Managing the Property Tax Burden for CRE Loans: Sept. 23
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The presentation will discuss how a borrower can better control one of their largest operating expenses, property taxes. The discussion will cover how state property tax reporting differs from the standards relevant to federal income tax reporting. Specifically, the treatment of intangible personal property – i.e., “business value”– is generally excluded from the value used by state and local governments to set assessments on commercial real estate, while it can be included for federal tax reporting in many circumstances. By properly identifying such assets at the point of sale, the purchaser can reduce their property tax burden while the lenders increase the security and debt service coverage ratio of the accompanying loan.
The presentation by industry subject matter experts will provide an overview of the core concepts, followed by real world application and actionable steps that lenders as well as property buyers and sellers can use to improve their chances of a successful outcome when securitizing commercial real estate. The presentation will also include comments and experiences from professionals involved in these transactions, both on the appraisal and the lending sides.
Date/Time:
• Tuesday, Sept. 23 (1:00 PM – 2:00 PM ET)
Objectives:
• Understand differences between state and local rules for identifying property
• Identify real property vs. personal property vs. intangible personal property in different contexts
• Understand impacts of proper identification on underwriting loans
• Provide guidance on how to approach proper identification and allocation
Experience Level:
• Intermediate
Target Audience:
• Loan Originators and Analysts
• Loan Processors and Underwriters
• Counsel
• Strategy Professionals
Speaker(s):
• Kevin Herzberg, Chief Financial Officer, RealAdvice Inc.
• Bradley S. Tennant, Senior Managing Director, RealAdvice Inc.
• Steve A. Cohen, Senior Director, Wholesale CRE, Synovous
