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Christine Ziomek
(201) 796-7788
Feb. 20, 2009

Madison Commercial Real Estate Services Offers Insight To Help Property Owners Survive The Recession

Valuable Strategies Presented to CPAs, Attorneys, Brokers, Investors and Property Owners

LAKEWOOD, N.J., Feb. 20, 2009 – “Even in the worst of economic times, there are tools that allow property owners, investors and managers to maximize cash flow, reduce tax liabilities, and preserve investment capital,” explained Daniel Kasten, CFO of Madison Commercial Real Estate Services (MCRES) based in Lakewood, N.J. The company offered a series of seminars with creative solutions for managing real estate portfolios during these challenging times. Kasten, one of the key speakers, explained, “Too often, even experienced professionals overlook these tools and leave money on the table. These strategies can help recession-proof any real estate portfolio.”

MCRES recently hosted three seminars, which featured networking opportunities, five presentations from experts, and dinner. Locations included restaurants in Brooklyn, N.Y., Teaneck, N.J. and Cedarhurst, N.Y. “The events were well attended by CPAs, real estate and tax attorneys, brokers, investors and property owners,” said Elliot Zaks, MCRES Founder and Director of Operations.

One strategy discussed was cost segregation, presented by Eli Loebenberg, CPA, CEO of Madison SPECS, LLC, and an expert in the area of cost segregation studies. Loebenberg spoke about the importance these studies play in reducing tax liabilities and improving cash flow. “A cost seg study conducted by a team of qualified accounting, engineering and tax experts can help accelerate the tax deductions you claim for depreciation by reclassifying eligible assets to shorter recovery periods. Ultimately, that means a better balance sheet.”

Lee David Medinets, Esq., Senior Counsel for Madison Exchange, LLC, and General Counsel for MCRES as well as a Certified Exchange Specialist, presented the strategy of utilizing §1031 Exchanges. A leading expert on §1031 Exchanges, Medinets explained the ins and outs of this asset preservation strategy. “If you’re selling a property, you can defer capital gains taxes by exchanging it for a comparable property through a secure, FDIC-backed §1031 Exchange,” he said. “The IRS rules governing this process can be complex and require the use of a Qualified Intermediary, but they allow you to preserve your investment capital.”

In addition, the seminars featured a discussion on the importance of lease abstracting. “If you own or manage real estate and you haven’t recently reviewed your leases, you may be generating less income than you should,” said David Tesler, Esq., the CEO of Real Diligence, LLC and LeaseProbe, LLC, the only company in the U.S. solely dedicated to abstracting leases. “You need meticulous lease abstracts in order to identify all critical lease dateReleases and to review your operating expenses, CAM, taxes and insurance. This will ensure maximum pass-through to clients.”

Samuel Wagner, the COO of Real Diligence LLC, provided an overview of the benefits of financial due diligence and CAM audits for commercial real estate owners and managers. Wagner noted, “Especially when considering distressed or foreclosed properties, it is essential to conduct a thorough pre-acquisition audit. Without a current, accurate and independent analysis of the value of the property, you may not be buying the deal you think.”

Seminar attendees had the opportunity to address follow-up questions to presenters pertaining to their specific circumstances and networked extensively before and after the programs. Jan Meyer, Esq., Founder and Senior Partner of Jan Meyer & Associates, PA, mentioned the value of getting expert insights and tips from industry specialists. “Given the economy and challenges facing commercial property owners, these seminars explained the value and mechanics of such tools as cost segregation, CAM audits, lease abstracting, and §1031 exchanges,” said Meyer. “These solutions can help my clients reduce taxes, reduce costs and increase income today."

Follow-up calls and e-mails made it clear that the seminars had exposed real estate professionals to some overlooked strategies that can help them weather today’s economic conditions. Madison Commercial Real Estate Services, LLC is an umbrella organization that offers specialty services nationwide for the commercial real estate market through a group of related companies. Madison Title Agency, a nation-wide title agency, handles searches, writes policies, manages transactions and provides closing and escrow services in all 50 states, with more than $75 billion in insured title transactions to dateRelease. Madison SPECS offers expert cost segregation studies. Madison Exchange is one of the nation’s leading Qualified Intermediaries in §1031 exchanges. LeaseProbe is the nation’s only company devoted exclusively to the production of commercial lease abstracts. Real Diligence offers accurate and reliable financial due diligence for commercial real estate acquisitions. Madison Equipment Financing specializes in financing new and used equipment for small and medium-sized businesses with target transactions ranging from $10,000 to $500,000.


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