Archive for July, 2011
Jul
31
Landlord tries to get rent from you on a shop premises where the lease has been assigned to a new tenant and the new tenant has failed to pay the rent and left the premises. Anyone had any experience of this?
Sell and Rent Back
Jul
30
Commercial Mortgages, Odd Options
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Borrowers need to realize that there are other sources of capital besides their local bank. Life insurance companies, government backed programs, non bank lenders and foreign banks/lenders can provide some interesting commercial mortgages.
For example, typical bank commercial mortgages are now limited to 5 year fixed rates with amortization schedules at 15 – 20 years. On special purpose properties such as hotels, restaurant, most are now only offering adjustable rates. And of course we’re talking about the 10- 20% of the banks that are actually still lending. The rest are either facing their own cash flow, capital issues or are just waiting it out on the sidelines.
Commercial Mortgages
Some of the non bank options boast fixed periods up to 10 years, with amortization schedules as long as 30 years… This added security via the long term fixed rates and increased cash flow, by spreading out the amortization schedule to 25 – 30 years, often comes out to an approximate 20% savings in payment. In addition, most of these sources will not go after side business such as checking or saving deposits.
There are down sides to many of these programs however, to be fair. Rates are typically 50 to 100 basis points higher (.5% – 1%) than typical banks loan. Prepayment penalties are often, more expensive as well, though negotiable. For many, however the longer fixed periods and lower monthly payments are still very attractive and compel borrowers to seek this route of financing.
Borrowers should seek out all available option to them. They maybe pleasantly surprised to find some great commercial mortgages that they didn’t think where out there.
Repossession
Jul
29
Negotiating A Commercial Property Lease In A Rising Market
Posted by: | CommentsThe 90’s was a golden decade for tenants & tenant representatives. Establishing leverage over your landlord was easy because office vacancies were steadily increasing and landlords were under the impression that if they didn’t do a deal today, the market would continue to erode. As a result, landlords were extremely aggressive offering large incentive packages that provided money for fitouts, & huge rent free periods. In short, getting a landlord to negotiate an existing lease was not a difficult job.
However, over the last few years the market has begun to change with steadily decreasing vacancies. Negotiations and how a tenant should approach their landlord have been forced to change also. There are two main reasons for change:
1) Because of smaller lease incentives, lease assumptions have decreased dramatically. Tenants trying to renegotiate a lease with several years left on the existing obligations lost the leverage that existed in the 90’s when they could threaten to leave for another building if the landlord didn’t restructure his lease.
2) Effective rental rates (the profit a landlord makes after netting out all costs of his concession package) are increasing. Many landlords would rather wait in what they anticipate to be a more favorable market for ownership than to restructure an existing lease today.
Although the above items have changed the face of negotiations, it is still a tenants market and there is no reason for tenants to simply accept market rates and above. As the market has changed, negotiating tactics must change also.
Here is some advice when you want to renegotiate your existing lease:
1. Know your landlord. As a tenant it is imperative that you know the goals and objectives of your landlords. Is the owner a passive holder of the premises & therefore less likely to give large incentives?
2. Be flexible. Sometimes landlords are not opposed to renegotiating a deal, they simply don’t like the structure and shape of the deal at hand. So be flexible so the deal is attractive to both parties.
3. Geographically expand your horizons. Some sub markets might be tight (i.e. Sydney A grade space) whereas the North Shore may have the capacity to deal with large space takers competitively. Smart tenants can effectively leverage various sub markets to suit their needs.
4. Seek creative solutions. Despite low incentives, one way to get a low cost alternative to your current premises, is to find space that is already fitted out, in addition try to find tenants who would be interested in your space early to avoid any make goods requirements.
5. Look to the future. Just because your lease is not up within the 12 months does not mean the owner wouldn’t be prepared to cut a deal now. In addition, you could seek an expression of interest campaign to tender your future requirements.
A tenants negotiating tactics and strategy must change with the market. Deals can be done now, more than ever, a tenant must be creative and understand the motivations of the other side when at the negotiating table.
Real Estate Professionals
Jul
28
I have commercial property for sale and need to generate a cover letter indicating the great demographics, area, potential business, etc.
