The slogan that the residents of Dallas live and work by is "live large, think big." This same slogan can be applied to how investors are thinking about the prime Dallas commercial real estate. The city of Dallas is built upon blazed pioneer trails and the biggest of dreams. The residents of Dallas have a can-do attitude, where any dream is possible. It is because of this undying attitude and intense drive forward that Dallas has become a prosperous and thriving urban center. The city of Dallas is in a full real estate upswing, which is great news for investors.
Predictions for a Further Boom in Dallas Commercial Real Estate
Experts in the industry predict that the economy of Dallas will continue to grow and expand for the next two decades. This figure may even increase as the city continues to develop and to draw new businesses to the area. The Dallas office space market has grown tremendously in the past few years. This is a result of the expansion of the city's high-tech and manufacturing sectors. Some of the strong companies that reside in Dallas include EDS, 7 Eleven, Texas Instruments, Blockbuster, and Southwest Airlines.
Dallas is also considered to be the cultural and business center for the twelve county Dallas/Fort Worth/Arlington areas. The values for prime Dallas office space and lease property are affordably priced in the high two-hundred thousand ranges. Now, high-end office tower real estate property is well into the millions. However, this is to be expected in any successful city across the country.
Dallas commercial real estate is just at the beginning of its boom. Real estate, in the city of Dallas, has not experienced a downswing like most of the nation. In fact, Dallas real estate is selling at double the national rate. With the continued growth and dynamic economy, another wise investment for an investor to consider purchasing is Dallas industrial space. There are several new planned developments of industrial space in the city of Dallas that will continue to stimulate growth.
Why an Investor Should Purchase Dallas Commercial Real Estate
There are several reasons why an investor should consider purchasing Dallas commercial real estate. One of the biggest reasons is the fact that Dallas is the third largest city in the state of Texas and the ninth largest state in the country. The city of Dallas is considered to be an important hub, world-wide in the fields of computer technology, telecommunications, transportation, and banking. Dallas is a global center for international trade and foreign investment.
The rapidly developing city of Dallas has quickly become one of the most popular cities in the United States. More and more businesses and residents are relocating to the Dallas Texas area to call it headquarters and home. This is one of the reasons that the Dallas commercial real estate market is experiencing such an increase in demand. Each week in Dallas, new businesses, including shopping centers, restaurants, and entertainment options, are announcing their grand openings with great fanfare and success.
If you are looking for an investment with a high return, you should consider purchasing Dallas commercial real estate. The city of Dallas is profitably hot for office space, retail space, and industrial space. This is the best time to invest in this expanding city of prosperity.
Visit ICON Commercial Lending to get pre-approved for your commercial funding needs.
About the Author: Richard Soto
Learn more about the current Dallas Commercial Real Estate, Dallas Office Space, and Dallas Industrial Space markets!
Monday, November 26, 2007
Oakland Commercial Real Estate Investments
Investing in Oakland commercial real estate is something that you may want to consider if you are looking to expand your investment portfolio. Even if you do not live in the area, you can still consider buying real estate there. Believe it or not, more and more investors are buying out of state commercial properties as a way of diversifying their investments.
Before buying Oakland commercial real estate, there is one thing that you must absolutely do. You need to find a qualified agent who knows the real estate market in the area like the back of their hand. By doing this, you will have a professional on your side who has plenty of knowledge of finding the best deals. Can you buy Oakland commercial real estate without the help of an agent? Sure you can. But if you are not 100 percent familiar with the market, you could end up making a mistake that you will regret in the end.
After you purchase an Oakland commercial real estate property, you can then rent it out to businesses that need space. In turn, they will pay you rent which can then pay the mortgage; if you have one. If not, all the money that you receive from tenants will go straight into your pocket. The only thing that you have to worry about at that point is the overall upkeep of the property.
Oakland commercial real estate investments are quite popular. With that being said, there are always good properties available for the taking if you know what you are doing. This is why working with a real estate agent is so important. They can keep their eye out for the properties that fit your wants and budget, and then get in touch with you right away. As long as you are ready to act fast, you should be able to find an Oakland commercial real estate investment property in no time.
