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Now Is The Best Time to Purchase Commercial Real Estate In Decades

Now is one of the best times to purchase commercial real estate in the history of the United States. You may be a little surprised or even skeptical to hear this, after all the economy and financing is still problematic. We are going to explain why despite these challenges that now, really is a once in a life time opportunity to purchase commercial real estate.

Financing Purchase Transactions

First of all, financing purchase transactions for owner occupant (meaning for your business) type loan requests is viable, and much more so than other types of commercial mortgages. The government has stepped up, to back these programs, which have allowed these loans to remain viable. Terms on these loan programs are strong with 90% financing, and low, long term fixed rates.

Secondly, the secondary market, where commercial mortgages are sold, for these government backed loan programs, is very healthy and the demand for these loans is strong. This enables banks to fund your loan than turn around and sell it for a good profit – and get their capital back. Than they can go out and finance another loan; because they have enough liquidity on hand to do so.

Please keep in mind that other commercial mortgage programs, such a conventional, investor, etc remain difficult. Refinance transaction also remain problematic because 1. Property values have dropped substantially and 2. Loan to value requirement have also dropped substantially. These two components have created an almost perfect storm to make refinances difficult to finance.

Owner occupant purchase transactions are the main exception to the credit crisis. With a purchase, you are not trying to justify the value – your are establishing the value with the agreed upon purchase price. So, if your business is cash flow positive, and you have 10% in cash to invest, you should be able to get your commercial real estate purchase financed.

Property Values at Historic Lows

Property values have dropped 30 -40% in the last 3 years. Historically, after a down cycle, such as after the Savings and Loans Crisis, property values came back up rapidly, after the banking environment stabilized. We believe that the same dynamic will take place here. After the Commercial Mortgage Backed Securities (CMBS) market, for conventional investor deals is fixed, money via Wall Street will rush back into the market allowing for eased underwriting standards and more aggressive funding for all loan requests. In turn, property values will increase.

Keep in mind that in 2010 we have already seen a doubling of transactions (issuances) on the CMBS market compared to 2009. Sure you may say that the aggregate amount in 2010 is far less than what occurred in 2006 or 2007, but it IS coming back. And, never bet against the creativity and greed of Wall Street. Most importantly the investor demand is there – the challenge has been finding loan request that fit their current underwriting standards.

Many business owners will be kicking themselves in a few years that they didn’t take advantage of one of the best opportunities to purchase commercial real estate since the Great Depression or at a minimum since the S&L Crisis.

Article Source: Jeff S Rauth

Donna Sanford

Phone: 888 381 8654
Email: donna@yoursolution4re.com

Real Estate Investor | Short Sale Professional
Real Estate Transaction Negotiator | Real Estate Investing Services

Your Solution 4 Real Estate, Inc.
Bauer Hill & Associates, LLC
Area Short Sale Pros, LLC
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Area Short Sale Pros, LLC negotiates short sales on behalf of homeowners, Realtors and buyers/investors and we act as a neutral third party in the transaction. We have partnered with the best short sale negotiators who have over 50 years of combined industry experience and focus specifically on Short Sales. What makes us unique is our extensive contacts with lenders who know we are working for both buyer and seller as a third party negotiator and this gives us the “edge” over others. We service customers in all 50 states and work with all lenders and mortgage servicers. We are professionals with a proven track record for achieving positive outcomes for our clients. Call us now at 888-381-8654.

Categories: Blog, Business Connections, Commerical Real Estate, Investing in Real Estate, Real Estate Investing, Real Estate Negotiating

Tags: Business Connections, Commercial Real Estate, housing market, Real Estate Investing, Real Estate Investor, Real Estate Transaction Negotiator

1 NOV 0

Today’s Real Estate Investors Will Be Tomorrow’s Millionaires

With such a negative economic outlook, most people are reticent to invest in real estate. However, a historical analysis will show that not only do property prices recover, but some of the most successful real estate investors have always bought during economic slumps. In fact, recessions make the perfect opportunities for investors to succeed and become the millionaires of tomorrow.

Currently, a quick market overview reveals an excess real property inventory, mostly due to foreclosures, and a shortage of liquidity. The result is lower property values and an absence of real estate investors due to the low demand. Interest rates are also at a record low as both the Fed and banks are trying to jump start the economy, whose recovery has traditionally been fueled by the real estate and automotive markets.

This makes the market ripe for a knowledgeable investor. It is well known that markets are driven by emotion, but a person who relies on the facts and a long term outlook will always succeed, no matter the market conditions. For example, pure facts that will affect an investment decision include population growth, inflation and volatility.

The global population is estimated to grow by one billion people in the next 20 years, while the U.S. population is expected to increase by 40 million. As a result, real estate property prices will rise due to an increased demand.

