Archive for August, 2009
Aug
31
Commercial Real Estate Development
Posted by: | CommentsNumerous things have to be taken into consideration when undertaking a commercial real estate venture. Needed space, location, decisions to lease or purchase property, moving issues, building plans and regulations, consultants, involved fees. All these things must be considered before one delves into the commercial development project.
When deciding on how much space will be required, several things must be taken into consideration. What will be my cost? How convenient is the location to my targeted customer? How about transportation? What about utility availability? One must decide what will be best for the business.
If plans are to lease, it must be noted that your lease will play an important part in the lease negotiation. Although a standard five year lease is usually used by the leasing broker, a commercial lease of 3 years minimum and 10 years is also commonly used. When deciding on how long your lease should be, make sure you think about your business flexibility and the rental rate.
At the end of the lease, it is very likely that the owner of the property has already committed to another customer, so moving issues come into play. Preparatory measures must be executed prior to the move in order for things to go smoothly. This should be initiated at least 2 months before the planned move, starting with negotiations for the move, standard items that will be needed (mailing labels, presentation paper, bank, checks and deposit slips, business cards, etc.), whether or not you will keep the same logo and design for your business, telecommunication services, security systems and so on.
Other things to be considered are, confirmation of telecommunication installation, ordering appropriate packing supplies, scheduling packing and moving, making sure that the freight elevator at both locations are reserved, choosing the moving company (make sure your choice of moving company provides insurance certificate) and make certain you notify your insurance company about the move.
One month before the move, reconfirm your move in and move out dates. Make sure that the moving company has already provided their moving certificate and provide them with your employee’s names for security purposes. The day before the move, walk through the new location to make sure that nothing has been left undone., make your final confirmation calls, be certain you have the keys for the new location, and this is very important, make sure your insurance is in affect.
This article has touched on many of the things involved in the procurement of a new location for your business but even more is involved. The closing of the lease and the arrangements such as, regulations and rules of the building at your new location, noise levels, usage of freight elevators, architectural design services for planning space and the like.
Quick Property Sale
Aug
28
I am looking for a new job in Commercial Property. Can you help?
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Aug
24
Buy an income producing business as opposed to buying commercial Real Estate?
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If you do not have the funds to buy a commercial property-can a “Business for Sale” property be used instead? For the purpose of using the income revenue itself as part of and in addition to a morgtage on that commercial property? Say-Hotels, or resorts or others. Can the income from that operating business be considered as part of the long term morgage and any personal investors you can come up with? PLEASE KEEP THIS ANSWER IN CONTEXT.NO EXPERIENCE? Dont Reply
Quick Property Sale
Aug
23
How to Lease Office Equipment
Posted by: | CommentsWith the benefits of leasing over purchasing office equipment outright, many start-up businesses and expanding businesses are making the choice to lease office equipment. Businesses often choose the leasing option due to the benefits offered over buying. Leasing offers tax deductions, credit building, preserving initial cash flow, flexible terms and the ability to upgrade equipment easily. With all of the benefits leasing is a likely option when it comes to making the decision to buy or lease. After the decision is made to lease, where do you start?
Start with Planning
Planning is always a good place to start with any venture including when you decide to lease office equipment. Make sure you are aware of the space you have to work with concerning usable space. It is not feasible to have a top of the line copier, when the space allotted is not big enough to accommodate the equipment.
Research
The web has thousands of sites and reviews dedicated to the equipment pieces you are interested in leasing. Narrow down the pieces you might lease and check reviews in a few different places. Also research the average monthly cost. Savings of $50-$100 a month can save $600 – $1200 a year.
Understand Fair Market Value
Financial assets and liabilities give information towards fair values more so than historical costs value. The fair market value assesses the price at which a willing party would pay for the product at hand.
