Category: 2020

Coronavirus & Construction Sites: Build On or Shut Down?

Posted on by Sarah

In cities all over the country, construction sites are shutting down due to the COVID-19 crisis, while others are taking steps to limit exposure as work continues. Regardless of the tactic—sustained operations or stoppage— ignoring specific risks can lead to serious cost and project management implications. For sites that are continuing construction during the pandemic, the contractor should establish several measures to mitigate the spread of the disease. The first step is to limit exposure before anyone even makes it onto the property. Many sites now require a temperature check of anybody entering the site, as well as when they come and go, including upon return from lunch or break. Other sites are asking workers—either verbally or by signing a form—if they, someone in their household or someone they may have been in contact with is exhibiting symptoms of or is confirmed to have contracted COVID-19. The most effective weapon against the disease is social distancing, but that can be hard to maintain on an active work site. Some contractors are juggling their teams with shifts so that there are fewer people on site at any one time, but the project can still move ahead on schedule. Click to read more at www.rednews.com.

Real Estate Brokers: What To Do with the “Leftover Equity” in a 1031 Exchange

Posted on by Sarah

As a Real Estate Broker, do you ever have clients who do a 1031 exchange, secure a replacement property but find that the amount of the new acquisition leaves them short of the total exchange amount? Maybe they are short by as little as $50,000 to $100,000? In most cases like this the client ends up paying taxes on the remaining amount (Boot) of the 1031 exchange. However, in many cases they pay quite a bit more than the current 15% capital gains tax on that remaining amount. In fact, when you consider the recapture (of depreciation) that the IRS requires plus any state tax, it ends up being significantly more. There is another option to explore. Present them with an acquisition of the OTHER real estate, mineral interests. What are mineral interests? Like the surface real estate, mineral interests are a titled position recorded in the county clerk’s office, often in the same instrument. The difference is, mineral title conveys the rights below the ground. What value do they have? It can be significant value, especially in states like Texas where Energy Companies extract oil and natural gas from below the surface and pay the mineral owners a royalty off the gross production. There are millions of people who own mineral interest in the United States and billions of dollars are paid out to them each year in the form of royalty payments. The U.S. is the only country in the world where mineral interests can be privately owned. Click to read more at www.rednews.com.

McAllen On The Move

Posted on by Sarah

A powerhouse city. Boomtown. The epicenter of the Rio Grande Valley. There are plenty of ways to describe McAllen, Texas, but they all have one
thing in common: growth. “With the volume of consumers that comes in to
McAllen daily, our city has developed a robust economy,” says Rebecca Olaguibel, the city’s Director of Retail and Business Development. The numbers are incredible for a city its size. With a population of around 140,000, McAllen generates more than $3 billion in gross retail sales thanks to 18 million people (an average of 39,000 people per day) who visit the city every year. It’s just 10 miles north of the Mexican border, so international visitors flow through it via McAllen International Airport and the two international bridges managed by the city. “It’s truly a geographic jackpot,” says Olaguibel, who has worked for the City of McAllen for 12 years. Its retail offerings are part of the draw of McAllen, making it the premiere shopping destination in South Texas and northern Mexico. While new
shopping centers and big box retailers open up new locations there, city leaders say it’s important to recognize the critical role small businesses play in the overall success of McAllen. Click to read more at www.rednews.com.