Archive for February, 2011
Feb
28
How to Find Commercial Investment Properties
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After spending time learning about the different types of commercial investment property and determining whether you prefer a retail, office or industrial property, you will know what type of investment property you want to purchase. It’s time now for the fun part – actually finding your commercial investment property!
There are a number of places you can look when hunting for a commercial property that will meet all of your criteria.
Internet – The internet is worthwhile as a first point of reference because you can quickly and easily source the availability of commercial property you are looking for, within the price range you are willing to pay and the location you have decided upon. You can narrow down your search with little or no time lost.
Commercial Property Agents – You will also come up with a list of commercial property agents that you can contact. Bear in mind that residential property agents may not be familiar with commercial property, so it’s probably preferable to discuss your needs with a commercial agent to ensure you get sound advice. They can also act as your negotiator to help achieve a realistic price on the property you wish to purchase. The agent’s job is to work for the seller, but all agents know full well – no sale, no commission!
Until you become more experienced in commercial property investment, it may also be a good idea to have a go between (such as a commercial agent) act as your negotiator in purchasing the property.
Newspapers – Another place you might want to look is in the newspapers. A commercial property that’s been advertised privately by the owner is usually worth considering.
Property Owners – Approaching a property owner directly is an option if you feel confident in negotiating the purchase of a commercial property. This option is not for everyone. You will need to be familiar with local commercial real estate and its value to make sure you are paying the right price for the property. If you do decide on this approach, it’s prudent to speak with a solicitor and a property valuer.
Property Seminars – Attending property seminars is a way to connect with people who may be able to put you on to a good property deal or who may be able to help you when the time comes to purchase your commercial investment property. These include commercial property solicitors, finance brokers, etc.
When you think you’ve found the right commercial investment property, be sure to do some thorough investigation that includes a detailed look at the lease agreement and checks on the property itself. You should get professional help here.
Happy hunting and may your next commercial property investment add significant value to your wealth-creation strategy.
Real Estate Professionals
Feb
26
what happen if i buy a commercial properties with liens? can they kick me out in future?
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my wife post a ??? there is a commercial prop for sale for 40k but it has liens over 100k the owner i guess they want to get rid of it and selling it to me for 5k my ? is there is no irs liens just child support and abstract of judgements now would this be a good purchase for rental prop…and if with this liens can in the future kick me out ??/ help ……its a abandoned place needs liek 4k in renovations ?? maybe rental income 1500/mo
Feb
25
Advantages of Commercial Ground Lease Properties
Posted by: | CommentsIt’s not news that one of the hottest commodities on the market today is commercial property. Developers and investors in Houston are scrambling to acquire land that is almost guaranteed to increase in value, many retailers and commercial developers are overlooking the advantages of developing and building on property that they don’t own.
Municipal ground leases have a long history. It’s not unusual for a city or town to lease land to educational institutions, for instance, retaining ownership of the land while giving the lessee the control needed to make improvements to the property. Those leases generally run for terms of 99 years, and often carry nominal lease fees. The advantage to the city is clear – they are home to an institution that adds value to the community, increasing the value of other real estate and making the community a more desirable place to live. The lessee also gains an advantage – they don’t need to purchase the land on which they sit.
Terms tend to run for much shorter lengths of time – as short as 5 years, though 30 year terms are common for a ground lease for sale. The advantages of these leases is for the landowner – the landowner retains ownership of the land and ensures a steady income from the rent paid on the property. In addition, ground lease terms often specify that improvements to the property revert to the owner at the end of the lease term. But what advantages are there for the tenant in a ground lease arrangement?
- Frees capital that would be paid for land acquisition
Since there’s no need to finance the acquisition of the land, the developer/lessee has more capital available for building and construction.
- Ground lease payments offer a tax advantage
Lease fees can be deducted as a business operating expense on taxes, reducing the tax burden on the lessee. The lease fees will nearly always be a greater deduction than interest paid on a commercial mortgage, and the lessee will not be responsible for tax payments on the land.