ICON Commercial Lending
Author:
Lake Merritt Commercial Real Estate
Before buying Oakland commercial real estate, there is one thing that you must absolutely do. You need to find a qualified agent who knows the real estate market in the area like the back of their hand. By doing this, you will have a professional on your side who has plenty of knowledge of finding the best deals. Can you buy Oakland commercial real estate without the help of an agent? Sure you can. But if you are not 100 percent familiar with the market, you could end up making a mistake that you will regret in the end.
After you purchase an Oakland commercial real estate property, you can then rent it out to businesses that need space. In turn, they will pay you rent which can then pay the mortgage; if you have one. If not, all the money that you receive from tenants will go straight into your pocket. The only thing that you have to worry about at that point is the overall upkeep of the property.
Oakland commercial real estate investments are quite popular. With that being said, there are always good properties available for the taking if you know what you are doing. This is why working with a real estate agent is so important. They can keep their eye out for the properties that fit your wants and budget, and then get in touch with you right away. As long as you are ready to act fast, you should be able to find an Oakland commercial real estate investment property in no time.
ICON Commercial Lending
Author:
Lake Merritt Commercial Real Estate
Sunday, November 25, 2007
Stalled Condo Projects Tarnish Trump's Name - Market Trends
By Alex Frangos
From The Wall Street Journal Online
Even the Trump name isn't bigger than the calamitous condo market.
Donald Trump's reputation as a real-estate developer could take a hit as some condominium projects emblazoned with his famous name run into trouble.
In recent years, Mr. Trump has lent his name, and in some cases his own money, to at least 20 projects in the U.S. and another half dozen abroad, including buildings in Dubai of the United Arab Emirates and Seoul, South Korea. While in some cities such projects are doing fine, others face slow sales, project delays and cancellations -- and irate buyers.
In Tampa, Fla., buyers who placed deposits of $200,000 to $1.2 million on units in the 52-story Trump Tower Tampa are fuming. Nearly three years after the $260 million skyscraper was started, construction has stopped.
Meantime, a Fort Lauderdale, Fla., tower with Mr. Trump's name on it was put on hold indefinitely last month, and a West Palm Beach project could be put on the shelf shortly. Construction on a Trump Tower in Toronto is just getting under way after years of delays and a reduction in height. And at Trump Tower Chicago, a hotel and condo project set to be the second tallest building in the city after the Sears Tower, 30% of the 825 units remain unsold as the condo market there slows.
Mr. Trump is known for focusing on the positive. "All of my stuff has been a great success," he said in an interview Wednesday. "Nobody has even come close to the track record that I have." He points to many other projects he is involved in that he considers outsized successes, including ones in Las Vegas, Hollywood, Fla., Miami, New York, Hawaii and the Dominican Republic. "Somebody says 'how's the market?' I say not good except for Trump," he says.
But the recent problems at developments bearing his name are evidence that no one is immune from the downdraft in the housing market. New housing projects throughout the country are suffering from weak demand and falling prices as banks tighten credit standards and a glut of empty units swells.
This time around, Mr. Trump personally is in little danger financially. During the last real-estate collapse in the early 1990s, he was pushed to the brink of bankruptcy because he was personally on the hook for hundreds of millions of dollars worth of debt. He later restructured his debt with the banks and worked his way back to doing real-estate deals.
In some recent condo projects, Mr. Trump has sold his name to developers for a fee and, in certain cases, he gets a portion of the sales in the building as well. In some he has contributed a minority slice of equity. This means, even if the projects fail, his financial exposure is limited, although his reputation may suffer. In other projects, such as in Chicago and Las Vegas, he says he is the lead investor.
At Trump Tower Tampa, which began its marketing in 2005, sales initially soared. The local development company, SimDag LLC, sold all 192 units and then, as the market skyrocketed, returned buyers' deposits, raised the units' prices and sold out again.
Then in August 2006, a city inspector examining a key part of the foundation known as the caissons discovered the plot of land wasn't solid enough to support design. Construction never resumed.