The main goal of property investing is to secure an income for retirement, which needs to be protected from inflation. Real estate is the only asset class that has outperformed the Consumer Price Index (CPI) every decade since the 1930′s, both in terms of value as well as rent levels.

People who hold their investments in stocks have suffered major shocks in the last few years as they have watched their nest egg shrink by an average 50 percent. In contrast, property has dropped an average 15 percent and in certain areas it is still appreciating. As long as speculative markets are avoided, real estate investments will maintain their value over the long term.

Currently, investing in real estate is lucrative due to cash flow as well as appreciation. With few people qualifying for mortgages and with so many foreclosures, the market is full of tenants. Consequently, using sensible leverage to invest in a property will guarantee you positive cash flow and a sizeable return on your investment in the long run.

Reference to:EzineArticles by Steve Maletos

Categories: Blog, Business Connections, Investing in Real Estate, Real Estate Investing, Real Estate Negotiating, Real Estate Sales, Residential Real Estate, Short Sale Pro

Tags: Business Connections, Commercial Real Estate, housing market, Real Estate Investing, Real Estate Investor, Real Estate Networking, Residential Real Estate, Short Sale Pro, short sales

30 OCT 1

Property Investment – The Way to Be Rich

Property is the only thing that the price is the really affect by down turn or recession. Even if there are financial crisis in a country, the rental price won’t go down to much because there will be less people shopping for real estate. When the economy is moving up and on the peak, the rental will also go up by the trend and the property price itself will appreciate.

There are several ways that we can earn from property investment. The way are listed below:

a) Buy property at a bargain price; this can be done during recession period, other ways is to get a group of people to go into the area and buy the real estate unit around there. By doing this way, developer will provide a bulk buy discount to the buyer. Other way is to be an early bird and buy early and get a bumiputera discount.

b) Buy property from little or without any cash on property. By doing this, we can use the other money to do other thing or even get more chances to buy other property unit.

c) Improve and make a modification on the property unit. By enhancing our unit, it make it look more beautiful and unique than the other unit around the area. it will make the people to have more choice in choosing property to buy and happy to get it even if the price is more higher. People usually will not bother this because when to buy the house,they can straight go in and stay.

d) Boost your unit by having furniture and all facilities in it. this can make the rental higher and the selling price higher. for rental unit, if there is any complain receive, owner should quickly figure out everything that happen and fix everything.

e) Property price will keep go up. when we had paid for a certain time, we should go and talk to the bank about refinancing. this is because by doing this, we can take up extra money and use it to invest in more potential property.

Article Source: Waiming Wee

Categories: Blog, Business Connections, Commerical Real Estate, Investing in Real Estate, Real Estate Investing, Real Estate Sales, Residential Real Estate, Short Sale Pro

Tags: housing market, Real Estate Investing, Real Estate Investor, Real Estate Sales, Short Sale Pro

26 OCT 5

Foreclosure Trash Outs: There’s A Reason We Need Property Preservation

Property preservation is the biggest foreclosure business opportunity for a reason. With millions of home foreclosures happening on a yearly basis since the start of the housing crisis, there is no shortage of work available for anyone specializing in doing foreclosure trash outs.

In addition, some homeowners, while exiting their foreclosure property, are only too happy to add to a property preservation company’s “to-do” list.

It’s no secret that many people, when they face foreclosure, do some damage to their homes before they are forced to leave. Maybe they’ll kick a hole in the wall, steal a built-in appliance, or leave a lot of trash lying around. In most instances, the damage is to minor for anyone to pursue legal action – it’s up to a foreclosure contractor to handle it.

But one Southern California couple took things to a whole new level that landed them in hot water with the law. Which is ironic, as the husband was, in fact, a police officer.

San Diego police offer Robert Acosta, and his wife, Evette Acosta, were charged in late September with both destroying and stealing items that were attached to the mortgaged property, with intention to injure or defraud. They could spend up to 4 years in prison.

Court records show that the San Diego Metropolitan Credit Union gave the Acostas until July 1 to leave their home, which was in the foreclosure process. The Acostas actually left a few weeks before that, and not quietly; a witness said in a statement that, on June 12, he saw the couple removing air conditioners and other appliances from the home – including an entire garage door!

Not only that, they went out of their way to do some serious damage to what they left behind. The felony charges against the Acostas state that stones were smashed off the facade, the carpet was ruined with dye, wiring was ripped out and trees were thrown into the swimming pool.

What prompted this level of destruction? Well, in emails provided by the credit union, the police officer’s wife was demanding $10,000 in return for the couple leaving the home without argument and in good condition. The credit union refused – and the Acostas allegedly went on their rampage in retaliation.

But they still don’t win the foreclosed home demolition derby. That honor belongs to Terry Hoskins of Moscow, Ohio – who actually bulldozed his home back in February and leveled it to rubble before the banks could get their hands on it.

Damaged foreclosed homes are providing a lot of work – and income – to those ready to take advantage of this growing market.

Article Source: Frank Patrick

Categories: Blog, Business Connections, Commerical Real Estate, Foreclosure, Investing in Real Estate, Real Estate Investing, Short Sale Pro

Tags: Buying Forclosures, foreclosed homes, housing market, Real Estate Investing, Real Estate Investor, Real Estate Networking, Real Estate Transaction Negotiator, Residential Real Estate, Short Sale Pro

24 OCT 0

Success in Picking the Right Foreclosure Properties Sale

With multitudes of options for foreclosure properties sale the market indeed favors buyers. This is an opportune time to consider investing in one either as your primary residence or a property you can flip for profit. What can help you in this endeavor is research. You have to make time to study the different manners of acquiring distressed properties before settling on one. Your choices are as follows:

Short Sales

Short sales take place even before the actual transaction or during the pre-foreclosure period. At this time the home buyers can save their credit score by offering the property to a prospective buyer at a value that is lower than the outstanding debt they owe to their mortgage lender. This type of foreclosure properties sale requires the blessing of the mortgage lender before it can push through.

Home Auctions

Both the government and private financial institutions sell their foreclosed properties through an auction. Home auctions may be public or silent. Public auctions are advertised on newspapers and posted on county courthouses. They are held either at the steps of the court or the place where the property is located. Participants are asked to register by paying what is considered earnest money and the winning bidder is required to settle the entire amount of the property in as short as ten days.

Foreclosure Listings

Perhaps the most popular manner of finding and buying foreclosure properties sale is through a foreclosures list offered by real estate brokers or agents and available online. Most homes offered in this manner are bank owned or real estate owned homes. They are sold through bank-appointed brokers or agents. Transactions of this nature are concluded in a fast and secure manner leaving buyers highly satisfied and happy with their purchase.

A few important things to keep in mind when purchasing distressed properties include the need to conduct a home inspection to assess the cost of renovations and repairs. Buyers should also do a title search to see if there are encumbrances attached to the title. A comparative analysis of similar homes in the neighborhood is also needed to be able to determine whether the buyer is indeed getting a good discount on the property.

Article Source: Joseph B Smith

Categories: Blog, Business Connections, Commerical Real Estate, Foreclosure, Investing in Real Estate, Real Estate Negotiating, Real Estate Sales, Residential Real Estate, Short Sale Pro

Tags: Business Connections, Buying Forclosures, foreclosed homes, Foreclosure, Real Estate Investor, residential foreclosure, Residential Real Estate

22 OCT 0

6 Essential Keys to Advertising Commercial Property

Advertising a property for sale or for lease should be a well constructed process that matches the target market. When you get the balance and message right you attract enquiry which can be captured in a database of information. That is why many real estate agents will build their business on the back of specific advertising campaigns. The bigger your database, the more attractive you are to the clients that need your services.

What should be your objectives in marketing the property? First and foremost it should be to achieve a sale or lease in a timely way at a good price or rent. There are however other considerations that should not be forgotten. They are:

You should build a solid and long term profile for the property and the agency. That is why your advertising campaign should not just be a once off or random event. Well constructed adverts in a staged promotional campaign are essential. Change the size and type of the adverts as well as the publications used, so that you are reaching all the channels of interest that captures the target market.
Choose the key message about the property and then use it to reinforce interest and attitudes towards the property. The message should be consistent and relative to the market and buyers or tenants as the case may be. If the property has a positive history or identity that is well known in the community, then build on it.
It is sometimes necessary to use your advert to change buyer or tenant perceptions of your property. If the property has been advertised before with other agents and without any success you will need to revisit the advert message and change it to something fresh that will revitalise the interest. The commercial real estate market has a small pool of buyers, investors, and tenants. They all have good memories when it comes to property promotion and history.
To help the sale or rental of the property you can promote new uses for the building that have not been identified before in other adverts or by other agents. The more creative you can be in these fresh ideas, the better. It should be said that legal use and zoning restrictions should be respected in any claims you make about the property now and for the future.
Build on benefit and tell a story about the property through editorial. The media editors love a story that can help them sell papers. If this writing is a challenge for you then find a wordsmith that can compile editorial for you.
Where possible make the property promotion very visual using signboards, internet, paper advertisements, professional photographs, editorial, flyers, direct mail, and email database. When carefully staged these methods of approach will lever out the property enquiry that you need.
The advertising objectives must be a function of the marketing objectives which in turn, is derived from evaluation of your client’s problems, targets, and opportunities. It is just a promotional equation and you are the promoter.

Article Source: John Highman

Categories: Blog, Business Connections, Commerical Real Estate, Investing in Real Estate, Real Estate Investing, Real Estate Sales

Tags: Business Connections, Commercial Real Estate, Real Estate Investing, Real Estate Investor, Real Estate Transaction Negotiator, short sales

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