When Ferry Porsche, the founder’s son of Porsche said “I could not find the sports car of my dreams so I built it myself”, it was the beginning of creating a brand of automobile that is unmatched in racing success, enduring style and function and iconic reverence among automobile enthusiasts. He also said, “I wanted to build cars that were not something to everyone but meant everything to some.” Read More
The average golfer has been commonly told in a chip shot to get the hands forward, move the ball back in the stance and keep their weight forward. The information that is left out is which body part to move and when, during a chip shot. Read More
The Continuum of Care Near Hospitals
Part of the recent saga concerning Medicare, Medicaid, and Obama Care is the impact on demand for lower cost outpatient care residential facilities near acute care hospitals. These facilities span the gamut between independent living, assisted living, senior living and finally skilled nursing facilities. This is often dubbed the ‘continuum of care facilities’. Of little note is how infection rates related to acute care procedures will likely spur long term care development around hospitals. Read More
There is always something new in the world of real estate. It is a constant challenge, as a real estate practitioner, to keep up with the latest market trends, regulations and legislation. Nowhere is this more true perhaps, than in the world of international real estate. It is no longer enough to understand what is happening “in our own back yard”, but we need to be aware of state, national and global situations that have an impact on our real estate market here in Florida. Read More
Only you can decide if you are having problems in making payments on the mortgage that is financing your home. If you are having problems in making the payments, refinancing is an option. Other than that another item to consider in order to find your answer to “should I refinance my house?” is whether you want to save money on mortgage payments. Refinancing can help you in saving money on the payments. Read More
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Ever wondered how a professional tennis player/celebrity/girlfriend to Enrique Iglesias lives? Well if you have $9.4 Million you can find out and soak up the Miami sun in the home of the blonde beauty sports star, Anna Kournikova. Read More
The first in a three-part series on 1031 Exchange
Most people are aware that they can sell vacant land and rental properties via 1031 Exchange and defer payment of capital gains taxes. Fewer people are aware that, if they sell an active business–be it a manufacturing facility, store or professional practice–there is also an opportunity to take advantage of the 1031 Exchange.
Simply stated, 1031 Exchange is a provision in the tax code that allows you to defer the capital gains tax on the sale of real estate that has been used as an investment, rental or business property–as long as you reinvest in a “like-kind” replacement property. “Like kind” simply means exchanging any real estate for real estate, other than personal use properties.
The trick in a business exchange is to allocate the purchase price among the assets being sold, so that the portion of the purchase price allocated to the real estate will become the figure to be matched by the value of replacement property.
But, you ask, why can’t we do a 1031 Exchange on the whole business? Theoretically you might be able to do an exchange on the entire business, but in reality it is almost impossible. The personal property assets included would not be “like kind” with replacement real estate, and how many business sellers want to acquire exactly the same type of business in another location anyway? But if you wanted to, you would need to find replacement personal property that would be “like kind” with each item of personal property included in the business sale. This is almost always impossible, and any amount allocated to good will could never be replaced in a 1031 Exchange because the IRS takes the position that good will of any existing business is unique and can never be replicated (be “like kind”) with good will of another business.
Therefore, unless your tax advisor feels otherwise, plan to exchange just the real estate where the business operated. On the closing statement for the business sale, have the closing agent move the real estate allocation amount to a seller debit line item and call it “1031 Exchange Proceeds To Escrow.” Of course, before the closing, you must retain a Qualified Intermediary (QI) company to take care of the 1031 aspects, and sign an Exchange Agreement before the closing. The money then goes directly to the QI company to be held in escrow until the closing on one or more replacement properties occurs.
Be sure, however, to go over any business sale 1031 Exchange plans with your tax advisor. Since he should have a good, overall understanding of your tax position as a seller of the business, he is best suited to help you decide whether or not a 1031 Exchange will be sufficiently beneficial. For example, if the business has loss carry-forwards, the seller may not incur very much tax. A 1031 Exchange is only warranted where there is sufficient tax savings to make it worthwhile since the funds will need to be reinvested in replacement property to achieve the tax savings. Losses set off against gains will result in tax savings without the proceeds being encumbered with the obligation to reinvest in like-kind property.
