In order to understand the closing of a deal when buying commercial property, let’s review the steps of the sales transaction: 1. Buyer submits an offer to buy the property either through a Letter of Intent or a formal Purchase Agreement, any necessary negotiations are completed, and the Seller accepts the offer and executes the
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The commercial real estate appraisal can be a very interesting process. You often feel that you already know what the value of the property is, but now you’re waiting for someone else to see if they validate your opinion. At the same time, you’re relying on an appraiser who may not be an expert at
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The definition of a triple net lease is a lease under which the tenant is responsible for paying the taxes, insurance and maintenance, in addition to the lease payments on a property. Triple net leased properties are often defined as single tenant, stand-alone retail properties such as banks, restaurants (fast food and casual dining), drugstores
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As an owner of commercial property, the property manager is an agent acting as a trustee on your behalf. The property manager’s primary objective is to oversee the maintenance of rental property, rent to suitable tenants, collect rent and account to the owner. Management Qualifications Qualifications a property manager should have: • Prior experience handling
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Getting your commercial property leased is the most important thing that you can do if you own commercial real estate. Here are the things you need to do to get your property leased: 1. Make sure the space is ready to show and that it shows effectively. Clean up the space itself as well as
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As the owner of investment property, you have the choice of hiring a professional property management company or managing the property yourself. As an investor, you can do retail property management yourself; however, your property’s success will never go beyond your own personal development. So, educate yourself on how to successfully manage a property and
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A conventional loan is a loan obtained from a conventional lender. Conventional lenders include commercial banks, savings and loan banks, mortgage brokers, mortgage bankers, insurance companies and pension funds. Commercial Banks – They tend to lend locally and are usually very conservative in their lending practices. Very often they ask for higher down payments, give
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There are a number of factors that comprise commercial rental rates and several customary ways to quote rents, which can make it difficult to understand what people mean when they are discussing leasing rates. Normally, the rate quoted reflects the amount of rent you pay per square foot. Generally square foot prices are quoted on
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Creative financing is any type of financing other than getting a conventional loan with a standard down payment. Creative financing techniques and the benefits of each include the following: Master Lease Technique – You master lease the property by paying the owner a set amount each month, and you manage the property as if you
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Financing sources for commercial real estate include mortgage banking firms, savings and loan institutions, regional banks, insurance companies, and private investors. Commercial real estate financing can take on very different terms, and the way deals are structured is based on a number of factors, including: • Anticipated use of the property • Anticipated returns from
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