Sloan Kimball, CFA

👀 Passive Income For Overtaxed Business Owners: California Municipal Bonds 🏖 How about a 6.40% yield* for a AA-rated local school district? Is that something you may be interested in? How many can I put you down for?? 📝 There is a CA municipal bond new issue in the market today for Fresno Unified School District with a 2049 maturity that has a 4.16% yield to maturity, which is a 6.40% taxable equivalent yield*. (*Assumes a 35% tax rate) *Taxable Equivalent Yield=what you would have to earn on a corporate bond or other taxable fixed income product in order to match the tax-free yield on a municipal bond, at a certain tax rate (we assume 35% tax rate for simplicity). Looking for more diversification within CA munis? iShares California Muni Bond ETF (ticker CMF) could be your ticket. 🎟 Some advantages of CMF include: 1) 3.17% yield, 4.88% taxable equivalent yield (assuming 35% tax rate) 2) 3.32% annualized return since 2007 3) 0.08% expense ratio (very low) 4) High quality with 94% AA or AAA rated. 5) 0.25 correlation to the S&P 500 (IE, a great diversifier to your equity holdings) 6) Low default rate: From 1970 to 2021, investment-grade munis had a 0.09% cumulative default rate within 10 years of issuance, while investment-grade corporate bonds had a 2.17% default rate. Interested in learning more about investing and saving money on taxes? Subscribe to my newsletter at the top of this post.

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Are 1031 exchanges in danger of extinction? For over 100 years, Internal Revenue Code (IRC) Section 1031 has allowed taxpayers to build wealth through the deferral of capital gains taxes on the sale of property held for business and investment purposes. With the release of the proposed 2025 budget, IRC Section 1031 is in the crosshairs once again. In March of this year, the Office of Management and Budget (OMB) released its Budget of the U.S. Government for Fiscal Year 2025, explaining the current administration’s priorities and proposed initiatives for next year’s budget. Among these priorities is a section entitled, “Cutting the Deficit By Expanding America’s Productive Capacity and Promoting Tax Fairness”, which states that the budget “saves billions of dollars by closing other tax loopholes that overwhelmingly benefit the rich and the largest, most profitable corporations.” Among the loopholes being targeted is the so-called ‘like-kind exchange loophole’ that enables real estate investors to defer taxes indefinitely. The document states that it would “repeal deferral of gain from like-kind exchanges” and instead “would treat the exchanges of real property used in a trade or business (or held for investment) similarly to sales of real property, resulting in fewer distortions. While at first glance, this sounds like the proposal completely eliminates Section 1031, additional detail is provided on the exact changes being proposed. The document goes on to say: "The proposal would allow the deferral of gain up to an aggregate amount of $500,000 for each taxpayer ($1 million in the case of married individuals filing jointly) each year for real property exchanges that are like-kind. Any gains from like-kind exchanges in excess of $500,000 (or $1 million in the case of married individuals filing jointly) in a year would be recognized by the taxpayer in the year the taxpayer transfers the real property subject to the exchange." While there is time before the 2025 budget proposal is finalized and enacted into law, it’s important to be watching the horizon for regulatory changes that impact your investment strategy. Modifications to IRC Section 1031 could be one such significant change. While everyone should be proactive in tax planning, it’s especially important for investors. If IRC Section 1031 is modified or even eliminated, how will you adjust your tax strategy? Leave a comment below.

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https://ow.ly/US0B50REmNr In the Sacramento region, several office properties in submarkets like Downtown, South Natomas, and Highway 50 have—or will be—sold for a steep discount. These properties can dramatically cut rents and induce other landlords to drop rents.