Farms, ranches and dairies are a prime candidate for 1031 Exchange since real estate is the primary asset transferred when such a business is sold. Where the seller’s homestead is also on the property being sold, it may be possible to achieve both the main home exemption of up to $250,000 for a single seller ($500,000 for a married couple filing a joint return) under Section 121 of the Internal Revenue Code and 1031 Exchange tax deferral on the rest. This may require separate surveys for the homestead and 1031 parcels (and possibly even a separate appraisal of each), but the tax savings can often be substantial. As always, be sure to discuss plans like this with your tax advisor.
Also, don’t forget that the owner of the business (who owns real estate), farm, ranch or dairy must also be the owner of the 1031 Exchange replacement property. If it is a corporation, then the corporation will need to own the replacement property, and the same applies to a limited liability company (LLC), partnership, trust, etc. The only exceptions are for living trust ownership where the living trust can be on one side of the exchange and the beneficiary of the living trust on the other side. Also, a single-member LLC can be on one side of the exchange and its single member, whether an individual or an entity, can be on the other side of the exchange. There are also strategies for partnership breakups where not all of the partners want to continue as partners in the replacement property, but that is beyond the scope of this article.
To learn more about 1031 Exchange, visit www.US1031.com or call (877) 455-2628 for a free consultation.
This article is for information purposes only and does not constitute legal advice.
Jeff Riddell is a Sarasota, Florida attorney specializing in 1031 Exchanges. He holds a real estate broker’s license, has published numerous articles on real estate transactions and most recently authored a book on titled “21st Century Real Estate Investing.” Address: 3400 S. Tamiami Trail, Sarasota, FL 34239. Telephone: (877) 455-2628. Website: www.US1031.com.
Copyright © 2011 REAL Magazine
Links to this article are encouraged
Let’s face it: deals die. We all go into the purchase and sale contract of a home with a goal of closing, not just to push paper and let it fall apart. Some deals rightfully die because they should. The cause may be property damage, undisclosed problems, death, divorce, bad inspections, a poor title that cannot be corrected, survey issues that are too expensive to correct, the discovery of an Indian burial ground or eagle’s nest, or simply, the closing date has come and gone and someone has not performed All of these are legitimate reasons for a deal to die. Some home purchases just don’t turn out to be a good deal for either buyer or seller. In that case the deal can and should die if it is in the buyer’s or the seller’s best interests.
Lately, I have seen some deals die when they should not have, and not for the reasons you would imagine. The most common reason is poor communication among the parties. The contract is signed, and then the parties just don’t talk. Deadlines come and go, nobody notices, and suddenly, it is too late. By the time everyone realizes what happened and one of the parties wants the deadline extended, the other party has lost interest.
Other deals die because either party has unrealistic expectations. When a buyer signs up for a short sale, the realtor should prepare the buyer accordingly. This means advising the buyer it can take time, and that there may be possible twists and turns involved. I have seen many deals doomed from the start, often because the buyer must move into the property by a certain date and the sale is not approved, or because the buyer was led to believe that short sale approvals are easy and are always approved within a certain time. In these cases, not only does the deal die, but someone, usually the buyer, goes away angry with the realtor or negotiator because proper expectations and boundaries were not set before the contract was signed.
Finally, deals die because the parties are too emotional or simply irrational. This can happen to the seasoned agent or to the brand-new realtor. Either the buyer makes unrealistic demands or the seller will not listen to the realtor’s direction. The worst case is when the buyers or sellers are out of control, and not even their own realtor or attorney can control them. In these situations, a simple purchase can turn into a war. The likely outcome is no closing and perhaps even litigation. To prevent these scenarios, set boundaries with your customers and do not enable them. People will adopt your attitude. Stay calm, and it is likely the parties will also stay calm. When delivering bad news, have a resolution in place and encourage sensible thinking.
By setting boundaries, explaining procedures, and communicating effectively, a closing worth closing has a much better chance of taking place.
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Anne L. Weintraub is the driving force behind Anne Weintraub, P.A. practicing in Residential Real Estate Closing, Issuance of Title Insurance & Title Services, Refinancing, Contracts & Deeds and Short Sales & Alternatives. Her practice covers Sarasota, Bradenton, Lakewood Ranch, University Parkway, Casey Key, Siesta Key, Bird Key, Longboat Key, Lido Key and Downtown Sarasota.
