Crown Real Estate & Funding, Inc.

Crown Real Estate & Funding, Inc. At Crown Real Esate & Funding, INC. we do it all for you. We assist you in buying, selling and financing your property. You will save a lot of time.

Crown Real Estate & Funding, Inc. is here to do it all for you. Whether you’re looking to buy, sell, invest, or you’re in need of a loan, we’re here to save you time and stress. Because here, we keep our clients’ satisfaction as our top priority, offering nothing short of the highest level of service. Under the guidance of our manager Paul Levine, who was a practicing CPA for over 50 years, we bri

ng a fresh perspective to each real estate transaction. With a diligent team of industry experts and a commitment to communication and honesty, we’re the agents that you want in your corner during one of life’s biggest investments.

T'S A CRAZY MARKET OUT THERE...I live in the greater Los Angeles area and I try and keep up with what's going on around ...
09/21/2021

T'S A CRAZY MARKET OUT THERE...

I live in the greater Los Angeles area and I try and keep up with what's going on around the country. I am basically a commercial realtor dealing in self-storage facilities and multifamily housing but I will do that single-family residence for a friend or a past accounting client. I was a practicing Certified Public Accountant for over 50 years.

When I look on the MLS, on a sheet with certain parameters in certain neighbors, I am seeing price increases and decreases all on the same page. Usually, you will see neighborhoods moving as a group. You will see the majority of the properties listed for sale going in the same direction.

And finally, here in Southern California, the listing price seems to be the starting point for a bidding war. Someone, an agent, may list their property at $800,000 and 90% of the offers are ABOVE the listing price and I've seen it happen time and time again. The bubble cannot just keep getting bigger, it has to burst sometimes, and then the collateral that the banks are holding is not going to support the mortgages.

My name is Paul Levine and you can call me at (818) 298 - 4000 after 10 AM Pacific Time 7 days a week. Or, you can send an email to me at "[email protected] and I promise to get back to you in a timely manner...

WHAT DO YOU THINK IS GOING TO HAPPEN??? AND NOW THE INTEREST RATES ARE CREEPING UP WHICH THROWS ANOTHER FACTOR INTO THE MIX!!!

A GREAT WAY TO START A WONDERFUL WEEK...This update really does come from "Paul Levine, Realtor".  September has been a ...
09/20/2021

A GREAT WAY TO START A WONDERFUL WEEK...

This update really does come from "Paul Levine, Realtor". September has been a good month for me and it got even better yesterday. First, and I don't think that I posted this before, a number of months ago I helped one of my clients/friends purchase a new Toll Brother home in the North San Fernando Valley and it is closing this coming week. I've known him for over 20 years it feels like we are family. The home is big and beautiful and with the upgrades is being purchased for over $2 million.

And, yesterday, we got an offer accepted for another long-term client for just under #1 million. It's an investment property. I think that I only know him and his family for about 15 years. It really pleases me that I keep my relationships for so long and the clients know who to come to for any real estate transaction and income tax and business advice.

You can talk about networking all you want, but, when you keep relationships since the 1970s you know that people are going to trust you and know your capabilities and come to you with all their real estate needs. I am cheating a little because I did not mention that these were former accounting clients of mine but we still keep in touch as friends. If a new accounting client did not become a true friend after doing a second income tax return for them we would break off our relationship at my request. I don't work this hard for people who I don't like and care for.

And our loan division, "Crown Funding" is taking care of all of the financing. We can do any loan and we do them quickly and efficiently. In fact, we are so busy that we are looking for more loan officers to join our family.

My name is Paul Levine and you can call me at (818) 298 - 4000 after 10 AM Pacific Time 7 days a week. You can also send an email to me at "PLevineRealtor.com" anytime and I will always get back to you in a timely manner.

YESTERDAY WE TALKED ABOUT INCOME TAXES. TODAY WE WILL TALK ABOUT SELF STORAGE AS A BUSINESS...Yesterday we talked about ...
01/26/2021

YESTERDAY WE TALKED ABOUT INCOME TAXES. TODAY WE WILL TALK ABOUT SELF STORAGE AS A BUSINESS...

