Melvin Feller owns and is the founder/CEO of Melvin Feller Business group. He operates in Dallas Texas. A former sailor and proud supporter of our vets, Melvin now concentrates on business and his love of seeing people become successful in all areas of life. He is an avid Christian and knows all things are possible in Christ! He has been a domestic violence survivor in his marriage and divorce to Tina and more importantly a cancer survivor.
Melvin Feller Business Group Discusses Using Your Real Estate to Raise Cash
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Melvin Feller Business Group Discusses Using Your Real Estate to Raise Cash Using Your Real Estate to Raise Cash by Melvin Feller
Melvin
Feller Business Group in Dallas Texas and Lawton Oklahoma. Our mission
is to call and equip a generation of Christian entrepreneurs to do
business as ministry. We provide workshops and resources that help
companies discover how to do business God’s way and provide a positive
outreach as the director. When the heart of a business is service rather
than self it can be transformed into a fruitful business ministry
earning a profit and being of service to the community and their
customers. Melvin Feller also owns Melvin Feller Ministries. Melvin Feller is currently pursuing another graduate degree in business organizations.
An
increasing number of small businesses are turning to the real estate
sale/leaseback as a creative source of new financing. With real estate
prices pushing through the roof these days, most people — including
businessmen — would rather own an appreciating asset than let some
landlord reap the gains.
But
for a growing business, ownership of real estate, a non-current asset,
often obscures potentially current liquid assets that can be put to work
more effectively. Many expanding business seeking to stabilize their
balance sheets against the vagaries of loan rates, or entering the
market for more money, might look first to their own fixed holdings.
By
selling property for cash and simultaneously renting it back from the
buyer through a long-term net lease, a business may be spared the perils
of borrowing and the headaches of a stock flotation — and gain capital
advantages, too.
Indeed,
through tax benefits to the buyer and cash flow improvement to the
seller, a well-executed sale/leaseback deal can turn out to be one of
those rate arrangements in commerce that result in measurable profits
for both parties. Here’s how: Using Your Real Estate to Raise Cash by Melvin Feller
Suppose
a business has owned its factory or headquarters for 20 years. The
depreciated property is carried on the books at a residual value of 20%
of the purchase price, even though its true market value may have risen
dramatically. As such, it is clearly a wasted asset that does not even
enhance the balance sheet.
If
the building is sold outright, the company will have to pay capital
gains taxes on the profit. If the original cost was, say, $120,000, the
property would be carried at perhaps $20,000 for the land (which can’t
be depreciated) and $20,000 residual value for the structure.
The
company will have written down $80,000 in depreciation. Let’s assume
the property is sold for $400,000, generating a $360,000 capital gain.
If the effective corporate tax rate is 30%, $108,000 is paid in taxes,
leaving $292,000 to plow back into the business, in contrast with a bank
refinancing that would generate $320,000.
In terms of working capital, the business is initially $28,000 better off via the mortgage route. Using Your Real Estate to Raise Cash by Melvin Feller
One
of the cornerstones of the agreement is the fact that a buyer is often
willing to accept an annual rent that will cost the company less than
annual interest on a loan. The buyer can do so since total
return — profit on the continuing appreciation of the property and tax
advantages that accrue to new ownership, as well as rental income — will
make the package attractive. As a result, the sale/leaseback can
effectively provide capital at rates that are 1–1/2 to 2–1/2 points
under conventional debt rates.
The
buyer might accept a lease, therefore, at $40,000 a year for 10 years,
where orthodox financing might cost $48,000. The lessee takes the rent
off gross profit as a business expense.
Experts
agree that the sale/leaseback tactic, long popular in Europe where
ownership is not the sanctified institution it is here, is becoming part
of real estate’s “new wave” of alternate financing. Using Your Real Estate to Raise Cash by Melvin Feller
Since
the lessee of the leased-back premises enjoys the perquisites of
ownership — he can add to or otherwise alter the property as needed,
retaining total control — in a sense he still “owns” it. If you have the
rights to use it, then it’s really yours. And to clients who stubbornly
insist that their company facilities are profitable assets, they
retort, “Then sell your business and go into real estate. Melvin
Feller Business Consultant, Business Owner, Melvin Feller ministries
and Graduate Student Candidate in Business OrganizationMelvin Feller Business Group in Texas and Oklahoma.
Melvin Feller founded Melvin Feller Business Group and Melvin Feller
Ministries in the 1970s to help individuals and organizations achieve
their specific Victory. Victory as defined by the individual or
organization are achieving strategic objectives, exceeding goals,
getting results or desired outcomes and a positive outreach with grace
and as a ministries. He has extensive experience assisting businesses
achieve top and bottom line results. He has broad practical experience
creating WINNERS in many organizations and industries. He has hands-on
experience in executive leadership, operations, logistics, sales,
program management, organizational development, training, and customer
service. He has coached teams to achieve results in strategic planning,
business development, organizational design, sales, and customer
response and business process improvement. He has prepared and presented
many workshops nationally and internationally.
Melvin Feller Business Group Discusses Work Life Limitations from a Texas Business Owner Melvin Feller Business Group in Burkburnett Ministries and Dallas Texas and Lawton Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way and provide a positive outreach as the director. When the heart of a business is service rather than self it can be transformed into a fruitful business ministry earning a profit and being of service to the community and their customers. Melvin Feller is currently pursuing another graduate degree in business organizations. Work Life Limitations by Melvin Feller Setting healthy boundaries is essential for a healthy work life balance. That sounds true, but what does it mean? What do healthy limitations look like, and how can you know where and how to set them? I notice a tendency ...
What Does Melvin Feller Business Consultants Group Business Ministries in Texas and Oklahoma Do? Melvin Feller Business Consultants Group Business Ministries in Texas and Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way. When the heart of a business is service rather than self it can be transformed into a fruitful ministry. Small Business Consulting You have the idea . You have the talent . You have the drive . All that remains is the flawless execution of a well-crafted business plan. The success of all companies, large and small alike, is most limited by the knowledge and expertise of that company’s team. Trust the small business professionals at Melvin Feller Business Consultants Group Business Ministries to fill in those crucial missing pieces — you excel at what you do, we excel at building gre...
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