that gain, you would owe the IRS $165,000 in capital gains taxes which reduces the net proceeds you have available to reinvest. Alternatively, if you enlist the expertise of a 1031 Exchange broker to execute a 1031 Exchange transaction, you can defer paying $165,000 to the IRS and reinvest the entire capital gain, thus allowing you to purchase a replacement property worth at least $2 million.
This increased purchasing power is one of the key advantages of a 1031 Exchange. With the right support from a Qualified Intermediary, real estate attorney, tax advisor, and 1031 Exchange broker, a 1031 Exchange is a straight-forward process. However, you must act within strict timelines and follow established IRS rules in order to reap the benefits of deferred capital gains.
Delayed 1031 Exchange
A “delayed” 1031 Exchange transaction is the most common method used by investors/taxpayers. In this case, the investor/taxpayer will relinquish or sell the original investment property first and close on the acquisition of the 'replacement property' within the designated timeline.
Key Timelines To Defer Capital Gains Taxes
Our 1031 Exchange expert can help real estate investors adhere to the strict timelines required for a successful exchange. Per the IRS code, you only have 45 days to identify, in writing, all potential investment properties you want to consider acquiring. You only have 180 days in which to complete the acquisition or 'up leg' transaction. It is critical to understand that both the 45-day and 180-day timelines begin on the date that you sell your original investment, or relinquished property. It’s easy for time to get away from you as you peruse the available investment listings, arrange property tours, and determine which properties might be a good fit based upon your investment strategy. This is where our leading 1031 Exchange broker can come into play.
Reverse 1031 Exchange
Alternatively, a “reverse exchange” involves acquiring a replacement property before selling the relinquished property. This is generally a more expensive option, but it is often the better solution for investors who want to purchase a specific replacement property prior to finding a qualified buyer for their relinquished property.
Other, less common, 1031 Exchange transactions include Simultaneous Exchange and Improvement Exchange.
Benefit From A 1031 Exchange Expert At Fountainhead Commercial
Certified Commercial Investment Member (CCIM)-designated 1031 Exchange broker, Lowrey Burnett, has extensive experience with 1031 Exchange transactions and passes the benefits of his expertise onto his clients. Because taxable gains are a key concern to every investor, Fountainhead Commercial has streamlined our 1031 Exchange support process to facilitate a stress-free experience for our clients. By enlisting the help of our 1031 Exchange expert, you reap the benefits of a representative who is looking out for the best interest each client and related investments at every step of the way. From providing timely market information, determining the right type of exchange, identifying suitable replacement properties, and arranging property tours across the United States to negotiating purchase prices and terms on the investor's behalf, reviewing due diligence documents, and closing on your replacement property with the IRS-mandated timelines, you gain a true advocate when you engage Fountainhead Commercial to handle your 1031 Exchange.
If you want to sell an investment property or property used for business while deferring your capital gains tax liability with the support of a 1031 Exchange expert, contact Fountainhead Commercial today.
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Your Source For Landlord Representation In Denver And Across The US | Office & Industrial Space
As a commercial real estate investor/landlord, your responsibilities can run the gamut. At Fountainhead Commercial, we understand that positioning your property for sale and/or leasing vacant space is an additional challenge that you shouldn’t have to stress about. Our landlord representation services offer peace of mind to commercial real estate investors, knowing that their investment property is in the best hands.
The Fountainhead Approach
At Fountainhead Commercial, we believe that knowledge is power. The more you know about commercial property market trends, tenant migration patterns, and what your target audience wants and needs from an office or industrial space, the better you can provide those items or features to them. We approach landlord representation proactively to enhance the value of your investment.
When representing commercial real estate landlords, Fountainhead Commercial begins with a competitive analysis. Not only are we looking at comparable properties in close proximity to your property but we are also considering the audience in and around your investment property. This information helps us create completely customized marketing and leasing strategies, making Fountainhead Commercial a superior provider of landlord representation services.
Proactive Leasing Strategy
Upon completing our competitive analysis for your investment property, we will customize a marketing and leasing strategy to lease your office or industrial space to ideal tenants. Very rarely is a commercial property leased through passive leasing efforts. Our landlord representation services feature proactive leasing efforts to ensure that your property's occupancy and rental income aligns with your investment goals.
Long-term, credit-worthy tenants increase the value of your property. Part of our landlord representation services includes a robust tenant retention program to maintain or reach full occupancy and increase your investment's value. This includes keeping tabs on national, regional, and local commercial real estate market trends, macro-economic factors, and tenant migration patterns, while also working directly with your tenants to ensure the highest possible level of satisfaction. Our landlord reps take the tedious and time-consuming duties of marketing and leasing off your plate, so you can focus on the big picture.
