Day: November 5, 2021

 

Art Morrison III is sharing the story of how he found real estate success and how the same path is open to anyone through private syndication.

Private Syndication Makes Real Estate Investing More Accessible

For many people, investing in real estate of any kind seems like more of a fantasy than a tangible business decision. They certainly don’t have the capital to buy a home or other property outright and wouldn’t be able to secure a loan to do so either. But, Art Morrison III found a way with private syndication, and you can too.

Private syndication is a method for raising funds and managing real estate transactions. These transactions could be buying and flipping or acquiring rental properties. The common factor is that the private syndicator isn’t the one putting up the money. They’re relying on their hustle, confidence, and networking to coordinate the deal.

Just like someone could do for any kind of business venture, private syndication involves partnering with other people in exchange for equity in the eventual outcome. These partners could be supplying capital, providing credit leverage, or contributing their professional experience.

In the end, the successful private syndicator brings all these people together and manages the transaction. Of course, the fact that there are so many people involved does reduce their cut of the profits. However, they managed to pull it off without their own capital or an already established presence in real estate.

Three Essential Private Syndication Tips From Art Morrison III

While private syndicators don’t need their own capital or professional experience, Art Morrison III explains that there are three essential qualities they need. These are the three qualities that brought him his first success and continue to grow his business to this day.

Networking

Because the role of the private syndicator is bringing people together, their primary advantage is going to be knowing a lot of people. Anyone interested in real estate should seek to expand their network, setting up connections with like-minded individuals within their community and finding people they can learn from.

Branding

The private syndicator isn’t really selling real estate. They’re selling themselves. As such, establishing their brand and how people see them is essential. Every successful deal adds to the credit of your brand, but there are steps you can take to get the first deal as well. Always appear professional, and present yourself as a business people can trust.

Confidence

Again, the partners you find are investing in you as a person. Being confident and dynamic in your approach can make all the difference. People need to feel assured that you’re the one to trust, either with their investment or their time, as a valuable partner in your endeavors.

Art Morrison III and His Real Estate Journey So Far

Private syndication is how Art Morrison III first started his business journey. While today he owns multiple businesses and provides business solutions and consultations, he started out by putting in the grind to establish and manage real estate investments.

Without significant capital, he wanted to find a way that he could turn his supply of hustle into business success. He found that in private syndication, he had such an opportunity. He started working with his network, friends, family, and people in his community to identify his first deal.

Eventually, he found an opportunity for his first deal when his neighbor was looking to sell their home. Syndicating this first deal was the essential experience he needed to grow his business, letting him scale towards the 2nd, 3rd, 4th sales, and onwards.

Today, he’s continuing this journey through his ongoing business efforts. In addition to his direct efforts, he provides coaching for entrepreneurs interested in private syndication and other ways that they can leverage themselves for success.

Luxury homes in The Bahamas are among the hottest properties around the world, particularly for US buyers. What they might not know is just how much they might be paying in real property taxes.

An Important Factor in Any Homebuyer’s Decision Making

Many American buyers purchase their new home in The Bahamas with Better Homes and Gardens Real Estate MCR Bahamas, and working out just what the tax obligations that go with that purchase are is an important step in the process.

Better Homes and Garden Real Estate advises homebuyers to never overlook property taxes when deciding on a home. The recurring expense could shift their outlook on which properties they can truly afford.

Understanding the Two Primary Types of Property Taxes

Like in most jurisdictions, home buyers in The Bahamas will face taxes both annually and at the time of purchase. Any property purchased in The Bahamas will incur a Value Added Tax.

This tax is 10% on properties over $100,000 and 2.5% on those below that threshold. In general, this is going to be split between the buyer and the seller, but this is ultimately up to the specific agreement.

Of greater concern for most buyers is the annual property tax, which must be paid every year that they continue to own the property. There are many factors to consider, including whether or not the property is occupied by the owner. Individual locations within The Bahamas also have various levels of tax exemption.

The tax rates are separated into several brackets depending on the property value. For owner-occupied properties, the rates will be:

• 0% on the first $250,000
• 0.628% from there to $500,000
• 1% on value above $500,000

The annual property tax rate is capped at $60,000 for owner-occupied properties.

Rates are more complicated for rental and commercial properties, generally trending higher and also incorporating flat fees. Foreign citizens holding vacant land face steep property taxes of 2% on any value over $7,000.

Determining the Value of Your Property

Another key point to remember is that these annual tax rates are calculated based on the assessment by the Department of Inland Revenue, not on the price that was paid for the property. Inspectors will visit the property to take photos and measurements of buildings, pools, and other permanent features.

This information is used to determine the value of the property, which might have changed based on improvements made since the last assessment. Any homebuyers claiming that the property is owner-occupied will have to provide the relevant paperwork for the assessment.

Paying Your Property Taxes

Property taxes are generally billed to property owners in October, to be paid by the end of the year. Payments in The Bahamas can be handled directly at a local bank, through the Department of Inland Revenue, via wire transfer, or through the government’s online payment portal.

Quarterly or monthly payments can also be arranged, and property taxes are often rolled into specific mortgage agreements. Late payments should be avoided, as a 5% surcharge will be applied. Depending on the property in question, this can be a sizable penalty for late payment.

Certain groups can receive reductions in the amount of property tax they owe. Many US citizens buying property in The Bahamas are doing so to enjoy their retirement, so the Senior Citizens Benefit may be of particular interest. Those who are over 65 and register for the program can reduce their property tax by 50% on properties valued under $1 million.

Purchasing a Home in The Bahamas

Property taxes are a part of making a home purchase anywhere. They need to be taken into account, but they shouldn’t dissuade anyone from considering the luxurious homes that The Bahamas has to offer. Better Homes and Gardens Real Estate specializes in luxury real estate in The Bahamas and can find the perfect listing for any interested buyer.