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 to minimize transfer and subsequent property taxes on the transfer of income-producing real property valued at $10 million or greater. It reduces both state and local tax (SALT) liabilities and maximizes shareholder value by dramatically increasing EBITDA (NOI) beginning on Year One of your investment holding period.
Our IRS, FASB, SEC, and state law compliant ProperTax Analysis separates the taxable from the non-taxable assets transferred. This analysis assures that only the real property component of your overall asset is taxed when a building is sold. Because, in most states, intangibles are not taxable, the impact of executing on this strategy before the closing is substantial. It avoids over reporting your 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 that clouds 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; no existing relationships are disrupted. RealAdvice can increase Year One NOI by 5% to 25%.
Recent Clients
Florida Disney Resort
Purchase price: $341.9M
Nontaxable portion of purchase price: 39.2%
Buyer's annual property tax savings: $4.2M
Annual NOI/EBITDA enhancement: 16.4%
RealAdvice value enhancement: $71.0M (21%)
Purchase price: $341.9M
Nontaxable portion of purchase price: 39.2%
Buyer's annual property tax savings: $4.2M
Annual NOI/EBITDA enhancement: 16.4%
RealAdvice value enhancement: $71.0M (21%)
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Rock solid.
Our team is comprised of top professionals in their fields: they hold the highest credentials, have been retained in hundreds of cases, have valued billions worth of property, and have published respected industry textbooks. Our case studies prove that RealAdvice MetaValuation works.
RealAdvice MetaValuation methodology has been:
- Successfully employed to value more than $4.1B of diverse commercial property assets
- Successfully applied in dozens of states
- Effectively applied to both single-asset and portfolio ownership transfers
- Vetted and approved by courts and regulators
- Requested for internal training by the real estate departments of major national law firms, as well as by both tax and legal associations
- Served as the basis of a successful, landmark real estate valuation case for our client, Walt Disney Parks and Resorts (Real Estate Issues, Vol. 24 #11).
- Consistently utilized to maximize shareholder value by enhancing Year One cash flow
- Proven to afford RealAdvice clients a competitive edge in transactions
Unlike federal tax deferral strategies, RealAdvice increases an investment’s Year One cash flow. RealAdvice ProperTax Analysis is synergistic with your cost segregation reporting.
