Why we specialize in the
170 bargain sale
U.S. donors typically donate more than $400 billion to the non-profit sector on an annual basis. However, less than 3% of these donations come in the form of real estate despite the fact that more than 40% of the nation’s wealth is in real estate. That disconnect represents the greatest untapped source of potential donations to serve the needs of U.S. citizens.
About Us
We believe so strongly in the power of real estate to do good for our communities, it's in the name our company, Social Impact Real Estate. The SIRE Group is a commercial real estate brokerage serving the non-profit sector. Our mission is to empower non-profits to use real estate as a tool to amplify their social impact. We do this by providing a wide range of brokerage services tailored to our non-profit clients’ unique needs allowing them to make informed real estate decisions.
Leadership Team
Our Agents
Justin Hruby
justin.hruby@sirecre.com
(507) 995-2697
Ray Grinvalds
ray.grinvald@sirecre.com
(813) 695-7042
H.L. Roberts
hlrobertsrealty@aol.com
(813) 460-4789
What is a Bargain Sale?
- The sale of an asset to a charity/nonprofit at less than fair market value.
- The difference between fair market value and the cash amount at closing, creates a significant tax deduction for the Seller.
- Fair market value is determined by IRS Section 170 guidelines and may exceed current list price or what the Seller is expecting in a time sensitive selling environment.
- The combination of cash from the Buyer at closing and the cash in the form of immediate tax savings can sometimes match or exceed expected net proceeds from a traditional sale.
- The seller does well by doing good.
Who We Serve
Benefits
Non-Profits
Non-profits have a unique set of needs and qualifications that are typically poorly
understood within the real estate industry. This can lead to their offers to purchase and/or lease real estate being overlooked by brokers and sellers alike who assume that the non-profits are poorly funded, are not creditworthy, and would not be able to close.
It is therefore recommended for non-profits to interview and carefully select a real estate broker who understands their unique needs and who understands how to leverage their tax-exempt status to their advantage.
The SIRE Group was founded to fill this void in the market and seeks to educate the real estate industry on how non-profits can become powerful players within the real estate market. We use our experience and resources to work with non-profits, donors, and their advisors to accept gifts of real estate, to ready properties for market, and to quickly convert the assets to cash.
Sellers
The Bargain Sale is a shrewd option to consider when deciding upon the best path to quickly disposing of real estate assets while maximizing value as the net value of a Bargain Sale has the potential to meet or exceed a full list price offer.
Although this may not be the best option for everyone seller, there is a high percentage of sellers who could yield a higher net cash value by utilizing a bargain sale where they receive a portion of the value as cash at closing and a portion as tax benefit. The SIRE Group therefore recommends that everyone learn about the benefits of the bargain sale and consult with their CPA to see if it is the best solution for them before disposing assets in a traditional manner. A bargain sale does not preclude a seller from doing a 1031 Exchange with the cash portion of the value received.
Property Types Accepted
Industrial, Retail, Office, Multi-Family, Flex, Land, Residential
Benefits
Benefits
Investors
Investors seeking to purchase real estate and provide private financing are a key part of our non-profit clients’ ability to purchase, hold, and liquidate their identified real estate assets.
The Bargain Sale offers a great opportunity to investors as our non-profit clients may decide to sell assets they acquire at below-market prices due to their risk tolerance being less than a traditional investor and their desire to quickly convert their assets to cash to fund their charitable cause.
The SIRE Group is therefore continually adding qualified investors to our Preferred Investor Program.
Brokers
The Bargain Sale is a high-quality tool for all real estate professionals to have in their arsenal. It has the potential to net sellers a value close to or exceeding a full list price offer while also offering a fast closing. On top of this, listing brokers earn their full commission and have the opportunity to earn additional commissions by assisting with the disposition of the asset.
Benefits
IRS Section 170 Bargain Sale FAQ
Disclaimer: SIRE is not a legal, financial, investment adviser or tax accounting firm and does not offer any legal, financial, or tax services or advice. Although the information contained herein is presented in good faith and believed to be correct, it is general in nature, so those considering transactions related to the Internal Revenue Code should consult their own tax counsel and/or tax professional or both. Furthermore, the information contained herein may not be applicable or suitable to some parties.
Resources
This publication is designed to help donors and appraisers determine the value of property (other than cash) that is given to qualified organizations. It also explains what kind of information you must have to support the charitable contribution deduction you claim on your return.
This publication explains the tax rules that apply when you dispose of property. It discusses:
- how to figure a gain or loss,
- whether it is ordinary or capital,
- how to treat the gain or loss, and
- how to report a gain or loss.
This publication explains how to claim a deduction for your charitable contributions. It discusses the types of organizations to which you can make deductible charitable contributions and the types of contributions you can deduct. It also discusses how much you can deduct, what records you must keep, and how to report charitable contributions.
Charitable Contributions
Substantiation and Disclosure Requirements
PDF of Section 170: § 170. Charitable, etc., contributions and gifts
Individuals, partnerships, and corporations file Form 8283 to report information about noncash charitable contributions when the amount of their deduction for all noncash gifts is more than $500.
Ready to amplify your social impact?
Contact us to discuss your property, non-profit's fundraising goals, or investment opportunities.
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