Category Archives: Property

Commercial Mortgage Loans – Do I Qualify

Commercial mortgage loans are not available to persons, but rather to businesses, which include partnerships, incorporated businesses, limited companies, etc. The business must be sound financially and the process to verify the business income can be more complicated than verifying the credit worthiness of a specific individual. That is why traditional commercial mortgages can take six to nine months to underwrite.

Commercial loans are procured for a variety of reasons: to buy the premises of an existing business, to make improvements or enlarge existing premises, to make commercial and residential investments or to develop the existing property in other ways. An example would be to buy already constructed business premises, like offices, shops, restaurants, or pubs. Additionally, they can also be used to buy business assets such as plant equipment and specialized machinery.

The Interest rates for commercial mortgages are generally higher than those for residential mortgages but lower than interest rates on unsecured business loans. A fixed-rate loan is the most common commercial mortgage. It is similar to the fixed rate home mortgage loan in that the interest rate remains constant throughout the term. However, the term for most commercial mortgage loans is between 3 and 10 years but they can be extended for as long as 25 years.

The commercial mortgage loan amount and interest rate that you can receive is a direct correlation of the credit worthiness assessed by the lender with respect to your ability to repay the loan. If you have an excellent business record with a verifiable profit and loss business statement then you will have little trouble getting a commercial mortgage at an attractive interest rate.

Commercial loans are not provided without extensive scrutiny regarding your business stability and profitability. The Lender usually wants to see your last three years of audited financial statements including a Profit and Loss statement, balance sheet and a cash flow forecast. Favorable business information is critical to the lender and to you because, as stated earlier, if you default on the loan the lender can repossess your property and sell it to repay the outstanding mortgage balance.

The best place to find commercial mortgage loans is on the Internet. There are enormous numbers of commercial lenders vying for your business and they all advertise on the Internet. It is possible to compare many loan quotes side by side and determine which is best for your financial situation.

Discover Top 10 Secrets Before Buying Commercial Property in Gurgaon

With the tremendous prosperity of business and industries in Delhi NCR, several companies and shopping malls are mushrooming in the capital city of India, but due to lack of space of establishment of further commercial properties in Delhi, the builders are utilizing the nearby associated cities for making further development of commercial complexes.

1. Gurgaon is becoming a demanding place in real estate business both from the context of residential flats as well as commercial properties. The main reason behind this situation points towards the huge impact of improving technology and establishment of infrastructure.

2. Today people are struggling for better prospects so that they can survive in this world of competition in a better way. In search of a better living they are tending to migrate to metropolitan towns and cities and are settling there. Gurgaon can be the ideal place for a better living.

3. Gurgaon which was traditionally not counted under the developed cities have been categorized presently under one of the most prosperous and developed city in India. The Haryana government has taken several initiatives for the improvement of this particular place which is reflected through the infrastructural growth and immense work opportunities which assures career growth. Moreover, due to the contribution of reputed builders such as DLF, Gurgaon have experienced huge improvements.

4. The demand for commercial properties have increased at a tremendous rate in Gurgaon, therefore many companies are offering new projects of construction with such lucrative properties at lower rates at the time of booking.

5. If you are looking for purchasing such a property in this location, you can find out the one that falls well within your budget depending upon your requirements. The companies offer great deals for commercial properties, residential properties, rented accommodations, etc. In case you are not aware of the prices you can take the help for professional assistance for better guidance.

6. Taking assistance from the real estate agents can be the wisest decision since they can guide you to make bright investments which are featured with great growth perspectives depending upon your financial budget.

7. Undoubted investing upon property located in such prosperous areas will definitely yield you profit in the long run since investing upon properties is like investing upon gold where the value will increase in future.

8. Commercial property in shona road is highly on demand. The place is full of greenery and excellent for construction of properties.

9. Due to the excellent connectivity in Gurgaon such as the metro railways which connects Gurgaon to Delhi, Noida and other destinations saves a lot of time of the passengers who are bound to visit these places on a regular basis. All such reasons make Gurgaon a preferable destination for real estate businesses.