Re-positioning Investment Properties
Having spent a large portion of the last 20 years providing landlord representation services, we understand the nature and drivers of successful investment properties. Some of the most profitable investments are determined based upon purchase price or timing the market during a disposition. Other profitable properties require a little or, sometimes, a lot of TLC while simultaneously leveraging an effective leasing strategy to reduce vacancy. Our commercial real estate experts can provide you with an action plan that will lead to success.
At Fountainhead Commercial, landlord representation means more than just taking orders, it means solving problems. Whether you want to retrofit an existing commercial real estate facility to transform its position in the market or you want to work from the ground up to construct an office or industrial spec building that satisfies the needs of tenants in the market, we can support you with our extensive landlord representation services. Our experience has allowed us to form relationships with leading Denver contractors and we can leverage these connections on behalf of our clients when a construction project is required to increase the value or functionality of an investment property.
Landlord Representation At Fountainhead Commercial
From land acquisition to leasing and tenant retention strategies, our landlord representation services can be your go-to source of expertise to enhance the value of your investment. If you want a trusted expert to handle the day-to-day leasing duties for your investment properties while you focus on your other priorities, contact our landlord reps at Fountainhead Commercial today.
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Your Trusted Tenant Representation Broker In Denver
The best advice we can offer tenants is to start the commercial real estate transaction process as soon as possible to create leverage to negotiate a deal that is in the best interest of your business. Partnering with a commercial real estate expert to advocate on your behalf helps ensure bottom-line savings and reduces exposure to unexpected lease risks. At Fountainhead Commercial, we will proudly serve as your tenant representation broker and work diligently to an ideal real estate solution that aligns with your needs. Let’s talk about our tenant representation services at Fountainhead Commercial.
The Benefits Of Using A Tenant Representation Broker
We take our fiduciary obligation as tenant representatives very seriously. With almost twenty years in the industry, we’ve seen tenants erroneously think the landlord's representative was also working on their behalf. Our tenant representation service for commercial real estate puts the tenant's’ needs first. If you partner with Fountainhead Commercial for tenant representation services, that’s exactly what you can expect.
Save Time And Money
Landlords operate their business as a property owner every single day. Tenants, on the other hand, do not have the same advantage. This is where tenant representation services can level the playing field, by offering your business the support of an expert who can go toe-to-toe with landlords and negotiate in your best interest. Because we also spend every single day in the commercial real estate space, our expertise can save you time by handling the hard work for you. From property evaluations, market analysis, and financial analysis to Letter of Intent and final lease terms negotiations, our tenant representation services ensure you can have the best possible experience whether it's a lease renewal, an expansion or a new lease.
Setting Your Business Up For A Successful Negotiation
Often, tenants wait too long and lose any leverage for upcoming lease negotiations. Our tenant representation broker typically recommends you begin looking at your lease renewal, as well as your alternative lease options a minimum of 12 to 18 months before your lease expires. Without sufficient lead time, your current landlord can take advantage of the situation by mandating an agreement that is not in the best interest of your business. Landlords know, from experience, that it takes time to negotiate a lease, complete necessary tenant improvement construction, and relocate your entire business but without ample lead time, you simply cannot relocate elsewhere.
It is said in the commercial real estate space that your lease expiration does not run concurrently with your business cycles, a fact we are sure to mention to all tenants who engage Fountainhead Commercial. What many tenants don’t know is the flexibility that can often be negotiated into a lease agreement when working with industry experts. You may not necessarily be locked into a long-term lease for a space your business has outgrown. With an experienced tenant representative working on your behalf, you can often achieve flexible lease terms, such as an early termination option, expansion option, right of first refusal, renewal option, and/or a must-take provision, to ensure that your real estate solutions are aligned with your business cycles, not the other way around.
Tenant Representation Services That Support Your Business Goals
Working with our tenant representation broker will help you find the right property and negotiate the most favorable deal terms that support and align with your long-term business goals. Our tenant representation services include:
- Market analysis
- Property identification and evaluation
- Property tours
- Financial analysis
- Proposal, counter proposal and LOI negotiation
- Lease and purchase-option negotiation
- Project closeout
Additionally, our tenant representation brokers can connect you with experts offering a variety of services including employer tax incentives, commercial real estate law, commuting optimization, change-management, project management, space planning, interior design, tenant improvement construction process, IT services, furniture solutions, and business relocation.
As a tenant, you are typically only considering a property relocation or lease renewal every five, seven, or ten years. When that time rolls around, you can trust that your best interest will be supported by our industry-leading tenant representation broker. If your business has outgrown your current lease space or your lease is expiring in the next 18 months, contact Fountainhead Commercial today to learn more about our tenant representation services.
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4 Things to Look for in Commercial Brokers in Denver
Thursday, 15 October 2020 11:40
From leasing office space to buying industrial warehouses, the complex terrain of commercial real estate can be confusing and difficult to navigate on your own. Whether you’re buying, selling, or leasing commercial real estate, having an experienced broker working on your behalf is key to avoiding the common pitfalls of…Read more