The Big Winner of the Tax Act: Commercial Real Estate
Yesss…Commercial Real Estate Wins Big
No matter how you feel about the current administration under Donald Trump, the benefits for commercial real estate owners are evident. It is predicted that the tax cuts will fuel economic and job growth creating increased demand for commercial real estate.
Here are some of the highlights of how the new Tax Act will impact commercial real estate and its investors:
- The new tax act creates a 20% tax deduction for LLC’s, Sub S corporations and partnerships (subject to income and ineligible service business limitations). This means a much smaller tax bill for investors.
- Section 179 allows a taxpayer to elect to deduct the cost of certain types of property on their income taxes as an expense, rather than requiring the cost of the property to be capitalized and depreciated.
- Section 179 doubles immediate deductions from $500,000 to $1 Million for non-residential real estate assets placed in service. This includes roofs, heating, HVAC, fire protection, and security systems. Investors can renovate their income-producing properties and deduct the cost!
- There will be Improved 25-year depreciation schedules: (from 27.5 for residential) and (from 39 years non-residential real estate).
- Land improvements (parking lots, drainage and tangible, private property) for real property businesses are expensed 100% over the next 5 years. Deducting these costs directly from the income reduces your tax bill further. Real property businesses can also deduct net interest expense that doesn’t exceed 30% of EBITDA.
This should be a wonderful year for commercial property owners and investors to start building more wealth.
Now Is The Time: Get a for Your Commercial Property
Commercial property owners need a flexible funding solution…a partner that can meet your needs at every phase of your property’s life cycle.
Our proven network of lenders is seeking viable commercial property deals all the time. We have the solution for just about every finance scenario. We’ll get you connected to the lender that is right for your needs.
We Offer A Free Service For Your Convenience
We offer a free service to investors and commercial property owners that will save you time and money.
Take a look at the information below.
SBA Commercial Property Loan
The SBA Commercial Real Estate Loans offered by our preferred SBA lending banks, feature low rates, long terms, a rent replacement option with minimal down payment, and no balloon payments.
Check out the example of terms our partner can provide:
Direct Revenue Based Lender
A revenue-based lender will look at the revenue generated by the property and base most of the decision on the business’ profitability. Our revenue based lender has several programs for those that do not have the requirements for bank
| Finance Solution | Details |
| Bridge Loan Finance | Loan Amount: $1 to $5 million
1-3-year term (case-by-case basis) 75-80% LTV Floating Interest and Fixed Rates available 3% origination fee / 1%+ exit fee. Extension fees 0.25%+
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| Bank Statement Finance | Loan Amount $250,000 – $2 million
6-9% Interest (Interest Only Loan) No tax return or 4506T required 15 to 45 days to close Up to 80% |
| 1-4 Plex Finance | Loan Amount $100,000 – $2 million
6-8% Interest (Interest Only Loan) No tax return or 4506T required 15 to 45 days to close Up to 80% |
Our Process is almost completely automated and your quoted terms will not change (unless due diligence requires updates to the offer).
Take a look at the video below to see just how easy it is to get started and funded with the Network.