Cash Flowing Industrial Investment Property

How to Prepare A Commercial Loan Request Package

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • How to Prepare A Commercial Loan Request Package

    When preparing a loan request package for presentation to the lender, the real estate borrower must be as complete as possible the first time. Insufficient, imprecise, or incorrect data in a loan request package can mean a rejection for an otherwise attractive real estate loan. Following are suggestions on things to include with the loan request package…..(more)

    • How Will A New Hospital Affect Property Values

    What happens to nearby property values when a new hospital is built? Usually the surrounding area feels a ripple effect. Land values increase. Developers are quick to provide new space for offices and stores. The biggest profits are realized by the investors who get involved early (during the planning stages) before or while the hospital is built. How It Happens….(more)

    • How To Matching Tenants To Apartments

    Property managers must always think about the type of tenant that is most likely to reside in that particular building. For example, when apartments in a project rent for lower monthly amounts per year, tenants will be concerned primarily with shelter. This means a safe, clean, efficient building but without frills and amenities….(more)

    • How To Create An Apartment Marketing Package

    When we are marketing your apartment property, we have a two-fold job facing us. First, we must persuade the prospective buyer to go out to see the property, then, second, get him to see it though your eyes, with its full potential fully realized. Creating the well-conceived descriptive sales “package” or report on the property can help to accomplish both of these aims.
    ….(more)

    • The Assemblage Option

    The option is an extremely versatile investment tool that comes in a variety of forms and can be used for a variety of purposes. The best part of an option is that it gives the optionee (the party holding the option) control over property (in the sense of the right to acquire it) for a very small cash outlay. In effect, it achieves a very high degree of leverage and conserves cash, two goals sought by both real estate investors and real estate speculators…..(more)

How to Conduct Commercial Real Estate Lease Negotiations

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • A New Style of Corporate Lease Negotiations

    A few years ago, senior corporate managers were able to make major real estate decisions by themselves. Now, a negotiating team will negotiate leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant representatives, design and engineering consultants, and others…..(more)

    • The Master Lease–A Seller Guarantee

    Although office space is in supply in some locations, development has continued. Business leaders are optimistic about the long-term future. Unemployment shows a marked improvement and earnings reports by large corporations are improving…..(more)

    • Apartment Complexes Converted To Condos?

    The owners of many apartment buildings have found that rental prices have not changed much, and may be thinking about selling. The owner of an apartment complex, rather than sell, realizes the condominium conversion may be a good way to cash out the property….(more)

    • Land Development Agreements

    The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract. From the point of view of the landowner, the disposal of a large tract at a good price may require a formula that will encourage the developer to commit improvement and development money for part of the tract that will build future value into the entire tract….(more)

    • Proper Management of Residential Condos

    Whether the condos are converted from apartments or built from the ground up, the builder-developer, the project lender and even the unit purchaser in a condominium project should all be concerned with the proper management of the project. Without good management, a project can quickly lose its value and begin a downturn….(more)

How To Establish Value For A Shopping Center

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • Are Condo Conversions–A Good Investment

    The developer can build a condominium complex from scratch. The time will vary on the location, but it may take years from the start of the first unit. For a quicker time period, the alternative might be a condo conversion….(more)

    • How To Establish Value For A Shopping Center

    The shopping center of today is a change from the centers built originally. They were a collection of stores for retailing, rather than a newer, more modern mix of businesses and entertainment. The average shopping center or mall has had certain characteristics in the past…..(more)

    • How To Landscape For Both Profits and Image

    Owners and property managers must watch the nickels and dimes as well as the dollars that are spent on the property. Save one dollar in operating costs and (assuming a 10% cap rate) value of the property increases by $10. That is why owners are always looking for new ways to economize. In addition to saving money, we are always looking for a way to invest a little in the property for a good return. A well-planned landscape has a recovery value of 100% to 200% in increased rentals at the typical suburban office building. In addition, the owner gets back more than just dollars spent; the landscaping dramatically influences an owner’s positive image in the community….(more)

Hidden Benefits of the Tax Deferred Exchange

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • Hidden Benefits of the Tax Deferred Exchange

    The main benefit of a tax-free exchange is just that–freedom from a tax. The gain that could be realized by one or both of the principals in the exchange transaction does not need to be recognized at the time of the closing. The gains tax is deferred until the property owner makes a taxable disposition of the new property at some later time.
    An owner can make a series of exchanges and can defer tax indefinitely. Upon death, if the property ends up in the estate of this owner and a stepped-up basis is achieved, some tax may be avoided permanently….(more)

    • Management Of Your Investment Portfolio

    When you make your investment in real estate, it is implied that you want to make money. The cash can come from direct income from the property or from capital gains from a sale after an increase in value. Either way, the investment must be managed, considered, and watched at all times. If the owner and manager are taking care of business, there may be ways to increase the income, and the value. There is always the possibility to make a sale for the right price and terms. Keeping aware of the market might bring an opportunity to make a tax-deferred exchange into a property with more benefits for the owner. Real estate investors often own various kinds of properties. They may have a mix of commercial, residential income, land and groups of houses. These owners have an extensive portfolio of investment real estate……(more)

    • Office Building Comparisons

    Newer office buildings may fill up at the expense of older office buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving.
    In many areas, there are still a number of vacancies reported in office buildings. Most of this available space is in the newer properties. One of the most important jobs of a leasing agent for a building with this available space is to analyze other buildings to see if any tenant could be induced to move…..(more)

How To Find Vacant Land To Develop

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • The Self-Storage Facility – A Good Investment?

