Happy Holidays 2011!
As the Holiday Season is in full swing, and I wanted to take a moment to thank my wonderful clients, friends and family. I’ve had a wonderful year, sprinkled with goodness, and glazed with a touch of chaos. It has been wonderful. I’m so fortunate to have the past and present clients that I do. It warms my heart, I feel like I’m somehow one of the luckiest people in my profession. Everyone I have the opportunity to help is so kind, patient and understanding. I truly hope you and your beautiful families have a spectacular Holiday, (however you choose to celebrate). I’m looking forward to 2012, I know it’s going to be a blast!
-Mandy
Tips for a Greener Holiday Season
As always, I want to wish all of you that celebrate a wonderful, safe and happy holiday season! I hope that you enjoy your holidays as much as I do, and that you’re able to share it with friends and family. This week, Teton Valley Community Recycling sent this newsletter, and I thought I would share it, as it has some great ideas, and I know I can ALWAYS use some gentle nudges to remember to keep the environment in mind during these busy days.
1. Shop Local
Visit and buy just 1 item from your favorite local business on the Saturday after Thanksgiving. You’ll be giving back to the community and saving time and fossil fuels by not driving to Idaho Falls or another shopping destination. If you need ideas, check out the new Driggs Downtown shopping guide.
3. Recycle Wrapping Paper
If every family reused just 2 feet [0.6 meter] of holiday ribbon, the 38,000 miles [61,000 kilometers] of ribbon saved could tie a bow around the entire planet. So if you’re not giving something that doesn’t need to be wrapped from Tip #2, reuse the wrapping paper or use an easily reusable gift bag.
5. LED lights
2. Give Change
- Give needy families the gift of self-reliance and hope with Heifer International. Your gift will help provide livestock, seeds, or training to a family struggling with hunger and poverty.
- Give your family the opportunity to use green power by signing up for the Green Power program from Fall River Electric.
- Give experiences. Instead of creating and using more *stuff*, give something that is consumed or experienced like a massage, special dark chocolate, or a date night without the kids. In this busy world, our time and attention can be more valuable than any *thing* from the store.
- Give to their favorite non-profit. Of course we had to include this great gift idea! Add a name to the “in honor of” box for your donation to TVCR and we’ll send a custom thank you card (on recycled paper of course) to the recipient.
4. Fake Fir or Compost
The traditional Christmas Tree is a holiday staple for many. If you chose a fresh tree, be sure to recycle it after Christmas by having it ground into wood chips, which can be used to mulch gardens or added to your compost pile. If you chose an artificial tree, know that you will be saving gas and other resources used each year to obtain and produce a live tree.
You may contact TVCR Here:
Teton Valley Community Recycling PO Box 1193 Driggs, ID 83422208-354-2800
Email: tetonrecycling@gmail.com
Happy Thanksgiving!
For those of you celebrating, I would like to wish you a super special Thanksgiving holiday! If you are traveling, I hope you do so safely and without frustration. -Mandy
Triple Net Lease: The Good, The Bad, The Ugly
In searching for some blogging inspiration, I reached out to my facebook friends. This is the question I received. ” Triple Net Lease: Give me the good, the bad and the ugly.”
Well, here goes!
Let me first explain what a triple net lease is. A triple net lease (AKA net-net-net lease) agreement designates that the tenant (lessee) is solely responsible for all of the fees relating to the asset being rented, as well as rental fees. The lessee has to pay for property taxes, insurance, and maintenance.
You will not typically see this type of lease in a residential setting, that is more typically structured in a Gross Lease. A triple net lease has risk for both the tenant and landlord (lessor). It is most common for larger chains (think Walgreens, McDonalds, Home Depot) to enter into a lease fro a very long time; typically 10 to 25 years.
The Good: For the tenant, the triple net lease can be great. A tenant has more freedom with the structure and can better customize a space for use WITHOUT the capital investment of a purchase. The tenant pays less for rent, as they have incurred other expenses. This lease is quite customizable, and can have caps for tax increases, insurance increases, etc. For the landlord, triple net leases can be a solid source of income with little or no overhead costs. The landlord will not need to play a very active part in the property. The terms of a triple net lease can easily be negotiated, and longer term agreements (10 to 25 years) are common; equating to stable income for a long period of time.