10. People residing in Gurgaon are highly dependent upon luxury and hence the builders are showing high interest in developing luxurious malls where within one complex people can shop for clothes, eatables and other raw materials, they will not have to travel to different places to in search of various items. These shopping malls are constructed with all sorts of luxurious facilities such as elevators, escalators, restaurants, well maintained wash rooms for ladies and gents, spacious car parking areas, etc.

Ref. By: http://www.articlesbase.com/agriculture-articles/discover-top-10-secrets-before-buying-commercial-property-in-gurgaon-6813566.html

Author Bio: The author of this article dealing in residential and commercial properties in Gurgaon. Here he is sharing some facts that should be in mind when you are going to invest in commercial property in Gurgaon like office spaces, shops, complexes, shopping malls and more. For more details about commercial property visit at http://www.vipulgroup.in/Vipul-Business-Park-Gurgaon

Commercial Property Investment Values Remain Stable

Investing in real estate has generally been considered as a relatively safe and profitable venture. Over the past few years however, the housing market has proven it is not immune to volatile ups and downs nor it has been safe from speculators and scheming fraudsters. Fortunately, during the same time, commercial properties have largely escaped the chaos and ruin that the residential market has experienced.

In fact, a recent study by Deloitte Consulting LLP, a subsidiary of the financial accounting firm Deloitte & Touche USA LLP, found many reasons to believe that commercial values are fairly consistent, making them a great real estate investment choice.

-In prior boom cycles, commercial real estate has responded by overbuilding. The industry has clearly learned its lesson because this time commercial real estate is enduring a credit crunch – not a crisis – partially because it resisted this urge. No doubt, the industry is in a strong position to withstand a recession, should one occur, and commercial real estate remains a viable investment option for those seeking to diversify and insulate their portfolios from market volatility,- said Dennis Yeskey of Deloitte’s real estate capital markets practice, as quoted in a press release on the company’s website. -Capital flow will return in 2008, with the exception of highly leveraged deals, and new opportunities are being sought in distressed debt funds, niche opportunities, and global markets.-

The -Real Estate Capital Markets Top Ten Issues – 2008- study found that although profits have been skimmed as the residential market has failed, commercial property investment values have held steady in many places, and have seen modest growth in others.

Plus, the surveys detailed, because of the shakeup in the housing market, mortgage underwriting rules that were also becoming too loose in the business world are now being examined and revised. The result is that investment loans will be safer, with less risk of fraud.

Another finding is that investment values have been strong in the office and industrial segment of this market, making them a much better investment at this time than retail properties or multi-family dwellings.

Additionally, funding for commercial property investment is much more readily available today than it is for residential real estate purchases. Of course, large down payments are still required as well as well-documented sources of income and assets, but the study found that lenders approve conservative commercial property investment loans quite often.

While some shifting of prices and expectations still need to take place, the study concluded that commercial market values have shown good stability and potential for pretty profits.

Going forward the study said, -Investors would do well to stop comparing CRE (commercial real estate) returns to the previous few years’ performance, and to take a closer look at how these returns fit into the bigger picture. Returns will probably be lower, but when compared to other investment categories (stocks, bonds, etc.), CRE remains an attractive investment vehicle due to its stability and opportunity for diversification.-

The Commercial property investment potential and analysis from KISCL will help you to get the complete resources and analysis on real estate and its dealings. Learn more on real estate, right here. Visit http://www.kiscl.com for more information.

Thermal Night Vision Device Mechanism And Uses

When night time falls everything turns into darkness and our activity outdoors can be limited because our eyesight is obscured by the dark. The invention of night vision goggles became a highly prized gift to those who need it most. With the growing popularity of extreme games played even during night time and the vast number of outdoor activities you can engage in like camping, hunting, and war games, being able to see and move around the surroundings in very low lighting conditions prove beneficial to most enthusiasts.

Market demand of night vision cameras and other same devices (NVDs) are at a constant high because of its diverse usage. People from all walks of life are finding useful benefits from these devices from recreational to military to security surveillance and to research purposes. These devices are popular for camping, hunting, observing life at the wildlife, and military or law enforcement.

