Real Estate Tax Calculation - How To Calculate Property Taxes For Commercial Real Estate

Real Estate Tax Calculation - How To Calculate Property Taxes For Commercial Real Estate // Property taxes can be one of your biggest expenses, if not your single biggest expense, on a commercial real estate investment. So making sure you know how to calculate property taxes for your next commercial real estate investment is HUGE in accurately projecting what your real estate cash flows will be. If you're looking to understand how to calculate real estate taxes and want to make sure your property tax values are good to go, make sure to check out this video.

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[BreakIntoCRE]

How are property taxes calculated in your state or country? Let me know in the comments. Thanks for watching!

[AkshayPatel-ebob]

Thanks! This was super informative. How would you typically incorporate a tax abatement in your underwriting on a CMBS 10 year loan? (Assuming your underwriting CF will reflect a stablized CF performance over the life of the loan). Thanks again, your content is great!

[philbrusk]

Here in Ohio, third parties (mainly school board attorneys) can actually file a complaint against the value of property to have a property's assessment increased. Thx for the content!

[rheadj]

Can you please do a video on how to choose the right lender. For example, why you would choose Freddie over Fannie or why choose a conventional loan over CMBS? Thank you!

[timothyjh]

Would you underwrite to foreclosure taxes if you are in the debt stack?

[yuanli]

hello, could u yield a Video about Share deal vs Asset Deal, especially the tax difference under diffierent deal structure. thx

[davidm]

totally missed the most important part. it's fairly easy to determine the calculation of a tax assessment once you know the formula, its Difficult to determine what the locals actually do...

for example, in CT they re-assess its properties every 5 years but the sales Trigger and increase, EVEN THOUGH the local city may claim they use income as guidelines they never do and they will kill you once you buy...
so HOW do I determine HOW the local city/state actually in the real world re-asses my property...as most state websites clearly state there are 3 ways to value a property, (income, Sale, cost to build) but they never really clarify what they really end up using....

[rcruz]

GREAT CONTENT! My revaluation is coming up and I purchased my Commercial multifamily 8 months ago and did extensive renovations (Granite Countertops, stainless steel appliances ect.) I'm currently trying to do a cash-out-refi and am skeptical about adding the increase (to the tax assessor)in rental income ect. Will this hurt me or help me with the refinance? And will my taxes go up significantly because of my higher rent income on all units?

[nagahamaekenta]

Hi, can I understand like this? If the millage rate is one to 1.25%, the assessed value is almost equal to the market value. I'm not sure how the tax officer assessed. but hope this works as a benchmark of transactions.