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West USA Realty
Carl Chapman
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About Tim Mahoney
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, Realtor
Willing to reassess what hasn’t be tried is a phrase
that describes . Many times in real estate, especially in land,
commercial and/or investment property being able to look at the situation at
a different angle can be the difference between holding a deal together or
not.
If you are interested in purchasing and/or selling
land, commercial or investment property, please contact . He may
be reached by phone or by email. His expertise and superior service will
help guide you through the Arizona real estate market.
Tim’s clients always receive the highest level of
service. His commitment to detail and professionalism brings many clients
back again and again. It is a winning formula.
Solid Reputation
Having lived in the Valley of the Sun for most of his
life, Tim calls Phoenix home. His experience in the real estate market
includes vice president of a real estate development company, a real
estate/asset maximization administrator, and a principal partner for a real
estate consulting firm. All of these positions have given Tim the knowledge
and expertise to work in specialized areas of real estate, such as land,
commercial and investment property.
Successful Negotiations
It is one thing to listen to your clients, but in the
specialized areas that Tim works listening just isn’t enough. You need to
understand the whole picture and be able to negotiate for your client’s
behalf. Anticipating your client’s needs, answering questions, and making
decisions on real market knowledge is the key to success.
As a potential investor, land/commercial buyer or
seller, you have the opportunity to work with . To get in touch
with him, you may call or send an email. He is ready to work for you.
Providing Insight
Being married and raising three teenage children gives
you the opportunity to reflect. Integrity is one characteristic Tim wants
to pass down to his children. Making sure your clients can trust you and
help them make successful and profitable real estate decisions is what Tim
does best. He goes the extra mile for his clients to make sure they are
satisfied. Tim’s solid reputation is based not only on experience but on
honesty.
If you are interested in learning more about Arizona’s
land, commercial or investment properties, please contact Tim. He is
available to discuss the options available to you.
To contact Tim for an appointment. Call
The “Art” of the 1031 Exchange
(Now that’s what I’m talkin’ about!)
Savvy investors know that
the fastest way to reach one’s financial goal is to buy well, sell well and keep
as much of the money as possible. Currently, in the United States, the most
efficient vehicle to facilitate this is by investing in real estate. In fact,
just investing is not enough as it seems just about everyone has a hand out
expecting to take some of your hard earned money – most notably the federal
government and its baby sisters – the States.
Most people by now know the best deal going in real
estate is still buying, living in, and selling a single family residence after
occupying it for two years, thereby allowing the proceeds to be considered tax
exempt (meaning you don’t have to pay now, or ever). For those of us most
interested in growing wealth safely, legally and with diversity, the best
vehicle today is the 1031 Tax Deferred Exchange. Tax deferred is the operative
phrase and governing principal behind this particular ownership vehicle.
Provided you have filed the proper paperwork prior to purchasing your property,
upon sale you have 45 days to identify a new property for purchase and 180 days
to close escrow. It seems that most people who pay capital gains taxes do so as
a necessity because they were unable to close escrow in the proscribed
timeframe, thereby triggering the government enrichment vehicle and its negative
effect on your bottom line. Tax deferred is better than tax paid when you are
building for tomorrow.
The following are some salient points to remember:
· While tax exempt is best, tax deferred allows you to increase your
wealth at a geometrically progressing rate. Remember, you are building for
tomorrow.
· All forms of real estate involved in 1031 exchanges are not
equal. Tenant In Common deals can work at present, but will they be allowed in
the future? There is no telling on this subject as rules change rapidly in the
Tax system. Full ownership is still the vehicle of choice because it has stood
the test of years and has historically netted great results, provided properties
were carefully selected, exit strategies researched and firmly put in place.
· Carefully select what you buy based upon your needs. Do you need
cash flow? Is appreciation the principal reason for the acquisition?
· Work with real estate professionals of the highest integrity and
experience. Pay them a fair price for their services and deals will come flying
your way, along with attendant market analyses necessary for your tax lawyer or
accountant to make a valid determination as to whether a property shows promise
and should be a “Buy” or a “Sell.” Make sure the brokers you are working with
have a very strong presence on the Web. By doing so you open your properties up
to more potential buyers a hundred-fold.
