Why Did I Get a Letter From FCA?
At certain points throughout the year, we are looking to close on certain types of commercial assets. Often times we may have successfully sold an asset in the same asset category as the asset that you own and we are looking to reinvest our capital into a new asset. Other times investors have approached us and asked us to identify commercial assets in a specific asset category.
Falcon Commercial Assets uses commercially available technology to review public records and identify assets that fit the criteria of what we or our investors are looking for. From this list, we attempt to contact the true owners of an asset and assess their interest in selling their asset. Our goal is to create a transaction where both parties benefit and each party can walk away with the potential to execute on further transactions in the future. We understand that despite our best efforts to reach out to the actual owner of an asset we don’t always get the correct ownership information. If you were contacted by mistake please let us know and we will edit our contact list!
I’m Not Ready to Sell Yet
A huge part of any successful transaction is timing! Maybe you received a letter from us and while right now isn’t the right time to sell you are considering it in the future. If you want to be immediately alerted when we are looking to purchase an asset that matches the asset you currently own please use the form below and we will instantly contact you next time we are looking to purchase an asset that matches yours.
I’m Ready to Sell
If you are looking to sell your commercial asset please complete the form below and we will get in touch with you as soon as possible to discuss the details of what you are looking to accomplish with the sale of your asset.
The first thing we will suggest about taxes is to make sure you have a competent CPA with knowledge of commercial real estate transactions. If you don’t have a great CPA we can suggest a few great firms. That being said there are a number of techniques that can help shelter sales proceeds from capital gains tax which allows you to maximize your proceeds from the sale.
Depending on your post-sale goals we can build a deal that provides a pathway to maintaining a strong principle balance, something that we can discuss more in detail once we connect.
Seems like you’d like more detailed information about tax implications. While we suggest allowing the CPA’s to work their magic we can provide additional information. While you’ve owned your property it has increased in value in most cases. While it has gone up in value it has been subject to depreciation by standard accounting procedures. This means that while your property value has increased your investment basis in the property has been reduced substantially.
What this means is by the time you will pay all of your taxes, you will likely receive about 60% of your total sales price as your net proceeds of the sale. At today’s interest rates this will substantially reduce your monthly cash flow. However, if we can structure the deal to meet both of our needs, FCA can offer you a strong interest rate, while preserving your principal. That is to say that if you are taking your principal in payments over time, you will only be paying taxes on the money as you receive it. Therefore, the principal amount of your investment will be 40% greater than that of your net proceeds. And because our interest rates are substantially higher than those offered by the banks, you will get a compounding effect. Once we determine the value of your property based upon its cash flow. We will know exactly how to structure the deal.
We have a great team of real estate professionals that allows us to not use realtors on the right deals. This doesn’t mean that we don’t ever use realtors because we do when the deal calls for it. In some cases, FCA is happy to pay realtor commissions if it makes sense for the deal at hand.
Our letter mentioned that FCA can pay market price for your property. This is true if the details of you provide support for a strong performing asset.
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