It?s A Shame For You Not To Sell Your Commercial Property ? When ?Master Lease Options? Do It So Easily In This Economy
A is where you are creating a on the entire property for its current Net Operating Income (NOI) and have onetenant.
The allows the to sublease each of the individual units to new tenants and the owner agrees on a price up front for which the can purchase the property at any point in time over the lease period. While this powerful method isn’t for every commercial property, its best suited for properties with . Why? Because that’s how the master lease tenant is compensated.
Here’s an example, let’s say you have a and it’s currently By utilizing their marketing and management expertise, the master tenant comes in and fills vacancies, decrease expenses and increase the net operating income by raising rents on the remaining vacant units. That profit is now the master tenant’s. .
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The benefit to the owner of doing a is:
The owner still receives the they’re currently receiving without the expenses. No longer is he going to have to deal with any of the management responsibilities, the is agreeing to take care of the day-to-day and any other maintenance on the property. . The owner no longer has to worry what it’s going to cost when repairs come up. The is going to handle it. And because tenant is paying for all these repairs and taking care of the headaches and hassles, the owner doesn’t have to. . Even if the owner works with a property management company, those still are sent over to him, but not anymore, when he starts working with the . We all know what happens when the NOI goes up on commercial property. . When you use the technique, because the owner is still on title to the property, he still gets to claim all the tax benefits, the depreciation, and so forth, of that property on his own tax return. Also, selling a property usually results in a gain for which you have to pay a capital gains tax. Recognizing the gain over time can be more preferable, because .This is where the technique comes in. Instead of listing your property, waiting for the market to bring a buyer to collect all the income now and being taxed on it at a high bracket, you decide to setup an so you can collect lease payments until you’re at a lower tax liability which means you’ll end up saving more money over time and avoid the additional taxes.
*Everyone’s tax situation is different, and this information should not substitute professional advice. Taxpayers should always consult with their tax advisors to consider specific factors that might affect their situation.*
