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

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.

The J. Beard Real Estate Company facilitates sale of 5 acres of land to Geronimo Adventure Park

The Woodlands, Texas (April 3, 2020)

Diana Gaines of The J. Beard Real Estate Company has recently represented DL Lincoln Distillery, LLC, in the sale of five acres of vacant land to Holland’s Road, LLC. The land is located at 6753 FM 2920, Spring, Texas, which is off Lee Road and FM 2920, west of Kuykendahl. The property will be used as expansion to the adjacent eight acres under construction for Geronimo Adventure Park, which is slated to open Summer 2020. The park will be an adventure experience for families, groups and individuals. It will feature 16 zip lines across three zip line courses, including a beginner course, a course with an aerial park and a 555-foot tandem zip finale, and a course with a 42-foot free fall jump station finale. For more information go to: www.geronimoadventurepark.com. The seller, DL Lincoln Distillery, makes Cotton Hollow Whiskey. They moved their production to Bardstown, Kentucky. Cotton Hollow’s first batch was sold in Texas in 2014 and Texas continues to be Cotton Hollow’s largest market. For more information go to: www.cottonhollowwhiskey.com. The J. Beard Real Estate Company, LP, headquartered in The Woodlands, TX, is a commercial real estate brokerage firm that offers services which encompass leasing, brokerage, site acquisition, property management, development, consulting, and landlord/tenant representation services. The firm is considered an industry leader in commercial real estate with a primary focus on the Greater Houston market, including Montgomery County and North Houston. To learn more about The J. Beard Real Estate Company, visit www.jbeardcompany.com.

Dr. Mark G. Dotzour, Real Estate Economist Presents “Economic Rollercoaster: Finding Opportunity During a Bumpy Ride” April 7th

Complimentary REDnews Webinar: Tuesday, April 7, 2020, 1 PM – 2 PM CST

Topics:
Fed Stimulus – -The Boost We Needed?
Does Printing Money Mean Inflation?
COVID-19 and Stimulus Effect On Interest Rates
Where Are Cap Rates Headed?
Will This Be Another Jobless Recovery?
COVID-19 Effect On GDP in US and Globally

Dr. Dotzour is a real estate economist who served for 18 years as Chief Economist of the Real Estate Center at Texas A&M University in College Station. He has given more than 1,600 presentations to more than 295,000 people and has written over 90 articles for magazines and journals. His research findings have appeared in the Wall Street Journal, USA Today, Money Magazine, and Business Week. Todd Phillips, CFO, RE Journals will moderate, bringing his experience with the commercial real estate to the table. Complimentary Registration.

This webinar is one of the 2020 National Series Webinars hosted by REDnews / RE Journals.

How North Texas small businesses can apply for an economic injury disaster loan

Late last week, Governor Greg Abbott announced that Texas is now included as part of the U.S. Small Business Administration’s Economic Injury Disaster declaration, allowing qualifying businesses in the state access to the loan program. SBA Public Information Officer for the Office of Disaster Assistance Susheel Kumar, whose district includes Texas, explained in an interview that the program allows for loans up to $2 million with interest rates for small businesses at 3.75 percent, while nonprofits are at 2.75 percent. Repayment plans can be up to 30 years, but the exact terms are decided case-by-case. The first payment for the loan doesn’t start until 12 months have elapsed, Kumar said. “The economic disruption has caused a strain on supply chains nationwide,” Kumar said. Kumar said that the SBA has received “significant volumes” of applications, but did not venture to estimate how many since he does not have the numbers yet. He also said there have been a number of loan approvals, as well. The term “small business” can mean a variety of things. Kumar said that often how the SBA determines which businesses are deemed “small” depends on a variety of factors, including the industry, amount of average annual receipts and number of employees, among other factors. The SBA’s definition for various industries can be found here. Click to read more at www.wfaa.com.

A Renaissance Man

Hundreds of Houston real estate professionals gathered at the Briar Club on March 12 for the inaugural REDnews Awards, highlighting the best and brightest of our industry. You can check out the full list of finalists and winners on page 13, but the most significant award of the night went to John Walsh. We honored him with the Lifetime Achievement Award for his decades of service to the Houston community. “I really wasn’t surprised because John has not only been successful, but it’s so well-deserved,” said longtime friend Howard Tellepsen, CEO of Tellepsen Builders. He and Walsh go back 50 years when the two attended Lamar High School together. “He’s very understated. He’s very humble. I’m just so proud that he is receiving this lifetime achievement award,” Tellepsen said. “I saw these characteristics of John in high school.” The pair graduated in 1962, going their separate ways. Walsh attended the University of Texas for undergrad, then received his MBA from the University of Houston before helping form Exxon’s real estate subsidiary, Friendswood Development. Click to read more at www.rednews.com.

You’re Not The Hero

When it comes to building and sustaining your business, storytelling is a crucial aspect of successful prospecting. But in these narratives, you are not the hero — here to save the day for clients desperately in need of your superpowers. Rather, you want to position your potential new clients in the center of their stories, while you fulfill the role of an empathetic, authoritative, understanding guide capable of helping them achieve a happy ending. First, let’s define prospecting, a term that’s thrown around often to describe various networking activities. I used to think about it literally, imagining the old prospectors from the gold rush. But prospecting, simply put, is the act of finding and winning new business. Think of it this way: If you’re good at prospecting, you’re continuously filling your pipeline with new opportunities, increasing the sustainability of your business, and, to some extent, preparing to pick up market share when competition fades. If you’re not prospecting, the inverse is true. The next recession should scare you to death. You should wake up every morning with the realization that you are leaving money on the table.

Pitching Yourself: Your client has been cast as the hero and you’re the wise person to guide them to success, but let’s back up a moment. How can you pitch this movie to a potential client? After all, it’s no use to reframe this relationship unless you can engage with prospects. The value proposition is essential in building relationships and cultivating leads. Click to read more at www.ccim.com.