Updated: Nov 21, 2020
Here at Sperry Commercial - Flint Brokers & Associates, we’ve established our name as a locally driven, customer-dedicated commercial real estate brokerage in Melbourne FL, and greater Brevard County, known locally as Florida’s Space Coast. Our partnership with Sperry Commercial Global Affiliates, and our close association with the CCIM Institute, solidifies our position as an industry leader in the investment property space, and adds to the value we provide our clients with access to a dedicated network of global affiliates.
Whether you’re looking for services related to the purchase, sale, or lease, of commercial investment real estate, we can act as your local, trusted commercial real estate broker in Central Florida, and provide expert guidance for your unique investment strategies.
An income property can be described as any asset that is not used directly by the owner, but is acquired strictly for investment purposes. In the commercial real estate space, this can include industrial, retail, office, hospitality, or even multifamily residential assets. Regardless of the sector, these investment vehicles generate returns for investors through the following mechanisms:
The tax code is very favorable to real estate investors. Two of the greatest benefits are tax depreciation, and mortgage interest deductions, both of which allow an investor to legally reduce their tax burden. Real estate is the only investment vehicle which will allow an investor to take deductions against borrowed money.
Income (also known as Net Operating Income or NOI).
Gross income, minus operating expenses, before debt service and taxes.
Loan principle is reduced from the income derived from the property, increasing the investor's equity position.
Although investors can legally depreciate their real estate investments, income properties actually appreciate over time, giving the investor a stronger equity position for every year the asset is owned.
When clients look to engage in major commercial transactions related to the purchase, sale, or lease of real estate, they typically employ the services of a dedicated commercial real estate agent or broker. Commercial real estate investment transactions involve many nuances that require an experienced and trusted advisor who knows the assets, and the players.
Here at Sperry Commercial - Flint Brokers & Associates, we not only have extensive training in investment real estate to assist our clients in the acquisition and disposition of investment properties, but we’ve also developed a thorough database, and significant understanding of local commercial income property investment opportunities here in Melbourne, and greater Brevard County Florida.
Why Choose Commercial Investment Properties
Commercial investment real estate offers individuals one of the best avenues for building significant wealth through the four methods of generating revenue, described as tax savings, income, principal reduction, and appreciation. It is superior to other asset classes due to its relative stability, and the potential for investors to increase their yield through the process of borrowing money for additional leverage, while simultaneously reducing the investor’s tax burden.
One cannot mention the tax advantages of owning real estate without discussing the power of the 1031 Exchange.
While investors can depreciate a property to defer their taxes during their time of ownership, the tax code requires that an investor must pay back 25% of that amount when the asset is sold. In addition, the sale of a property will most likely realize capital gains, which is the surplus of the sales price minus the original acquisition, along with other capital investments made during the ownership of the asset. These capital gains are also taxable.
However, the 1031 Exchange permits an investor to defer the 25% cost recovery for depreciation, and the taxes on the proceeds from capital gains, provided that investor "exchanges" into another "like kind" property of equal or greater value.
Keep in mind, there are very specific rules, and deadlines to follow, to execute a successful exchange, and we recommend an experienced advisor to help facilitate the process. At Sperry Commercial – Flint Brokers & Associates, we are very familiar with the 1031 Exchange process, and can assist you if you are considering the alternatives.
Full Commercial Real Estate Brokerage Services
With years of advanced commercial real estate education, in addition to our extensive commercial real estate transactional experience, and our utilization of the latest data technologies, we have established ourselves as one of the most trusted and experienced commercial real estate agency in the industry. Whether you are currently in the market to purchase an income-generating commercial property, or are looking for an agent or broker to provide investment insight, we are here to help.
Contact Us Today to learn more about some unique income-generating commercial properties available on Florida's Space Coast, in the Melbourne area, or anywhere in Central Florida.