The first night vision gadgets invented were actually intended for the military. It was used in the World War II to aid soldiers during night-time combats. It has undergone series of development for decades and its purpose has expanded to other uses aside from warfare purposes only. Today, commercial night vision devices are available in the market for civilian use.

NVDs employ two schemes to boost sight, the image-enhancement and the thermal-imaging. Image-enhancement technique, which is most commonly known to many, makes use of minimal source of light or infrared light. Image-enhancement system employs a standard objective lens that collects even the smallest bit of existing light in the surroundings and intensifying it to levels that are perceptible to the eye.

The human eye can distinguish more shades in green than with any other color; hence images generated by image-enhancement method emerge as green objects. This type of night vision produces clear visuals of the objects being viewed. On the other hand, when there is no light at all night vision devices utilizing this method cannot be of help. There is also a setback for this type called blooming or loss of the image being viewed when the device becomes exposed to bright sources light.

Thermal-imaging however does not rely on light sources to create reflections. Infrared energy released by objects is gathered by a thermal imager, which then produces the imagery. Thermal devices have two types; the cooled and uncooled. The uncooled being the frequently used can be used at room temperature. It operates more quietly and can be set off right away. The cooled thermal imaging detector yield better image quality but are quite high-priced and can be easily damaged from regular use.

The invention of night vision devices has helped many users around the world. Having one at home can give added fun so go grab your car keys and shop for a gadget that comes with night vision property.

Leasing Retail Space – Know Your Neighbors

Are Nearby Stores Complementary?
Next review whether the retail space you are considering is complementary to nearby retail establishments. For example, it would not be appropriate to put a liquor store adjacent to a school for troubled children. However, a dry cleaners, nail salon, office supply store and dollar store might all fit well in their neighborhood shopping center anchored by a major grocery chain.

Complementary Stores

Grocery stores, drugstores and gas stations tend to be complementary. In some cases, they are all provided by one retailer. For example, many of the Sam’s Club or super Wal-Mart’s have groceries, a drugstore and sell gasoline. In addition, there has been a growing trend for grocery stores to sell gasoline as a loss leader. Their objective is not to make money selling gasoline. Their objective is to increase the number of trips customers make to the store to buy groceries.
Category Killers

In some cases, “category killers” cluster in a power center. (A category killer is a retailer who stocks every conceivable item relative to a category. Office Depot is a category killer for office supplies. Petco is a category killer for pet supplies.) Having four to six category killers in one cluster is referred to as a power center.
More on Category Killers

The stores are not linked in a physical sense, other than being part of the same planned development. In other words, they were likely developed at the same time on one large tract of land, but there is no enclosed pathway between the stores. Other examples of category killers are Home Depot, Circuit City, Best Buy, Linens N Things and Bed Bath and Beyond.
Example of Complementary Uses

Another example of complementary use retail uses would be to put a beauty products store, hair salon, tanning salon, nail salon and spa contiguous with each other in the same retail center. Customers interested in one of these businesses may well be interested in at least one of the others.
Avoid a Deal Killer

Complementary uses can be a meaningful enhancement of a location. However, uses which are clearly inconsistent with your proposed location may be a deal killer.
Construction

When retail space meets the minimally acceptable standard for the previously discussed criteria, it is time to review the costs to prepare the retail space for your business. In broad terms, the costs include signage and the cost of renovating or redoing the improvements within your space.
Tenant Improvements

At this point, you need to know the landlord’s policy regarding tenant improvements. (Tenant improvements are worked performed to make space suitable for a business. It can include adding restrooms, demolishing and adding walls, floor coverings, window coverings, signage and virtually anything else related to physically preparing the retail space for your business.
Will the Landlord Pay?

