Archive for April, 2010
Apr
30
A solicitor is too expensive and it would take years to recover his costs without making a penny!
Sell and Rent Back
Apr
28
The potential purchaser found a “turnkey” Commercial property which has been listed for over a year and began the buying process. This was listed as Owner finance a turnkey business (hamburger – hot dog – ice-cream shop). My understanding of a turnkey commercial listing is one that includes everything needed to open and run the business. On the initial potential purchaser’s inspection of the business, it appeared to simply need some cleaning and touch up paint etc for ascetics. At one point in negotiations, a verbal offer was accepted and the purchaser was assured that the seller’s attorney would write up the contracts. Upon the verbal negotiations and offer acceptance the purchaser has sold his home, purchased another home closer to business in order to fix up and run the shop. There was a tentative closing date set, a deposit $ was negotiated and agreed upon, as well as many other terms of the sale and financing. With the inspection and further process owner was told that the septic and water needed a current inspection – The business cannot open without. Suddenly, upon realization of the cost for the septic inspection, seller decided not to sell. Seller has never seen the property, they purchased it for their children to run, and they were not successful. The business does not have immediate electric capacity, as apparently wires were cut in previous months when owner did not pay electric bills. (This was discovered at time of agent inspection – after an offer was approved) It was discovered that the business has not been open for about 3 years.
The purchaser had been laid off from his 15-year job, due to downsizing within his company. Upon which he applied for unemployment, looked for a job, and considered other options. He desired to “get out of the city” and into a quieter atmosphere and the turnkey business opportunity was an appealing option.
With this brief depiction of the events, is there any Legal recourse for the potential purchaser?
Quick Property Sale
Apr
27
how much will it cost to lease a small shop for retail?
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Apr
26
Thai Land and Property Sales in Bangkok
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City of Angels-Thailand or LA?
Whenever the name City of Angels is mentioned, most people especially from the west would automatically assume we are talking about Los Angeles in the USA. However, Bangkok or “KrugThep” also has the literal translation of the “City of Angels” and hence is named so. But apart from the high rise properties and skyscrapers, this is where the similarity ends. Bangkok-The City of Angels, located west of the Chao Praya River in Thailand, has a population of approximately 8 million, and with some of the finest examples of modern architecture in the world today, boasts class status and ranks seventeenth in the world’s tallest city.
Goodbye Old-Hello New
The development of infrastructure throughout the city is second to none and has helped Bangkok clear the path to enable its emergence as one of the most dynamic commercial hubs in Asia. A new rapid transport system which includes the ultra-high tech Skytrain has been developed. A new state- of-the-art international airport was also completed last year along with upgrades to high speed global telecommunications and communication networks serving Thailand and the world proudly. A sure reason why investors are starting to raise their eyebrows once again.
Window Shop
Take the Skytrain, the bus or drive around Bangkok and see new development in land and housing created by the influx of new willing investors. Convenience and access is another factor lying behind the interest. Not only amongst business people, but also among private investors. These in turn have lead to the fuelling of high growth rates spurring land price rises from such tiny proportions just a few decades ago, to a fantastic three fold or more in some areas today. With statistics like these, can anyone resist the investment opportunities?
Parts of the city
Although land or properties for sale can be found in just about any one of the fifty districts of Bangkok,
some of its most prestigious names can be found among the likes of MTT,Pra Nakon, Silom, Sathon, Bangrak, Pinklao, Phra Ram 2, New CBD and the Phra Ram 3 Financial Centre. Here as with many other districts contain sales for land acquisitions and include an extensive range of other properties such as high-end sky rise condos with their gorgeous skyline views and other general properties for sale. Whether it be a personal venture or a business venture, or whether it be land or land with properties. Be sure to list your goals and do some homework before climbing the Bangkok property ladder.