In May, Mr. Trump sued SimDag in federal court in Tampa, charging the developer with failing to pay him much of his licensing fee and failing to execute on construction and sales milestones promised in the contract. Court documents filed by Mr. Trump's lawyers say his involvement was limited to licensing his name to the developer for $4 million plus a cut of the sales.
But many of the buyers feel that they were led to believe that he had a much larger stake. "The only reason we bought into this was because of Trump," says Don Wallace, a local restaurant owner whose wife, Elaine Lucadano, has interests in two units. "He's bashing Rosie O'Donnell, and we're twisting in the wind," referring to Mr. Trump's tabloid spat with the talk-show host. Jugal and Maju Teneja, who paid $528,000 to reserve a unit in October, filed a suit against Mr. Trump and SimDag in Hillsborough County Circuit Court, claiming they deceived buyers into thinking Mr. Trump was closely involved in the development of the tower.
Mr. Trump says his role as a licensor was disclosed in offering documents given to buyers, a point Mr. Wallace disputes. Mr. Trump also noted that his ability to deal with construction problems has been limited. "When I license my name to somebody, I don't have the same power over a job," he says. "I could have pulled the Tampa job off easily. Other people can't pull it off easily." Now, Mr. Trump says, the Tampa project has become a victim of the deteriorating financing and sales climate. "If there was a job today that was going to start...I would most likely say let's wait a little while," he says.
Overall, though, he says his projects are successful, even in markets that are suffering problems, noting his name indeed sells units. "How many times is Trump supposed to be selling out a building before they move forward?," Mr. Trump asks. As for his brand image, he says: "Tampa doesn't hurt me."
SimDag pins the delays on construction problems. "This wasn't a story about a bad market. It's a story about bad soil," says David Hooks, a spokesman for SimDag. The developer says it is now being held up by a delay in obtaining construction financing and that the company is close to getting financing from a hedge fund it declined to identify.
The Trump name has driven the success of numerous condo projects. Mr. Trump says six months ago he received nonrefundable deposits for every unit on a project in Honolulu in one day. His says his interest in the project goes beyond licensing his name, but declined to give details. A condo-hotel tower in New York's Soho that he is affiliated with has 4,500 inquiries of interest for 450 slots, though they aren't for sale yet, he says.
But not all of Mr. Trump's ventures have been runaway successes. His casino company was forced to seek bankruptcy-court protection in 2004. It emerged in 2005 as Trump Entertainment Resorts Inc., but has since struggled.
In the condo market, some of Mr. Trump's projects may be suffering in part from brand dilution. One person familiar with the Fort Lauderdale project Trump Las Olas said it was shelved partly because Mr. Trump has lent his name to two other projects nearby.
Mr. Trump denies there was any brand dilution, though he says Trump Las Olas didn't make it because it "can't compete with the Graves site," a hotel and tower project that also bears his name in Fort Lauderdale, designed by architect Michael Graves. "Frankly, it's a better site...It's a more impressive building," Mr. Trump says.
Mr. Trump's delayed condo-hotel project in Toronto fell behind a competing Ritz-Carlton, and the building now going up has 13 stories fewer than originally planned. However, Mr. Trump says the project is in good shape.
In Atlanta, two condo towers with the Trump name are about to be launched at a time when 5.8% of the homes there are for sale, the second-highest inventory of unsold homes in the country, according to Zelman & Associates, a housing-research firm.
Mr. Trump says Atlanta is "a beautiful job going well." Asked about Atlanta's poor housing market, Mr. Trump said, "You know I can't be everywhere. It's like somebody says, 'why didn't you build here or there?' Who's done better deals than me?"
From The Wall Street Journal Online
Even the Trump name isn't bigger than the calamitous condo market.
Donald Trump's reputation as a real-estate developer could take a hit as some condominium projects emblazoned with his famous name run into trouble.
In recent years, Mr. Trump has lent his name, and in some cases his own money, to at least 20 projects in the U.S. and another half dozen abroad, including buildings in Dubai of the United Arab Emirates and Seoul, South Korea. While in some cities such projects are doing fine, others face slow sales, project delays and cancellations -- and irate buyers.