The landlord is usually willing to fund tenant improvement expenditures provided he is confident the tenant has the financial capacity to pay rent for the term of the lease. If you’re representing a national retailer with a strong balance sheet, landlords will practically spend as much money as you request on tenant improvements. Of course, the cost of the tenant improvements will be built into the rental rate.
It’s Up to You

If you’re a start-up business with no track record and little capital, landlords will be cautious about expenditures for tenant improvements. They will likely want you to fund tenant improvements for your space. The benefit is your rental rate will be lower. However, you’ll have to include the cost of preparing your space for occupancy in your initial capitalization.
TI Details

Other issues related to tenant improvements include defining the work to be done, and who has financial responsibility for performing the work. If you’re a national retailer, you might provide a landlord with a detailed set of plans for your space. It is then up to him to cost effectively provide the buildout you are requiring. If you’re a smaller retailer, the landlord may provide a tenant improvement allowance, and require you to interface with contractors to have the work performed.
How Much TI?

The cost of tenant improvements occasionally exceeds $100 per square foot for second-generation retail. It is generally much lower. Even if the landlord is willing to provide substantial funds for tenant improvements, be cautious about the scope of work for tenant improvements. The landlord’s expenditure for tenant improvements is essentially a loan which will be repaid with your rent during the term of the lease.
Who pays for ADA?

If the space requires tenant improvements which require obtaining a building permit from the city, review whether you’ll have to replace the restroom because of ADA. (ADA is the Americans with Disabilities Act). In most cases, changes to provide ADA compliance are not necessary if you not require a building permit. However, a consequence of obtaining a building permit is typically that the space must be revised to completely comply with ADA. Replacing the bathroom so it is ADA compliant can be expensive.

The Market Research and Consulting division of OConnor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses multifamily, office, retail and industrial. This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance. In addition the data is useful to brokers who for example continually monitor Houston retail space leasing, Houston office space leasing, Houston industrial space leasing, Houston apartments, Dallas apartments, Ft. Worth apartments, Austin apartments, and San Antonio apartments.

Jury Awards Large Commission in Commercial Property Dispute

One of the largest jury verdicts awarding a brokerage commission in Arizona history was recently awarded from a commercial property dispute. A Scottsdale real estate agent was awarded a commission of $420,000 against a brokerage firm who had listed a large office building in north Scottsdale in this.

The facts are as follows:ws:

A brokerage firm named Cavan Commercial LLC (“Cavan Commercial”) had a 6% listing agreement on a large office building in north Scottsdale. Cavan Commercial and a real estate agent named Chris Wyatt entered into a 3% co-brokerage agreement if Chris Wyatt’s client Buyer A purchased the office building. Four days later Buyer A signed a purchase contract to purchase the office building for $14,000,000. The $100,000 earnest money was paid 1/3 ($33,000) each by Buyer A and his two investor partners who Chris Wyatt had introduced to the designated broker of Cavan Commercial at a meeting three months earlier in Cavan Commercial’s offices.

A few days after the Purchase Contract had been signed by Buyer A, Buyer A and his two investor partners formed a limited liability company (“LLC”), and assigned the purchase contract from Buyer A to this LLC. Buyer A and his two partners subsequently got in a dispute, and Buyer A agreed to transfer his membership interest in the LLC to his two investor partners.

For Section 1031 tax purposes, at the time of closing the LLC assigned the purchase contract to the two investor partners as individuals. The transaction closed. Immediately after the transaction closed, the two investor partners transferred the title to the office building back to the LLC.

Although the escrow commission instructions at closing prepared by the title company provided for a 3% commission to Chris Wyatt, this provision for Chris Wyatt’s 3% commission was crossed out by Cavan Commercial, who revised the escrow commission instructions to provide for the entire 6% commission ($840,000) to be paid to Cavan Commercial.

When Chris Wyatt complained and requested his 3% commission, the designated broker for Cavan Commercial said -Sue me.- Chris Wyatt did. Almost four years to the day after Chris Wyatt had introduced Buyer A and his two investor partners to the designated broker of Cavan Commercial, the commission dispute was tried before a jury in Maricopa County Superior Court. After a three-day jury trial, the jury deliberated less than one hour and awarded the entire 3% commission of $420,000 to Chris Wyatt. (Wyatt v. Cavan Commercial, LLC; CV2006-01270; Jury verdict November 14, 2008.)

Chris Wyatt was represented at the jury trial by John Skiba, with assistance from Chris Combs and litigation paralegal Lisa O’Brien. Don Martin, a former president of the Arizona Association of REALTORS, testified as an expert witness on behalf of Chris Wyatt. Cavan Commercial (renamed Logan Commercial LLC prior to the setting of the trial date) was represented by two lawyers from a national law firm.

