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Cost Segregation. Qualifying. Target Market. Targeting the correct market leads to: Efficient Time Management Higher close rates Increased confidence. CSSI Target Market. Commercial Property Owner/ Leasee with Build Out Very large and broad Not all qualify - PowerPoint PPT Presentation
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Cost SegregationCost Segregation
QualifyingQualifying
Target MarketTarget Market
Targeting the correct market leads to:Targeting the correct market leads to:- Efficient Time ManagementEfficient Time Management- Higher close ratesHigher close rates- Increased confidenceIncreased confidence
CSSI Target MarketCSSI Target Market
Commercial Property Owner/Leasee Commercial Property Owner/Leasee with Build Outwith Build Out- Very large and broadVery large and broad- Not all qualifyNot all qualify- Need to narrow focus to determine optimal Need to narrow focus to determine optimal
target markettarget market
Building QualificationBuilding Qualification
First StepFirst Step- Determine if the building meets the Determine if the building meets the
qualifications of your optimal target marketqualifications of your optimal target market
CSSI Target Market-BuildingCSSI Target Market-Building
IRS states Cost Segregation can be IRS states Cost Segregation can be applied to any property purchased or applied to any property purchased or remodeled since 1986remodeled since 1986- Buildings purchased/remodeled since 1986 Buildings purchased/remodeled since 1986
are nearly fully depreciatedare nearly fully depreciated- Properties purchased/remodeled more Properties purchased/remodeled more
recently (last 10-15 years) will receive recently (last 10-15 years) will receive higher benefitshigher benefits
CSSI Target Market-BuildingCSSI Target Market-Building
Cost Segregation can be applied to all Cost Segregation can be applied to all types of commercial propertiestypes of commercial properties- Unless you have a connection to larger, Unless you have a connection to larger,
“skyscraper” type properties, you probably “skyscraper” type properties, you probably will never speak with the ownerwill never speak with the owner• However, CSSI can and has completed studies However, CSSI can and has completed studies
on these type of propertieson these type of properties• Focus on smaller buildings ($10MM and under)Focus on smaller buildings ($10MM and under)
– More likely to connect with ownerMore likely to connect with owner
Cost BasisCost Basis- Needs to be at least $300,000Needs to be at least $300,000- Under $300,000Under $300,000
• May apply if multiple propertiesMay apply if multiple properties
CSSI Target Market-BuildingCSSI Target Market-Building
CSSI Target Market-BuildingCSSI Target Market-Building
Types of Commercial PropertiesTypes of Commercial Properties- Nearly all can benefit from cost Nearly all can benefit from cost
segregationsegregation- Certain types benefit more than othersCertain types benefit more than others
• Medical/Office/Apartment/Retail – high endMedical/Office/Apartment/Retail – high end• Bare Warehouse – low end Bare Warehouse – low end
Buildings that will not qualifyBuildings that will not qualify- Non commercial propertiesNon commercial properties- Not for profit propertiesNot for profit properties
• Charitable organizationsCharitable organizations
- Public propertiesPublic properties• State owned propertiesState owned properties
CSSI Target Market-BuildingCSSI Target Market-Building
Building Owner QualificationBuilding Owner Qualification
Second StepSecond Step- Determine if the building owner meets the Determine if the building owner meets the
qualifications of your optimal target marketqualifications of your optimal target market
CSSI Target Market-OwnerCSSI Target Market-Owner
All commercial property All commercial property owners/leasehold improvement owners owners/leasehold improvement owners can apply cost segregationcan apply cost segregation- True, but not all will benefitTrue, but not all will benefit- Owner needs to be generating incomeOwner needs to be generating income
• Paying taxesPaying taxes
CSSI Target Market-OwnerCSSI Target Market-Owner
Owners needs to hold propertyOwners needs to hold property- At least 5 years after applicationAt least 5 years after application- Cost Segregation accelerates depreciation, Cost Segregation accelerates depreciation,
it does not increase overall depreciation it does not increase overall depreciation expenseexpense
- Based on time value of moneyBased on time value of money• Need time for the savings to growNeed time for the savings to grow
Locating Target MarketLocating Target Market Start with personal relationshipsStart with personal relationships
- Trust is already establishedTrust is already established Visit businesses near youVisit businesses near you Third party marketsThird party markets
- CPA, Real Estate Broker, BankerCPA, Real Estate Broker, Banker ConventionsConventions
- Held for nearly every type of businessHeld for nearly every type of business• Ex. Hotel Owners ConventionEx. Hotel Owners Convention
Tax Assessor Tax Assessor
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