- Lessee is protected from downturns in the real estate market
The real estate market is volatile. A lessee’s investment in a ground lease commercial property is not dependent on the increasing value of the land. Rather, their retail or commercial activities provide added value.
As with any real estate transaction, there are both pros and cons to taking on a ground lease for sale. Houston residents, a great deal depends on the terms of the lease and its flexibility. It is definitely an option worth considering, however, particularly in an area where outright purchase – as in master planned communities – may not be an option. The opportunity to enter into a long-term ground lease with the owners/developers of a major master planned community can offer the flexibility and benefits needed for a successful retail operation with a ready market of both consumers and employees.
Quick Property Sale
Feb
24
Redstones Property Auctions
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Property auctions a right way for people who buy as well as sell their houses. With property auctions you can done with any type of property like land plots, commercial property etc, and any location that is for built as well as un-built spaces.
Nowadays Property auctions are not to purchase property for the purpose of reselling it for a profit. Mostly people are using property auctions for finding a perfect home on right price to buy and live in. Many people have benefit, property buying with property auctions. Investment houses, residential home, commercial property and repossessed property and so on are the different kinds of property listed for sale. For these properties the Property auctions to the helps the buyer and seller can be sold easily in the property auction for reasonable price.
A number of homes are available at all time offers by property auctions. Almost of these are being sold at prices lower than their market value but mainly important is that there are possible issues and concerns when dealing with auctions. But in actual these properties are valued based on the return on investment that they provide. Those properties are difficult to sell in their present state are mostly sale by Auctions. Property auctions provide those properties that are comprised of all favorable factors like excellent location with easy of transportation, quality schools and grocer in the vicinity at an affordable price can restore and resell it on substantial profits.
Property auctions are more popular day by day because they involve better deals and less formality. Auctions are the modern way of making transactions and less time-consuming and much easier when closing. Property auctions are very important to hire your own solicitor to finish legal formalities. And the second thing it is also important to know about your borrowing capacity and than you start searching for the property. And last thing you will have to go through financial approvals with your lender with the mortgage documents.
Property auctions with Redstones
Redstones have property auction that offering a range of any type of like residential investment portfolios, individual residential properties, both tenanted and vacant.
Redstones believe that exposing your property to the maximum number of people is the key to obtaining the best price possible at auction. So, they sending out thousands of catalogues, advertising in local newspapers and national trade press because number of people auction on your property.
Guide to buying and selling at Redstones Auction
Buying at Redstones Auction is a catalogue that displays all of the properties approximately 3 weeks prior. The catalogue is also available online a few days before it comes out in hard copy. But the catalogue and identify those lots that may be of interest. And every property has a Guide price that is published in the auction catalogue it is not the price at which the property will necessarily sell. The View of property is arranged directly with the auctioneers or their joint agents.
For property selling Redstones Auction can provide you with a free, no obligation auction appraisal of your property. And Redstone will advise you whether we think your property is suitable for sale by auction or not. Auction team of Redstones will recommend a guide price which you will need to approve before marketing begins and which is attractive to buyers. Than you agree on a suitable guide price for your property and our commission fee Redstone will send you an auction agreement.
If you want buying and selling a property on attractive price than look at Redstones auction. Visit: www.redstonesauctions.co.uk for more details.
Repossession
Feb
21
can a landlord change his mind on the set terms of a commercial lease that he signed?
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I Have A Lease Signed For A Stated Time Period Its For 2 -3 Yr Terms At The Renewal After The First Portion Of The Lease It States That The Leasee Has The Option To Renew With A Written Request To Renew. Can The Landlord At That Point Decide To Change His Mind On The Set Terms And Raise The Rent&Switch The Time Period From 3 More Years To A Month To Month? The Lease Has Been Signed By Both Parties! It Clearly States That It Is For 2-3 Year Terms And That The Renewal Of The Lease (The 2nd Half) Will Be The Same As The First. Can He Change His Mind After He Has Already Agreed To These Terms And Signed?
