Tag: Greater

Property Loans – For Greater Flexibility And Freedom

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The big purchasers are already making all the moves. Great Portland Estates and other leading specialists with more than enough cash have interestingly announced rights issues. Why when you have enough cash would you do that? Simple. It’s to raise extra cash to buy distressed assets at the bottom of the market. Clearly the London office market is hammered. The return to this market is likely to be closer to 2012 than now, but values of the investment will already be fully reflected by then.

Brokers do not make money by passing good leads to inexperienced agents. If you sign up with a ‘bargain Broker’ and cannot easily generate your own leads, expect to starve. They are there to be served, no to serve. The alternative is spending several thousand dollars to sign up with a big name franchise. These operations are backed by nationwide advertising and a great brand name. However, this still doesn’t guarantee you good leads. It just means you have an organization backing you that offers a better chance to earn then Jerry’s Happy Home Real Estate Office down on the corner of Main and Used Car Lots Avenue.

If potential investors agree with your commercial property acquisition strategy they will invest. If they do not receive the return on investment you promise you will lose investors. It is that simple. After you begin developing a list, you must develop a relationship with the people on the list. Send them useful information, not send sales messages. Make sure your site provides useful industry information and a link to your site.

Employees – It is hard to let go of any employee. You have invested time and resources in them. However, the time is now to cut the unproductive part of your wage expense. Review each employee and ask yourself this question: is this person good for my company? If the answer is yes, hold on to them. If the answer is no, get rid of them now.

Ideally you’re looking for entry level to lower mid-range housing, 15 – 50 years old. It’s OK if the area is a little blighted as long as things are on the upturn. Look for visible signs of redevelopment.

Property developers require the assistance of real estate agents from time to time. The best way to connect with these people is to provide them with new development stock from which they can build.

In case you are an employee of an organization, find out from the HR department all the retirement policies and plans that the organization has. Find out which are the best plans and policies and invest in them. You can also invest in mutual funds and Roth IRA.

At any rate, stay away from “war zones” with large tracts of run down, vacant houses, high crime rates, etc. These areas can be tempting because people do live there (generally renting) and the ratio of rental income to property values provides the landlord with a much nicer “spread” than is achievable in nicer areas. Some investors literally make a fortune in these neighborhoods. However, it’s probably the toughest segment of the business to operate in. And, alas, 90% of us cannot pull it off.

Property Loans – For Greater Flexibility And Freedom

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And now a few last thoughts about the layout and placement of the lot. If any of the following are present, I suggest you pass and move on to the next candidate. These kinds of functional negatives are either impossible or just too hard to overcome and in anything less than a red hot market they will significantly lengthen or kill your exit strategies for the property.

Out of our own interest as an owner advisory firm, please keep calling brokers. We encourage it and we like the calls. It makes our owners happy because it proves that we’re giving them great exposure and will eventually sell their property for the best price.

Always have a lead story from the local market. This will attract the reader’s attention. The lead story should have a photo or image to grab more attention.

If you have a commercial property with a ,000 monthly mortgage, and two of your tenants move out, can you afford to be short ,000 a month in rent? Make sure you have enough cash reserves to cover that ,000 while those units sit vacant.

So how many people should you have in your database? Personal database numbers should be based on your location and your property type. I would say however that you should have several hundred quality contacts that you work in a continual way. By ‘continual’ I mean once every 90 days or less. In that way you can build a relationship of relevance. If you consider a client as ‘active’ or soon to be, then the cycle of contact is shortened to at least once a month.

In addition, less obvious underwriting standards, such as increasing vacancy and management fees have a direct impact on net income. Many lenders are raising these underwriting guideline from 3% to 7%. In areas like Phoenix for example, some underwriters are using market vacancy vs. a the standard 5%, which can seriously effect a transaction if market vacancy are, for example 12%. Keep in mind that this vacancy will be factored on to the deal, even if the subject property is 100% occupied at the time of the refinance.

This is a report that should be provided by your broker or Title Company that you have built a relationship with. It can cost as much as 0 in some cases. Your broker can get this free of charge.