Yesterday we talked about the wonderful income tax advantages that we at SELF STORAGE CONSULTING & CONSTRUCTION, LLC can get for you when we build a self-storage facility for you. But what I am finding is that self-storage facilities are the best real estate investment, from a Net Operating Income standpoint that there is.

Before I got into the self-storage arena, I did research on most, if not all, of the different real estate investment out there. And I found that self-storage facilities gave you the best bang for your buck. They were inexpensive to build compared to apartment buildings or shopping centers, they required minimal management compared to all of the other real estate investments, and, opposite from what I thought, they will appreciate over time.

So, I started writing my articles every morning and, from those articles, I received telephone calls from all over the United States. And, I was surprised to find that just about all of the people who called me were telling me how good self-storage facilities are as a real estate investment. I was preaching to the choir.

Self-storage facilities give you a Net Operating Income way beyond 50%. I've seen instances where self-storage facilities yield a Net Operating Income between 70% and 80%. No other real estate investment gives you a Net Operating Income that high. A NNN lease situation has little in the way of expenses but you know your yield from the beginning and it is not going to change during the period of the lease. You are locked in which is good and bad. It is good because with a good corporate guarantee your rental income is almost certain. But it's never going to change from the lease agreement and you cannot get higher rents during the term of the lease.

Self-storage facilities have the potential of increasing the Net Operating Income and that's like every other real estate investment. If you are running a business and either your costs go up or there is just an opportunity to raise the rents, you do it and change, increase, your Net Operating Income.

So, a NNN lease is a PASSIVE activity but a self-storage facility generates active income, but more importantly generates a huge Net Operating Loss after deducting Bonus Depreciation of up to $1 million in the first year of operations. And, that Net Operating Loss is the secret to getting the wonderful income tax benefits that we can get for you at SELF STORAGE CONSULTING & CONSTRUCTION, LLC.

My name is Paul Levine and you can reach me at (818) 298 - 4000 after 10 AM Pacific Time 7 days a week or you can send an email to me at "[email protected]" at any time.

YOU DO NOT WANT TO BUY A SELF STORAGE FACILITY!!!  YOU WANT US TO BUILD YOU A SELF STORAGE FACILITY FOR YOU!!!Just a few...
01/22/2021

YOU DO NOT WANT TO BUY A SELF STORAGE FACILITY!!! YOU WANT US TO BUILD YOU A SELF STORAGE FACILITY FOR YOU!!!

Just a few minutes ago I was looking at a lot of pages on Facebook that pertained to self-storage facilities all over the United States. There were a good number of posts that were asking questions posed by self-storage facility owners about bookkeeping systems, the kinds of locks to use at their facilities, and other questions having to do with operating a self-storage facility. And, there were also a good number of posts listing self-storage facilities for sale.

I recently wrote an article entitled, “BESIDES EVERYTHING ELSE, WE ADD VALUE TO YOUR PORTFOLIO!!!”. This article pointed out the fact that when we build a self-storage facility for you besides getting you, the investor, wonderful income tax benefits it pointed out that we add value to your real estate portfolio. I’m going to copy a portion of that article for you here.

“When you build an apartment building that you are going to keep you have to buy the land for say $3 million and you have to build an apartment building on the land for say $17 million more. Now you have $20 million invested and the day that the project is completed the apartment building is worth about $24 million!!! You so just created wealth for yourself and that's not a bad thing at all.

The situation is exactly the same when building, instead of buying, self-storage facilities. Besides getting you back the income taxes you paid over the last 5 years and reducing or eliminating your tax burden in the future, and besides building you a Real Estate investment that will yield the best Net Operating Income of any other Real Estate investment around, we create WEALTH for you!!! So, why buy a self-storage facility and pay someone else a hefty profit when you can let us at SELF STORAGE CONSULTING & CONSTRUCTION, LLC build a self-storage facility for you and create WEALTH for you? Which would you rather do???”

