Author: Matt Thomas

On September 8th, 2021, Matt Thomas, President of Atlas Real Estate Advisors, brokered the sale of 106 units at The Preserve Condominiums to TBR Preserve Owner LLC of Atlanta for a total sales price of $22,700,000.

We are frequently asked what makes Atlas Real Estate Advisors different from  a “normal” real estate brokerage. The short answer is an advisor can offer services that often fall outside the scope of buyer/seller and tenant/landlord representation.

The long answer is that good advice is hard to come by for investors with complex real estate questions.  When you need professional assistance selecting a site for your new business, preparing a development/project proforma, negotiating financing terms with a lender, restructuring a portfolio to maximize return, or with anything that falls outside of the scope of a single transaction, where do you turn?  We can help.

What services does Atlas offer that other companies do not?

• Evaluating or completing a highest and best use analysis for a property
• Assisting with capital allocation strategies for portfolio owners
• Leading rezoning efforts to enhance a property’s development potential and marketability
• Conducting feasibility and renovation projects for for income-producing properties
• Guiding in developing, building or renovating residential and commercial properties
• Improving management operations and customer satisfaction for your real estate team
• Assisting in site improvements including surveys, engineering, soil tests, etc.
• Choosing appraisers, attorneys, contractors to assist you with related needs

Isn’t every real estate broker an ‘advisor’?  

The truth is anyone can call themselves an advisor, but if they are working for a national franchise or publicly traded brokerage, the likelihood that they can offer consulting and advisory services outside of a transaction is slim. Most agents are compensated through commission payments when a property sells or leases. If there is no sale or lease transaction, the agent doesn’t get paid, and working for free or as a consultant does not fit within the traditional brokerage model.

The reason we chose to establish an independent firm is so we could operate with the client in mind, rather than reporting to a corporate entity. As a result, we offer traditional brokerage services and wide range of non-traditional services that aren’t dependent on a transaction taking place. In fact, many of our advisory projects do not involve a transaction at all.  The best part is that our services can be tailored to the needs of your project or portfolio.

What makes us qualified to be an ‘advisor’? 

Each member of Atlas has extensive experience, with advanced degrees and additional certifications beyond what is commonly required by the local and national associations.  Our team has experience in every asset class, and has worked with public, private and institutional investors large and small. We are also owners and investors ourselves, so our guidance comes from real life experience, not just a real estate course we took online. The bottom line: our knowledge goes deeper, and that’s a good thing for you.

We are locally based in Athens, GA but..

When we work in an advisory capacity, we don’t have geographic boundaries and that allows us to assist our clients in any market. In fact, our team is licensed and experienced in multiple states, and has assisted clients both nationally and abroad. And we have a database of referral partners across the country that can assist in the areas we can’t.

Have questions about how we can help you? Let’s talk!

Utilizing a Limited Liability Company (LLC) for commercial property ownership offers numerous advantages, such as asset protection, tax benefits, and management flexibility. However, there are potential drawbacks and challenges as well. In this comprehensive guide, we explore both the pros and cons, providing you with a deeper understanding of how a limited liability company can impact your investment property ventures. 

What are the pros to LLC’s for your real estate investing?

1. Protects Personal Assets
2. Flexibility in Membership
3. Pass-through Taxation
4. Flexible Pass-through Structure
5. Enhanced Protection with Multiple LLCs
6. Management Flexibility
7. Contribution of Personal Assets
8. Easy Transfer of LLC Interests
9. Professional Business Image

Utilizing a limited liability company  form of ownership for your commercial property offers protection for personal assets by isolating business assets from potential lawsuits. Additionally, LLC’s allow for single or multiple members, enabling individual investors to enjoy the benefits and protections that come with this legal structure. Members can be added at anytime, simply by updating the Articles of Organization and reflecting those changes in the Operating Agreement by defining member roles, decision-making processes, profit distribution, member turnover, and share transfers.

From a tax perspective, LLC’s are often treated as pass-through entities, meaning profits and losses flow through to each member’s personal tax returns. This flexibility extends to the allocation of profits and losses, which can be customized beyond ownership percentages to suit different tax strategies and preferences. 

Carefully crafted operating agreements provide management flexibility by assigning property management responsibilities or requiring member voting for significant decisions. Many real estate investors choose to establish separate LLC’s for each rental property to ensure that potential claims and liabilities are isolated to the individual properties rather than affecting the entire portfolio. 

Finally, members can contribute personal assets, such as real property or funding, to the LLC, expanding commercial investment opportunities and leveraging existing resources. Lastly, LLC’s enhance professionalism, instilling confidence and credibility among tenants, lenders, and vendors.

What is the downside to all of this? 

1. No Guaranteed Asset Protection
2. State-Specific LLC Requirements
3. Additional Filing Fees & Filings
4. Due-on-Sale Clause & Transfer Taxes 
5. Potential Self-Employment Taxes
6. Financing Challenges

While LLC’s provide asset protection, it’s important to note that it’s not foolproof. In cases involving fraud or negligence, individual members can still be held liable. Investors with diverse portfolios will need to establish LLC’s in each state where they own property, thus incurring additional costs, and most states require annual or bi-annual filing fees to maintain active LLC status. 

It is important to speak to your attorney, lender and accountant before making a change, because moving existing investment properties into a newly formed LLC can potentially trigger  due-on-sale clauses on the loan, or result in transfer taxes imposed by each city, state, and county. 

We have owned the commercial units downtown in The Georgian for years, and it’s served us well as the main office for Atlas Real Estate Advisors.  It was close to most of the businesses we already worked with, was surrounded by fabulous restaurants for meetings and such, and it was in the heart of walkable downtown Athens.

http://onlineathens.com/business/2013-12-28/eleven-athens-area-businesses-named-uga-bulldog-100-list