    One in ten U.S. households now rent a self-storage unit. The growing demand for self-storage in the U.S. is created by people moving (some 40 million people move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. Recent surveys of self-storage companies indicate a positive trend in market demand and occupancy rate. The increased demand for storage space outside the home include the larger number of apartment dwellers who do not have any storage space for their increasing amount of possessions–usually household goods, and outdoor recreational equipment. For many years, facilities functioned as transitional solutions to moving, marrying or divorcing, or a death in the family. Now the self storage units are used to store not only household items but cars, RV’s, motorcycles, snowmobiles, boats and trailers, and all kinds of recreation equipment. Many areas do not allow recreation equipment to be parked in driveways and yards, so the self storage units are the perfect solution to this problem.
    …..(more)

    • Financing Land For Development

    When an investor purchases land to build on, the next step is land development and financing. “Land development” cannot be precisely defined; generally, it refers to the physical, legal, and engineering processes needed to convert raw land to land (or lots) on which buildings can be placed……(more)

    • First Impression Checklist For Marketing Apartments

    A new tenant and an investor share the same impression of an apartment property from the curb. Before marketing apartments, think about the outside appearance. The “look” affects not only an ability to attract prospective buyers, but the rental program as well. First impression by both expected buyers looking and tenants alike are crucial. The following is a checklist of first-impression items that a good property manager must use……(more)

    • Finding Vacant Land To Develop

    In major cities, looking for vacant land is difficult. A builder can look for vacant land but also must look for buildings that are in a condition that looks like they are no longer productive. A neighborhood that is in decline might be rejuvenated by tearing down a building and replacing it with a new office building, high-rise shopping center or apartments. Starting with one property might transform several blocks of a blighted area over a period of months or years. If an opportunity like this presents itself, it can be time to get options to purchase adjoining properties. An owner of an old building may be just waiting for an offer of some kind……..(more)

Should You Lease or Own Commercial Property

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • Should You Lease or Own Commercial Property

    Whatever the kind of property used, the user has the option of purchasing or leasing. Should you buy the house you live in, or lease it from someone else? With few exceptions, there would be an overwhelming response to “own it.” The benefits weigh heavily toward ownership. With business property, the answer sometimes may be a lease instead……(more)

    • Good Management of Apartments Means More Profits

    Investors purchase commercial income producing real estate to make money. There are two obvious ways of making money from a property. First, the owner takes a share of the annual operating profit generated by the investment, and Second, profits from increasing the market value of the investment beyond what it would be because of inflation alone……(more)

    • How To Acquire Loans On Vacant Land

    The conventional lenders, banks, savings and loans and similar institutions may slow their funding of the more speculative projects. However private lenders do make loans on land. They will usually loan on land that is intended for early development and will limit the term from a minimum of one year to a maximum of three years……(more)

    • How To Obtain Land For Your Project

    Acquiring land for development is necessary no matter what kind of market we are in. Professional real estate assemblers are always looking at and acquiring under-utilized sites within cities or in suburbs. Here are some ideas on how those professionals do it……..(more)

Apartment Property Purchase Checklist

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • Apartment Property Purchase Checklist

    When any particular apartment building is under consideration for purchase, there are a number of factors that should be considered. Here are
    some of the more important points……(more)

    • How To Increase Cash Flow on Apartments

    Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. When small investors set out to increase real estate values, the steps are in upgrading houses, duplexes, triplexes, etc., enhancing the cash flow and therefore increasing equity when the property is sold. …..(more)

    • How To Profit With Upgrades To Your Property

    When you look around a community, you will usually find a number of properties that need to be upgraded. When you want an increased return on an older property it may be time to modernize that property. Some existing owners do not recognize the increased return that they could get or do not want to make the necessary investment…..(more)

    • Investment Planning For Everyone

    A prospective investor may have a problem getting started with a real estate investment because of the great variety of properties that are out there. They may be fearful that someone will “sell” them something – something that is wrong for them……..(more)

How much longer with Charlotte’s commercial real estate boom last

http://www.charlotteobserver.com/news/business/biz-columns-blogs/development/article126331429.html

Pre Purchase Tips Before Purchasing Apartments

This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.

In this issue

    • Critical Insurance Coverage By Owners and Tenants

    Insurance coverage must be addressed by both landlords and commercial tenants. For the run-of-the-mill daily problems, a landlord must have the maximum coverage for the building and the tenant’s leases. The tenant must cover the business with coverage that will protect it. What if you have a small disaster that is easily repaired, but you lose a tenant because he was not covered for the damage inside the business?……(more)

    • How Options Can Be Versatile Investment Tools

    An option on real estate is an extremely versatile investment tool that comes in a variety of forms that can be used for a variety of purposes. The primary use of the option is that it gives the optionee (the party holding the option) control over property (in the sense of the right to buy it) for very little cash. It gives the most leverage and conserves cash, both very desirable for investors. An option gives the holder the right to buy a specific parcel of real estate at a specified price, on specified terms within a specified period…..(more)

    • Pre Purchase Tips Before Purchasing Apartments

    Apartment properties throughout the country are the most sought after rentals. Assisting new buyers with the purchase of a residential rental is the job of the commercial broker. When you are looking at different properties, we will furnish full information on existing and potential loans, income, expenses, etc., to help you make the right choice……(more)

    • Why Shopping Centers Are More Popular Than Ever

    Shopping centers have been changing. Increased spending power in the population is supporting new mall construction and the renovation of existing centers.
    Now the newer and renovated centers are becoming more mixed use, with hotels and office buildings being incorporated into the plans. Larger malls are providing more than just shopping. We are seeing more cultural attractions, medical clinics, health clubs, spas, and other facilities locating there…….(more)