Review Property Tax Assumptions Before Financing an Acquisition

By Don McClain | Founder & Principal, Medro Advisors The July 10 archive article emphasizes supportable operating cash flow. Apply that principle to the property-tax line in an acquisition forecast: record the assessment year, current bill, exemptions or abatements shown, and any known pending review. Ask the assessor or a qualified tax adviser whether those figures remain suitable after the proposed transfer. Keep the verified bill separate from an estimate and test the cash effect of a higher amount. Rules differ by location; the seller’s bill is not proof of the buyer’s future cost. Discuss the documented expense assumptions with Fast Commercial Capital. Financing remains subject to review. FUNDED is forthcoming.