Quick Property Sale
Feb
20
where is the best place to advertise a commercial mortgage broker?
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Feb
19
It is a 400 square foot space. I am responsible for the utilities. I do not have any experience in evaluating a commericial lease. I am concerned there may be something in it that may cause me headaches in the future. Any advice would be great appreciated. Thanks!
Quick House Sale
Feb
18
Commercial Property Can Provide Stable, Assured and Measured Growth.
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Commercial property can provide stable, assured and measured growth as part of a balanced portfolio. Unlike residential property, the dividends from commercial property would be usually quite high, as it is meant for commercial purpose. There are a lot of benefits in investing in commercial property.
The benefits of a commercial property:
A Significant Asset Class.
The commercial property market is worth over £450 billion in the UK alone and i am sure you can imagine what it is like in other developed and much bigger countries.
Portfolio Diversification.
Investing in commercial property represents a major diversification for your portfolio. Its volatility is very low in comparison to stock market investments and there is no correlation between the performance of commercial property and the stock market.
Predictable Returns.
Because of its low volatility, the returns from commercial property funds are more predictable and stable.
Record Of Healthy Growth.
Over the short, medium and long term, commercial property has outperformed the stock and bond market.
However, before investing in commercial property, you must also be aware of the risk factors also. Just like any other investment, commercial property has got its risks, but with a little bit of careful thought and planning, you can simply overtake those risk factors.
There is less volatility in commercial property market, so the returns are sure, but there is also less liquidity in market demand. Once you have a good tenant, they’re usually there for a reasonable duration, but the problem is that for a range of commercial property; up to medium sized premises, the selection is wide and varied with new developments springing up monthly. But there is no need to panic, as the effects of these risk factors are considerably low.
If you are a big investor looking for huge returns, the best of both worlds can be obtained by investing in large government or commercial institutional properties that hold leases for 15 years or more. Here you have the combination of assured tenancy, stable yield growth and high occupancy. This in turn maintains the capital value of the property itself. If you’re convinced, then now would be the time to get that cheque book out and invest your $50 million or $100 million. If, like most private investors, that’s a little beyond your current scope, then the optimum approach is to consider investing into a commercial property fund.
Quick House Sale
Feb
16
Property Rights And The EU
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The European Community (also referred to as the European Economic Community) has as its task the establishment of a common market and the progressive approximation of the economic policies of Member States. The term common market has been defined as an area, which consists of two or more Member States that abolish tariffs and other trade barriers in their mutual trade, set-up a Common External Tariff with third non-EU countries and apply the principle of the free movement of the sources of production (goods, labor, capitals) within the territory of that area.
One of the fundamental principles of the European Union is the free movement of goods between Member States. Thus, Member States are prohibited from imposing any restriction on imports or exports might hinder the free movement unless EC Law allows it. The European Union’s Institutions through their instruments and law regulations strive to develop a free commercial network that does not suffer from custom duties, quantitative restrictions, or other charges having equivalent effect on imports or exports.
While Member States impose these kinds of restrictions in order to protect their own interests, the Court of Justice, through its decisions, acts to ensure that EC Laws are applied. Free movement of goods means in practice that no regulations or restrictions take place on Member States’ borders as Articles 25, 28 & 29 (ex Articles 12, 30 & 34) prohibit them. Specifically, while European Union Members try to impose restrictions of non-pecuniary or pecuniary nature on borders, the Court of Justice acts a “guard” by examining the legal basis and the purpose of the charge imposed.
Such restrictions or prohibitions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States. A Member State may have resource to Article 30 (ex Article 36) of the Treaty providing for the said exceptions to justify a measure having equivalent effect to quantitative restriction on imports or exports only if no other measure, less restrictive from the point of view of the free movement of goods, is capable of achieving the same objective.