Safety before profits
I’d like to say that the days have gone when you could lose fortunes investing in property and land sale scams. It still goes on and they still exist. Which is why, when it comes to “your money”-seeking the most prolific advice possible is an absolute essential! Moreover, like it is anywhere else, it’s sometimes tough dealing with the bureaucracy and the red tape that goes with buying and selling property and land-especially in a foreign language. Companies like Forbest properties based in Bangkok can help you clear these hurdles. They are professionals who know the business inside and out and can help you with all your needs.
Quick Property Sale
Apr
25
Where can I get the lowest interest rate on a commercial mortgage?
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I need to borrow $700,000 on a new commercial bldg. It appraised at $1.2M, My credit is perfect. Where can I get the best interest rate?
Quick House Sale
Apr
23
What´s the best site for applying for a commercial mortgage loan?
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I am beginning the process of applying for a commercial mortgage loan for an owner (me)-occupied retail property.
I found a site and they say they will submit an application to 50+ lenders but they want $200 for the service. Am I getting ripped off?
This is a legitimate question! I’m not shilling and please honest info and experiences! Thanks!
Repossession
Apr
22
The lease has been drawn up by a solicitor. The present owners of the shop (the ones that are going to sign the lease with) mentioned that in a month or so they may want to sell up. There is already interest from others in buying the shop. If we have signed a lease and someone buys the shop can they kick us out if they want to open and run their own business or does the lease cover us for this
Repossession
Apr
19
Determining Commercial Property Market Value
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Here in the United States, “fair market value” on any item is determined by what a buyer is willing to pay a seller for the item. Simply put, if I have a stick of gum, and I offer it to you for ten cents, and you want to purchase it for ten cents, then the fair market value of the stick of gum is ten cents.
While real estate also has a fair market value, it is a bit harder to determine because of all the factors which go into the valuation. A property, unlike the simple stick of gum in the above example, has multiple aspects for a seller and buyer to put different valuations on. Introduce a lender into the picture, and then you have a third option on valuation to deal with as well.
Determining commercial property market value is different than determining market value for a residential property. In a residential valuation you can simply look at other recent comparable sales in the area, of similar homes and lot sizes, and determine about what a property is worth at any given time. The issue you will find with commercial property is that they tend to be one-of-a-kind properties, and you may not be able to find many local comparable sales in recent times.
One major difference between residential and commercial properties is their location and their use. If you own a large lot inside of the city limits, with a huge warehouse store built on it, with a 10 year lease to a big box store, then you have a very valuable property. If you have the same lot size, with the same store on it, same lease, but it is located 30 miles from the only local town where most people in the area live, then you have a lesser valued property. Location, also known as market area, is more important in commercial real estate because businesses need to be near to their workers and to their customers as well.
Another consideration when looking at market value of a commercial property is the availability of similar properties on the market. By looking at as many properties as possible, you can start to get an idea of what different properties are selling for in your local area. This gives you some leverage to point out differences and better negotiate the price you are willing to pay. This will also give you some idea of how difficult it will be to find a tenant for your property.
If you are tying to determine the market value of a piece of commercial real estate, one of the factors you should always consider is how well other properties in the area are renting and what they are renting for. You will need the rental income to cover your investment funding as well as your day to day costs of owning the property. If you purchase a property at an agreed upon price, will the rents support the costs? What if your property sits vacant for a month or two? These are things you need to think about prior to purchase.
When trying to determine commercial property market value there are many factors which come into play. The biggest being the market area, local property costs, rental income potential, and the property condition itself. By determining what you are willing to pay for a property, and having a professional commercial real estate market analysis completed for you, you can avoid many of the mistakes new commercial property investors make.
Sell and Rent Back
Apr
17
Commercial Mortgage Brokers; are They Worth the Points They Charge?
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When a commercial real estate investor needs a mortgage he might be tempted to submit his application directly to a lender rather than pay a commercial mortgage broker to source the loan. The potential advantage of going direct is, of course, the borrower can avoid paying the broker a commission. But there are some good reasons to use a good broker.
