CAPTA (California Property Tax Associates) is a California Partnership that specializes in real estate property tax consulting throughout the State of California. One of our partners began performing these services for California Property owners in 1989. Throughout the 1990’s the focus was primarily on large commercial projects and land developments as well as upscale residential properties. We saved thousands and thousands of Californians many millions of dollars in over-assessed property taxes. Our results then, like now were based on employing a highly skilled staff, access to extensive industry information, and a clear understanding of the property tax assessment process.
Unlike other companies our fee is entirely contingency based; no savings, no fee. There is never an up-front fee or a reimbursement of costs. NO SAVINGS, NO FEE.
OPEN LETTER TO A PROSPECTIVE CLIENT (NOW A CLIENT)
Mark,
Allow me to introduce myself. My name is Jim Guffey and I’m one of the partners in California Property Tax Associates. I’m also Tom’s brother.
In 1989-90 I started a property tax reduction company in San Bernardino County, California. You may or may not recall that property values were doing very well and foreign investors, particularly the Japanese were buying up commercial property at record levels. Properties frequently appreciated during the escrow period 5 or even 6%. You could almost do no wrong. Business was good and Tom and I worked together for over 10 years reducing property values for our clients. Tom has told me that you want letters of reference but I hope this e-mail will suffice.
In the early 90s one of our first clients was a gentleman based in San Diego County who was buying small pieces of property in San Bernardino County from individual landowners. The size of the parcels was two to five acres. When he bought enough small pieces he began the entitlement process and subsequently sold the properties to a large company who would build the homes. He was very successful but the assessors office saw what he was doing and immediately began assessing his property when he first purchased the vacant lot for what a year and a half later he would sell the parcelized property for, per acre. In other words, if he bought the raw land acre for $4000 and sold it a year and a half later, entitled for $40,000 an acre the assessor was immediately assessing all of his raw land purchases for $40,000 an acre. We were successful in appeal in getting all of these transactions reduced to his original purchase price arguing stage of development. This was hundreds of individual parcels.
Another client was Premier Homes, a French company based in Corona. They were in a similar position to your company with large holdings of land in Southern California. We worked on many of their properties but in particular, one parcel in Lancaster had a value of $16 million and was fully entitled, ready to build. We were successful in reducing this property to less than $4 million. It subsequently sold a short time after we achieved the reduction for $8 million.
It is important to understand that fair market value in the marketplace is not the same as fair market value for assessment purposes. Frequently we are successful in reducing property that sells for far greater than what our reduction showed. Again, this is because when we value property in accordance with the Revenue and Taxation Code in the state of California we follow the guidelines set forth in the appraisal manuals and also the guidelines used in each particular county. Unfortunately these differ substantially from county to county. However, frequently these appraisal guidelines work in our favor and our clients, many of whom told us there was no possible way for us to get reductions on a given property, are amazed at our results. Not always but frequently.
Another client was located in the Beaumont area in Riverside County and had purchased a property known as the Three Ring Ranch. It was situated at the split of the 60 and the 10 freeway’s and was purchased by an individual who planned on flipping it to a housing company. But while he was negotiating the market turned and nobody was interested. We began our work for him in 1990 and subsequently he lost the property in foreclosure. We continued our work for the new owner securing large reductions in the back taxes. This property did subsequently sell and was developed in later years and is still known as Three Ring Ranch.
In the same area Highland Springs Resort had just transferred ownership in the late 80s. In addition to the resort which had many varied buildings and improvements, along with a mobile home park there were numerous residential development parcels. Although this property took a considerable amount of time and numerous appeal hearings due to its complexity, we were also successful in reducing it’s assessed value substantially.
We did substantial residential development properties in the high desert area of Victorville as well. Schaffer Real Estate and Investment Company, Inc. had substantial vacant land holdings and we succeeded in reducing scores in his portfolio. Additionally, Thomas Rhubik had a number of large residential development properties that we had great success with.
These are the companies that come to mind. We also worked extensively in the Central Valley as well as the Bay Area. In short, we have experience with all the major counties in California and a number of the smaller counties as well. While the rules are all the same as each county has to live by the Revenue And Taxation Code they each have latitude to accomplish certain tasks their own way. When you hire us you hire someone who has the ability and experience to accomplish the task at hand in the shortest possible time with the greatest possible results.
I hope this helps. The decision you have before you is complex and infinitely important to the bottom line of your company and its investors. The inventory that currently exists on your balance sheet is an expense. The quicker you can reduce the related expenses the easier it will be to wait out this market. But make no mistake: if you don’t file, you don’t see reductions. And if you do file but lack the experience and understanding of the system you will likely lose as well. In the least you will not accomplish the maximum possible result. We will.
One last thing. Over the years our client list has included many attorneys who knew better than to try to understand the workings of the assessors office when they had no experience. One of our early clients was actor Tony Curtis. We never met him, we only worked through his attorney. With great success. His attorney knew better than to venture into this territory.
In case Tom didn’t tell you, I am currently in Guatemala but will be happy to fly out to meet you once we have a relationship. If you’re not comfortable paying us a percentage we do work on an hourly basis. However, as you know our percentage fee is based solely on results. But the sooner we get started the better for you.
Sincerely,
Jim Guffey