Urgent Message-California Property Tax Relief

Tax Help

May, 2010. The market appears to be bottoming out.  At least, so say the gurus.  But don’t you bank on it.  CAPTA believes we are currently in the eye of the storm, with the 2nd half approaching rapidly.  It is precisely at this time you need a professional tax reduction company to guide you through the coming, actually the continuing commercial real estate recession.

California is in a real estate crisis and indeed, an economic crisis the likes of which have never been seen in history.  Major California commercial property tenants such as Mervyns, Hollywood Video, Levitz, Sharper Image, Performance Team Freight, Linens n Things and Circuit City have recently filed for Bankruptcy.  It was only a few short months ago that one of the safest bets in Real Property Investment was a NNN tenant such as Circuit City.  Today, owners of such leases are scrambling to sell their vacant big box space to nonexistent buyers.  So goes conventional wisdom.

You are at this site because you realize that now more than ever before, commercial property owners and managers must streamline their expenses and prepare for a commercial property value decline that is just now becoming evident.  Read the paragraph below from “CoStar Group, #1 Commercial Real Estate Information Company” written in May of 2009:

Retail Space Availability Reaches All-Time High

The nation’s retail market posted negative quarterly net absorption for the first time, along with the highest vacancy and availability rates, since CoStar Group began tracking retail trends in 2000, according to the Bethesda, MD-based company’s first-quarter 2009 retail review and forecast.

CoStar’s research shows that the average days a retail space is listed on the market as “available for lease” has continued to rise — from 174 days in first-quarter 2006 to 370 days in first-quarter 2009…Unfortunately, CoStar is forecasting that the retail vacancy rate will continue to climb…Spivey showed that the average sale price per square foot has dropped from $235 to $125 since the recession started, while the average time a property spends on the market has increased from about 255 to 334 days.

CoStar forecasts that sometime in the next two to three years, the average retail cap rate could hit a level that is 400 basis points higher than where it was at the start of the recession. If that happens, the average cap rate would be around 11% (a high not seen since 1994), which would create better margins for buyers and should fuel transaction activity. Additionally, CoStar forecasts that the average sale price per square foot could go as low as 70% off pre-recession pricing and sales volume could end up as much as 90% off pre-recession activity, sometime in the next two to three years.

Okay, things are bad nationally but what about California?  Here it is:

Spivey identified Los Angeles and Atlanta as having more excess retail inventory than any other markets…The markets with the largest first quarter increase in the average retail vacancy rate: Las Vegas (+154bps), South Bay / San Jose (+113bps), Baltimore (112bps), Inland Empire CA (+111bps), Southwest FL (+98bps), Phoenix (+94bps), Atlanta (+94bps), Sacramento (+89bps), Oklahoma City (+82bps), and Orange County CA (+82bps)…During first quarter, the markets that saw the largest net amount of retail space become vacant, as a percentage of total retail rentable building area (RBA), in order, were: South Bay / San Jose, Las Vegas, Inland Empire CA, Sacramento, Pittsburgh, Baltimore, San Diego, Phoenix, Oklahoma City, and Nashville.

That is the nature of the future of  retail.  But maybe you own apartments or industrial or office buildings.  Then you know that as goes residential so goes retail so goes the rest of the commercial market.  It’s one big game of follow the leader.  While there has been relatively good news in the commercial sector until last year, the tide is currently changing.

Make no mistake; there is a problem, a big problem in the commercial real estate market similar to what just happened and is currently happening in the SFR market.  Obviously you understand the need to be proactive in the face of this problem.  The question we need to answer for you is why use California Property Tax Associates to assist you with this problem.  What sets us apart from our competitors?

We Are Property Owners and Developers

At California Property Tax Associates we understand the problems of commercial property owners, managers and developers because our partners are commercial property owners, managers and developers.  In addition to starting to work in the area of property tax appeals and reassessments in 1989, our associates have various past and current experience building residential development and commercial properties, as well as leasing experience as landlord and manager in the California property market.  You will not be turning your property tax issues over to ‘form filers’ as many companies are, but to a group of people led by commercial property owners and managers experienced in owning and managing commercial properties.  We understand this business from the inside.

And one more very important thing.  Again to quote Andrew Florance, President and CEO of CoStar Group, “When the market is moving this rapidly you have to switch gears and look at it from a different angle.”  He was talking about the fact that the Office Vacancy rate is not showing the real situation in the Office space sector.  But his statement is much more far reaching.