In Tampa, Fla., buyers who placed deposits of $200,000 to $1.2 million on units in the 52-story Trump Tower Tampa are fuming. Nearly three years after the $260 million skyscraper was started, construction has stopped.
Meantime, a Fort Lauderdale, Fla., tower with Mr. Trump's name on it was put on hold indefinitely last month, and a West Palm Beach project could be put on the shelf shortly. Construction on a Trump Tower in Toronto is just getting under way after years of delays and a reduction in height. And at Trump Tower Chicago, a hotel and condo project set to be the second tallest building in the city after the Sears Tower, 30% of the 825 units remain unsold as the condo market there slows.
Mr. Trump is known for focusing on the positive. "All of my stuff has been a great success," he said in an interview Wednesday. "Nobody has even come close to the track record that I have." He points to many other projects he is involved in that he considers outsized successes, including ones in Las Vegas, Hollywood, Fla., Miami, New York, Hawaii and the Dominican Republic. "Somebody says 'how's the market?' I say not good except for Trump," he says.
But the recent problems at developments bearing his name are evidence that no one is immune from the downdraft in the housing market. New housing projects throughout the country are suffering from weak demand and falling prices as banks tighten credit standards and a glut of empty units swells.
This time around, Mr. Trump personally is in little danger financially. During the last real-estate collapse in the early 1990s, he was pushed to the brink of bankruptcy because he was personally on the hook for hundreds of millions of dollars worth of debt. He later restructured his debt with the banks and worked his way back to doing real-estate deals.
In some recent condo projects, Mr. Trump has sold his name to developers for a fee and, in certain cases, he gets a portion of the sales in the building as well. In some he has contributed a minority slice of equity. This means, even if the projects fail, his financial exposure is limited, although his reputation may suffer. In other projects, such as in Chicago and Las Vegas, he says he is the lead investor.
At Trump Tower Tampa, which began its marketing in 2005, sales initially soared. The local development company, SimDag LLC, sold all 192 units and then, as the market skyrocketed, returned buyers' deposits, raised the units' prices and sold out again.
Then in August 2006, a city inspector examining a key part of the foundation known as the caissons discovered the plot of land wasn't solid enough to support design. Construction never resumed.
In May, Mr. Trump sued SimDag in federal court in Tampa, charging the developer with failing to pay him much of his licensing fee and failing to execute on construction and sales milestones promised in the contract. Court documents filed by Mr. Trump's lawyers say his involvement was limited to licensing his name to the developer for $4 million plus a cut of the sales.
But many of the buyers feel that they were led to believe that he had a much larger stake. "The only reason we bought into this was because of Trump," says Don Wallace, a local restaurant owner whose wife, Elaine Lucadano, has interests in two units. "He's bashing Rosie O'Donnell, and we're twisting in the wind," referring to Mr. Trump's tabloid spat with the talk-show host. Jugal and Maju Teneja, who paid $528,000 to reserve a unit in October, filed a suit against Mr. Trump and SimDag in Hillsborough County Circuit Court, claiming they deceived buyers into thinking Mr. Trump was closely involved in the development of the tower.
Mr. Trump says his role as a licensor was disclosed in offering documents given to buyers, a point Mr. Wallace disputes. Mr. Trump also noted that his ability to deal with construction problems has been limited. "When I license my name to somebody, I don't have the same power over a job," he says. "I could have pulled the Tampa job off easily. Other people can't pull it off easily." Now, Mr. Trump says, the Tampa project has become a victim of the deteriorating financing and sales climate. "If there was a job today that was going to start...I would most likely say let's wait a little while," he says.
Overall, though, he says his projects are successful, even in markets that are suffering problems, noting his name indeed sells units. "How many times is Trump supposed to be selling out a building before they move forward?," Mr. Trump asks. As for his brand image, he says: "Tampa doesn't hurt me."
SimDag pins the delays on construction problems. "This wasn't a story about a bad market. It's a story about bad soil," says David Hooks, a spokesman for SimDag. The developer says it is now being held up by a delay in obtaining construction financing and that the company is close to getting financing from a hedge fund it declined to identify.