When we build a self-storage facility for you the total cost of the land and the construction costs may equal $3,000,000. But, on the day that we complete the construction, that same self-storage facility is going to have a fair market value of maybe $3,500,000. So, you are increasing your wealth by half a million dollars without spending any more money than you spent to build the facility.

This may not be an accurate comparison in some parts of the United States but the only difference is that the numbers may be a bit smaller because land and buildings are worth more in California and New York than they are in Mississippi or Texas. And, for some reason, most of the people with whom I speak want to stay away from California and New York. That is a falsehood as well because the rents for self-storage spaces or units are higher in California and New York than they are in Mississippi and Texas. So, to use an accounting term I am fond of, the investment pencils out the same in New York and California because the rents are higher and your return should approximate, percentage-wise, the facilities in Mississippi and Texas.

Finally, the land in California will appreciate far more than the land in Mississippi or Texas and even New York and that’s a plus too!!!

My name is Pail Levine and I am the managing member of SELLF STORAGE CONSULTING & CONSTRUCTING, LLC and you can reach me at (818) 298 – 4000 7 days a week after 10 AM Pacific Time or you can send an email to me at [email protected].

THE BENEFITS AND DRAWBACKS OF OWNING AND OPERATING SELF STORAGE FACILITIES...Up until now, I have been writing my daily ...
01/21/2021

THE BENEFITS AND DRAWBACKS OF OWNING AND OPERATING SELF STORAGE FACILITIES...
Up until now, I have been writing my daily posts about the wonderful income tax benefits that you get if you build a self-storage facility through us at SELF STORAGE CONSULTING & CONSTRUCTION, LLC or the wonderful Net Operating Income that the facilities yield its owners. We can work with you and your professional team to get you back most, if not all, of the income taxes that you paid in the last 5 years and help you save income taxes going into future years. I have written about where to build your self-storage facility as it pertains to where in the United States you should build it and what you look for in neighborhoods where you are considering building them.
I did write one article that showed, for income tax purposes, that self-storage facilities are businesses but that was for the purpose of classifying the Net Operating Loss created by the huge Bonus Depreciation as an active loss or a passive loss. The two are treated very differently for income tax purposes.
But, owning and operating a self-storage facility, or a number of them as many people do, is a business with its benefits and drawbacks just like any other business. It is true that in any business where you rent out space, whether it is an apartment or a self-storage unit, you have to stay on top of your tenants to make sure that the rent is paid. In residential real estate, apartment buildings, as in self-storage units, each municipality or city has it's own rules as to your remedy if the rent is not paid. There is routine maintenance that must be performed to keep the facility working properly such as making sure that the rolling garage doors securing the units are all kept in working order and that the air conditioning for temperature-controlled units is properly maintained. And then, there is just routine cleaning to keep your facility looking good to appeal to prospective customers.
But when you compare owning and operating self-storage facilities to just about any other business it's one of the easiest businesses to run and one of the most economical. Self-storage facilities do not require purchasing and maintaining the right levels of inventories like other businesses have to. The only exception to this rule is if you sell boxes, locks, and supplies to your customers, which you should, and then maintaining your inventory is not like a manufacturing operation or a retail store. It's easy and the inventory is not expensive!!!
You have to make the decision at the beginning as to how many hours you want to devote to managing the facility or if you will be hiring full or part-time managers. You have to decide whether you are going to be open to your customers during set hours in the day, like 8 AM to 8 PM, or if you are going to stay open 24/7. If you have set hours you might just need two part-time managers who cover the facility during the day or, if you are always open to your customers, we can build an apartment for you on the property for your resident managers to live to accommodate their needs.
And, finally, there are computer programs out there specifically designed to help you manage your facility, keep track of rents, classify expenses and give you management reports at the touch of a key on your computer keyboard.
So, all and all, owning and operating self-storage facilities is one of the easiest businesses to run. You have to make management decisions before you begin operating the facility but not too many of them are critical and you will learn as time goes by and there are web pages for the self-storage industry where people ask questions based on situations that occur to them and the other members of the page are always very helpful in answering your questions and there are associations of self-storage facility owners that you can join as well.
My name is Paul Levine and you can call me at (818) 298 - 4000 7 days a week after 10 AM Pacific Time or you can send an email to me at "[email protected]".

