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Converting liabilities to assets
Real Estate is arguably your largest personal and financial investment – so it is essential to find the most capable real estate professionals and it is more important now than ever.
Our Vision is to create an enterprise where property owners can in confidence find the best in innovative Real Property strategies and solutions; converting liabilities to assets through a systematic path.
LOST 2009 REFUND Recovery
We look beyond the traditional practices of ‘business as usual’ where the profit motive for that company reigns. Instead we take a much more altruistic approach with a wider viewpoint. This helps to expand the scope of our practice having far reaching effects outside our own environment.
Traditional Property Tax Appeals
The practice of property tax appeals has been entered into by nearly every entity vaguely associated to real estate (and many not) for the shear sake of the monetary opportunity.
When it comes to the traditional Prop 8 appeals, we already exceed many such entities in terms of experience and expertise in a representation package that attacks the very core of most assessor methodology – maximizing refunds.
Non-traditional Property Tax Appeals
Additionally, we found potential in the tax code for addressing the worry of those that missed a previous year’s deadline for the filing of a formal ‘Request for Reassessment’.
Certainly these were obvious business advantages to suit most. <
But people had lost significant amounts of assumed equity, for many the very roofs over their family’s heads and the demise of dignity with such astounding losses. So we began to take notice of the total landscape and began to delve into the essence of the ‘Boom and Bust’ that brought us to this economic collapse in the first place.
So it was not just over-assessment levels through Prop 8 that gave rise to the temporary property tax appeal business. There was the issue of those original prices and the very sharp corrections in a typically illiquid market that brought us concerns. Were those peak sales really ‘Market Value” transactions? Were there other forces playing in the market beyond the pure incentives of Supply and Demand?
Base Year Appeal
The question from the stand point of the original purchase, the basis of initial assessment was whether there was a more permanent solution. There was of course the Base Year Appeal. This method of appeal was typically used under special conditions whereby the original transfer was between the parties of an existing relationship. Inter-family or company transfers assigned dubious sales prices that were assumed by the assessor’s office to be ‘Market Value’ conveyances. Thus in those circumstances the Base Year Appeal was rarely contested and remedy typically forthcoming.
Yet the basis of the Base Year Appeal still applies; beginning with the assumption made by the assessor that the original transaction was indeed a ‘Market Value’ or ‘Open Market’ one.
Additionally, if there are instances of unanticipated expenses, unusual vacancies and other indications to a suspect pro forma or appraisal report, there may be due cause. After analyzing many peak period purchases, it then became apparent that if we could successfully argue these contentions, challenge the assertions of caveat emptor and the like, we could obtain a permanent property tax reduction.
This in turn could lead to the much larger scale ramifications as they relate to the actual purchase itself.
Equity Recovery
It is our directive to take successful ‘Base Year’ appeals and other qualified clients to the next level of mitigation. We believe that many purchases of late were made at a ‘Transaction Price’ absent of their true underlying value or ‘Market Value’. The cause of which was, among other things, market manipulation and not supply and demand. The amount by which is indicated by the sharp corrections in this otherwise illiquid venue. Certainly this is but a small measure of our entire claim and fortunately, we will have some amount of precedent to consider.
We have committed ourselves to certainly a daunting task and extending our advocacy to find the best possible legal sustenance will surely be our largest challenge. But we feel it would be a dereliction of duty to not give it our best effort.
And nowhere in this undertaking are we to lose those principles of advocacy. That is why we will offer our expert witness or consulting service gratis to any client that may wish to seek a legal cause outside our pursuit.
Additionally, it was incumbent upon us to develop a systematic plan without risk by way of upfront fees to our clients to make preparatory strides to this end. By bundling our Traditional 2010 and 2011 appeal services with Non-traditional and Base Year products this can be accomplished.
So if you feel you paid TOO much for your property ‘Equity Recovery’ may be for you.
Anomaly Investment
Along side our ‘Equity Recovery’ determination, we sought to build a vehicle of true substance for that available capital investment so lacking in this era of the Bernard Madoff. We find it so disturbing that still many cannot seem to accept the true nature of ‘OZ’.
Nonetheless, we press forward as an alternative to those that seek refreshment in real returns and actual low risk. What makes us unique is that in the course of our daily going concerns, we are in constant intimacy with the best of current real estate investment opportunities. Not paper fabrications but real soil and structure – real rents and returns. And the best of the best are in current anomalies from economic conditions that give rise to over corrections.
Our target investments suggest acquisitions at 1/10 their peak prices and 1/3 what we consider stabilized values of the year 2000 or earlier. These properties offer net incomes that triple or quadruple the total cash out debt service and expenses. Even at these levels the proposed equity ratios hover around 50% LTV when all said and done.
It is for this reason we can recommend short term rates of return of 15% to 20% cash on cash in six months or less. That is a return of principle and interest at 30% per annum with plenty of room for error and virtually no risk.
So we hope we availed you a glimpse into our world which only hopes to improve yours.
Converting liabilities to assets
These surely are trying times and despite all the insanity around us, things can get better. Creativity and optimism are a must as the order of old no longer applies. In many ways we need a revolution, if not at least a grand shift in an evolution of sorts.
It is with this same fervor that we intend to find more in the way of real property solutions that will make your property ownership a better experience.
Some of the possibilities are:
- Financial Restructuring;
- Management Tools; and
- Energy Advancements
On the horizon are many emerging technologies that will have significant impact on daily operations. In the critical elements of lighting and energy, we see LED applications that already provide significant efficiency whereby an entire complex may soon be illuminated by nano-solar technology embedded into the very fabric of building materials.
With either our eyes wide open or closed, the present certainly looks very dark, but with some Vision the future does begin to look a little brighter and we hope to see you in our view.
“They may say I’m a dreamer…but I‘m not the only one.” |
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