The Trump name has driven the success of numerous condo projects. Mr. Trump says six months ago he received nonrefundable deposits for every unit on a project in Honolulu in one day. His says his interest in the project goes beyond licensing his name, but declined to give details. A condo-hotel tower in New York's Soho that he is affiliated with has 4,500 inquiries of interest for 450 slots, though they aren't for sale yet, he says.
But not all of Mr. Trump's ventures have been runaway successes. His casino company was forced to seek bankruptcy-court protection in 2004. It emerged in 2005 as Trump Entertainment Resorts Inc., but has since struggled.
In the condo market, some of Mr. Trump's projects may be suffering in part from brand dilution. One person familiar with the Fort Lauderdale project Trump Las Olas said it was shelved partly because Mr. Trump has lent his name to two other projects nearby.
Mr. Trump denies there was any brand dilution, though he says Trump Las Olas didn't make it because it "can't compete with the Graves site," a hotel and tower project that also bears his name in Fort Lauderdale, designed by architect Michael Graves. "Frankly, it's a better site...It's a more impressive building," Mr. Trump says.
Mr. Trump's delayed condo-hotel project in Toronto fell behind a competing Ritz-Carlton, and the building now going up has 13 stories fewer than originally planned. However, Mr. Trump says the project is in good shape.
In Atlanta, two condo towers with the Trump name are about to be launched at a time when 5.8% of the homes there are for sale, the second-highest inventory of unsold homes in the country, according to Zelman & Associates, a housing-research firm.
Mr. Trump says Atlanta is "a beautiful job going well." Asked about Atlanta's poor housing market, Mr. Trump said, "You know I can't be everywhere. It's like somebody says, 'why didn't you build here or there?' Who's done better deals than me?"
Business Opportunity Loan and Commercial Real Estate Investment
This overview will offer some candid thoughts about commercial financing and commercial real estate loans plus an overview of primary reasons for purchasing commercial investment property or buying a business. An increasingly disturbing climate for residential real estate investing has motivated investors to evaluate business opportunity options and business real estate investment property.
Special Purpose Real Estate Investment Property and Businesses
Business opportunity and commercial real estate investment property options include special purpose businesses such as gas stations and motels. The distinctive elements of these unique business investing options can be converted into added management possibilities for providing added value by differentiating a commercial property or business.
Special purpose business investments will dictate specialized commercial financing strategies like funeral home financing and gas station financing. Arranging a business opportunity loan or commercial real estate loan that is desirable for the business owner and the business will be a necessary factor in achieving a profitable business investment.
SBA Loan for a Commercial Mortgage and Business Opportunity Finance
The potential use of a Small Business Administration loan offers a business finance strategy not possible for residential real estate investments. SBA business loans are an option for most business owners and can be helpful in buying business opportunities or commercial investment property.
Business Opportunity Finance Choices to Avoid Real Estate Investment
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Purchasing a business opportunity does not involve commercial real estate. This means that business finance value will be driven by the business rather than real estate, and the absence of a commercial mortgage can prove to be a significant advantage in a declining real estate market.
How Income Effects Value of Commercial Property and Businesses
In comparison to residential real estate investment property value depending primarily on location, commercial real estate and business value is primarily determined by business income. This results in less sensitivity to local real estate property value trends. A business opportunity loan and commercial real estate loan will depend upon a business appraisal that will evaluate the recent business income levels.
Contact ICON Commercial Lending for more information.
About the Author:
Contact Steve Bush at AEX Commercial Real Estate Financing - Commercial Mortgage
Special Purpose Real Estate Investment Property and Businesses
Business opportunity and commercial real estate investment property options include special purpose businesses such as gas stations and motels. The distinctive elements of these unique business investing options can be converted into added management possibilities for providing added value by differentiating a commercial property or business.
Special purpose business investments will dictate specialized commercial financing strategies like funeral home financing and gas station financing. Arranging a business opportunity loan or commercial real estate loan that is desirable for the business owner and the business will be a necessary factor in achieving a profitable business investment.