BESIDES EVERYTHING ELSE, WE ADD VALUE TO YOUR PORTFOLIO!!!When I changed professions from being a Certified Public Accou...
01/19/2021

BESIDES EVERYTHING ELSE, WE ADD VALUE TO YOUR PORTFOLIO!!!
When I changed professions from being a Certified Public Accountant to being a Realtor, I started out just like everyone else and helped my clients buy and sell single-family residences. I found that extremely boring. After looking at so many houses my clients would decide on one and then I would have to go through a mountain of paperwork and negotiate with the sellers' Realtor about the price. This was after I negotiated the sale of one of my accounting clients to DuPont for $8.6 million back in 1984! And I found myself negotiating with a Realtor, and I have nothing against Realtors, for a price between $680,000 and $685,000. The other Realtor loved this but this did not excite me nor keep my attention.
Then an opportunity knocked on my door and I was asked to sell a piece of land, 20,000 square feet, that had a house on it and 5 retail stores. Here, I saw an opportunity to have some fun. So, I assembled a team consisting of a real estate attorney, an estate and trust attorney as my clients were both in their 80s, and a building designer. I knew all 3 of these people very well. I did this because I had a vision and I wanted to play!!!
When I say that I wanted to play it means that I wanted to get creative and make this project something it wasn't yet. So first, this team I assembled looked to build a second floor on the stores and improve the house on the property. But we were adding enough value there and I wasn't satisfied with this approach. Then I met a builder and we were going to put 60 condominiums on the property but the builder got greedy and I killed that deal. Then I met another builder and we were going to put a 60 unit apartment building on the property and I liked that a lot. The only problem is that when we did a soil test we found out that we could not go above one story and that wasn't enough to make the project as profitable as I wanted it to be for my clients. Then we really got lucky and someone came to us and bought the property "AS IS" for $4.8 million! We were all happy.
Why did I tell you this story? When you build an apartment building that you are going to keep you have to buy the land for say $3 million and you have to build an apartment on the land for say $17 million more. Now you have $20 million invested and the day that the project is completed the apartment building is worth about $24 million!!! You so just created wealth for yourself and that's not a bad thing at all.
The situation is exactly the same when building, instead of buying, self-storage facilities. Besides getting you back the income taxes you paid over the last 5 years and reducing or eliminating your tax burden in the future, and besides building you a Real Estate investment that will yield the best Net Operating Income of any other Real Estate investment, we create WEALTH for you!!! So, why buy a self-storage facility and pay someone else a hefty profit when you can let us at SELF STORAGE CONSULTING & CONSTRUCTION, LLC build a self-storage facility for you and create WEALTH for you? Which would you rather do???
My name is Paul Levine and you can call me 7 days a week after 10 AM Pacific Time or you can send an email to me at "[email protected]".

WHERE SHOULD I BUILD MY SELF STORAGE FACILITY???As I have said here many times before, my daily posts have yielded me mo...
01/18/2021

WHERE SHOULD I BUILD MY SELF STORAGE FACILITY???

As I have said here many times before, my daily posts have yielded me more than a phone call a day from all over the United States. There is one theme that I hear over and over again. Everyone wants to build their self-storage facility in Texas, Florida, Mississippi, Alabama, or the Carolinas. Everyone is scared to build their facility in California.

The reasons that everyone gives are that California has such a high-income tax rate and the land is so expensive. And, the perception that everyone has of California is that you cannot make money in self-storage here. I live in Southern California around Los Angeles.

Before I got into self-storage facilities I was helping my clients buy and sell multifamily housing, apartment buildings. Everyone had the same perception of Southern California and apartment buildings. The reality is that the tax rates are higher here than in most of the country and the prices for apartment buildings are much higher here than in the rest of the United States. But, what people forget to analyze is that the rents are also higher here than just about anywhere else in the country, and that goes for apartments and for self-storage units.

