Questions and Scenarios Page 1


	Questions and Scenarios
MORE QUESTIONS.. SERVICES OFFERED	What are the factors involved in finding a suitable investment property?	There are many factors involved in finding the right real estate investment for you. Begin with how much money you have to invest and the area in which you would like to invest -- are you willing to invest nation-wide, or would you like to be able to drive by your investment? What is your risk tolerance? Are you willing to borrow money against the property, and if so, are you willing to put up other assets as collateral? What kind of property would you like to own -- industrial, retail, multi-family, hotel. Each type of property has it proponents and crrtics. For more infomation and a questionnaire, please visit FINDING THE RIGHT INVESTMENT
	We've heard about "1031 exchanges." How do they work? Can we qualify? What do we have to do?	1031 exchanges are an excellent means of preserving wealth. Taxes are deferred so long as you are careful to obey the strict guidelines of the IRS. Practically any type of real estate can be transferred using a IRS Section 1031 tax-deferred exchange, however, real estate cannot be exchanged for other kinds investments (for example, stocks and bonds, etc.). Please visit the complete discussion on 1031 EXCHANGES for more information.
	When we moved into our new house, we decided to keep our first home and use it for rental property. It has appreciated, but it also requires a fair amount of work. Would we be able to sell our house and invest in a commercial property? Would we make more money? Would it be riskier? What would be the tax consequences?	Owning residential property as a real estate investment can be very different than owning commercial property, or even multi-family residential property. Typically, the residential property owner is interested in realizing appreciation. Owning residential real estate can be management intensive. Oftentimes the residential owner does not expect to receive monthly cash flow, but is content to break even or perhaps make a slight amount of money. Residential property has typically been a safe investment. Residential property is typically fairly easy to obtain loans.
	We have a commercial lease. Can we be sure that the Landlord is charging us the correct amount of rent - Are the CAM charges being billed correctly? Are the measurements of the space correct?	Commercial leases are typically complex and more often then not, written by the Landlord's attorney, with the Landlord's best interests in mind. Furthermore, leases are often passed along from property to property, often carrying inappropriate language or even mistakes. Tenants should carefully review leases prepared and presented by Landlords and remember that "everything is negotiable." A careful review of a commercial lease will often reveal overpayment or fundspaid by a tenant which are not owed, or inflated. Please visit ANALYZING THE LEASE on other services offered by Phase One Realty.