Provides positive cash flow immediately after transaction, when funds are tight.
Not all Cost Segregation Reports are built the same. A Cost Segregation Study from Pinnacle is a detailed, engineering-based analysis conducted by a qualified Construction Engineer. In addition, Pinnacle leverages its relationships with MAI-certified appraisers to ensure the proper allocation of value between the land and structures, squeezing out additional value where other firms might settle for plug-and-play assumptions.
Cost segregation is one of the most valuable profit strategies utilized by owners of commercial real estate. Simply put, these studies segregate the cost of an asset into different buckets, each with their own unique depreciation schedule. The useful life of a building is complex – carpet wears out and needs replacing long before windows, and the HVAC will age differently than the concrete in the parking lot. But without a cost segregation study, the entire property depreciates at the same rate.
Once only used on the largest and most complex of properties, Cost Segregation has become a widely accepted practice for nearly all commercial real estate owners. Virtually any individual or firm that acquires, develops, or renovates commercial property stands to benefit from the improved cash flow yielded from accelerated depreciation.
There are no formal regulations or qualifications required to perform a cost segregation study; therefore, it is vital you ask questions and demand experience from any individual or service you hire. You will get the most value, and avoid the most risk, by employing a team that provides the following: