Real Estate Information Center

It seems everyone is mad at American International Group or AIG, and the media has made things worse with the executive bonus fiasco. AIG is now working to sell some of its assets to pay off the money that the government or taxpayer’s loaned them. So, they are busy taking offers, unfortunately the low-ball bids coming in are quite troubling, which we should expect during a global recession like we are currently experiencing right now.

Recently, AIG sold a prize piece of commercial real estate in Japan for song. The selling price was $1.2 Billion, but was probably worth more than 5 Billion at the top of the next commercial real estate cycle and surely was before the global economic crisis. Worse, the sale was then taxed 40% by the Japanese Government. Thus, they netted in the $700 million range. Plus they lost face in Japan with the AIG Brand Name.

Continue reading ‘AIG Sold Downtown Tokyo Building For a Song at the Bottom of Commercial RE Market’ »

If you are considering leaping into the world of commercial real estate investment, be prepared to make some difficult decisions and spend time conducting lengthy research. Commercial real estate can be a tough business to get started in; however, it can reap great rewards for those who are savvy (or sometimes just lucky). If you are ready to venture into this new investment world, here are some things to keep in mind.

1. Commercial real estate will not make you a quick dollar.

Most properties require a long-term investment before you will begin to see any profit at all. Many people are fooled by residential real estate television programs where sellers renovate a home in a few months and sell it for a massive profit. Commercial real estate works in a completely different way. If you’ve seen past success in the residential domain, proceed with caution before plunging into commercial real estate.

Continue reading ‘Commercial Real Estate – Tips For Investment’ »

At any point of time, business owners may need commercial properties. With several lenders providing commercial property financing option, it is not very difficult to get commercial property loans. Using these loans, you can buy the property you like or wish to buy. However, you must be aware of certain issues when you buy such loans. Without properly investigating clauses in the mortgage loan statement, you should not make a decision. Generally, lenders are ready to offer such loans when you have a successful business.

When you ask for commercial property financing, you may be requested to submit a business plan. It is okay to provide an overall overview of your business to your lenders; however, it is not safe to specify intricate details of your business in the plan. Some lenders may not offer loan if you do not give them an exhaustive business plan. You should choose lenders who are satisfied with the documents you can give. There are lenders who demand tax returns of several years. These people will closely monitor the way you use the tax returns. During periods of low net income, you might have used the tax returns. Even after loan period, the lenders may monitor your tax returns, which is undesirable. Choose those lenders who grant you financing with stated income.

Continue reading ‘Understanding Commercial Property Financing Lenders’ »

The State of California is in huge debt, mostly from extremely poor fiscal management. During the last many years California has the opportunity to sock away money from incredible growth, retail sales, and very high employment. Of course, just like the Federal Government they squandered it all, setting up more social programs and growing the size of government. When it came time to cut costs, California refused to, and borrowed more money to keep up the impossible task to support the larger government, and indeed politics ensued.

The citizens of California have had enough now, and are voting for NO Tax increase and told the government officials that unless they balanced the budget there would be no salary increases for them either. Californians have spoken. Unfortunately, in the infinite wisdom of the state government they now intend to sell expensive real estate assets to make up some of the different, right now it is over 15 billion in debt and climbing.

Continue reading ‘State of California Selling Ronald Reagan Building in Downtown Los Angeles’ »

To expand your business and to take your business to a next level, you can consider buying a commercial property. Loans for commercial property are now offered by several lenders and hence, you can easily buy a building for business purposes. The need for a proprietor to occupy a space that you own may arise for both budding as well as established business owners. For any type of business, owning your business site is always beneficial and with the loans, it is easier for businessmen to acquire such properties.

If you currently lease or rent a building to operate your business, you can consider buying a space for your business to operate. Any facility that you use for commercial purposes or generate income out of it can be called a commercial property. Hence, with loans for commercial assets, you can buy an office building for your business. The rent you spend for your current building can be used to pay for the loan and at the end; your business will have its own office. With rental spaces, there is no guarantee that you can operate the business in the same space. So, to become an established entrepreneur, you need your own office.

Continue reading ‘Why Should You Use Purchase Money Loans For Commercial Property?’ »

In a down market with potentially high vacancies, there are many opportunities for landlords to incentivize existing clients to renew a lease and to ensure that the market is aware of their product. On the flip side, tenants will be looking for “deals” and incentives and real estate brokers will need to work hard to bridge the gap, getting creative to keep all parties happy.

In a commercial real estate market such as Boston, there are a few things landlords should consider to help garner sales and communicate value when vacancy rates are high or growing:

Continue reading ‘Landlords Can Excel in a Down Market’ »

In the recent past, nearly 70% of all commercial appraisals were ordered by the banks that were going to fund the project. Now that banks are absent from the performing funding space, many developers are left with the responsibility of ordering an appraisal. Unfortunately, many of the appraisals they order and submit are simply unacceptable to 90% of our funding sources.

As a rule of thumb, if you don’t have an appraisal, don’t order one. Let the funder that has an interest in your project suggest one that you use. Otherwise, if you want to order your own appraisal, there are few bits of advice to follow:

1) Ask your mortgage broker who they use and have had success with. Be prepared to spend more than what the local guy quoted you. Your mortgage broker is always going to choose an appraiser he or she has had success with and gotten deals funded with, which is your primary objective.

Continue reading ‘The Facts About Commercial Real Estate Appraisals and How to Save Money’ »

I already feel your skepticism. Buy commercial real estate? This year? Doesn’t this guy know that vacancy rates are skyrocketing, unemployment is on the rise and market sentiment is that commercial real estate will be “the next shoe to drop”?

Actually, I do, and I want to be very precise with my strong buy recommendation. This article is specifically for business owners who are currently leasing space and who also intend to be in business for at least the next 10 years. If that’s you, the remainder of 2009 may present the best buying opportunity you will see in your lifetime. Consider the following:

1) You Need a Place to Operate Your Business

This may seem obvious, but unless you’ve set up shop in your home, every business needs space to operate. You’ve already decided to be in business, now you must choose to either rent or own your space.

Continue reading ‘Commercial Real Estate – 7 Compelling Reasons Business Owners Should Buy Commercial Property in 2009’ »

Finding the perfect location for your office

When first setting up a business, or widening office space for further business development finding the most ideal location can be somewhat complex. And if your new into the business route of things may have your head spinning in circles, because obviously you can’t just pick the easiest cheapest middle of no-where locations which are usually more affordable.

Here I have enclosed some steps in finding the best cities and locations in the US for office space.

First step – Understanding what my business needs

Before you can just jump up and go where everyone else is going you need to stop and think clearly. Certain businesses are better off in certain locations which other businesses are not. You need to stop and think, what is your business? What kind of a community or area is targeted by my business.

Continue reading ‘The Best Locations For Office Space’ »

A home loan or mortgage is a fact of life for most people buying a home for the first time. It is important to ensure that when we purchase a home and sign on for a 25 year mortgage that we can comfortably pay the principle and interest while still servicing other debts and living an acceptable lifestyle. While it is definitely a less expensive proposition to purchase real estate on PEI, nonetheless most of the same elements to home financing apply as would any where else.

Before looking at homes and becoming influenced by our hopes and desires it is important to sit down with our partner and doing a budget. Include all your normal bills such as groceries, car expenses, credit card debt repayment, and any other bills that are regular. Make sure you include a margin of comfort for expenses that come around irregularly and for those “rainy day” issues. You should then deduct these expenses from your after-tax income and that is the money that is available for mortgage, property taxes, insurance etc on your new property purchase. Moneys that are currently being paid as rent on accommodations may also be counted in this amount. Consider the resulting amount carefully as the amount you borrow will result in a payment for the next 25+ years, that’s 300 payments. If you can not pay your lending institution will foreclose on the property and your credit history will suffer.

Continue reading ‘Building Real Estate Equity on PEI’ »