Think Outside The Box

We hate to use this worn out expression but it is exactly what is called for in our current California Property Tax Assessment / Reassessment situation.  The tried and true, follow the book procedures of the past need to be reinvented with each case.  Can you get a loan like you could 2 years ago?  Can you count on real estate appreciation like you could 3 years ago?  Can you count on Chevrolet, Chrysler or Ford like you could a few months ago?  The answer is a resounding NO!  Neither can you approach a Property Tax Assessment Appeal case like you would have just a few years ago.

In the last year there have been many changes in the Assessment Appeals arena.  Appraisal methods used for the past 14 years are being replaced with ’shoot from the hip’ thinking.  To prepare for an Assessment Appeal in California Counties is in many ways like an unscripted debate, where common sense and proving ones case in real life are becoming more important than following ‘the rules’.  That’s what Mr. Florance is saying above:   “When the market is moving this rapidly you have to switch gears and look at it from a different angle.”  And that’s what we do at California Property Tax Associates.

Experience, Knowledge and Common Sense

Our experience started in the last serious downturn in the market back in the early 1990’s.  We worked within our knowledge of the Revenue and Taxation Code, the Assessor’s Handbooks and California Assessment Appeal procedures, and, based upon our extensive experience representing thousands of Clients and working Statewide, we developed strategies to maximize our Clients Property Tax Savings, Credits and Refunds.

The result?  California Property Tax Associates is on the cutting edge ready to put our experience buying, building and managing real estate to work for you.  We will represent you to reduce your property tax liability by using our experience and knowledge of the Property Tax Assessment Appeals system in California.  And the best part to you?  If you do not receive a property tax savings, credit or refund, you owe us nothing.  No Savings; No Fee!

Contact us at (909) 867-5000 immediately with any questions or go to our Frequently Asked Questions page.  Or if you’d rather, just click here to CONTACT US by email and we will call you.  But don’t put this decision off; deadlines are rapidly approaching.

Real Estate Appraisers Needed

Welcome and thank you for investigating what we believe will be an opportunity for you to earn money while continuing your focus as a real estate appraiser.  We  sincerely think you will agree that in this challenging time of economic instability it is critical that all avenues of possibility are explored to maintain fiscal competence by aligning oneself with the dynamic trendsetters of the moment.  We are that trendsetter.

You Chose Your Properties

If chosen to represent us in your area, you will have the opportunity to choose which properties you want from those we offer you to work.  Simply put, we will offer you a property we have under contract and you will decide whether you wish to take it.  Once you accept to represent it, you will prepare your case and work with the County Assessors Office to reduce the assessed value.  Sometimes this can be done with informal negotiations and other times you must appear before the Assessment Appeals Board.  Once the Assessment has been reduced, we get paid.

You Earn A Percentage Of Our Fee

For your successful work, you will receive 50% of the fee we collect from the Client owning the property whose value you reduced for the year under appeal.  We work entirely on a contingency basis so if there is no savings, there is no fee.  But once we have collected for the work you accomplished, we will send you your 50%.  Here is an example:

Residential Property Under Appeal

2009 Assessment          $700,000

New Value                        $400,000

Reduction Achieved      $300,000

Annual Savings              $3,000

Our Fee                            $1,500

Your Fee                           $750

That can add up.  Fast.  How many properties will you have?  How many properties do you want?  We have thousands of properties under appeal, with hundreds scheduled each month. 

At CAPTA we have an extensive Client list.  Over the years we have saved thousands of Clients millions of dollars and currently have over $2 billion of appeals filed.  Our Clients love us.  You get the idea.  

But you are a residential appraiser?  No problem.  Our work actually requires no license.  We will train you on how to present a commercial case.  You experience is welcomed but not necessary.  Your understanding of basic appraisal is valuable but our job is to find the lowest possible value allowed by law.  You understand appraisal is an opinion and the true value is a range.  We exploit that range to find the lowest proveable value.  Commercial properties offer far greater opportunity for this range as few commercial properties are alike.  Similar but subject to far more adjustments (opinions of difference).   Again, you get the idea.  So, if you choose the higher value (higher fee) commercial cases, the rewards can be impressive.

Let’s look at the commercial possibilities:

Industrial Property Under Appeal (Actual Hearing From March 5, 2010)

2009 Assessment          $13,132,969

New Value                        $10,750,000

Reduction Achieved      $2,382,969

Annual Savings              $28,596

Our Fee                            $14,298

Your Fee                           $7,149

It is fairly easy to see the potential.  And we are not even sharing the information on the $37 million apartment complex which was reduced to $15 million!  Do the math!

