Frequently Asked Questions
How Do I Monitor My Investments?
Success in investment requires monitoring. We make monitoring your investments easy. Trust our dedicated team to provide you with the necessary processes to properly protect your assets. Use the Owners Portal to login to your account and view your Mission portfolio.
What Is A 1031 Exchange?
In simple terms, 1031 Exchange is an Internal Revenue Code (IRC) which allows an individual or business to defer the capital gains taxes on one property to another. With a properly structured 1031 exchange an investor can reinvest these proceeds into a new property, while deferring all the capital gain taxes on any exchange of a like-kind property. As an investor sells property A to purchase property B, the value on property B has not changed. Where the value is being held is the only thing to change.
Why Do I Need A Market Valuation Or Broker’s Opinion Of Value?
A properly prepared BOV may assist with a number of avenues surrounding your property. It can be used to determine the value of a property for many different purposes.
Common reasons include:
- Valuation to buy or sell a property
- The protest of real estate taxes
- Determining value in order to buy a partner’s or investor’s interest in a property
- Determining property value for estate planning or inheritance tax purposes
- The valuation of a business (should the business own the property)
- Determining the amount of a new loan, or refinancing an existing loan
What Advantages Does A Broker’s Opinion Of Value Provide?
Most often, market valuations are prepared by a member of the Appraisal Institute (MAI), using an industry-determined process, in the form of a formal valuation, or “appraisal”. In order to determine value, appraisers use replacement cost data, market data, and sales comparable data. Typically, the appraiser obtains the market and sales data directly from the brokerage community.
Property owners requiring an opinion of value, but who do not require a formal appraisal, can achieve their goal by engaging an experienced professional broker at Mission Commercial Brokerage & Investments. The broker performs what is known in the industry as a Broker’s Opinion of Value (BOV). In today’s environment of distressed sales and limited sale and lease comparables, lenders will generally seek both a formal appraisal and a BOV in order to best determine and understand current value.
BOVs are generally preferred for sale valuations, but can be utilized to determine market lease rates as well.
How Do Our Brokers Determine An Opinion Of Value?
When performing a BOV, your Mission Commercial Brokerage & Investments broker visits the property, gathers information regarding its physical attributes and those of the surrounding area, and reviews the market for recent comparables. The broker will also review the market for currently available properties that are similar to the property being valued. If appropriate, the broker will review tenant leases and property expenses. Market trends are also factored in, as are any of the subject real estate’s other unique attributes.