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Month: February 2014

Why You Should Consider 1031 Exchanges for Your Las Vegas Business Use or Investment Properties

National home values have risen and your investment properties probably gained values too. The Internal Revenue Code Section 1031 gives investors the ability to defer capital gain tax when you exchange business-use or investment property for another business-use or investment property.

There are many ways of exchange. For example, sell a vacation rental home in Hawaii and buy three investment properties in Las Vegas to generate more stable and higher income, sell an old apartment building which always needs repairs and buy a Triple Net Leased commercial property, sell a farm land in California and buy a hotel-condo in Florida. It can be exchanged for personal properties too.

Flipped properties don’t qualify, but if a property listed for rent for a few months without finding a tenant then changed it for sale, can qualify, as well as vacant land which didn’t generate any income. (Per Certified Exchange Specialist, Carmine at First American Exchange)

There are two deadlines for successful 1031 Exchange;

  1. Replacement properties must be identified within 45 day.
  2. The exchange must be completed by the earlier of 180 days from the date of the first relinquished property closing.

For fully deferred exchange, replacement properties must be greater or equal value of the relinquished properties, and all proceeds from the sale of the relinquished properties must be reinvested.

It’s important to select a Qualified Intermediary with financial backing of $1,000,000 Fidelity Bond and $250,000 Errors & Omissions Bond. Nevada is one of nine states which enacted the QI law.

Las Vegas HOA Recall Elections: How Do I Get A Board Member Recalled?

Las Vegas HOA Recall Elections: How Do I Get A Board Member Recalled?

Every executive board in an association must go through an election process on a regular basis, which is typically annually and spelled out in the association’s bylaws.  In accordance with NRS 116 and the associations governing documents, every board must consist of no less than three board members and can be as large as seven to nine board members.  But what happens when a board member needs to be removed from the board? Can a director be removed from the board?

YES.  According to NRS 116.31036 board members can be removed from the executive board and here’s how it works …

A member of the board can be removed with or without cause provided that the unit owners are able to obtain the signatures of at least 10% (or less if the governing documents allow) of the unit owners on a petition to request a removal election.  This petition must be mailed, return receipt or served by a process server to either the Community Manager or the Board.

The next step is to send out secret ballots to the owners between 15 and 60 days before the removal election meeting and is handled by the Community Manager.  The ballot process is handled the same way that a regular election is processed.  The removal election must be completed within 90 days of the receipt of the petition and is typically monitored by the association’s attorney given the nature of the process.

In order for a recall election to be successful, at least 35% of all unit owners must vote in favor of the recall and the majority of the total votes cast MUST be in favor of the removal  If the Association does not receive at least 35% of the owners to vote in favor of the recall and a majority of the total votes cast are not in favor of the removal, the Director will remain on the Board.

In conclusion, it is possible to remove a member of the board.  This may seem like a very high standard to meet but there is sound reason behind the restrictions. It is my opinion that the laws may have been written this way in order to prevent frivolous removals of board members while still making it possible to do so should there be a broad-based community support for such an action.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.