To summarize, you must be able to talk value to the Assessors Office appraisers.  You must be able to go to Assessment Appeals Hearings, and present and defend your case as well as cross-examine the Assessor’s case.  You must be agressive, analytical and a fast thinker.  But most of all, you must think outside the box.  Don’t forget, we have the experience and we will train you.

Act Fast If You Are Interested

Our territories are disappearing rapidly.  If this sounds interesting to you do not hesitate to let us know.   We have references, we have results, and we have the program.  The time to act is now.  To be considered for this select opportunity, please click on the ‘contact us’ link in the menu above.  We will be in contact with you soon to discuss this program in greater detail.

Thank you for your time.  To go to our home page, click here.

California Property Tax Associates (CAPTA)

“THIS ASSESSMENT REDUCTION FILING SERVICE IS NOT ASSOCIATED WITH ANY
GOVERNMENT AGENCY. IF YOU DISAGREE WITH THE ASSESSED VALUE OF YOUR
PROPERTY, YOU HAVE THE RIGHT TO AN INFORMAL ASSESSMENT REVIEW, AT NO
COST, BY CONTACTING THE ASSESSOR’S OFFICE DIRECTLY. IF YOU AND THE
ASSESSOR CANNOT AGREE TO THE VALUE OF THE PROPERTY OR IF YOU DO NOT
WISH TO CONTACT THE ASSESSOR YOU CAN OBTAIN AND FILE AN APPLICATION
FOR CHANGED ASSESSMENT WITH THE COUNTY BOARD OF EQUALIZATION OR
ASSESSMENT APPEALS BOARD ON YOUR OWN BEHALF. AN APPEALS BOARD HAS THE
AUTHORITY TO RAISE PROPERTY VALUES (BUT IN NO CASE HIGHER THAN THE
PROPOSITION 13 PROTECTED VALUE) AS WELL AS TO LOWER PROPERTY VALUES.”

The above disclaimer is required by AB 992.  CAPTA is pleased to include it in our website as a remedy to the growing number of fraudulent companies seeking to take advantage of the continuing problems associated with falling real property values.

While CAPTA agrees with the above premise that the Assessor should reduce a property’s value if it is over-assessed, the magnitude of the work required to accomplish this task is not possible.  As the need increases, the budget and staffing at the Assessors Office decreases.  They simply cannot do more work with less people.  That’s where CAPTA comes in.

California Property Tax Associates (CAPTA) is an expert in the field of Property Tax reduction relief . For many years we have saved thousands of Clients millions of dollars in counties throughout the State of California by representation before the Assessment Appeals Boards in the assessment reduction process.  Our Associates who will actively work on our Clients portfolios include attorneys, licensed and certified appraisers, and past and present County Assessment Appeals Board Members.

California Property Tax Assessment Appeal Experience and Services

• 20 Years Experience Reducing Assessments County by County
  
• A History of Success Across Property Types (see rotating chart on right for recent reductions)
  
• Contingency Based Fee; No Savings, No Fee!
  
• CAPTA Does All The Work
  
• All Appraisal Work Required
  
• Informal Assessment Review Filing
  
• Negotiation With Assessors Office
  
• Formal Appeal Filing- If Your Appeal Is Already Filed By You Or Another Agent-  We Can Still Represent You
  
• Negotiation With Assessors Office Prior to Assessment Apeals Hearing
  
• Full Representation at the County Assessment Appeals Board Hearing
  
• Future Year Assessment Appeal Filing Where Warranted
  
• Annual Property Tax Assessment Review to Ensure Lowest Possible Value

CAPTA is dedicated to educating property owners about their rights under the California Revenue and Taxation Code.  Some of our associates have worked to provide assessment relief and reduce property taxes since 1989.

Our mission is simple:

• Enforce our Clients Rights under Proposition 13 and ensure they never pay more property tax than what they are required to pay after applying every conceivable reduction strategy allowed by law.

In most cases our fee agreement is simple as well: You, the property owner receive property tax savings, credits, or refunds–otherwise you don’t pay. There are never any up front costs and fees are only due once you have received official notification of your savings. NO SAVINGS-NO FEE!

Over the years our associates have handled cases for a variety of clients and interests which include restaurants such as Del Taco, Sizzler, Honey Baked Hams and Burger King, vacant commercial and residential land projects, shopping centers and retail properties such as Chino Town Center and Blue Jay Village Corp., hundreds of industrial buildings such as the GFS Airport Center located at the Los Angeles International Airport, hundreds of office and apartment buildings, and countless single-family residences Statewide.

