Wednesday, December 22, 2010

The Most Interesting CRE Bloggers in the World

My friend and colleague from Houston, Texas, Coy Davidson, has penned a post entitled, "The Most Interesting CRE Bloggers in the World." Location Advice is mentioned from the post that we authored last fall entitled "Five Gotcha Clauses..." Thanks for the love Coy and I hope that 2011 is VERY good to you! You can read the entire post by clicking here.

Monday, December 20, 2010

Newly Designated Enterprise Zones for California

Three new Enterprise Zones were conditionally designated on December 15, 2010. This will be good information to add value to any Anaheim clients/prospects. You can contact Michael Matter, contact info below for further information!

Anaheim Enterprise Zone
In Anaheim the Enterprise Zone boundaries include nearly all of the City’s industrial and commercial areas and approximately 80% of all Anaheim businesses.

Santa Clarita Valley Enterprise Zone
The Santa Clarita Valley Enterprise Zone supersedes the previous 8,500 acres designated for the city and extends the life for 15 years from the designation date. The new zone encompasses more than 14,000 acres of commercial and industrial land in the Santa Clarita Valley. The Enterprise Zone will stretch from west of Interstate 5 to Highway 14 and Placerita Canyon Road.

Harbor Gateway Communities Enterprise Zone
This zone will run along the southern 110 Freeway in Los Angeles and should include parts of Torrance P.O., San Pedro, Harbor City,Wilmington, Rancho Dominguez, Los Angeles, Walnut/Huntington Park, Florence-Firestone and Willowbrook.


Michael C. Matter Consultant
The Enterprise Zone Company
16 North Marengo Ave. Suite 210
Pasadena, CA 91101
Cell 626 277 6682
Tel 626 356 3013 ext. 106
Fax 626 356 3233

Friday, December 17, 2010

The Estate Tax Bill Slated for Signature

What follows is a synopsis of the Estate Tax Bill before President Obama for signature as compiled by Gregory W. Beck, CPA, and reproduced from

“RIA Newsstand 12/17/2010”

Estate Tax Relief

EGTRRA phased out the estate and generation-skipping transfer taxes so that they were fully repealed in 2010, lowered the gift tax rate to 35% and increased the gift tax exemption to $1 million for 2010. Under the EGTRRA sunset rule, the estate tax was set to return in 2011, with the top estate and gift tax rate reverting to 55%. For 2010, under EGTRRRA, the basis rules for inherited property were to be similar to the gift tax rules but with many opportunities for heirs to get increases in basis. Under the EGTRRA sunset rule, the pre-EGTRRA step-up in basis rules were to return for 2011.

The Senate passed 2010 Tax Relief Act:

· Lowers estate and GST taxes for 2011 and 2012 by increasing the exemption amount (technically, the applicable exclusion amount) from $1 million to $5 million (as indexed and rounded to the nearest multiple of $10,000 after 2011) and reducing the top rate from 55% to 35%.

· Allows estates of decedents dying in 2010 to choose between (1) estate tax (based on a $5 million exemption and 35% top rate) and a step-up in basis or (2) no estate tax and modified carryover basis. In technical terms, the Act achieves this choice by making the estate tax and basis changes effective retroactively for estates of decedents dying after 2009 but allowing the opt-out choice for estates of decedents dying in 2010.

· For gifts made after Dec. 31, 2010, reunifies the gift tax with the estate tax, with an applicable exclusion amount of $5 million and a top estate and gift tax rate of 35%.

· Provides that the GST tax exemption for decedents dying or gifts made after Dec. 31, 2009, is equal to the applicable exclusion amount for estate tax purposes (e.g., $5 million for 2010). Therefore, up to $5 million in GST tax exemption may be allocated to a trust created or funded during 2010. Although the GST tax is applicable in 2010, the GST tax rate for transfers made during 2010 is 0%. The GST tax rate for transfers made in 2011 and 2012 will be 35%.

· For a decedent dying after Dec. 31, 2009, and before the enactment date, provides that the due date for filing an estate tax return, making any payment of estate tax, and disclaiming an interest in property passing by reason of death is not to be earlier than the date that's nine months after the enactment date.

· Effective for estates of decedents dying after Dec. 31, 2010, allows the executor of a deceased spouse's estate to transfer any unused exemption to the surviving spouse.

