Inflation Defense: Real Estate…At The Right Price

Inflation is here and shows no signs of stopping. Consumer prices are up 9.1% over the 12 months ended June 20221, the largest increase in 40 years. Investors have long relied on real estate as a trusty hedge…but not all asset classes are created equal.

In such an accelerated inflationary environment, residential real estate presents a more agile option compared to commercial properties (annual lease models allow them to reflect inflation in rents to offset […]

By | July 10th, 2022 ||

Separating Business Assets And Real Estate

Q: I am looking to purchase a building in which to operate my business. Should I use a separate entity to own the building?

A: In most situations, yes. Holding the building in the same entity that operates your business may be convenient; however, there are several reasons why a separate entity is generally preferable.

Many businesses are taxed as C corporations, making it tax inefficient to hold assets like real estate that can appreciate greatly over […]

By | July 5th, 2022 ||

Hotel Revenues Are “Rents” Under New Michigan Law

On June 24, 2022, Michigan passed the Michigan Uniform Assignment of Rents Act (MUARA). When it did, Michigan became the first state with a Uniform Assignment of Rents Act that expands the definition of “rents” to include hotel revenues.1 This distinction makes a significant difference and, perhaps surprisingly, is not clear in many states.

Michigan had not previously addressed this question directly. Although lenders in Michigan and elsewhere often act as though hotel receipts are rents, the majority […]

By | July 1st, 2022 ||