You value commercial, income-producing properties using the Net Operating Income and the "Cap Rate". You divide the Net Operating Income by the Cap Rate to determine the price. The higher the rents the higher the Net Operating Income, the higher the price. So, in Southern California with the higher rents for just about anything, the properties "pencil out". That's an accounting term that means that it's reasonable and can be very profitable. And that goes for apartment buildings and self-storage facilities too!!!

And, another very important point. If you have us at SELF STORAGE CONSULTING & CONSTRUCTION, LLC to build your facility for you, you won't be paying income taxes for quite a while. Remember that the way we build the facility you can deduct up to $1 million in Bonus Depreciation in the first year that the facility is doing business. You will then recoup the last 5 years of income taxes you paid to the government and use any leftover Net Operating Loss to reduce or eliminate taxes in future years. And, the more you invest, the greater the tax benefit. So, state income taxes are not an issue.

So, please do not eliminate California as a place to build your self-storage facility, it does pencil out and you will make money and get the opportunity to keep it!!!

My name is Paul Levine and I can be reached 7 days a week after 10 AM Pacific Time at (818) 298 - 4000 or you can send an email to me at "[email protected]".

GET READY FOR SOME CHANGES AT SELF STORAGE CONSULTING & CONSTRUCTION, LLC.My daily posts have generated almost daily pho...
01/16/2021

GET READY FOR SOME CHANGES AT SELF STORAGE CONSULTING & CONSTRUCTION, LLC.

My daily posts have generated almost daily phone calls and messages from readers all over the United States. I was even chatting with two different gentlemen at 11 PM Pacific Time last night just before going to sleep. I had to cut the conversations short because it was bedtime for me. But, the interest is there and it's time to get signatures on the dotted line and start to work.

In that vein, I will be hiring an exceptional digital marketing team to take over the postings to Facebook and get us more exposure. I will still be writing articles each and every day to inform you, educate you, and even entertain you. But, instead of posting directly to Facebook, I will be sending my articles to "The Team" and they will edit it and play with it and do the postings for me.
So, you will start to see a change in the style of my posts in the next weeks and months but the content will be there and will be consistent. This is still a growing industry and I keep getting feedback from just about everyone with whom I speak that they keep seeing self-storage facilities popping up all over the place. I spoke with a friend in Seattle yesterday and he made that exact comment.

As I wrote yesterday, this industry has not been shaken by the pandemic. It hasn't skipped a beat!!! And, if you are going to get into this exploding industry you might as well get the great tax benefits that we at SELF STORAGE CONSULTING & CONSTRUCTION, LLC can offer to you.

An interesting fact. I thought that we were the only ones in the United States offering you the concept of Bonus Depreciation and the massive tax savings. I found out, by talking to people responding to my articles, that there are a couple, maybe 2 or 3 other companies that do similar things. BUT, THERE IS A DIFFERENCE!!! The other companies build their facilities to give you about 50% of the building cost as Tangible Personal Property where we give you about 97% of the cost of construction that qualifies for Bonus Depreciation and the $1 million dollar limit. We save you double of what they do!!! And, to give credit where credit is due, that is all because of my partner and innovative builder Dale Farrow. Thanks, Dale!!!

My name is Paul Levine and you can call me at (818) 298 - 4000 7 days a week after 10 AM Pacific Time or you can write to me at "[email protected]". In addition to the format changes, we will be getting new email addresses and a new website. I cannot wait to see the new look!!!

SELF STORAGE HAS NOT BEEN AFFECTED BY THE PANDEMIC OR THE ECONOMIC SITUATION!!!So much happened this week that I had a v...
01/15/2021

SELF STORAGE HAS NOT BEEN AFFECTED BY THE PANDEMIC OR THE ECONOMIC SITUATION!!!

So much happened this week that I had a veritable plethora, I love that expression and have been using it since I was four years old (Ha, Ha), of things to write about. But, nothing will affect the economy and, somewhat indirectly, self-storage facilities more than what Joe Biden said in his speech or announcement yesterday. By the way, today is Friday, January 15, 2021.

This week we went through the investigations, so many of them, into the riots of January 6th, impeached a President for the second time for the first time ever, and took the first step toward an economic recovery that will heal a Nation and give support to so many who sorely need it.