Although the Treaty does not provide any exceptions, the Court has held in the past, that charges levied for tasks required by EC Law or charges for services rendered, do not breach Article 25 (ex Article 12). Regarding Articles 28 & 29 (ex Articles 30 & 36), the Court has introduced an exception called the Rule of Reason. It permits that restrictions can be imposed on goods as long as the Court of Justice allows them.
Concluding, the burden of proof that a measure is justified lies on the Member State’s concern and on the Court of Justice’s decision. In the case of industrial and commercial property rights litigation between private parties, the burden lies on the party seeking to oppose the importation or sale of the product concerned. Save measures relating to the protection of public policy or public morality, the adoption of other measures banning circulation of products and being able to jeopardize the free movement of goods lawfully marketed in another Member State, obliges the Member States concerned to exchange information with the Commission so that the latter to be enabled to manage such measures affecting the free movement of goods and settle satisfactorily for business and consumers any problems arising in connection with the internal market.
Repossession
Feb
15
Portfolio Sale-Leaseback
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By Ethan Fry, Staff Writer
Source: CPM
Portfolio sale-leaseback transactions will become increasingly prevalent for companies looking to increase flexibility and limit property ownership, according to results of a survey released by CoreNet Global’s Applied Research Center.
“The real big difference between single-property sale-leasebacks and portfolio sale-leasebacks is more in the flexibility it provides the company,” Eric Bowles, director of global research for CoreNet, said, adding that companies who perform portfolio sale-leaseback deals are given options beyond owning or leasing on a single-property basis. “It’s not just about accessing capital, and it’s not just about redeploying capital.”
Bowles added that availability of capital from large institutional investors will continue to drive the sale-leaseback market, citing the recent $36B purchase of Equity Office Properties Trust by the Blackstone Group as “a clear indicator that there’s a lot of capital in the market, and that capital is available for appropriately-structured deals.”
Corporate real estate executives who responded to the survey also estimated that in the next five years, six percent of property will shift from being owned to being leased. Bowles said the six percent shift equates, for CoreNet members, to $72 billion worth of property that will be sold and leased back during that time.
The Trends in Sale Leasebacks study also found that while 63 percent of respondents said they had experience with single property sale-leasebacks, only 21 percent had experience with portfolio sale-leasebacks, with 16 percent planning to in the future.
One of the biggest hurdles to sale-leaseback transactions, the study found, was an inability to obtain the required price for a property. Also, 37 percent of survey respondents said that of all the internal stakeholders in a sale-leaseback transaction, business unit executives represented the greatest challenge, while 25 percent said chief financial officers do. To mitigate the impact of sale-leasebacks on business unit financials, survey respondents cited support from executive leaders as the most important factor.
The study was compiled from a survey of 29 executives, broken down into 65 percent end users and 35 percent service providers. Eighty-seven percent of the respondents were from Fortune 500 firms, their global equivalents, or their service providers.
Calkain Companies, Inc. is a national, commercial real estate firm, focusing on net lease invesments, that provides brokerage and consulting services for both private and institutional clientele. The Company is comprised of four distinct divisions, Calkain Realty Advisors, Calkain Institutional Advisors, Calkain Opportunity Services and Calkain Site Services. We have utilized an extended network of solid relationships to successfully complete nearly $3 billion in sales and have consistently ranked as one of the Top National Net Lease Investment Brokerage Firms. Core values such as integrity, honesty and innovation have helped secure our position as a leader within the net lease industry.
Calkain has developed a culture that is very much evident, helping to attract and retain the best employees and clients. The general commitment to its clients has made Calkain the industry benchmark for service in the net lease inductry. By promoting public service and philanthropy to its employees, Calkain demonstrates its commitment to communities and the issues that surround them.
In December 2008, through the urging of many of its net lease clients, Calkain initiated Calkain Opportunity Services. Assisting net lease properties owners in challenging situations.
Passive Income