The Bad: For the tenant, there are some unknown variables that might cause a problem. Take for instance rising costs. A triple net lease might have some sort of cap, but likely, a tenant would be forced to cover rising taxes and insurance rates. Granted, this might not be much, but it could potentially cost a tenant a substantial amount of capital. Imagine tax or insurance changes over the course of a DECADE; it could be substantial. Then the question becomes: “What’s fair taxation for the lessee in a multi-tenant situation?” It would be a good thing for a lessee to determine how this is handled and ensure that the lessee is comfortable with the setup. *See table below from Landlord Tenant Law Firms. There’s also no one saying that the status quo could never change. The basis of the triple net lease is negotiation. Also, a tenant can not claim rent losses as business losses.
For a lessor, there might be problems with the building falling into disrepair. A tenant strapped for cash (possibly due to rising insurance and tax rates) might let some of the maintenance slip. Also, the tenant might fail to pay taxes altogether. This could lead to disastrous consequences for a lessor. Sometimes these problems are addressed in a reserve fund, so they may be a non-issue. Speaking in tax terms, depreciation is calculated at 39 years, not 27.5 years. That means there’s less of an income tax advantage. It would be quite important for a lessor to know that lessee’s responsibilities are handled appropriately.
The Ugly: It would be incredibly rare, but there could be issues with fraud. Perhaps a lessee deliberately damages a building for the insurance claim. There is also the question of arson, for a lessor to lose the building that’s generating income, it could potentially be disastrous for both parties (especially if the lessee is skimping on insurance because of cost).
Table 1, below, shows what happens to each tenant’s tax obligation if it is figured on the basis of that tenant’s portion of the rentable space only. Table 2 shows what happens to each tenant’s taxable share when the landlord figures it according to the value of each tenant’s rented space. After computing the replacement cost of the property and each tenant’s share, the landlord applies that percentage to the tax bill, too.
Table 1: Allocating Taxes According to Rentable Space
| Tenant | Rented space (square feet) | Rentable space | Ratio (rented space/rentable space) | Tenant’s share of the taxes |
| A (extensive improvements) | 2,000 | 10,000 | 20% | 20% of the total |
| B (added nothing) | 5,000 | 10,000 | 50% | 50% of the total |
| C (moderate improvements) | 3,000 | 10,000 | 30% | 30% of the total |
Table 2: Allocating Taxes According to Replacement Value
| Tenant | Replace-ment cost per square foot | Rented space, square feet | Cost to replace own space | Replacement cost of entire property | Tenant’s share of replacement costs | Tenant’s share of the taxes |
| A (extensive improvements) | $150 | 2,000 | $300,000 | $745,000 | 40.3% | 40.3% |
| B (added nothing) | $50 | 5,000 | $250,000 | $745,000 | 33.6% | 33.6% |
| C (moderate improvements) | $65 | 3,000 | $195,000 | $745,000 | 26.1% | 26.1% |
Ski/Snowboard Season 2011-2012
Here’s my guest post for Teton Valley Realty:
Last year the Valley experienced substantial snow fall. Substantial. Epic. Pow-heaven.
Well, really there isn’t a “bad” year at Grand Targhee, is there?
We can only hope that this coming ski/snowboard season is as light and fluffy as last year, with the remaining effects of La Niña. With only 23 days standing between the remains of fall and opening day of the 2011/2012 season, make sure you’re ready to go when the white stuff starts falling.
- The local ski swap will be held at the Driggs City Center November 11 & 12.
- $7 FRI 5-8PM, $5 Sat 8-10 AM, $3 SAT 10 AM-4 PM
- Gear Check-in Thurs Nov 10th 2-6 PM at Peaked Sports, or at Community Center beginning at Noon Fri & during Swap
- Huge Selection of New & Used Equipment!
