Archive for May, 2009
May
31
Let’s say I want to buy a commercial property for 200K and don’t want to put do 30% and get into an 8 – 10% interest rate commercial mortgage. I own a very profitable company which grosses 1M per year, Bank are always offering this company large loans or equity lines on the business. What if my company borrow me some money, at a fair interest rate of say 5% simple interest and I use it to buy this property ?
What are the advantages and disadvantages? From what I can see. I will have lots of money on the loan (interest) and not have to make a large down-payment and I’ll own the properly free and clear.
Thanks guys.
Sell and Rent Back
May
31
How do I get started in the commercial insurance industry? (sales)?
Posted by: | CommentsI am looking to start a career in the Insurance industry, specifically the commercial insurance industry, which I have heard can be extremely lucrative. I do not have any insurance experience, but have outside and inside sales experience in the mortgage and auto industry. I would be willing to start at the bottom, go through training, etc, to secure a position. I am not sure where to start or which companies to look at, does anyone have any suggestions.
Repossession
May
30
How do I buy commercial property without the seller knowing my identity?
Posted by: | CommentsI want to buy the business property I am currently in but do not want the seller to know that I am buying it. Long history that I won’t go in to, but the property is for sale, I do not want to move, but he won’t sell it to me. Someone suggested forming an investment company. Is that the right thing to do and how do you go about it?
Real Estate Professionals
May
30
The Best U.S. Cities For Commercial Property
Posted by: | CommentsSome of the best cities for commercial property truly do belong in states that are dependent upon the shipping industry. Cities like Bellevue and Seattle, Washington are two of the best cities to do business in. This is why companies like Costco and Amazon have maintained their main headquarters in Washington state. Businessmen like Howard Schultz love all the movers and shakers in Seattle as they grab their coffee on the go. People can spend more on coffee and items that they want their because there is no personal income tax in Washington State as well.
Obviously the best places for commercial properties would be cities with a lot of population growth and the majority of that growth is coming from people with plenty of disposable income. Cities like Alexandria, Arlington and Fairfax in northern Virginia continue to expand. A lot of these folks have come down from Maryland to work for a technology, pharmaceutical or government firm around Washington D.C. and have plenty of money to spend. If someone has the resources to galvanize a venture down there, opening a deli or some quick sandwich shop where you can get a lot of these commuters as they go to work could be a very lucrative idea.
Setting up a venture such as a retirement home in a states like Texas or Florida may not be a bad move. You have a wide array of candidates to pick from in the workforces of these two states as well. Another advantage to setting up these types of businesses is that Florida and Texas do not tax retirement income. This obviously already draws a lot of seniors to cities like Boca Raton, Palm Beach or Galveston and Forth Worth respectively.
Cities like Tucson and Phoenix will continue to thrive because of their passionate sports fan base. Plenty of people love to shop or eat before they go to the game to root for their Arizona Wildcats and beloved Phoenix Suns. It all comes down to the fact that commercial property taxes have to remain in a growth minded assessor and mayor’s hands given that commercial property taxes are assessed locally.
One of the best cities in the state of Alabama to do business in is the city of Montgomery. A tax package was recently passed in the city that allowed businesses like Wal-Mart to come in to the city and create plenty of local commerce around it. If you can set up shop near a Wal-Mart and offer a service that they are sub par in, the benefits can be tremendous. The formula is simple if you keep property taxes low in cities businesses will come there and people will have money to purchase items with. Cities like Montgomery are dependent upon the sales tax and tourism like the city zoo for most of their revenue in any event.
Kids love the zoo so it wouldn’t be a bad idea to set up a toy store or some kind of food and beverage stand near by if you can get the permit. That is what is most important when it comes to commercial property. Set up shop as close to people as you can and offer an affordable product; the rest should take care of itself.
Rent Back Fast
May
30
Commercial Landlords May Offer 1 Month Agreements
Posted by: | CommentsSME Web reports that the British Property Federation, which represents the UK property industry, has said that its members will endeavour to work with their tenants to find solutions to any financial problems they may face as a result of rental payments.
Although the average new commercial lease is now 5.7 years, some retailers have complained of being in financial trouble because of having to pay rent three months in advance.
Landlords have said they would be happy to consider monthly payment terms as part of new lease negotiations, which has been the focus of the BRC’s two year campaign.
The BPF’s Commercial Landlords Accreditation Scheme (CLAS) highlights landlords committed to offering the best service. Liz Peace, chief executive of the BPF said that the BPF wants to help tenants who are in trouble.
Peace said that it is not in a landlord’s interests to see a tenant go under, so where tenants are in trouble and she encourages tenants who are in trouble to speak to their landlord. She also says that landlords are willing to explore options to help tenants.
However she did emphasise that it is important to take into account the financial positions of both parties.
Peace says, “the BPF’s Commercial Landlord Accreditation Scheme (CLAS) offers tenants the security of knowing their landlord abides by the highest standards of service. Many BPF members are signed up to CLAS. We hope that those who are not signed up will join and help us continue to improve both service standards and the business environment for our members and their tenants.”
Stephen Robertson, director general of the BRC welcomed the position of the BPF with regards to changing position on monthly rents and being more flexible with retailers.
Robertson says that, “following our successful rent monthly campaign, rents are being offered on monthly terms for new leases almost as standard practice. The leadership of BPF members has helped drive this, and we encourage other commercial landlords to follow their lead.”
Peter Best of Prudential Property Investment Managers Ltd (PRUPIM) said that his organisation has taken into account the new developments and as a result would be offering flexible terms to customers.
He says that, “we are willing to consider monthly rent terms as part of the overall package we offer and recognize that such arrangements may be helpful to struggling businesses. Occupiers who need unconventional payment arrangements should talk directly to us to explore the options.”
