Investing In Commercial Real Estate 101
A well written Contract should give you rights to visit the property with 24 hours notice. Schedule a visit and review the Work Order Logs in person and verify the Seller is doing their job.
If your business occupies some of the space, what percentage? Is it more than 25%? Is it more than 50%? Many lenders will consider it an owner occupied deal if you’re in more than 25%. Virtually all lenders consider it owner occ if your business occupies more than 50% of the subject building which will give you better terms.
The Global Income ratio effectively computes all income (both business and personal) vs. all expenses (again, both business and personal) that the entrepreneur has. 50% to 60% has been the norm for years, now more and more lenders are demanding 40%.
Alternative market today are many and varied subject to the requirements of the property and the target market. They have 2 or 3 alternative marketing and budgets available to the client to consider. The client will then make a decision based on a balance of cost and effectiveness.
Price ranges or price must be discussed so that we both know that there are totally different wavelength “when it comes to reaching a hit list and the solution of the sale.
Rent is too high – Right now is a good time to renegotiate with your landlord. commercial property is going through the same issues that the housing market has been facing. A paying tenant is better than no tenant. Lower costs improve profit.
Apply for as many grants as possible. You can submit applications electronically by applying online at various government websites. You can also find many private institutions that offer free grant money. When you think you’ve filled out every available grant application, search again. There are literally thousands of available grants that are waiting to be claimed by small businesses everyday.