Gregory W. Beck

Certified Public Accountant

Gregory W. Beck, CPA

A Professional Corporation

1748 W. Katella Avenue, Suite 107

Orange, California 92867

714/538-1040 Voice • 714/771-7580 Fax • 714/403-0809 Cell

Tuesday, December 14, 2010

DON'T use these terms, PLEASE

I provide location advice to owners and occupants of industrial buildings in southern California. As we approach 2011...WOW...where did the decade go??...I believe we should eliminate certain terms that have found their way into our business conversations. Recently I posted a question, Are you Authentic? If you didn't see the post, you can find it by clicking here. I believe that truly authentic people would NEVER use the terms below. So in order of our dislike of them, here they are...the terms you should NEVER use in business:

Number Seven: No Worries
The least offensive in my opinion, yet still overused

Number Six: Not a Problem
More offensive than "No worries" but incredibly common

Number Five: Be Proactive
Great concept...the opposite of "re-active" which communicates a business's desire to preempt an issue before it becomes and issue BUT, OMG, give it a rest!

Number Four: At the End of the Day
OK, we get are tying to place emphasis on the last point of the discussion!

Number Three: The Bottom Line
A variation of "number four". Since number four came along we hear this term used in fewer conversations...thank goodness!

Number Two: To be Perfectly Honest
I hear professional athletes say this a lot. This is the moment...wait for it...that I am going to really "level" with you. The problem is that the opposite is communicated...that you have not "leveled" with me before now. I realize the need for an exclamation in business communication. It is simply that "candid" or "frank" or "in my view" or "in my opinion" provide the emphasis without the transparent and insincere comment of "to be perfectly honest"

and Number One: Leverage our Core Competencies
Whoever coined this saying should be shot at dawn...not shot completely...just shot a little! I admit to have been educated at a mid south major SEC (then it was the SWC) state university in the late seventies...Go Hogs!! but really?? We understand that your company is REALLY good at certain things...maybe even the best, but not everything, but how about just saying it? We also get that you need to rely on others (leverage) but I have an about just saying that "we realize that we cannot do everything...consequently, we have these partners that we team with that will provide the products, services, etc. that we cannot provide..." See what I mean...authentic.

So here we go...No worries. When you engage our company, it's not a problem. We are extremely proactive in our approach to your problem. Because at the end of the day, we understand the bottom line for you is who not what company. May we be perfectly honest with you? We believe that we are the best solution for you because we leverage our core competencies to meet every situation that we encounter...I am truly going to throw up!! Be Authentic People!!

Monday, December 13, 2010

What Motivates a Company to Relocate? Five Reasons (part two of five)

I provide location advice for owners and occupants of industrial buildings in southern California. The second part of this five part series entitled "what motivates a company to move" involves the chance to own a location. In a recent post, we discussed the characteristics of most occupants that decide to buy their location. You can view this post by clicking here. Part one of this five part series discussed rent savings as the primary reason that a company would consider relocation. You can read part one by clicking here.
A Chance to Own:
So today we discuss the decision to own a location. Assuming of course that an occupant possesses the characteristics of most in the buying profile (time in biz, closely held, and favorable market conditions), owning a location can prove to be a way to lower operating costs, increase owner equity, and provide a stable "rent" model for the length of the financing.
A Recent Example:
I am currently working with an occupant that is considering owning their location. The occupant's motivators fall in line with those found with most companies considering buying...length of time in business, lease expiration looming, favorable market conditions, ownership "rent" similar to market rent, owner with a desire to diversify personal assets into real estate ownership, etc. We believe that the occupant in question will purchase, lower their "rent", increase their efficiency, and build equity for the future.
Available Financing:
The financing available to an owner occupant these days is truly amazing. Most owner occupants finance through the use of SBA financing via the 7A or the 504 loan programs. Both offer an owner occupant the ability to buy with a minimum down most instances 10% of the purchase price. the 7A is a bank loan guaranteed by the SBA and the 504 loan is actually two loans...a bank first of 50% of the purchase price and a second of 40% of the purchase price which is a 20 year fixed debenture made by the government. Both programs offer the occupant VERY low interest rates, varying amortizations and a fee waiver through the end of the year. We will post about the specifics of these two loan programs in the future. For now, suffice to say that financing is available and affordable to most owner occupants.