Intangible Assets on Dirt
RealAdvice June 2, 2019
Eliminate property tax underwriting uncertainty
and maximize shareholder value.
Stop paying taxes on non-taxable assets today.
RealAdvice has pioneered a landmark metavaluation method that integrates commercial property valuation and business valuation that minimizes transfer and subsequent property taxes on the transfer of income-producing real property valued $10 million or greater. It reduces both state and local tax (SALT) liabilities and maximizes shareholder value through dramatically increasing EBITDA (NOI) beginning year one of the investment holding period.
Our IRS, FASB, SEC, and state law compliant ProperTax analysis separates the taxable and non-taxable assets being transferred. Our process assures that only the real property component of the overall asset is taxed when a building is sold. In most States intangibles are not taxable; the impact is significant. Executing on this strategy before the closing avoids over reporting taxable assets. Buyers benefit from a stepped down basis for property tax assessments going forward. Sellers pay lower transfer taxes with no impact on basis. Importantly, there is no delay to your normal transaction process. Reduced pass-thru expenses enhance leasing, increase the certainty of cash flow, reduce investment risk, and maximize shareholder returns.
This is not cost segregation!
RealAdvice MetaValuation is synergistic with cost segregation reporting, but must be executed before you close.
Over 200% ROI for sellers, over 1400% ROI for buyers.
Unlike traditional property tax representatives, RealAdvice virtually eliminates the uncertainty around underwriting an owner’s largest operating expense, and simultaneously eliminates reassessment friction with the assessor. RealAdvice helps you close more deals by reducing asset level property tax liabilities and the associated traditional service provider expenses in Year One. We do not replace your current property tax service provider, so no existing relationships are disrupted. Our savings can increase Year One NOI by 5% to 25%.
Recent Clients
Florida Disney Resort
Purchase price: $336.9M
Nontaxable portion of purchase price: 47.3%
Buyer's annual property tax savings: $4.3M
Annual NOI/EBITDA enhancement: 24.3%
RealAdvice value enhancement: $3.9M (8.9%)
Buyer ROI: 1,567%
Purchase price: $336.9M
Nontaxable portion of purchase price: 47.3%
Buyer's annual property tax savings: $4.3M
Annual NOI/EBITDA enhancement: 24.3%
RealAdvice value enhancement: $3.9M (8.9%)
Buyer ROI: 1,567%
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Rock solid.
Our team are top professionals in their fields: they hold the highest credentials, have been retained in hundreds of cases, valued billions worth of property, and have respected industry textbooks to their credit. Our case studies prove that RealAdvice metavaluation works.
RealAdvice MetaValuation methodology:
- Valuation of more than $2B of diverse commercial property assets
- Successfully applied in dozens of states
- Both single assets and portfolios
- Vetted and approved by courts and regulators
- Internal training for real estate departments of major national law firms
- The basis of a successful, landmark real estate valuation case for our client, Walt Disney Parks and Resorts (Real Estate Issues, Vol. 24 #11).
- Maximizes shareholder value by enhancing Year One cash flow
- Gives you a competitive edge in transactions
Unlike federal tax deferral strategies, RealAdvice increases an investment’s Year One cash flow. RealAdvice ProperTax analyses are synergistic with your cost segregation reporting.