Anne Weintraub, P.A. is located at 1800 Second Avenue, Suite 882, in Sarasota. You may reach Anne via email at aweintraub@anneweintraub.com or via phone at (941) 685-4300.
In the world of high-end furniture design, contemporary furniture is among the most storied. Every piece has a tale to tell.
Some of the most iconic pieces are those of Fritz Hansen, the Danish furniture manufacturer known for such famous designs as the Egg™ and Swan ™ chairs, the PK22™ chair and PK61™ table, and the RIN™ chair, all of which you will find at Home Resource in downtown Sarasota.
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The Egg and Swan were originally designed for the lobby of the Radisson SAS Royal Hotel in Copenhagen by the legendary architect and furniture designer Arne Jacobsen (1902-1971), who is credited for developing the Danish Modern style of architecture.
Arne Jacobsen
The Radisson SAS Royal Hotel was the world’s first “designer hotel.” Jacobsen designed everything in the hotel, from the building and its furniture and fittings to the ashtrays sold in the souvenir shop. Although the Egg and Swan were created in 1958, they retain a timeless quality and remain some of the best known chairs in the world.
Also featured at Home Resource are pieces from designer Poul Kjærholm (1929-1980), including the discrete and elegant PK22 chair. The chair was an immediate commercial and critical success, receiving the Grand Prix award in 1957 at the Milan Triennale, the world’s premier design fair. In 1958, Kjærholm was awarded the Lunning Prize for contributions to Scandinavian Design. The PK22 is available in leather, suede or wicker with a base in satin-brushed stainless steel.
Also from Kjærholm comes the minimalist PK61 table, which reflects his interest in construction materials, especially steel, which he considered a natural material. The table shows Kjærholm’s development from industrial design to a furniture designer.
New to the Fritz Hansen collection is the sleek RIN chair, created by Japanese designer Hiromichi Konno, who endeavored to harmonize the Danish and Japanese design traditions. Konno said he wanted to create something that was poetic, simple, strong and innovative at the same time – to make “a beautiful chair that can stimulate and awaken emotions in people. It must be able to appeal visually but also make us feel a form of elegance when we sit in it. The goal from the beginning was to create the perfect chair.”
Home Resource is proud to carry these and other pieces from Fritz Hansen, which are as artistic as they are functional, and which give our showroom the feel of a contemporary art museum. Please feel free to drop by to view, ask questions and learn about these great works — and add your collection.
Michael Bush and his wife, Kathy, are the owners of Home Resource, the leading contemporary and modern furniture retailer on Florida’s Gulf Coast, located at 741 Central Avenue in downtown Sarasota, Florida. For more information, visit www.homeresource.com or call (941) 366.6690.
Copyright © 2011 REAL Magazine
Links to this article are encouraged
The Internet is Siphoning Retail Sales from Traditional ‘Bricks and Mortar’ Stores and Thereby Contributing to Vacancies
The 600 pound gorilla at the recent retail convention in Las Vegas known as ‘RECON’ which is an acronym for the ‘The Global Retail Real Estate Convention’, was the siphoning of some retail activity into the internet. A common complaint by some traditional retailers and building developers is that various sales transactions over the internet are not taxed and therefore those retailers who are better known for their ‘bricks and mortar’ presence suffer. Younger store patrons are often seen with their iphones scanning the bar codes of merchandise in well known stores and then simply walking away and ordering the merchandise via some internet distributor who can often undercut the price and eliminate the sales tax burden as well. The large retailers belittle the impact to store sales by stating that most patrons continue to ‘enjoy the social benefit of shopping’ and believe that most folks will continue to patronize the stores despite this growing trend by the ‘under 30 something crowd’. However the ‘millenniums’ seem to get most of their socialization needs met over the internet as well, and if they travel to socialize, can be found at sporting events and other entertainment venues. Some analysts represent that over 22% of all retail sales in some market segments occur over the internet vs. the more traditional market place transactions conducted in stores or malls.
Backfilling Empty Retail Space With Other Retail Tenants Is Unlikely to Make a Dent in Vacancy Rates
This trend is disturbing to traditionalists who demonstrate their deep denial by scrambling after the remnant of other viable retailers to backfill vacant retail properties. They hope to ’slice and dice’ large vacant boxes with smaller retail tenants who will be willing to pay comparable rents to those paid by the vacating party. This play has not panned out too well with today’s consumer who is less willing to part with cash for discretionary purchases of retail goods and services. Unfortunately the landlords have not recognized that these economic tendencies are likely the result of long term structural changes and not the result of a short term economic downturn.
