Archive for August, 2011

The Commercial Property Loan – Why Can’t You Find One?

It’s semi-official! The government is now behind the movement to encourage banks to work with their borrowers in the commercial property loan market to insure of small business owners and investors who are in crisis. Why? The main reason is that the Administration and Economists both believe that the commercial real estate markets may be the next domino to fall during this slow to recover economic crisis.

Are they worried about the commercial property owners? Not really. It’s still all about the Banks. Their balance sheets are still shaky. The vast majority of lenders who still hold commercial property loans are your local and regional financial institutions. The Fed has stabilized the large, can’t let them fail banks, but really have not had a plan for the small and mid-sized lending institutions.

In 2009, we have already seen more than 120 banks taken over by the government. Recently, two banks in southwest Florida, Orion and Century had their doors shuttered. What was the cost to the government and the tax payer? One Billion Dollars! No wonder the FDIC is running short on cash. Additionally, there was a loss-sharing agreement with the bank that came to the rescue of these failed lending institutions to protect it from any future losses due to poor performing loans. Yes, and this was just two small banks.

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Closing Commercial Property Inspections to Sell Or Lease

The actual showing of a Commercial property to a buyer or tenant is a critical step in making a sale or achieving a lease agreement. Here is where you demonstrate your expertise and professionalism and where you really do your best job of connecting. You need the prospect to trust you and set the foundations for the potential negotiations on the property.

In preparing to inspect, discover your buyers’ needs and desires. Then prepare a full proposal for them to examine. Finally, show them the property.

Preparing the Commercial Real Estate Buyer or Tenant

Discuss property and occupancy needs with your purchasers. Buyers of Commercial have needs which are Investment or Business related. Find out whether they have decided, more or less, on a specific location – suburb, financial district, high-rise, low rise etc. – or whether they wish to view a broad cross section of available Commercial properties.

As you begin showing properties and noting their reactions, you will gain a deeper insight into their true needs and desires, a process that continues until they actually make a selection. As you prepare buyers for a property tour, be prepared to discover that inspecting will be an education for all concerned.

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Commercial Property Management – What to Look For

So you’ve decided to invest in commercial properties…perhaps a shopping center. What do you do next? Many investors face that tough question. When reality sets in the task of maintaining and running a commercial property can quickly become overwhelming, even to the savviest investor. That is when they employ the services of an experienced commercial property management company.

What can an experienced commercial property management company do for you?

1. Collect all rent payments and deposit them into your account.
While collecting monthly rent from your tenants is often a challenge, a good property management company already has its own systems in place to ensure that rent payments are collected when they should be so as not to affect your cash flow.

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