Archive for May, 2010

May
14

Commercial Mortgage Lending – Green Projects Get Funded

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commercial mortgage

Like it or not, environmentally conscious, or “green” principles have come to dominate the field of commercial real estate development and commercial mortgage lending. Green building and sustainable design are now the standard in new commercial construction and residential developments. And, with local and national governments getting greener all the time, look for energy and resource efficiency to become mandatory, with green mandates being placed directly into building codes. Funding sources such-as banks, Wall Street brokers, insurance companies and hedge funds, are following suite and these principles are rapidly becoming a part of the commercial mortgage industry.

The US Department of Energy’s Center for Sustainable Development recently reported that 40% of the entire world’s energy supply is used by buildings. That’s a huge number. And, in the United States, construction accounts for our largest manufacturing sector, representing a staggering 13% of US GDP and nearly 50% of total wealth creation. Even tiny percentage gains in efficiency can amount to massive over-all energy savings.

Both institutional and private lenders as well as the REIT, (Real Estate Investment Trust) hedge fund and private equity industries have all embraced the environmental building movement. Green is the color of money and green is the color of commercial mortgage construction lending now and into the future. Lenders love green construction because good for profits as-well-as being good for the planet. Energy costs money, resources cost money and cleaning up messes’ costs money. Saving energy, saving resources and sustaining a site all save money, during construction and throughout the operational life of the property. Lenders know that green means efficient and, when they evaluate a project for financing they want to be assured that the funds they invest will be used cost-effectively and that the building will be economically viable.

Environmentally sound buildings can cost substantially less to operate than comparable buildings that disregard such efficiencies and tenants and their clients report higher customer satisfaction rates when doing business in them. To a lender, whose capital is secured by the building, this translates into higher quality collateral and makes their investments more secure.

As a commercial real estate investment banking professional, I can attest to the fact that developers who choose designs that are not green will find it very difficult to raise capital or secure loan approvals for their projects. We are in the midst of a sever liquidity crisis; construction money is in short supply. Lenders are giving priority to green development leaving very little capital available for conventional construction.

The Federal Government’s LEED (Leadership in Energy & Environmental Design) rating system awards silver, gold and platinum certification to buildings that reduce waste and save energy and lower costs. LEED certification is almost (although not officially) a mandatory requirement in-order-to get a big construction project funded today.  

Being green is no longer just the passion of the activist anymore; it is the new emerging standard in commercial construction as-well-as commercial real estate finance. Investors and developers who need commercial mortgages will do well to pay attention to this trend.

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Quick Property Sale
Categories : commercial mortgage
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May
13

When Going for Van Leasing Agreement?

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ng is also comparable to pay for the use of a car, truck or car may be used for a certain period of time. Many people have wrongly associated van leasing for locations. However the first a big difference When you say van leasing, you will use the van for a very short period of time, this may be days or weeks, on the other hand, when you talk about this van leasing requires at least one year of use.

When examining van leasing, the first thing you need more thinking is the price. Make all attempts to obtain a good arrangement and try to consult as much as possible. Besides, if you are a tenant smart, you should familiarize yourself with the advantages and disadvantages of the van to be rented. Once you are able to communicate with your dealer and van agreement on the financial aspect, the dealer then sell your choice van to the van leasing company at a price which was agreed. Second, the van leasing company will allow you to have the van to set the price. This will be the time for you to give the total amount of rental contracts, which is spread over a period every month. Remember, before making any agreement, a written agreement must be carefully read, understood and controlled.

Furthermore, take into account that the concessionaire is only an agent working as a medium between you and the van leasing company. The dealers are people who will be screening for you to avoid any hassle from you. The concessionaire is intermediaries who will speak on your behalf and leave the van leasing company know of any concerns specifically with regard to the mode of payment. In this line of work, the concessionaire is a part of the price of the property rented van known as the “Commission” in each of the buyer approves it.

However, once a written agreement was signed, keep in mind that the settlement is now between you and the van leasing company excluding the concessionaire. The donor work ends there. Concerns about your van should go to the leasing company, nothing more nothing less. The concessionaire is completely once the agreement has been settled.

There are a number of fame and reputation of the engine and companies like Ford and General Motors who have businesses leasing acting as subsidiaries. You can also dealers’ transactions directly from these companies and dealers engaged by banks and leasing and other lending institutions. Furthermore, as well as monthly obligations you usually pay when you rent a van, you always assume and pay the equivalent for expenses, taxes, license fees and other relevant documents must be dealt with the same way that owning your own vehicle.

