Adams County Colorado 1031 Real Estate Apartments
YOUR NAME AND
ADDRESS: Make sure you double-check all
addresses and phone numbers. If there is any reason not to provide your own name and
address then use a broker or other intermediary.
YOUR PHONE AND FAX
NUMBERS: Do not forget the area
PROPERTY LOCATION: The obvious information is the street
address, city and zip code. Not so obvious but important are directions on how to
get the property. A sketch or photograph is helpful if that information is a selling
tool by showing proximity to important landmarks.
DESCRIPTION: A clear description of the property is
always a good selling tool. "A modern, five-story, blue-glass-covered medical
building, one block from Memorial Hospital, consisting of 55,000 square feet of rented
offices....". Descriptions should not oversell the property but be enough to
pique the imagination.
VALUE: Unless the property is very expensive, or
some other kind of property where the price would be misleading in view of the other
information (such as an apartment house priced at $ 200,000 per apartment with monthly
rents of only $ 1,000 per apartment), you should always include the price. By
putting the price in a presentation you qualify the prospects. The price you
establish should be supported by the other information. Overpriced property just
sits on the market until someone comes along and makes you an offer you will take.
If you are in no hurry and have all the time in the world, you can, as conditions suggest,
increase the price (value) of the property.
DEBT AND DEBT SERVICE: How much is the mortgage and who holds it?
If there are several mortgages on the property, list them all, for example: "as of
July 31, 1991, the first mortgage of $ 250,000, payable at $ 2,500 per month at 12 percent
interest only for a remaining 10 years is held by United First Federal Savings and
Loan". It is not necessary to go into great detail. If there is a balloon
payment, be specific as to the actual date of the balloon. If there is a balloon
payment of $ 100,000 due in three years with continuing interest-only payments until the
last payment at the end of the 10th year, you would say "As of July 31, 1991, there
is a first mortgage, held by United First Federal Savings and Loan, of $ 250,000 payable
interest only at 12 percent per annum, monthly payments of $ 2,500 until July 31, 1994, at
which time $ 100,000 of principal balloons. Payments are then $ 1,500 per month
(interest only at 12 percent) with the final principal due in full on July 31, 2001".
Mention other details only if they are a sales tool, for example a mortgage that could be
subordinated to additional financing without being paid off.
BENEFITS: You may list all the benefits as you see
them, or be more specific as to the potential taker you are making the presentation to.
You would approach a fast-food chain with different benefits than you would a car
dealer, even though many of the attributes of the property would appeal to both.
YOUR MOTIVATION: In essence, why are you disposing of this
property? The obvious answer is that the property is not doing for you what you want it to
accomplish. This suggests something negative about the property; you need to be
positive in your motivation. "Owner wants to acquire larger apartment
complex" or whatever goal you want to obtain is best. By giving the specific
directions you want to go, you open the door to other real estate investors who may have
what you want and who are willing to take what you have to meet their own goals.
BUY/EXCHANGE: This is an
extension of your motivation. If you have a clear need then state it.
"Owner wants to open new fast-food restaurants in Denver Colorado and will take one
or more commercial locations in exchange".
STATE THAT YOU ARE THE
OWNER: If you are making the
presentation yourself rather than using a broker, be sure you make clear that you are the
owner. "For sale/exchange by owner" generally does the trick nicely.
WHAT YOU CAN ADD: If you have other property or items,
including cash, that you can add to acquire a larger property, list them. For
example, "To exchange up, owner can add other Colorado and California real estate,
value to $ 550,000, plus up to $ 50,000 cash". The word "cash" always
FOR ALL OF THE INFORMATION YOU WILL NEED,
2953 S. Peoria St.
Aurora, Co 80014
DIRECT TELEPHONE: 303-759-8500
Property Investments, 1031 Exchanges, Land
Development Services for YOU!
This material is designed only to
provide information concerning I.R.C. Section 1031 Tax-Deferred Exchanges. It is not
intended to provide or replace legal, accounting or other professional counsel.
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