Know the Businesses Credit History
Leasing companies do run credit history to get a better understanding of what type of client you will be. Know the credit score of your company lower scores equate to higher interest rates and/or higher initial deposits. Know if credit will solely run off of credit bureaus, business references such as banks, or off of personal history. Knowing your business credit will help for better positioning during leasing term negotiations.
Understand the Terms of a Lease
One of the benefits of leasing is having varied leasing terms that are more accommodating to your business needs. A commercial leasing vendor should be more than just a leasing mill. The leasing company should be rooted in customer service. Do not be hesitant is asking for assistance with research and planning. A good leasing agent should be willing to help your business succeed, not just get you sign on the bottom line and write a monthly check.
With the various benefits of leasing office equipment, this is a business decision that should be taken seriously. Office equipment does seem to be a passive commodity, depending on the nature of the business. However the decision should not be passive. Make sure when you begin to lease office equipment you research, plan and know your standing when leasing equipment. You should also find a leasing agency willing to work with your business to accomplish your leasing needs in accordance with your business.
The points mentioned above should be more than enough in allowing you to understand the procedure to lease office equipment.
Quick House Sale
Aug
22
I want to put a sign up using the beams left by the previous sign which are 1m 30cm apart so i figured the two sides would be 92 cm each? Is this right and what height would they be?
Quick Property Sale
Aug
19
Anybody looking to sell their Commercial Real Estate?
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My partners and I have been looking for a 50+ unit apartment complex and have had difficulties finding realistic sellers that are basing the sales price off of actual numbers/vacancies. If you are a realistic seller looking to sell your Commercial Real Estate – it doesn’t matter what state as long as the numbers look good – then email me at my username at yahoo.com. We will look at all properties including but not limited to section 8, mismanaged, out of state owners, etc. Let’s make a deal.
Rent Back
Aug
18
What is a free site for valuing commercial properties like zillow.com does for houses?
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Zillow is used by realtors and mortgage professionals to quickly check the market value of a home. There must be a site that does this for commercial property. Zillow is free. I am looking for the commercial equivalent of Zillow. All I can find is softwares and reports to purchase.
Sell and Rent Back
Aug
17
Have the standards for securing a Commercial Loan changed as the home mortgage loans?
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Is it going to be more difficult to secure a 800K Commercial Building loan than say 6 months ago? I will be in the market for that kind of loan in the next week or two and haven’t a feel for the market right now.
Sell and Rent Back
Aug
16
Making Sense of Cyprus Property Sales
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Cyprus property sales are in many ways different to buying real estate in other parts of Europe even the U.K. Athough Cyprus and Britain have very similar legal systems there are some stark contrast when it comes down to the nitty gritty of buying that dream villa or luxury apartment. There will be plenty of legal professions on hand when you decide to actually get involved in Cyprus property sales but an overview of how the home buying and selling is done on the Island should prove useful. Like the saying goes “forewarned is forearmed” and you can never really have too much information.
The most glaring differences appertaining to real estate in Cyprus is how and when buyers are expected to pay for their property. In the U.K. you pay a few hundred pounds to the builder to reserve your plot or house followed by 10% of the total price. Then once and only once the house or apartment is completed you are expected to complete the purchase by paying the outstanding balance via your loan or mortgage. All of this is of course would be handled by both your own and the builders solicitors who work together to ensure that all the funds change hands on one given day.
Cyprus property sales work rather differently in so much as the buyer will be expected to pay the developer a large proportion of the cost before the house or villa is finished. In most cases you will be expected to put down a reservation fee of anything upwards of cyp2000 which usually secures the property for thirty days. After this time you are most likely to be contracted to paying the Cyprus developer around 30% of the total cost of the property. Failure to proceed to this point (dependent upon the contract) may see the builder reliving you of the holding fee as a none refundable deposit so check the contract if you are considering withdrawing your offer to buy.
