Kodiak Capital Advisors
 
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  1. Loan Work Outs

    In today's economy and the downturn created in the Commercial Real Estate (CRE) industry property owners are struggling to meet their loan obligations. Property values have declined significantly causing disproportionate ratios between loan payments and operating income to satisfy these payments. There are significant other economic forces outside the control of many investors/owners that force serious consideration of all financial options available when dealing with commercial loans.

    Bretton Wood's principals have experienced several "down turn" real estate cycles and have the hands on experience in loan workout strategies whether they are Special Servicers for CMBS Loans or portfolio loan managers. Over 30 years of experience we have created proven skills and negotiating strategies to assist clients with effective work out strategies.

  2. Restructured Loans

    Those loans whose terms have been modified because of deteriorating financial conditions of the borrower, to provide for a reduction of either interest , principal, and term. Once an obligation has been restructured because of such credit problems, it continues to be considered restructured until paid in full or, if the obligation yields a market rate, until the year subsequent to the year in which the restructuring takes place. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a restructured loan.
  3. 1031 Exchange Rules and Requirements

    The primary 1031 exchange rules and requirements include: 1) same taxpayer: the taxpayer who sells is the taxpayer who buys, 2) property identification within 45 calendar days post closing of the first property, 3) purchase of the replacement property within 180 calendar days, 4) trading up: the price of the replacement property is equal to or greater than the old or relinquished property, 5) hold time supports the intent to hold for investment, and 6) related party transaction regulations.

    1. Same Taxpayer

      The tax return and name appearing on the title of the property that sells must be the tax return and titleholder that buys. A single member limited liability company (smllc) is considered a pass through to the member, consequently, the smllc may sell and the member may purchase in their individual name.
    2. Property Identification

      Post closing of the first property, the Exchangor has 45 calendar days to identify to either the accommodator or the closing entity the addresses of the potential replacement properties. In a reverse exchange where either the replacement or relinquished property is parked, the Exchangor has 45 days to submit a final list of properties for sale or purchase.
      • Three property rule - can identify any three properties regardless of value
      • Two hundred percent rule - can identify four or more properties as long as the value does not exceed 200 percent per cent of the property sold
      • 95-percent exception rule - if the value exceeds 200 percent, then 95 percent of what is identified must be purchased
    3. Replacement

      Within 180 calendar days following the closing of the first property or extension of the Exchangor's tax return, the property must be purchased.
  4. What is a Delaware Statutory Trust?

    The Delaware Statutory Trust, often referred to by its nickname of DST, is a separate legal entity drafted as a trust under the laws of the state of Delaware. The DST is also known as a Delaware Business Trust. The Delaware Statutory Trust is considered to be an investment trust that will be classified as a trust for federal tax purposes. As such, the DST is classified as a "pass-thru" entity and a "disregarded entity" so that any and all income tax consequences will "pass-thru" to the investor's individual income tax return.

    Property Held by Trustee of the Delaware Statutory Trust

    Investors no longer hold legal title to the investment property as they did under the Tenant-In-Common or TIC investment structure, but instead acquire a beneficial interest in the Delaware Statutory Trust or DST. They are now considered a beneficiary of the Delaware Statutory Trust of DST. Legal title to the investment property is now held in the name of the Trustee of the Delaware Statutory Trust.

    Delaware Statutory Trust Qualifies for 1031 Exchange

    The purchase or sale of a beneficial in a Delaware Statutory Trust or DST qualifies for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code ("1031 Exchange"). Investors can sell their existing investment property and 1031 Exchange into a beneficial interest in one or more Delaware Statutory Trusts or DSTs. They can also sell their beneficial interest in a Delaware Statutory Trust or DST and 1031 Exchange into another DST or into other property selected through the assistance of their Realty.

    Revenue Ruling 2004-86

    The Internal Revenue Service ("IRS") approved the use of Delaware Statutory Trusts or DSTs for 1031 Exchange replacement property solutions when they issued Revenue Ruling 2004-86.

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RECENT NEWS

11/17/16: Kodiak Capital Advisors Leverages Delaware Statutory Trust (DST) to Acquire Plano Hobby Lobby Store...



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Phone: 214.953.1031 Fax: 469.399.7360