- Peaked Sports will also be there with screaming deals on ski & snowoard equipment, and 50% off last season’s winter clothing!
- Proceeds benefit the Teton Valley Ski Education Foundation.
- Grand Targhee is Scheduled to open November 25, 2011. Based upon the success of last year’s shuttle and in continued efforts to reduce environmental impact, Grand Targhee offers several shuttles to and from Grand Targhee throughout the day. With 5 stops, and run times from 6:40 am to the last bus departing at 11:10 pm, employees, vacationers, and valley residents can all find use for the shuttle. The cost is:
- $2.00 per Ride Up for walk-ons (exact change only)
- $1.00 per Ride Down for walk-ons (exact change only)
- Punch Passes: $25.00 / 10 round trip rides
- Children 5 and under ride free
- Season Passes: $99.00
You may see the full schedule here, and passes may be purchased online, at Habitat in Driggs, or the Activity Center at the resort.
Happy Halloween from the Rockefellers
Happy Halloween to those of you that celebrate!
I hope you all have a fun and safe holiday as we welcome November.
Fall is here!
I couldn’t help but snap a photo as I was driving from an inspection on Ski Hill Road. I know, I know. I shouldn’t use the phone in the car. I couldn’t help myself. The colors are amazing. I just love this time of year. Teton Valley is just blooming. I’ve missed most of the most vibrant colors. I feel like this fall has really lasted; most years I feel like it’s over before it’s begun. Not this year. I’ve been traveling to Jackson regularly, and each time, I comment on the colors. They are simply breathtaking. All too soon the snow will be upon us, and we’ll be looking to the slopes of Grand Targhee for entertainment.
By the way, if you are planning on a season pass at Grand Targhee; you’d better get on it! The season pass sale ends on Halloween! That’s right, October 31, 2011 is the last chance you have for discounted rates. With Halloween just around the corner, don’t wait! Get your pass now.
New Listing in Targhee Ridge Estates
This beautiful listing in Targhee Ridge Estates must not be missed! With approximately 1,527 square feet of living space, a large 2 car garage, and superb location on Ski Hill Road, this house is a bargain! Featuring 3 bedrooms, 2.5 baths, hardwood floors, a propane fireplace, custom tray ceilings throughout the entire house, a large laundry room and upgraded kitchen, this home just needs occupants! REO, and in great condition, the price is incredible! Call me today for more information or to arrange a showing.
Asking Price: $174,900
Price Reduction – 215 N 3rd E, Driggs
This cute home in the City of Driggs has just been reduced. With 3 bedrooms, 1 bath, a nice living area (complete with woodstove), this home sits on a larger corner lot. As one of the lowest priced single family homes in the City of Driggs, this home is a must see! New asking price: $74,900
Teton Valley Summer is Sizzling . . .
I mean that both literally and figuratively. The weather this summer has be marvelous! I have been trying to take the little one to the park for lunches as often as possible, we’re trying to soak up all of the wonderful mountain sun that we can. With temps averaging about 80 degrees, the summer in this valley is spectacular!
So are the great deals!
I keep checking the hot sheet, and I see these amazing homes (and land) popping up all the time, and keep thinking to myself, “I wish I had infinite funds, I would go on a shopping spree.” The deals right now are better than I’ve seen in the past 10 years, and that is really no joke.
For those looking to buy vacant land: The prices are so low, it should be criminal. Some of the properties out there are so incredibly unique, I can’t believe (even in this down market) that they are still available. There are some really great loan programs out there for those of you that are looking to finance.
For those of you looking to buy homes: Whether interested in vacation property, a primary residence, or investment property, the prices are smoking. I’ve been around in the good times (when I happened to buy land and build) and bad times. I do think that our market has definitely bottomed, and I see now a decrease in the foreclosures (about 20%). This means that we’ll start to see pricing stabilize, (hopefully increase) in the near future. Coupled with great interest rates, there really isn’t a better time! I just saw a home on the hot sheet (4,000 + square feet, 2.5 acres and excellent Teton Views for UNDER $200,000). I can’t believe it.