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Success! Equity Bridge Capital Closes $600,000 Mid Construction 2nd Position Loan for an Experienced SF Bay Area Luxury Spec Builder Really glad to have recently funded a loan for a well established local San Francisco Bay Area developer. For years we have been talking about loan options - but ultimately the discussions always ended with him saying how much he hated the idea of borrowing private money - which of course he never did. Then things changed. The bank gravy train derailed when well known banks favored by many a local developer went belly up. The fallout caused a widespread change in the way surviving banks with regulators breathing down their necks decided to operate - slowing down or eliminating altogether their construction loan business. This in turn left many investors with few if any options to find the kind of funding they had previously become accustomed to getting. Enter Equity Bridge Capital. For years, we’d carved out a nice niche in the private money lending space - providing builders / investors / developers with loan products that gave them the operating capital they sorely needed to start and complete projects. Most notably, we’ve consistently offered Junior position loans ( 2nds and sometimes 3rds) which saved our borrowers tons of $ by not forcing them to take a much more expensive and often deal killing new 1st loan. We did our part, filled a need, and are now considered to be one of the leaders in this space - which is why my friendly GC borrower hung in there and came back to me with his request. And the loan for our borrower? Let’s just say when he contacted me looking for a minimum of $500K to go behind his $3M bank loan 1st, he put up very little resistance ( ok, maybe just a little bit ). But that conversation lasted about a minute when he realized I gave him a quick and simple option he could find no where else. We ended up giving him his ask and then some - a loan at a less than 50% LTV based on a conservative resale value of$8M. ( his realtor thinks it might go as high as $10M). After we closed, it was clear he was relieved and his spirits lifted. This is an important project for him with alot at stake and high hopes about completing and delivering the property to the marketplace sometime in the next 4-6 months. I look forward to seeing the finished product - it should be a real stunner. For info on our loan products ( yes we do 1sts too! ) please contact me anytime : Art Gilberg - Owner/ Broker Equity Bridge Capital M: 415-760-2338 E: art@equitybridge.com Cal DRE # 01868465 #constructionloans #privatemoneyloans #hardmoneyloans #bridgeloans #privatelender #sanfranciscorealestate #californiahardmoneylender #2ndloans

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Investors got big tax breaks to turn luxury Bay Area apartments into affordable housing. In many cases, rents are higher than before Contact me to discuss the latest scoop in real estate! #sanfrancisco #sfrealestate #bayarearealtor #bayarea #california #bayarearealestate #sanfranciscorealestate #sfrealtor #californiarealestate #siliconvalleyrealestate

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Great article from Acres summarizing the bid results for almond ranches from the recent chapter 11. https://lnkd.in/ggZiEhW6

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Did you know: - The average monthly net sales rate for public builders is 2x compared to that of private builders. -The average new home community count is 40% larger for public builders compared to private builders. - The market share of public builders extends to 80%+ in four markets: Las Vegas, Riverside, Tucson, and Cape Coral (table below). Subscribers to the Zonda National Outlook will get a report next week highlighting these trends as well as discussing WHY market share has shifted, WHO the largest public and private builders are, HOW sales rates and supply levels vary, and WHERE to find pockets of strengths and weaknesses by builder type. https://lnkd.in/gDp_7sm8 #housing #homesales #newhomes Tim Sullivan Sarah Bonnarens Sean Fergus Evan F. Alexis Wilmot Larry Buckner Susan Heffron Jeffrey Meyers Amy Dudley Kyle Cheslock Cameron McIntosh

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A common mistake I often see when reviewing Form 1040 for California residents with an LLC that is a disregarded entity is forgetting to include Form CA 568. Let's break it down: Normally, a partnership (Form 1065) requires at least two partners. But when one partner leaves, and only one remains, the LLC becomes a single-member LLC (SMLLC) and is considered a disregarded entity by the IRS. An LLC with just two partners, with a husband and wife, can also elected to be treated as a disregarded entity in California. While the IRS does not require disregarded entities to file Form 1065, California has different rules. If you have an LLC in California, and it's disregarded by the IRS, you still need to file Form CA 568. This applies even if an individual forms an LLC to report Schedule C or E income, they must file Form CA 568 for their SMLLC in California. Tax preparers often rely on previous year returns and many times miss Form CA 568 if a new LLC was formed. For new clients, many times CPAs quote fees based on the prior year's return, but if new LLCs are formed in the current year then it can cause unexpected fee adjustments, which can adversely affect client relationships. To avoid this, we have added a question to SOP where we now ask how many LLCs a client has to give accurate quotes and avoid surprises for CA returns. Always remember to check for LLCs on the 1040 for California clients, and make sure to file Form CA 568. Note: An LLC that isn't registered in California but earns income from the state must still file Form CA 568. The rules are broad, but my goal is to highlight key points to remember when handling California returns. #cpa #uscpa #learning #ustax #ustaxation #taxseason #califormia #irs #partnership