‘Out of the Box Building Uses’ Often Not Considered When Leasing Retail Space
When posed with the logical alternative to backfill vacant space with other uses such as outpatient clinics, charter schools, churches, and even multi-family residential, those with substantial retail property holdings rebuff such overtures in public representations. However while turning the blind eye to these viable 21st century uses may seem inexplicable, this apparent ‘walk away tactic’ is more for the consumption of the retail brokerage community who the landlords seek to ‘incentive-ize’ to continue their search for retail tenant prospects. In private the discussions take on a different, more accepting tone. ANY viable use will be entertained as long as most of the store modifications can be borne by the tenant and not the landlord. This bodes well for the more creative and innovative brokers and architects who can help visualize and facilitate backfilling these vacant spaces with alternative uses in a cost effective and practical manner. RGA is one of those design companies.
Reliable Group, LLC Architects AA# 0003523 is a well-known architectural and construction management firm based in Tampa, Florida. RGA is headed by Dr. William Henry, both an architect and certified expert witness who issues opinions and testimony concerning design and construction related matters. Having designed over 250 landmark buildings in the state of Florida, he has represented and testified for both plaintiffs and defendants in cases involving code violations such as associated with design and construction defects as well as American Disabilities Act – ‘ADA’ violations. William Henry, PhD (Bill) may be reached at (813) 226.2220 or bhenry@rga-design.com.
Copyright © 2011 REAL Magazine
Links to this article are encouraged
The “world is becoming smaller every day”, or so the saying goes. Advances in technology and transport have certainly allowed many of us to easily experience other countries and cultures. Those experiences often lead to a desire to relocate to another country, or at least purchase a property there so you may enjoy spending longer periods in that area. Alternatively, certain parts of the world may be seen as better than others as far as real estate investment is concerned. Whatever the motivation, the decision to buy real estate in another country is not one that should be taken lightly.
In recent years we have worked actively in a number of countries, including The Bahamas, Barbados, Belize, Costa Rica, Dominican Republic, Mexico, Panama, Brazil, France, Italy and U.K. As international realtors, buyers often ask us how they should go about making a purchase of real estate in another country. Here are my top tips:
• Conduct extensive research on the country and area in which you are interested. There are many resources on the internet to help you do this before you even leave home.
• Be sure to check for developments that are planned for a particular area – commercial buildings, residential neighborhoods and infrastructure – roads, sewer, water etc. Look at the track record of local government and developers. Have they delivered on their promises?
• Check current and planned transport links. The addition of a new airport or road system can have a dramatic impact on an area’s desirability and property prices. Conversely, poor access can have a detrimental effect. For instance, consider the many British investors who bought property in parts of Europe based on the availability of cheap flights from discount airlines. As the recession took hold, many of those airlines discontinued service to certain locations, making it costly and time consuming for home owners to get access to their property, and limiting the market for resale.
• Spend as much time as you can speaking to locals – they know best what is going on in their area. This is easy to do when visiting the area, but consider using online social networks as well.
• Visit your desired destination at different times of the year. See how the seasons affect your enjoyment. The busy summer destination can be deserted in winter and vice versa.
• When working with a builder, developer or agent, check their credentials. Ask to talk to former clients. If you are buying a new property or something that is under construction, ask to see proof that the developer owns the land and has a license to build. In some countries you may need the services of an attorney to effectively check the financial standing and track record of business people.
• Always choose an English-speaking attorney, who has an understanding of the legal system in your chosen country. They can be located in that country, or in your home country but with experience of the market in which you intend to invest.
• Be aware that real estate agents in other countries may not be licensed or controlled by the government. They may not have experience in dealing with foreign buyers, and may not be in a position to give best advice. Look for an agent who has taken the time to invest in an international real estate qualification.
Photos:
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Bahamas beachfront cottage. Part of a development by a Sarasota-based company.