Note: During the questioning of prospective jurors before the trial began, one of the prospective jurors was a real estate agent, and in response to questioning from Cavan Commercial’s lawyer, the real estate agent said that she did not know if she could be fair because she was tired of seeing real estate agents being “cheated” out of their commissions. Although she was honest, she was immediately excused as a juror!

Combs Law Group was organized as and continues to be a highly specialized, boutique real estate law firm. Christopher A. Combs is a State Bar of Arizona board certified real estate specialist and the founder of CLG. For more information please contact us at info(at)combslawgroup.com or by calling 602-957-9810. Article Source: Arizona Association of Realtors

Financing Commercial Property Investments

Commercial properties are probably the most expensive among real property types. Because commerce is a vital part of a society, commercial properties have a big potential of gaining huge profits. People believe that commerce is the biggest provider of income, so commercial properties have a very high demand.

It is a known fact that commercial properties are difficult to finance. One way of financing them is by getting secured loans. Instead of paying the full amount immediately, the money can be borrowed from a financial institution then paid back by installments for a certain period. This is a good financing scheme that can be advantageous to the investor, especially if the loan terms suit his/her financial capability.

Small business loans are beneficial to starting businesses. SBA loans are accessible to investors because the guarantee comes from the government. Just like the traditional property financing, SBA loans require collaterals as guarantee to the loan. However, interests are being put to monthly payments. SBA loans have lower interests compared with the other types of loans.

Another way of acquiring commercial real estate investments is through seller carry back system. This is a more convenient way of borrowing funds for the investment. The seller acts as the lender by allowing the buyer not to pay the property in full but on a regular basis. A seller carry back note will be given to the seller to delay the collection of payment. That way, paying for the property can be delayed.

Lease financing can also be an option to get commercial real estate investments. It is an alternative to the direct purchase of a property. In lease financing, the lessee/tenant can use the property within a particular period without paying for costly fees and taxes. In a normal lease financing scenario, it is the owner who takes responsibility of paying for property taxes and maintenance costs.

Those are just some of the ways by which commercial real estate investments can be obtained. It will be better if an expert’s advice is sought before venturing into this kind of investment so that wise financing schemes are carried out.

Commercial Property Investment

Since it is a lively, growing area, it should not be too difficult to obtain a Makati house that agrees with one’s needs. The real estate investment market for Manila properties has flats, Today’s owners of distressed properties are still having trouble working out loan modifications with the banks.Will this be corrected and allow the current owners to make a run at turning an unprofitable venture into a profitable one?

The standard real estate contract that a realtor wants you to sign mainly protects the realtor and then the seller. As a buyer you need to protect himself. I learned the secret to successful investing. Do not tell any one, but here it is. To be a successful real estate investor in commercial property,

There has been a lot of money made in real estate during the past 10 years when investors used their IRA to fund their deals. There also has been a bit of discussion about using your IRA to fund your real estate transactions.

The tight money market does affect the commercial investor in the same way. Sometime there are very good deals that come on the market because of the tight money. With all of the bad news coming out right now about the U.S. economy many people are tempted to hide their head in the sand and pretend it isn’t happening.

There are a number of occasions when you may need to rent an office in London. These can vary between project management locations, disaster recovery premises or market research offices.These premises are excellent for start up businesses, as they require no up front capital investment, basic office services can be included and you will have an available receptionist and switchboard operator straight away.

The relative strength of the Australian economy has seen local and international property investors taking over the commercial property market in 2010.Are you a new company in the Boston area, and if you are you need to plan ahead and decide what type of lease you will sign and what terms you are open to.

Credit is given to individuals and corporate entities to fund their business activities. Commercial loans are available for short or long term.You can finance your first investment property if you have the credit, but as a rule of thumb, I prefer to pay cash for all my real estate investments.

What makes commercial property different from regular property that homeowners purchase? Well, a regular property is intended for residence.There appear to be an increasing number of factors to budget for when starting a new business and a commercial office space may or may not be on your preliminary list of outgoings.