Simmons & Hawker Limited and Crown Estate also indicated that they would be making adjustments to the deals they offer their customers in response t the BPF’s statement.
However there appears to be a rather more lacklustre response from British Land who in a statement said that while they are very happy to consider monthly payments, “however these are unlikely to change unless there is a clear benefit to the company.”
Quick House Sale
May
30
hi again, been self employed and a vast great experence as a chef, just found a peach of a freehold pub, just outside my price range, my problem is, ive the 10 – 15% to put down, but need to purchase the the sav and set up costs ie promotions etc for the first month, then ill be ok, im postive,as need no manager or chef the most expensive unreliable staff !!.. plus well its too long.. its just it will be “watch this space” catorgary,.. has anyone got thoughts or been there on getting extra or raising extra finance without third persons , unless there there really is a silent partner with a 20% return in 2 years.. ! thank you
ps business Angles takes too long..
Repossession
May
30
I would like a reverse mortgage, but recently the city rezoned our property to commercIaL, It has been our home for over 35 yrs and never been used commercIally, How can I get the mortgage! Thanks, Richard
Sell and Rent Back
May
29
Commercial Property For Sale: Various Methods
Posted by: | CommentsThe following information will help you understand what it takes to follow a certain method so that you can decide which one is the most effective method in your case.
Appoint Only One Real Estate Agent
You can appoint only one real estate investing agent on either sole or exclusive agreement. The greatest advantage of limiting yourself to only one agent is that your agent will be able to better focus on finding a potential buyer and selling the property at the best price. Moreover, you save yourself from the hassle of dealing with more than one agent. What is more, you need to spend less time and money for advertising and marketing of your commercial property in comparison to the time and money you need to spend when a number of agents are involved.
Appoint One Agent But On Multi-List Agreement
In this method, your appointed real estate investing agent will have to work with many other agents in the market to sell the property. However, the cost remains almost the same as is in the previous method. The difference is that you pay the commission to the original agent, the one whom you appointed, and this agent, then, shares this commission with other agents who helped him to find a potential buyer.
Sell Commercial Property By Auction
In this method, there is no fixed commission for the real estate investing agent. There is a time limit for the auction, and this creates a competitive environment for the agent. Eventually, the agent works harder and it is not wrong if you expect to earn greater profit in less time.
Appoint More Than One Real Estate Agent
As per this method, you appoint a number of real estate investing agents to perform the sale. However, you have to pay commission to only one agent who introduces the buyer to the property. The negative part in this method is that it creates more competition and you need to spend more time and money for marketing and advertising requirements.
Sell The Commercial Property On Your Own
You may also like to sell the commercial property on your own so that you can save the commission to the real estate investing agent. However, you must also understand that it is not an easy job to sell the commercial property on your own. It involves everything from planning various marketing and advertising strategies to finding and introducing the prospective buyers to the property. What is more, you must have the knowledge of all the legal and financial arrangements required to transfer the property. I will not recommend this method because what I believe is that your ultimate goal is to become a real estate entrepreneur, so you must act smart.
Thus, here we see various methods to sell the commercial property for real estate investing. Doing the job on your own instead of appointing an agent is quite a risky move. Therefore, think twice before you go for that method. Overall, appointing an agent is the easiest and safe method, and there too, it is always prudent to limit yourself to just one agent.
Sell House Quick
May
29
Real estate conveyance fee?
Posted by: | Comments.Who pays the conveyance fee in a commercial property sale transaction, the buyer or the seller ?
Sell House Quick
May
29
Calkain Companies Forms Net Lease Property Division
Posted by: | CommentsReston, VA — Calkain Companies announces that it has formulated its newest division, Calkain Opportunity Services (COS). With a daily influx of conversations on how to maximize value of its client’s property in the current market environment, Calkain felt it was important to formalize its procedures on how to handle this specific real estate dynamic. With the new division comes a new hire within the multidisciplinary commercial real estate firm. Todd Harrison, COS’s Managing Director, will personally oversee the new division and its operations. Todd is a veteran commercial real estate professional having served in leadership positions for leading consulting, due diligence, brokerage and real estate investment firms. He has been involved in over $2 billion of commercial real estate pertaining to analysis, underwriting, due diligence and transactions in his tenure.
Calkain feels that the growing number of potential debt restructurings, litigation from soured transactions and failed investments will see an onslaught of needs from investors, sponsors, attorneys and appraisers to have an impartial third party evaluate the value of assets and help determine a realistic exit strategy. Jonathan Hipp, Calkain Companies President and CEO, commented, “For those individuals involved in less than ideal situations, Calkain will be able to formulate a plan on how to exit their challenging situation with realistic and fast results. Therefore, we are thrilled to have Todd on board. His diverse background is particularly wellsuited to the operations of this new division.”
There is an obvious increase in the number of net leased assets defaulting on their loan commitments and, subsequently, banks taking control of the property. Even stabilized, net lease assets may have a caveat that will force a non-traditional approach to relieving the challenging situation. Hipp continued, “With the previous several years of aggressive prices paid for net leased investments, many landlords took on debt that may be maturing in the near-term. COS is set up to evaluate options for the landlord and help with determining several options for their investment.”
Harrison commented, “There is no other service like this for net leased assets. Calkain is nationally known as a leader in the industry for this specialized property type and we feel that we are best equipped to handle the deluge of situations that have been presented to us in recent months.” www.calkain.com
COS will work with landlords, banks, attorneys, multimember ownership situations and a plethora of other stakeholders involved in any one asset or portfolio of assets. IRC §1031 Tax Deferred Exchanges, Debt Work Outs, Restructuring & Reorganizations, Litigation and Dispute Resolution, and Expert Witness Litigation Support will be the focus of the newly formed division
Quick House Sale

















