Real Estate Professionals
Jul
27
Online Advertising and Search for Commercial UK Property – Made Easy at Search4premises
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One of the most difficult aspects of selling commercial property is giving your property good exposure and establishing it in the market for prospective investors to see. This is true for both individuals or property agencies – what commonly happens is that they end up spending more money for advertising than planned. Although putting up a big sign or draping a huge “4 sale” banner on your building would catch people’s attention, the advertisement will only be seen within that small group of people around the vicinity of your property. Nothing beats publicity through the Net where the market reaches the widest possible audience. Search4premises is a web-based facility that lets you step into this market. What the site chiefly offers is a listing cost for advertising UK commercial property or businesses for sale or rent at around just ?4 a week. Other features provided in the site include a search tool for commercial properties in the UK, listings for want ads, and complete security through personal account logins.
What Search4premises sets its sight on is to attracting potential buyers and advertisers alike. This way, everyone benefits from up to date postings and a healthy commercial property market is achieved. With its target of acquiring 5,000 hits a day, this goal is not difficult to reach which is why working with Search4premises is a very good move.
Search4premises has developed a quick and easy way which will make the advertiser’s and shopper’s task easy. For example, it provides an advanced search tool. Posting your ads has been made easy through a well-structured process. Advertiser’s preferences has been given importance by offering two effective ways of getting your UK commercial property ad displayed to the market. You can opt to post your advert in the standard manner where a photo of the property is shown together with all essential information or you can also choose to have your ad listed among the various categories in the classified pages section. In this section you may also post want ads, ideal if you are searching for something in particular.
Register on the site as either a private advertiser or a commercial agent. If you are an individual property owner and wish to list only one advertisement you can register in the site as a private advertiser. Registering as a commercial property agent or surveyor etc allows you to post multiple adverts depending on the package you choose. All advertisers have their own individual account which means they can edit and update their listings as often as they need.
Quick House Sale
Jul
26
How to Pursue Business Equipment Leasing
Posted by: | CommentsWhen you pursue Business Equipment Leasing to get the business equipment you require to make your business progress, you may need to specify whether you are trying to get Business Equipment Leasing for a new set of business equipment or Business Equipment Leasing for used business equipment instead. Obviously, Business Equipment Leasing for new business equipment would have different terms of payment and conditions of payment, than Business Equipment Leasing for used business equipment.
Business Equipment Leasing will generally provide you with equipment valued from $5,000 to $5,000,000 but you have to be careful about the fast approval time of many Business Equipment Leasing vendors because you may not have had enough time to understand the finer points of the Business Equipment Leasing contract you are entering into. Remember, with Business Equipment Leasing you may have to contend with a clause in the contract stating you may not back out once the contract has been signed. So always take care that you know the clauses of the Business Equipment Leasing arrangement you are agreeing to pay for before you sign on the dotted line.
Business Equipment Leasing is an umbrella term for various types of Business Equipment such as software, gym equipment, health and fitness equipment, telecommunications equipment, trailers, trucks, commercial vehicle equipment, office furniture, and printing equipment. There are also other types of Business Equipment Leasing categories like Manufacturing Equipment, Material Handling Equipment, Restaurant Equipment, Office Equipment, Computer Equipment, Dental Equipment, and Medical Equipment. But when it comes to Business Equipment Leasing, many people may be most familiar with Business Equipment Leasing for Heavy Industrial Equipment, Manufacturing Equipment, and Construction Equipment.
Generally, the criterion for classifying something as Business Equipment (and thus qualify for Business Equipment Leasing) is that it is used in and perhaps necessary for your business to function. With some lenders, you may have to be looking for business equipment valued as low as $5,000 to be considered for the lowest Business Equipment Leasing plan. You can expect your payment terms to be as short as 24 months. From there, Business Equipment Leasing payment terms will then progress to 36 months, 48 months, and then 60 months.
One unique Business Equipment Leasing arrangement you might enter into would permit seasonal payments which are more flexible than most because your company has a seasonal business (and thus experiences seasonal cash flow streams.) This is especially important if you have entered into plan that has a higher than normal interest rate for you to add on to the regular payment amounts you are obligated to pay for.
Another fairly unique Business Equipment Leasing arrangement is when your primary lender allows you to lend from multiple vendors.
You also should ask your Business Equipment Leasing vendor whether you are obligated to pay for any form of insurance covering the Business Equipment. Examples of insurance you may have to pay for are loss, theft, fire, and general liability insurance. Payment for these might already be bundled into your current payment arrangement so you need to clarify this part with your lender.
Quick Property Sale
Jul
25
is commercial mortgage interest deductible?