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Leasing commercial property

Leasing commercial property can be a complicated matter, or it can be an easy and understandable matter. If you consult with a good lawyer, such as a wills trusts lawyer, you’ll be able to get the facts and guidance you need to make the right decisions for your property lease. In this article, you’ll learn about leasing commercial property and some considerations you should be aware of. You’d think that it’d be pretty simple. You have one party who owns the property and a second person who wishes to lease it. The second party pays the first party a given amount of rent money, as established in the beginning of the transaction. The first party allows the second party to inhabit the property in exchange. Easy! However, things can get pretty involved when you’re thinking about commercial property, especially, as opposed to simple property you live on. A company who wants to lease a space needs to be sure that the space will serve their business adequately, or else everything might suffer. The contract and details of the agreement need to be clearly laid out and agreed upon, as do the consequences for when or if one of the parties fails to adhere to their end of the contract. When leasing commercial property, you’ll want to be informed before you sign the lease about things like terminating a lease, how long you must have the lease, and details about the utilities that are or are not included in the rent amount. There may also be ways to purchase the lease in terms of square feet of the property, so that you don’t have to buy everything. If your business will not benefit from having more space, it may be wise to thus reduce the amount you’re leasing, if that works for the landlord. You’ll also definitely want to make sure that you’ll be able to change or remodel parts of the space. Some people will not allow their tenants to alter the appearance of the space permanently, but if you really need to do that for your business and idea for the area, you should obviously look elsewhere for the property.

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Commercial Property Bridging Finance

Though it sounds like it is, ?commercial property bridging finance? does not actually describe a sort of bridging loan. Nicely, in a sense it does simply because it describes what it is being employed for, but fundamentally that does not matter since the process is regarding the exact same whatever the loan is for. You will find, really, two sorts and two sorts only of bridging loans, and they are open and closed. That’s not to say that it’s an open and closed case, although it is simply because there’s nothing left outstanding to explain about them, that is truly what they are called. Open bridging finance and closed bridging finance. Much more on that later though.

What this type, meaning the bridging loan for commercial property, is describing is very clear. It indicates that it’s a bridging loan which is being utilized to purchase commercial property. This is one of the principal uses that businesses put these short term loans to, and also the reasons are very similar to those that people use them in the residential market. Within the very first case, it might be that a short term loan is needed so that you can beat competitors to the buy of the property. We are used to thinking about competitors in the enterprise globe but they also exist in the housing market also of course. If two people, or two organisations, or more needless to say, want the exact same thing, a property in this case, then they are competing for it. That makes them competitors. Of course this all comes down towards the reality that resources are scarce, there is no want to compete for things which are not scarce. The air, for instance, is not something that anybody can sell to us since there’s nothing that needs to be done to it and because it is everywhere. Nevertheless, if we were somewhere with out any air, the moon for instance, then it would be perfectly reasonable to sell air simply because perform has to be done so that you can get it to people.

Anyway, to get back to commercial properties, if it really is an excellent property in a prime location then there are bound to be lots of organisations that would like to get it. A proportion of what decides what organisation really does will probably be to complete with how much they are willing to pay for it. If you’ll find a selection of organizations that are willing and in a position to pay whatever is necessary though, then one way of deciding who is going to win will come down to a race. Who has the funds available much more rapidly? Those selling the property may properly have a time constraint themselves, and so to sell the property swiftly may nicely be worth something to them. In other words, the faster an organisation is able to make the buy, the cheaper they may be in a position to get it for. With bridging loans, the maximum amount of time they ought to take to go via needs to be no more than two weeks. When done quickly, it can even be a couple of days. This allows a organization to get the property quick and inexpensive, and once they have it they can go about setting up a long term mortgage.

In that circumstance, an open bridging loan would be required. Nevertheless, if they have already set up the signifies by which they’ll pay for the short term loan, for instance though selling an additional property, a closed bridging loan ought to become available. These offer the possibility of lower interest rates (than the open loan, not a long term loan) so would make it that a lot cheaper. In cases when speed is an issue though that usually is not achievable.