Once the buyer of the Cyprus property has paid the first 30% the rest of the money will become due at various phases of the build such as completion of the shell, plastering and final finishes. Again, it is a good idea to scrutinize your contract because many of the Cyprus developers will insert penalty clauses for any late payments of these outstanding amounts in the form of interest. Many of these developers in Cyprus property sales will encourage you to pay them directly but you may prefer that all moneys be sent via your Cyprus solicitor. This way the solicitor will only release your funds to the developer when they are sure that the building work is at the agreed stage. The other advantage of using this method is that you will have the benefit of a third party keeping account of how and when the funds were paid over.
The other big difference with Cyprus property sales is the whole matter of the title deeds. Unlike the U.K you are unlikely to receive any deeds for your new build property when you pay for it. This is where the contract between yourself and the Cyprus property developer comes into play. Apart from detailing all the specifications of your new villa or apartment it is also your document of ownership in leu of the title deeds. The reason this situation occours lies in how the land is transferred to the developer in the first place. The land acquired by the developer will come with one title deed for the whole plot and will remain in force until the project is complete. Then the developer applies to the planning authorities for separate deeds as per the original construction plans.
The process of acquiring separate title deeds for new build Cyprus property can take up to seven years or longer and there will be a cost too. At the time of writing this article the deed tax on an average Cyprus villa was working out at around cyp6000 so you should take it into account when buying. Although these differences may appear a little strange to foreign buyers it has worked well this way on the Island for many years. There may be other subtle differences when buying or selling on the Island but the great news is that there is no shortage of English speaking experts available to help you make sense of Cyprus property sales.
Sell and Rent Back
Aug
14
Commercial Real Estate Versus Residential Real Estate Investing
Posted by: | CommentsThere are numerous ways to invest in real estate. You can rent, flip, or fix. There are condos, homes, apartments, land, and buildings to invest in. The options are limitless.
There is, however, a great divide some investors have a hard time deciding on, residential versus commercial investing.
Residential property is perhaps most commonly what comes to mind when thinking of real estate investing. In general, residential property is a living space. This can include apartments, duplexes, homes, and condominiums.
Commercial property, on the other hand, plays home to businesses in the form of office space, retail space and other industrial type tenants.
When considering which type of investing is best for you, there are a few questions to ask. Most of us have experience in residential dwellings. After all, we grew up in homes.
You have a set of expectations for your residential rental property. You know how you anticipate it to be cared for and what assumptions you want to see in your tenants. Commercial property is a little different. We haven’t all necessarily rented or owned commercial property.
What is unique about commercial property is the landlord often hands the property over to the tenant and has very little to do with it after that point. You basically have to trust in your tenant. Plus, unless you have business experience, you probably aren’t familiar with the guidelines and assumptions of commercial property leasing.
With all of that said, let’s look at what benefits and disadvantages come with investing in residential property.
1)In general, it is easier to rent residential property then commercial property. People always need a place to live. Businesses, however, come and go dependent on the market.
2)Financing residential property tends to be easier then purchasing commercial property.
3)If needed, you could actually live in one of your rental properties.
4)Residential property is usually less expensive then commercial.
5)Residential property can require your immediate attention when problems arise. Problems can come at any hour on any day unlike the traditional 9 to 5 business that rents commercial property.
6)As a residential landlord, you usually have to perform a lot of hands-on management.
7)If you have a single residential piece of property and you lose a tenant, you just lost all your income for that particular property until you can replace the tenant. This can cause cash flow problems.
Commercial property also has is pluses and minuses.
1)A nice thing about commercial property is the leases tend to be considerably longer then that of residential property. Where a residential tenant might sign a year lease agreement, commercial tenants usually stick around for five or so years.
2)Unlike residential, commercial property requires less management. Depending on your personality, this may or may not be desirable to you.
3)Commercial investing isn’t as beginner friendly as residential. Start-up costs can far exceed that of simply purchasing a home. Even worse, if can be harder for beginner investors to secure a loan for commercial property.
4)Finding a tenant for you commercial property can be a lot harder then securing one for your residential property.
Quick Property Sale
