Frequently Asked Questions
How do I use a 1031 tax deferred
exchange to get an interest free loan from the government?
The government has developed a method to let you
use the taxes you owe on the sale of a property to buy more
property. It is the 1031 tax deferred exchange. They will
let you continue to use the tax money you owe as long as you
keep it in investment real estate. When you sell a property
you will owe (assuming it has appreciated) federal capital
gains tax on any gain you realize. Depending on what State
the property is located you may also owe a State tax on the
gain. All of the tax obligation can be deferred, essentially
throughout your lifetime, as long as you continue to keep it
invested in real estate, thereby effectively getting an
interest free loan from the government. Click
here for more details (courtesy of IPX Exchange) or contact
the 1031 tax deferred exchange experts at
Where can I find a loan?
MVP COMMERCIAL will analyze your situation and direct you to a
lender(s) who can handle your transaction as efficiently and
economically as possible. You may need a conventional loan, a
loan with a SBA guarantee, mezzanine (bridge) financing, an
equity partner(s), cross collateralization, seller carry-back
or some combination of the above. MVP COMMERCIAL
also has sources for construction financing and participation
Why should I use a Broker?
Your job is owning and running a hotel or hotels. Our
job is assisting in buying and selling hotels. Yours is a
full time job and so is ours. We have the expertise to help
you maximize your return on your investment. We screen the
market and present you with the best alternatives. We
structure exchanges, locate financing, find equity, place ads,
send letters, show property, discover defects, analyze leases,
obtain entitlements and negotiate deals. We work for you.
What is site analysis?
Site analysis looks at a property and projects the costs
and benefits of ownership. If it is a vacant site
demographics, demand generators, traffic flows, entitlement
costs, labor pool, building costs and the competition is all
used to develop projections and recommendations. If it is an
existing hotel, the flag, the marketing, the condition, the
management and the overall market are used to develop
recommendations. The analysis may tell you not to do the deal
you are contemplating or to restructure the deal to better
position yourself and the property.
What is a Broker Opinion
A Broker Opinion of Value will tell you the market value
of your property, assuming a willing seller and buyer. It may
suffice in some tax audits, settlements, probates and
situations where a certified appraisal is not required. It
will give you an analysis of the property with recommendations
on maximizing the value.
are the benefits of different ownership vehicles?
Sole proprietorship, tenants in common, limited and
general partnerships, LLCs, Sub-S corporations, C corporations
and other ownership vehicles all have certain advantages and
disadvantages. Depending on your situation and the State the
differences must be understood before taking title to a
property. We work closely with local attorneys to help you
decide the best vehicle for your situation.
What should I look for in analyzing a hotel to
Location is always paramount, however competition,
exposure, land costs, building condition and changing
demographics all impact the decision. Click
for a good article by Stephen Rushmore on hotel analysis.