· Make sure before you sell you have a targeted investment vehicle
conceptualized and have your brokers out looking earlier, rather than later.
Don’t wait the allowed 45 days to decide what next to buy. If you do so and
during your study period you determine a property is not suitable you may have
opened yourself up to the ravenous beasts of the taxing authorities to ruin your
day. Have several diverse properties selected as potential properties. If
necessary, open escrow on more than one and make a firm decision during the
inspection period to make it a “go”. Stagger inspection periods to allow for
the certainty of at least one property being acceptable for your purposes.
· Buy as much as you can afford.
· Be willing to wait through any downturn.
· Be willing to take a profit and move on to the next deal.
· If you are a little investor, don’t try to buy Rockefeller
Square. After all, you eat a mountain of ice cream one bite at a time, the same
must be done for investing. If you’re an extremely large investor, why not buy
Rockefeller Square if you can afford not only to buy, but to hold without peril
during economic downturns. Real estate is cyclical. The only way you lose is
by selling to soon. However, to turn great wealth in to outrageous wealth, at
the end of the day, in the words of James Cameron upon receiving his Academy
Award for making the film Titanic, “Size matters!” Some opportunities only
come on the larger properties - large acreage that can be master-planned and
spun out in either “super-pads”, or on a lot by lot basis. These types of deals
provide an almost unmatched vehicle for increasing value at quite low risk, if
properly selected. These are the types of properties we work with on a daily
basis.
· Have an overall strategy, an immediate game plan, and an exit
strategy you can live with. The old adage “If you don’t know where you’re
going; when you get there you’ll be lost” (thanks Yogi) is completely true.
Nothing replaces a good plan.
· Be willing to turn your properties. Buying and holding is old
school and has a place in anyone's investing, but turning properties and taking
incremental profit will definitely help make you rich. “No one ever went broke
making a profit!” Like an office building, it doesn’t just materialize
overnight. It is the product of much planning, work and placing the bricks
one-upon-the-other.
Why is it important to work with real estate
professionals that are at the top of their game when it comes to investment
properties when you are moving forward with your 1031 Exchange program? The
reason is clear -- you’ve got to have the right people identifying properties
that suit your investment strategy to make sure you stay on track. Secondly,
properties need to be identified in a timely manner. What this means is that a
number of alternative properties need to be identified within the legally
proscribed 45-day identification period. Contracts need to be negotiated and
documented in a manner that allows for close of escrow to occur well within the
180-day close period. Exit strategies need to be folded into the documentation
to allow for recovery of earnest money if upon inspection a property is not
suitable. Fall-back properties have to be identifies, negotiated and contracted
in a manner that staggers the inspection periods, allowing that if a first
choice doesn’t turn out to be acceptable, the client has the opportunity to
finish inspections and go ahead with the fall-back property. The reason for
this is crystal clear --- failing to close is not an option. Failure to close
escrow within the proscribed timeframe means taxes now become due and payable.
When utilizing a strategy of 1031 Exchange investments, this is unacceptable.
Why should you choose The
Chapman Team of West USA Realty? Because of experience, technical expertise,
internet presence beyond any other in the State of Arizona, and a proven track
record of successful transactions.
What kinds of properties
represent the greatest opportunities at this time? Large land deals – typically
of 300 acres or more represent great opportunity. The ability to take bulk
property, engineer it to subdivision requirements, or simply super-pad it out
represents an extremely viable way to obtain significant returns on an
investment. Many of these types of properties are available through the normal
databases for all to see. However, through strategic alliances with other
brokers and landowners, The Chapman Team and our alliance partners have access
to thousands of well-situated acres throughout the State that are unlisted, but
available for sale. No competing with a thousand other buyers. Deals done in
this manner are cleaner, faster and are quite often the most desirable
properties in their respective areas.
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REALTOR |