Thousands of Dollars in Real Estate Tax Benefits in Stimulus Bill

The American Recovery and Reinvestment Act of 2009 — otherwise known as the 2009 Stimulus Bill — has a nice surprise for commercial real estate investors included among its $787 billion in initiatives to get the economy going again. The Act extends the IRC Section 179 deduction of $250,000 (double what it had been in the past) and a provision for 50% bonus depreciation into 2009. Those benefits had been scheduled to end in 2008.

“The tax benefits are so significant that they can fund all or a large portion of a buyer’s down payment,” said Ralph Borelli, chairman of Borelli Investment Company. With the use of the cost segregation accounting method, buyers can identify and segregate building components and property improvements by the their true useful lives — accelerating the depreciation on 5- to 15-year property to reap the substantial savings.   Read Complete Article - Download Newsletter(PDF)

Borelli Property Managers Taking Downturn in Stride

When you’ve been around since 1955 and been through all kinds of markets — good and bad — there’s very little that can rattle you. Not that any individual at Borelli is that old! But when Borelli Investment Company celebrated its 50th anniversary in 2005, it reached a milestone few Silicon Valley real estate companies achieve. That longevity has given us a better perspective on the current downturn than many of our competitors. Rather than hiding our head in the sand, our property managers are working harder than ever to serve our property owners. We’re actually adding staff and aggressively seeking new properties to manage. And we are as committed as ever to providing our property owners superior returns. It’s all based on our time-tested and proven business model to manage properties in any kind of market.   Read Complete Article - Download Newsletter(PDF)

Think All the Loan Money Has Dried Up? Think Again

If you have thought about purchasing an office condo for your business but figured no loan money was available due to the frozen credit markets, you are in for a pleasant surprise. According to CDC Small Business Finance, the nation’s leading lender of fixed-rate SBA-504 commercial real estate loans, there’s plenty of money available today for qualified buyers. Equally important, the fundamental underwriting standards haven’t changed appreciably, so if you could have qualified several years ago, you should still be able to qualify today. SBA-504 loans require only 10% down. Several loan fees have been eliminated due to funding in the 2009 Stimulus Bill. And rates on SBA loans are at or near all-time lows, making them highly competitive with conventional financing. It’s a real window of opportunity!    Read Complete Article - Download Newsletter(PDF)

Staff Spotlight: Tom Zolezzi and Chris Anderson

Land sales are not for everyone. Deals can be exceptionally complicated — with multiple parties involved — and require years or even decades to reach fruition. Borelli Investment Company is one of the few companies that specializes in transactions for bare land — and Tom Zolezzi and Chris Anderson, who have helped put together a number of major transactions in recent years — are two of the key reasons why.   Read Complete Article - Download Newsletter(PDF)

Featured Borelli Development Projects
Club Auto Sport - Car Condominiums
Tantau - Cupertino Headquarters-Class Bldg
Market Park - Silicon Valley-120 Acre Development Opportunity
Restaurant Pad - Fontana, CA
Junction Office Condominiums - Only 6 remaining!

COMMERCIAL REAL ESTATE INSIDER is published periodically by Borelli Investment Company. For more information about Borelli’s services, visit www.borelli.com, or e-mail buddy@borelli.com. If you’d like to add an individual or business to our electronic distribution list for this and future issues of the Insider, CLICK HERE.
© 2009 Borelli Investment Company. All rights reserved.

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