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I do my own tax, if commercial mortgage interest is deductible, where should I appy to on 1040.thanks
Sell House Quick
Jul
24
Van Leasing at Affordable Prices
Posted by: | CommentsA specialist in highly discounter commercial vehicles for the self employed and small business owners, UK Vehicle Contracts has been sourcing, supplying, and financing vans for over 12 years. Its years of experience have given the company the confidence that gives the customers peace of mind in their professional dedication and integrity. The company’s service for van leasing with either new vans or used vans has been hailed as comprehensive.
What UK Vehicle Contracts provides is easy to understand and simple. Its van finance and commercial leasing can be adjusted to fit your budget. Van finance means buying vans and commercial vehicles through fixed monthly payments and generous repayment periods makes financial planning and cashflow easy on the budget.
Van leasing on the other hand gives you better options. It gives you the benefit of lower rates and ideal for non-VAT registered business. By being in close contact with leading manufacturers all over the country, it is possible for the company to source most makes and model of vehicles at well below manufacturer’s prices.
At UK Vehicle Contracts, your van can be customized for your kind of business. If you want your leased van tailored to your trade or business, you’ve come to the right company. UK Vehicle Contracts has a wide range of outstanding value customizing packs to add the extra features that make a world of difference.
The company’s high level of service understands what is crucial for the customers. UK Vehicle Contracts knows what a vehicle tax and its implications toward a car lease against vehicle finance. Working with the business owners as a partner allows for good advice on specific situation regarding either out-and-out finance purchase or van leasing. Whatever your requirements, UK Vehicle Contracts will flex its muscles to give you the make and model you always wanted.
Its finance packages can give you options to suit your needs. Depending on your budget, UK Vehicle Contracts has the package. The package provides the business user the opportunity to budget effectively in knowing fully well the full potential of tax and VAT allowances. If the business users want new vans, 4×4’s or pick ups at UK Vehicle Contracts, you name it UK Vehicle Contracts got it.
Apart from good prices, the high level of service includes speed and efficiency in handling the transaction. It does away with too much trouble of haggling and fine print reading. The business users always put in a better position to make the deals less complex. It is a rarity these days to find a company you can rely on.
It is vital that business users or individuals who need lease or purchase to replace vehicles find the company that can be relied upon to answer their needs. Customers who have known about UK Vehicle Contracts and have actually used their services are happy they did.
UK Vehicle Contracts helps you out with your van leasing and commercial vehicle finance with assurance. Because of its comprehensive service, it eradicates the risks involved in buying used vans. With its extended warranties, business users are guaranteed a proactive and personal service that goes with the superior standards of quality and efficiency. With the buying power of UK Vehicle Contracts and low finance rates, you can get a brand new commercial vehicle. You can choose from new models and pick ups which are locally supplied and deliver to you for free.
Quick Property Sale
Jul
23
Commercial Mortgage Training – in This Current Credit Crisis
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As the residential side of the business has taken a severe beating many residential mortgage brokers and loan officers are taking a hard look at the commercial side of the business. The idea is to diversify their business/income with the intent of weathering this storm.
However, the reality is that the commercial side is not in a better position than the residential side. Restrictions are across the board and the secondary market on the commercial side has the exact same issues. Major players such as Zion’s, Bank of the West and Sterling are losing their liquidity and have slowed their lending to a crawl. For example Zion’s just announced they will no longer consider deals above $2,500,000 with a preference for loans below $2,000,000.
As a result commercial mortgage brokers are forced to work with the players that are still funding deals. SBA lenders, portfolio (aka balance sheet) lenders and commercial hard money lenders are the major sources. These three are still lending and are not directly tied to the woes of the secondary markets. The exception to this is some SBA sources do sell their debt off on the secondary market but at the end of the day Uncle Sam still guarantees the bulk of the loan balance.
One of the easier deals to get done is hard money, from a funding point of view. The lender is often an individual that is lending their own money and will make the decision directly. However, the terms that hard money lenders offer are harsh and many borrowers will not accept them. 3% -6% points are the norm with a rate of 13 -16% is market. The trick here is to find the borrower with the right set of circumstances that will in essence be forced to accept these terms. Sounds harsh but it’s true. If your borrower has a viable “Plan B” they will never accept this deal. Examples of the right circumstances include a business owner losing a substantially amount of equity due to foreclosure or a builder that will lose a major opportunity on another project due to very short time restraints.