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Former home to the U.S. Embassy. Spectacular views across Worthing Beach in Barbados. Restore this imposing home to its former glory, or redevelop the land into a hotel or condominiums
Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and currently serves as the national Association of REALTORS®’ President’s Liaison to the United Kingdom. She is a Certified International Property Specialist (CIPS) and works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-504-9232 or Pat@PatriciaTan.com.
Copyright © 2011 REAL Magazine
Links to this article are encouraged
When the best golfers in the world are competing at their highest level of play, they often utilize two strategies called the “Think Box” and the “Play Box.” The Think Box is the place that is approximately three yards behind the ball where a golfer stands to begin their pre-shot routine. It is important to decide in the Think Box which club to use, the desired ball flight pattern, lining up your target, and the wind variable, etc.
Next, the golfer will cross the “Decision Line” and step into the “Play Box”. This is where there should be no other thoughts other than to aim, address the ball, and execute the golf shot. The main goal for all golfers is to never allow oneself to THINK IN THE PLAY BOX. The next time you tee it up, challenge yourself to play an entire round of golf using the Think Box and the Play Box. This will help your golf game tremendously and lead to lower scores.
Chad Jones teaches at The Concession Golf Club in Bradenton, Florida. He is a PGA of America Certified Instructor, Certifed Titleist Club Fitter, and has certifications in junior golf and golf fitness from the Titleist Performance Institute. He was named a 2009 and 2010 US Kids Top 50 Coach. Chad can be reached at ChadJones@pga.com for lessons.
Copyright © 2011 REAL Magazine
Links to this article are encouraged
A perfect marriage of contemporary design and Florida living can be found in the DEDON line of outdoor furniture, handcrafted by master weavers in the Philippines.
From such classics as the Orbit canopied loveseat and Hemisphere lounge chair by acclaimed designer Richard Frinier, to such outrageously cool pieces as the NestRest hanging chair by Daniel Pouzet and Fred Frety, DEDON continues to inspire and surprise.
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The story of DEDON is in itself quite interesting, and life-affirming. The company was founded 20 years ago by Bobby Dekeyser, the goalie for the FC Bayern Munich soccer team. A head injury landed him in a hospital bed in Munich, which gave him time to reflect upon his life. DEDON started right there in his hospital room. The only problem was, Bobby didn’t know yet what the company was going to do. Part of an entrepreneurial family, all he knew was that he wanted to work with family and friends in a nice environment.
The early days of DEDON were a time of exploration. The only experiment that held much promise was a synthetic fiber Bobby created with his uncle Seppi Hummer, an expert in plastics extrusion. The fiber was supple yet strong, natural in appearance, yet completely resilient to the elements.
Bobby patented the secret formula as DEDON Fiber, but was unsure of what to do with it – until he attended a furniture show in Cologne in 1991. There he saw some exquisitely woven rattan chairs, loungers and daybeds from the Philippines, offered by entrepreneur Manny Climaco. They seemed like the perfect application for his proprietary fiber. Six days later, he was on a plane to the Philippines with a roll of DEDON fiber slung over his shoulder, and the rest is history.
Bobby relocated his family to the Phillipines to oversee the integration of this new business model. This move was what DEDON needed and the company rapidly expanded. Six months later, the family returned to Germany. They decided to move to the countryside outside of Lüneburg, converting a centuries old farmhouse into DEDON’s first headquarters.
Today, DEDON is the global leader in fine outdoor furniture. The company still employs family and friends, as well as 3,000 other workers at its headquarters in Lüneburg and in two shifts at its manufacturing facilities in Cebu Island in the Philippines.
With a separate showroom for outdoor furniture, Home Resource carries a range of pieces from many DEDON collections. This includes the latest pieces by Philippe Starck, one of the most well known designers in the New Design style, as well as Lounge, Panama, Seashell, Slim Line, Barcelona, and the new Tribeca line by Frinier.
Until recently, DEDON was distributed in the U.S. by Janus et Cie, but now sells directly to retailers. We are confident our relationship with DEDON will perpetuate Home Resource’s reputation for showcasing the world’s leading and most exciting furniture brands.
Michael Bush and his wife, Kathy, are the owners of Home Resource, the leading contemporary and modern furniture retailer on Florida’s Gulf Coast, located at 741 Central Avenue in downtown Sarasota, Florida. For more information, visit www.homeresource.com or call (941) 366.6690.
Copyright © 2011 REAL Magazine
Links to this article are encouraged
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