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Apple Valley, CA: High Desert's Hidden Gem for Note Investors ## Market Overview: Apple Valley's Emerging Opportunity Located in California's High Desert region, Apple Valley presents unique opportunities for note investors seeking value in the Golden State's inland markets. This Victor Valley community, known for its "Better Way of Life" motto, offers compelling investment dynamics for distressed note buyers. **Key Market Indicators:** - Population: ~75,000 and growing - Median Home Price: $375,000 - Average Days on Market: 45 - Year-over-Year Appreciation: 8.2% ## Why Apple Valley Matters to Note Investors **Strategic Location Benefits:** - 90 minutes from Los Angeles - Direct access to I-15 corridor - Proximity to Barstow logistics hub - High-speed rail development potential **Economic Drivers:** - St. Mary Medical Center expansion - Amazon logistics facilities - Southern California Logistics Airport - Growing retail/commercial development ## Investment Advantages **Property Characteristics:** - Larger lot sizes (many 1/2 acre+) - Ranch-style properties - Horse property opportunities - Mixed residential/commercial zones **Note Investment Sweet Spots:** - Single-family residential notes - Small multi-family opportunities - Commercial conversion potential - Land development notes ## Market Demographics **Resident Profile:** - Military families (proximity to bases) - Commuter households - Retirees seeking space - First-time homebuyers - Remote workers **Employment Sectors:** - Healthcare - Logistics - Retail - Government/Military - Education ## Risk Mitigation Strategies **Market-Specific Considerations:** - Desert climate property maintenance - Water rights documentation - Solar installation impacts - Rural property valuations **Due Diligence Focus:** - Well/septic system status - Desert landscape requirements - HOA restrictions (where applicable) - Zoning compliance ## Investment Opportunity Zones **Prime Areas:** 1. The Vineyards - Higher-end properties - Golf course proximity - Established neighborhoods 2. Village District - Commercial potential - Mixed-use opportunities - Redevelopment zones 3. North Apple Valley - New development areas - Industrial corridor proximity - Growing residential demand ## Market Trends and Forecasts **Current Trends:** - Increasing LA/IE migration - Growing logistics sector - Remote work relocations - Affordable housing demand **Future Projections:** - Population growth expectations - Infrastructure development - Commercial expansion - Transportation improvements #AppleValleyRealEstate, #HighDesertNoteInvesting, #AppleValleyPropertyMarket, #CaliforniaDesertRealEstateNotes, #VictorValleyInvestmentOpportunities, #AppleValleyMortgages, #HighDesertPropertyNotes*

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In 2024, several misconceptions about the housing market were clarified. These included the idea that housing prices always increase, the belief that renting is inherently inferior to buying, and the assumption that the housing market behaves similarly to the stock market. #Seattle #Bellevue #Redmond #Kirkland #SeattleRealestate #SeattleWashington #SeattleWa #RealestateInvestment #PropertyManagment #SeattleRealtors #RealestateNewsletter #Realtor #RealestateGoals #HousingMarket #RealtorsofInstagram #Realestate #RealestateTipsandAdvice

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Attention Small and Medium Business Owners - it is time to vote. Vote Yes for WA State Initiative 2109 to repeal the State's current Capital Gains tax. You already pay a Federal Capital Gains tax! Even though the Supreme Court disagrees with me (at least), it is a double tax. Support our local economy. #vote #supportsmallbusiness #entrepreneurs

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In today’s world of tightening credit and rising interest rates, navigating construction and land development financing is more challenging than ever. But this isn’t a time to slow down—it’s a time to get smarter. Assessing risk more carefully and optimizing your strategy is crucial in these tougher conditions. At La Mesa Fund Control & Escrow, we're here to help you navigate these times with expert fund control and risk mitigation. We’re not just weathering the storm—we’re turning these challenges into opportunities. Let’s keep our projects on track and our profitability intact, no matter how bumpy the road ahead may seem. #ConstructionFinance #RiskMitigation #FundControl #ConstructionLending #AdaptToSucceed #LMFCE

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727 acres - Biggest Land Parcel in San Diego County Subject: WINERY price $ 35,000,000 OM BY REQUEST**POF and signed NDA commission agreement are required** 201-923-2578 isaac@utopianestate.com - 5 water wells on the property with a pumping system and underground piping for irrigation -120 acres have been planted with grapes (30 acres in the last 3 years) and can plant up to 300-350 acres in total -Currently, 90 acres produce 300 tons of grape growing to 600 tons in 2 years when an additional 30 acres come online -Permitted to make 80,000 cases or 160,000 bottles Taste Award-Winning Emerald Creek Wines Temecula 9,000 sq ft tasting room -54,000 sq ft of paved parking and roads What we have that other wineries in the area do not: 1) Water. Almost all wineries in the area import water. We have our own water wells and are self-sufficient. 2) Metal building with the license to process 1,000 tons of grapes to bottling for both our winery as well as outside wineries. 1,000 tons equates to 800,000 bottles of wine per year. You can imagine the revenue potential depending on the price Next step is producing the grapes required to fill this, which we are doing step by step, first 30 acres, then 60 acres now up to 120 acres with the goal of adding 30 acres per year up to 400 acres. An outside buyer could do this much faster and then produce enough grapes to use all of the production capacity licensed under the metal building. POF and signed NDA commission agreement are required

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