The economy will come back now that we will have real leadership once again in the White House. It will take time and things might get worse before they get better, but they WILL get better. Businesses that shut down during the pandemic will open up again, especially restaurants, movie theatres, events with live audiences like shows and sporting events. People will start to go out again and work again as they did before the pandemic.

One industry that was NOT hit very hard, if at all, was the self-storage industry. With my daily posts, I've gotten phone calls from all over the United States almost on a daily basis and people have been building and buying self-storage facilities throughout this Coronavirus pandemic. This is really the first time that I thought of this. But, the self-storage industry has not skipped a beat during this lockdown.

I read everything I can get my hands on concerning the self-storage industry and I've read nothing about a slowing down in the industry or massive loss of rents or a loss of value of the facilities as a whole. It seems that self-storage facilities are not subject to many of the changes to the economy like recessions or disasters like the one we are currently going through. That really surprises me as this is truly the first time that I realized this. And how many industries can say the same thing?

So, I guess that this is another reason to have SELF STORAGE CONSULTING & CONSTRUCTION, LLC build a self-storage facility for you. Just remember, that with the way we build the facilities you end up with wonderful income tax benefits that yield you cash in your pocket and a great, money-making, business when the process is over. And that usually takes about 10 months from the start of construction to us handing the keys over to you.

This was an interesting day for me because I came out this morning at 6 AM, my usual time, and started writing about one thing and then realized another thing and totally redirected my focus. You get the real me every day through my articles.

My name is Paul Levine and you can call me 7 days a week after 10 AM Pacific Time or you can send an email to me at "[email protected]".

SOME THINGS ALWAYS SURPRISE YOU!!!I have been posting about self-storage facilities for months now and my articles have ...
01/14/2021

SOME THINGS ALWAYS SURPRISE YOU!!!
I have been posting about self-storage facilities for months now and my articles have generated so many phone calls from all over the United States. Then I decided that the project needed its own company and I created SELF STORAGE CONSULTING & CONSTRUCTION, LLC after I found my partner, Dale Farrow, the master-builder. I received a phone call the other day different from all the rest.
Normally people who call me tell me how great owning self-storage facilities are. As I have written here so many times, it has the best Net Operating Income of any real estate investment I've seen. And, no one has talked about building them and selling them.
Then it happened. A young CPA told me that this was his desire but he was concerned about a provision in the Internal Revenue Code that says that after you take all of that wonderful Bonus Depreciation and then turn around and sell the facility very quickly, you have what we call Depreciation Recapture. And, when I say "very quickly", we are talking about just after a year. His concern was that just about 90% plus of the Bonus Depreciation, the way we build self-storage facilities for you, would be ordinary income and not capital gains.
Well, he is right! But, he is the only one of maybe 100 phone calls that I've had in the last 4 months, that's just about one a day, who was looking to build the facilities and sell them. When you have one of the best real estate investments around, why would you want to sell it?
One last point, the buyer can take advantage of the Bonus Depreciation because it is still built by us and it can be broken down into its component parts which makes it Tangible Personal Property. Every time this facility is sold the new owners can take Bonus Depreciation as long as that provision stays in the law.
My name is Paul Levine and you can reach me at (818) 298 - 4000 after 10 AM Pacific Time 7 days a week or you can send an email to me at "[email protected].

YESTERDAY WE TALKED ABOUT INCOME TAXES.  TODAY WE WILL TALK ABOUT SELF STORAGE AS A BUSINESS...Yesterday we talked about...
01/13/2021

YESTERDAY WE TALKED ABOUT INCOME TAXES. TODAY WE WILL TALK ABOUT SELF STORAGE AS A BUSINESS...

Yesterday we talked about the wonderful income tax advantages that we at SELF STORAGE CONSULTING & CONSTRUCTION, LLC can get for you when we build a self-storage facility for you. But, what I am finding is that self-storage facilities are the best real estate investment, from a Net Operating Income standpoint that there is.