CAPTA Can Help

Our team of agents and consultants have helped property owners get through tough times like these back in the 1990’s with property tax savings and even refunds. The California Property Tax Appeal system is difficult but fair overall, but accurate taxation is the responsibility of the property owner who has the greatest interest in establishing a fair market value.

CAPTA can give you Property Tax Reduction help and assistance. Now more than ever you need to protect your assets by making wise decisions in a depreciating market. CAPTA has the Agents, Consultants and systems in place and the experience you need to maximize your property tax savings and refunds. Regardless of whether you own residential property, apartments, retail, commercial, industrial or even vacant land, all real estate is subject to valuation for taxation by the County Assessors Office and should be reviewed for a reduction in value whenever possible.

CAPTA has provided answers to most of your questions throughout the pages of this site. Please feel free to browse our frequently asked questions (FAQ) section for additional information.

Ready to Get Started? There is no charge to begin and no fee is due until a reduction, refund, or savings is granted! If you would like to start the process and let CAPTA begin their investigation to determine the feasibility of receiving a reduction in your assessed value please call us immediately at 888-678-9TAX .  But time is critical; deadlines vary by County.

Land Values Continue to Fall

Japan vs USA

If you are a land owner, particularly a developer and the holder of inventory please do not be mad at the chart we have provided to the right. We are in no way predicting a “Japan style” real estate meltdown. Our only intention is to draw your attention to the urgent need you and every other vacant land owner regardless of the county, for property tax valuation reduction.

No one disputes the vacant land, particularly residential  and commercial development acreage has dropped substantially in value. The problem exists in trying to deal with the office of the assessor concerning the correct valuation. Let me give you a brief example:

In 2005 a client bought multiple parcels of residential development land along with some commercial for a total price of $24 million in anticipation of the continuation of the residential development market. The parcels range in size from 10 acres to 640 acres.  In 2008 he not only could not sell these properties for a reasonable amount, there were very few other sales other than foreclosures or deed in lieu of foreclosure properties.

In attempting to talk to the assessor’s office concerning these properties our position was simple.  First, there were no comparables within the county so our search necessarily needed to go outside of the county where the property was located. The subject assessor’s office said no. Second, it was necessary to use the sum of the property as a unit of valuation and not the individual pieces. The subject assessor’s office said no again.

The valuation from the subject assessor’s office was to find small pieces of similar properties within the county and then figure dollars per acre and multiply that times the acreage of the subject. We fought this case and eventually obtained for our client a reduction to $16 million.  Savings to this client in the 2008 year alone was over $90,000. We will continue to seek additional reductions on our client’s behalf as the market continues.  When the values begin to a appreciate we will monitor for our client the assessor increases each year, filing appropriate appeals where necessary.

As you can see in this economy the fight to reduce property taxes must be on a level seldom achieved by our competitors. We have learned to think outside the box employing every available strategy allowed by law to reduce your property taxes. If you are looking for an aggressive leading edge company you have found it. Our fee and our contract?  Click here to see them. Otherwise call us now, as the appeals deadline is rapidly approaching, at (909) 867-5000 or fill out the contact form here.

Apartments Show Higher Vacancy, Lower Rents

Apartment Values-Moody

The accompanying chart shows the state of the market relative to apartment prices in the United States. Rest assured there is also a similar chart showing Southern California in a similar trend. To quote MIT who made the chart:

The RCA Database

The commercial property index is based on the RCA database which attempts to collect, on a timely basis, price information for every commercial property transaction in the U.S. over $2,500,000 in value. This represents one of the most extensive and intensively documented national databases of commercial property prices ever developed in the U.S.

The Associates At California Property Tax have known that apartment prices were soft for some time. Still, many of our clients are doing very well with their larger complexes. In spite of their success according to their financials, and using market information as opposed to specific financial information from the subject properties, The Associates were able to find substantial reductions as shown in the chart below:

Just to simplify the reductions, that’s $100 million worth of property, reduced $38,940,208 for an annual tax savings of $412,108! Our clients will save this amount of money each year until the market turns around! Could you use a 39% reduction in your property’s value?

An even more incredible thing is that when we spoke to the client in Property 2 above, he told us he thought the properties were worth maybe a total of $32 million from their assessed value of $36 million. When we analyzed the financial statements we felt that his property was well worth the $36 million should he place the property for sale on the market. But we took the case anyway and began negotiating with the appraiser in the assessor’s office. We approached the value for assessment purposes on the market instead of the subject, with a great deal of success. This “outside the box” thinking saves our clients far more than they expect.

Still not convinced? Why not read our frequently asked questions?  or, simply call us at (909) 867-5000.