Lenders Give Brokers Preferential Treatment
Established commercial mortgage finance professionals can easily receive 100 financing requests a month. While a single borrower might submit a few applications a year to any given lender, a single broker has the potential to submit several dozen applications in the same year. Lenders will give deference to powerful brokers because a good broker is a much better client to them than a good borrower is.
Brokers Know How to Package a Deal
Commercial mortgage brokers are professionals. They know exactly what lenders need to see in-order for them to make a decision. Lenders are busy; they don’t appreciate loan packages that have too much or too little information. The best brokers give lenders the right information in the right format. Successful brokers have experience writing executive summaries that get the attention of funding sources and they know how to present an application for the best chance of approval.
Brokers Know Who’s Closing Deals (And Who’s Not)
Keeping in mind that intermediaries, like brokers and agents, don’t get paid anything unless a loan closes, it follows that brokers monitor the various lending policies of banks and other institutions. They know which lenders are funding loans and which ones are not, and they won’t waste time submitting a deal to a lender they know won’t close it. Further they know the specific property type each lender prefers or specializes in. Brokers submit hotel loans to specialty hospitality lenders and apartment house loans to firms that are proficient in the multi-family niche. Many lenders won’t even consider gas stations or dry cleaners, some won’t do restaurant loans. Some lenders hate small balance loans other lenders love small loans. It really pays to know just where to apply, tremendous amounts of time, money and emotional energy can be saved.
Brokers Vouch for the Borrower
It takes significant amounts of time for a loan agent to review a deal, collect information, prepare an application, submit the package to lenders and then do the necessary follow up. Busy commercial mortgage brokers simply don’t have time to accept and originate every loan request that comes across their desk. They understand that weak deals will be rejected and time spent on them will have been wasted. When a lender receives an application from a trusted broker they realize that the deal has already been scrutinized by a pro. When a good broker takes your loan to a bank he is, in effect, vouching for you, he’s already screened your credit worthiness and crunched the numbers. Lenders look at brokered loans as having the implied endorsement of the broker, if the broker is well respected that can be a powerful influence.
Brokers Provide an Advisory Role
Like any professional providing business services, a commercial mortgage broker wants repeat business and wants client referrals. They have every incentive to, not just find you a loan, but find you the best rates and terms from a lender that will treat you with respect. The best loan agents are really trusted advisors, advocating for you and advising you so you’ll get the best possible loan for your building or project. If they are successful and you become a satisfied customer, you are likely to return to them for your next loan or refer them to your friends.
Brokers Advocate for Their Clients
To be successful in the high stakes world of commercial real estate finance mortgage brokers do more than just submit loan applications, they sell deals to lenders. They emphasize a file’s strong points and downplay its weak points. They talk up the borrower and highlight past successes. They can give well reasoned, professional answers to the lenders objections. The broker sits on the same side of the table as the borrower and is an authoritative advocate for his client.
In Short; Commercial Mortgage Brokers can add Significant Value
The true professional in commercial real estate finance is an expert who has valuable relationship with quality funding sources that include banks, Wall Street investment houses, insurance companies and private lenders. They know the right place to send the loan. The broker speaks the same language as the lender and has a great depth of industry knowledge. Good brokers catch mistakes before lenders see them and clean up potential messes that could, otherwise, kill a loan. Billions of dollars worth of commercial real estate loans are brokered each year. Some of the most sophisticated investors and developers in the world routinely retain brokers to secure financing for them, even on deals measuring in the hundreds of millions. In simple terms; commercial mortgage brokers add value to a deal because they increase the chances of actually getting it closed. That’s worth a point or two.
Sell and Rent Back
Apr
15
where is the best place to advertise a shop for lease?
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The shop is in a conservation area of a new town and I would like to hand it over to someone as soon as possible but cannot afford to have huge advertising bills
Passive Income
