Tag: commercial real estate agents

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Top 10 Reasons Not to Hire a Commercial Real Estate Broker

Working with a commercial real estate broker is not for everyone. Commercial real estate investors and tenants choose not to hire a commercial real estate broker for several reasons. Here's a free checklist for you to use the next time you're wondering whether hiring a commercial real estate broker is really for you.

Top 10 Reasons Not to Hire a Commercial Real Estate Broker

10. You can save the commission.

9. You have found tenants for your building in the past.  You can do it again, filling your space for market rents, faster than your neighbors.

8. No one represents you better in a negotiation than you. You're objective and rarely lose your cool.

7. Marketing your opportunity won't be a problem. You know everyone in your commercial real estate investment market.

6. You made your money from off-market deals.   In fact, you've never bought a property listed by a commercial real estate broker.

5. You know the best lenders, commercial real estate attorneys, commercial real estate lenders, architects, engineers, environmental engineers, and construction firms in your commercial real estate investment market.

4. You have your CCIM designation.

3. You have a career's worth of experience in commercial real estate investing.

2. You spend 8-12 hours every weekday speaking with property owners, lenders, tenants, and commercial real estate brokers in order to stay current on the market and ahead of the best commercial investment property opportunities.

1. Your commercial real estate investing has fared well, there's absolutely nothing you would change, improve or could do better.

If you have suggestions for improvements to the "Top 10 Reasons Not to Hire a Commercial Real Estate Broker" list, please feel free to email me.  I'm happy to discuss any additions or alterations to the list you'd like to see.

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Selling Your Commercial Real Estate in a Down Market

When do you know that selling commercial real estate in a down market is the right decision? Ask Sam Zell.  He says, "Everyday you're not selling, you're buying."  If he's right, then how do you make a decision about the right time to sell commercial real estate in a down market? Read more

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Get up to 90% financing with an SBA 504 loan

Not long ago, if a borrower was simply able to complete the application for a 100% loan, and they would be approved.

Talk to those who have tried the same in recent months, and you’ll hear a different story – one in which lending institutions have limited borrowing to the point of virtually freezing the real estate market. Buyers are quick to become discouraged when loans are no longer readily available without putting 30% or more down. However, tough market conditions have increased the use of specialized programs to fill the gap.

The SBA 504 program is a popular option for owner-occupied properties in need of fast cash. Offered by the New England Certified Development Corporation, the product is designated for projects ranging in size from $500,000 and up, and can be used to purchase land or buildings, new construction or expansion, renovation, leasehold improvements, or equipment.

With an SBA 504 loan, a borrower obtains a first mortgage loan for usually 50% of the project from a bank. There is no maximum dollar amount. New England Certified then provides a secondary loan (called a debenture) for the next 40%. Certain manufacturing entities are eligible for up to a $4 million debenture. All other industries are capped at $2 million. Up to 90% financing means the borrower typically provides only 10% equity for the project. Loan terms may extend as long as 20 years, and low fixed interest rates (fixed for 20 years for real estate; 10 years for equipment) are available on up to 40% of the project.

Borrowers must:

· Be located in New England.

· Operate for profit.

· Owner must occupy part of the property.

· Have a tangible net worth of $8.5 million or less.

· Have an average net profit of less than $3 million over the last two fiscal years.

Existing buildings must be at least 51% occupied, or 60% for new construction.

Just because it’s more challenging to obtain a 90% loan these days does not mean it’s impossible!

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