SBA lenders or banks can be a very solid source for owner occupied deals. However SBA loans has their own set of quirks and a major one is that brokers are not allowed to be paid points on the settlement statement. Instead the broker has to be paid a referral fee by the bank or paid outside of close. The challenge here is that most SBA lenders are not broker friendly and will suggest the broker has a separate agreement with the borrower and get paid outside of close. If you haven’t chased a borrower for months on a $15,000 fee, take my word on it that it’s not easy to actually collect. And you’ll need the borrower to sign a substantially fee agreement that will hold up in court. This is one of the biggest shockers for residential brokers entering the business – how vulnerable their fee can be if not set up properly from the beginning.
As talked about above portfolio lenders or banks have many of the same issues as SBA lenders. In fact many portfolio lenders use the SBA to guarantee their loans, so we are tripping over terminology here a little bit. But the point here is that many traditional banks that still actually lend their own capital and don’t sell off to the secondary market are not broker friendly. For many it’s a matter of pride that they source their own deals. So you as the commercial mortgage broker need to find a portfolio lender that likes the deal, will let you be involved in the deal and allow you to get paid at close. If not you will have the same issues mentioned above and you better be protected or you’ll have a very nasty story to show for all of your hard work.
No corner of the mortgage business is except from the current issues. Residential players should be prepared for the realities of the current market. Learning how to work with these sources is a huge set in the right direction and brokers will have a much better chance of succeeding and getting paid for all of their hard work.
Rent Back
Jul
22
Buying Cyprus Property – the Market Place is Changing
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Real estate agents and developers in Cyprus are complaining because to them property for sale in Cyprus is not, perhaps, generating as much rewards as they expected. Sales are dripping and price increases, which were evident from 2005 – 2007, no longer seems to exist. The Cyprus property for sale tag which was once quite high, as a result of the credit crisis and economic downturn has been slashed to unthought-of levels. So do we hear loss?? Well maybe there are those who are complaining of a bad situation, but if the facts and figures are well analyzed, it would be clear that this is the time to invest.
Cyprus property for sale has always been a tempting business proposition for UK investors. More than 300 days of sunshine, coupled with island’s beauty, has easily attracted investors. Property purchases tended to be for investment, or second home options. The purchase possibilities have been quite interesting in this third largest Mediterranean island. However the massive property price increases, over the last few years, have caused many to abstain from owning a property in Cyprus.
But the cards are already changing hands. The situation, which was once daunting for the buyers, is changing to present new avenues of investment. The property prices have been slashed to offer Cyprus properties for sale in for or even under £85 k. Even a five star apartment in North Cyprus can be negotiated around the stated cost tag. Moreover, because there are not many buyers, businesses are facing extreme difficulties to ensure just the basic survival, which offers even better financial terms to prospective buyers. For instance, a plot in Alethriko, which was for CYP 120,000 a few months back, is now at a price for less than CYP 90,000. Moreover, with about a 40 % decline in property sales, there is nothing much the sellers can play on. Paphos is the region facing the most severe blow. Simply stating, at this hour a property for sale in Cyprus is a deal wherein buyers can manipulate the terms to suit them.
The government too is facing the brunt. Capital gain taxes, which contributed to their overall revenue, are shrinking. The lack of buyers is disturbing the overall financial scenario. This is making the Cypriot administrative machinery gear up to introduce measures and thus work towards repairing the situation. So, for those buyers who invest now, profitable returns are more realistic.
While various regions can be checked, north Cyprus in particular deserves special mention. Property for sale in Cyprus in the northern region is already cheaper in comparison to the southern options. Moreover, sterling is the currency deployed for sale and purchase, which grants an added advantage to the UK buyers. And if the political scenario is to be believed, reunification plans can further boost the north Cypriot property market situation.
When it comes to buying a Cyprus property, the buying process begins by signing a reservation agreement. The agreement ensures that for a deposit the seller withdraws the selected property from market. The Contract of Sale is the next stage. This is quite an important step as the Contract of Sale deserves serious contemplation. If buying a property in Cyprus, do not just sign the standard Contract of Sale, but check it thoroughly and ensure appropriate modifications to suit your interests. Once it is signed the contract is stamped and a copy is submitted with the Land Registry. The next step entails transfer of the Title Deed to the name of the purchaser. A Certificate of Registration is provided to the purchaser, which confirms the purchaser as the absolute owner of the selected Cyprus property for sale.
Quick Property Sale
