Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/306204
15 May | June | 2014 CCIM.com make a large dif erence in the budgeted and/ or underwritten expectations of an asset. A second factor is how valuations are set. Typically, valuations are set based on market value, but there may be other provisions to consider. For example, the Texas legislature is discussing repealing the equal and uniform law, which allows for a commercial property to be appraised at the same value as a similar building in its county. T e law is essentially benef cial to commercial property owners because it helps keep appraisal districts from unfairly valuing a property. If the Texas legis- lature repeals this act, it will certainly raise the value of an owner's property and thus increase property taxes for some investors. It is impor- tant to be aware of legislature changes such as this in your own state and county. Other information to remember includes identifying appraisal parameters in your district. Most county laws state that valua- tions should be based on the real estate value only, meaning the physical structure and the land, and should be separate from the operational value. However, appraisers tend to have a dif cult time def ning the value of properties such as hotels and seniors hous- ing facilities because of the value the busi- ness services, such as food, activities, and healthcare, bring to the properties. In indus- tries such as these, owners and investors need to isolate the value of the real estate. Getting Help Finally, as owners and investors, if you do not understand the ins and outs of property valuations and appeals, hiring professional help is highly recommended. Tax profes- sionals will ensure a smooth process and that the best valuation is achieved. Further- more, always involve professional help if you are planning to invest in property outside your market — trying to understand local laws in an unfamiliar area can be tough. Educating yourself on the local laws in your market and paying attention to the appeals calendar are the best ways to guar- antee your property is valued fairly and tax burdens are kept low. Understanding local administrative policies and identifying appraisal parameters are other key factors to remember. Following these tips can help owners become more savvy investors as they learn how to best minimize property taxes. Amish Gupta is chief operating offi cer of RETC, a real estate tax consulting agency with offi ces in Dallas, Houston, and Austin, Texas. Contact him at info@retcgroup.com. Another point to keep in mind is the intricacies and potential changes of the property tax code in each state. Tell Your Clients Who You Really Are. Want to make sure your clients and potential clients know you're a CCIM? T en af x your business card to the latest copy of Commercial Investment Real Estate magazine and leave it with them af er your next meeting. Or mail a copy with a personalized note. Bulk copies of CIRE are available to CCIM designees at greatly reduced prices for use in their personal marketing campaigns. Current Issue 1-Year Bulk Subscription ( 6 Issues ) 5 copies $15 $90 10 copies $25 $150 30 copies $60 $360 Limited quantities available, so call today to place your order. Shipping fees will be added to non-U.S. orders. Call 800-621-7027, ext. 4507. 1 4 - 1 5 D - F i n a n c i n g . i n d d 1 5 14-15 D-Financing.indd 15 4 / 2 9 / 1 4 2 : 4 2 P M 4/29/14 2:42 PM