The van leasing contract includes different understanding with the case of the van its use for a specified number of years or months. A promise is also underway to ensure that the van is still in the same state of running and continue until the end of the period of time. At the end of the van lease period, you are obliged to return the van to the van leasing company. Small notches are acceptable; however, serious damage on the van will call for damage fees and expenses if you refuse to use the van more than the specified time. The van leasing company tenant has also given the opportunity to purchase the vehicle or may be used for commercial for a brand new one.

The other thing to keep in mind when using van leasing companies is that they already have great relationships with certain dealerships and can often get the vehicle at a reduced rate in the first place, so it is often better to talk with the van leasing company about what they are able to offer before even going to see a dealership.



Quick House Sale
Categories : commercial lease
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commercial property sale

The worsening economic conditions have now taken their toll on almost every commercial property market in the world, according to a global survey of real estate surveyors. The past few months has shown a sharp decline in the need and demand for real estate in areas that had previously appeared immune to the current economic crisis. In particular parts of Asia and Eastern Europe have been affected with realtors’ allegedly reporting record downfalls in the demand for commercial properties. The Indian commercial property market has been especially hard hit and one of the biggest slumps in real estate values has been seen in Eastern Europe a region that up until recently was experiencing a boom in their building and developer industry. Areas such as Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Turkey and the Ukraine have all reported a fall in land and real estate values, with Russia being the hardest hit country.

The credit crunch has literally burst the Bulgaria property bubble with financiers desperately trying to sell any investment property they have there. Bulgaria’s economy has been left in a serious state due to heavy investments into tourism and commercial property in preference to expenditure on manufacturing and exporting.

Russian commercial property investments are also being put on hold as the now global credit crunch sets in. Developers in Russian cities are postponing projects due to lack of capital, with shopping centres and malls being the most affected. Major cities such as St Petersburg and Moscow are feeling the financial pinch as well as regional cities whose plans for expansion have had to be put on hold.

However, some countries are showing more resilience than others to the economic downturn. RICS research has shown that China’s commercial property market has shown more resistance with some actual increases to be expected in the number of commercial property that is being leased and sold throughout China in the upcoming months.

Central London is another city that has been hit hard by the commercial property down turn with investment funds that specialise in retail developments and office blocks being especially knocked by the slump. Retailers are being encouraged to fight the downturn in sales this Christmas by ensuring they provide unrivalled brand value, competitive consumer focussed pricing and value added promotions that encourage repeat purchase activity as opposed to the usual seasonal glitzy TV campaigns.



Quick Property Sale
Categories : commercial sale
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1. Commercial Estate Agents Make or Break the Deal

Hire a specialty real estate agent when you want to buy commercial real estate in the UK. It is inadvisable to go to agents that are one-stop-shops for real estate, selling residential, commercial and even international property. You will get a much better level of service and wealth of experienced from a long established estate agent who specializes solely in offering commercial property to buy.

2. How Many Commercial Property Listings are in Your Account of the United Kingdom

When you want to buy commercial properties look around for the best areas. Dense areas of commercial real estate for sale spell doom for the buyer. Don\’t worry about paying a little extra to buy in a location where companies of your type have had success.

3. Always Perform a Thorough Inspection before you Buy Commercial Real Estate

An office for sale or lease can be pricey, so inspect the premises before making any commercial real estate deals. Avoid the misconception that it\’s a waste of time to inspect commercial space. Treat it just like a home purchase.

4. Will You Be Buying Commercial Property in the City or Suburbs? The type of development where you are purchasing commercial real estate is very important, for instance if you are in a rural setting then you will be looking for very different features than if you were looking for a ware house for sale in an urban setting. A retail ship for sale or lease in the heart of a downtown area will be much more expensive than something in an undeveloped area.

5. Will you be buying this Commercial Property to Let Out?

Some people buy commercial property to occupy, while others want to be landlords – its important to consider. If your goal is to own the commercial property to let, then don’t get hung up on want you would like to see when buying commercial real estate, rather find out what the widest possible market is looking for in a commercial property for lease and acquire something that fits that description.

6. Forgetting any of these can cost you money.



Rent Back
Categories : commercial lease
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May
03

Confused about property meaning ?

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commercial property sale

I saw this ad about a commercial property to sell but when i read the rest i got confused…

First it says : Retail premises for sell £ xx,xxx
Then it says: Lease 8 years with a rent review every 5 years
and then:a Premium of £ xx,xxx asking price.

Can somebody explain me exactly what this means?
Is this for sale or lease??

And what is the diffrence between this sale and a freehold?

Thank you.

Sell and Rent Back

Categories : commercial sale
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