Before I got into the self-storage arena I did research on most, if not all, of the different real estate investment out there. And I found that self-storage facilities gave you the best bang for your buck. They were inexpensive to build compared to apartment buildings or shopping centers, they required minimal management compared to all of the other real estate investments, and, opposite from what I thought, they will appreciate over time.

So, I started writing my articles every morning and, from those articles, I received telephone calls from all over the United States. And, I was surprised to find that just about all of the people who called me were telling me how good self-storage facilities are as a real estate investment. I was preaching to the choir.
Self-storage facilities give you a Net Operating Income way beyond 50%. I've seen instances where self-storage facilities yield a Net Operating Income between 70% and 80%. No other real estate investment gives you a Net Operating Income that high. A NNN lease situation has little in the way of expenses but you know your yield from the beginning and it is not going to change during the period of the lease. You are locked in which is good and bad. It is good because with a good corporate guarantee your rental income is almost certain. But it's never going to change from the lease agreement and you cannot get higher rents during the term of the lease.

Self-storage facilities have the potential of increasing the Net Operating Income and that's like every other real estate investment. If you are running a business and either your costs go up or there is just an opportunity to raise the rents, you do it and change, increase, your Net Operating Income. So, a NNN lease is a PASSIVE activity but a self-storage facility generates active income, but more importantly generates a huge Net Operating Loss after deducting Bonus Depreciation of up to $1 million in the first year of operations. And, that Net Operating Loss is the secret to getting the wonderful income tax benefits that we can get for you at SELF STORAGE CONSULTING & CONSTRUCTION, LLC.

My name is Paul Levine and you can reach me at (818) 298 - 4000 after 10 AM Pacific Time 7 days a week or you can send an email to me at "[email protected]" at any time.

THE TAX BENEFITS ARE HUGE AND YOU SHOULD UNDERSTAND THEM!!!I've been very lucky to get a lot of phone calls from my dail...
01/12/2021

THE TAX BENEFITS ARE HUGE AND YOU SHOULD UNDERSTAND THEM!!!
I've been very lucky to get a lot of phone calls from my daily posts here on Facebook and on Linkedin. I am finding that a lot of people who have already invested in self-storage facilities and those who have researched the industry understand how good of an investment the self-storage investment is from the standpoint of the wonderful Net Operating Income that it generates. It seems like I'm preaching to the choir. But, what they don't seem to understand is the tax benefits aspect of the investment. I will explain it here again.
We build self-storage facilities so that they can be taken apart, piece by piece, like an erector set that we had when we were kids. And those pieces are called Tangible Personal Property under the Internal Revenue Code. A building made of brick and mortar has to be depreciated over 39 1/2 years. That's a long time. But, under the Jobs Act of 2017 Tangible Personal Property can be depreciated, by using Bonus Depreciation, of up to $1 million in the year that the self-storage facility opens its doors and commences business. To repeat, that's $1,000,000 Bonus Depreciation deducted in one-year on your income tax return.
That is going to create one huge Net Operating Loss on that tax return. You take advantage of that Net Operating Loss by carrying it back for 5 years and amending the last 5 years' income tax returns to get back most, if not all, of the income taxes paid during that period of time. And, that is money that you thought that you would NEVER see again after writing your check to the Internal Revenue Service. Actually, you write the check to the Department of the Treasury. And any part of the Net Operating Loss that is not used up in the carryback can be carried forward until it is used up reducing your tax obligation to zero until it is all used up.
If you invest $2 million or $3 million you can still only take $1 million in Bonus Depreciation in one year. But, the amount that is not used up in the year of opening up the self-storage facility or in the 5 year carryback period can be carried forward until that is used up and your hair will be as gray as mine by the time you finish using up that Net Operating Loss created in the year that the facility goes operational.
By the way, I capitalized the first letter of every word that is a technical word or term under the Internal Revenue Code purposely so that you will understand the Code.
If there are things that you still do not understand about this unique situation you can call me any day of the week after 10 AM Pacific Time at (818) 298 - 4000. Or, you can send an email to me at "[email protected]".

Address

21777 Ventura Boulevard , Suite 265
Woodland Hills, CA
91364

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Thursday 8am - 7pm
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