SBA Loan for a Commercial Mortgage and Business Opportunity Finance
The potential use of a Small Business Administration loan offers a business finance strategy not possible for residential real estate investments. SBA business loans are an option for most business owners and can be helpful in buying business opportunities or commercial investment property.
Business Opportunity Finance Choices to Avoid Real Estate Investment
http://www.blogger.com/img/gl.link.gif
Purchasing a business opportunity does not involve commercial real estate. This means that business finance value will be driven by the business rather than real estate, and the absence of a commercial mortgage can prove to be a significant advantage in a declining real estate market.
How Income Effects Value of Commercial Property and Businesses
In comparison to residential real estate investment property value depending primarily on location, commercial real estate and business value is primarily determined by business income. This results in less sensitivity to local real estate property value trends. A business opportunity loan and commercial real estate loan will depend upon a business appraisal that will evaluate the recent business income levels.
Contact ICON Commercial Lending for more information.
About the Author:
Contact Steve Bush at AEX Commercial Real Estate Financing - Commercial Mortgage
Getting the Best Commercial Mortgage Rate
Trying to get the best commercial mortgage rate is perfectly understandable, after all a fraction of a percentage point can make a huge difference to the repayments on a larger commercial loan. However, when searching for a competitive rate you should bear in mind that the broker or lender is going to need plenty of information to support the enquiry.
Imagine if you will that someone puts a box containing a 300 piece jigsaw puzzle in front of you, shows you only ten pieces and says "Describe the picture to me" – what are the chances you would be able to do it? You may be able to say "Well, it looks as if it's a sunny day and I think I can make out part of a tree" but apart from that very little.
This may sound like an irritating evasion of the issue but the question "I'm looking for a commercial mortgage, what's the best rate you can get me ?" is equally difficult to answer if a useful response is expected. Not least because different people have a quite different understanding of what types of commercial mortgage will qualify for a headline rate.
Of course there are some brokers who will quote you a very favourable rate "off the top of their head." This is a little disingenuous in that any rate will be largely meaningless and is probably made in the hope that they can impress the potential client and give him reason to return to them first.
Without doubt the best commercial rates are only available from the mainstream banks, including the likes of HSBC, Barclays, RBS etc. and some other commercial lenders such as The Skipton and Norwich & Peterborough Buildings Societies.
Remember though, before these organisations will consider offering their best rates they are going to want to know quite detailed information about the business they are lending money to, the people who control the company and full details about the property.
Typically speaking the best rates are only available for established businesses with a clean credit history and plenty of good quality and verifiable accounting information. Professional property investors are also generally considered good quality applicants, but only if the rental income stacks up. The following points should explain what a lender would generally look for:
1. Established Business: Would mean that the business has been profitably trading for about 3 years.
2. Good quality and verifiable accounting information: Accounts that have been professionally prepared by a qualified accountant and if appropriate filed at Companies House.
3. Clean Credit: All existing loans and mortgages are up to date, no late payments to suppliers. No CCJ's either in the business name or the individual director's personal names.
4. Investment properties would usually need to have a formal lease in place with a good quality tenant. The rental income will need to cover the mortgage payments by a healthy margin.
The above points only relate to applicants chasing the headline rates. There is now a good degree of flexibility for businesses who cannot fulfil the above criteria.
When approaching a lender or broker with a view to obtaining the best possible commercial mortgage rate (or re-mortgage) an applicant should be prepared to divulge all the above information before expecting a sensible answer. At the very least it would be recommended to have the last three years' accounts, brief CV's for each director, an up to date business plan and as much information as you can muster about the property in question.
There is no doubt that there are some very competitive mortgage rates available for the right businesses and researching the market has never been more important. By all means approach your existing bankers first as they most likely to be keen to keep your business but having other options available puts you in the strongest position when looking for the best commercial mortgage rate.
Contact ICON Commercial Lending to get the most competitive rates.
Imagine if you will that someone puts a box containing a 300 piece jigsaw puzzle in front of you, shows you only ten pieces and says "Describe the picture to me" – what are the chances you would be able to do it? You may be able to say "Well, it looks as if it's a sunny day and I think I can make out part of a tree" but apart from that very little.
This may sound like an irritating evasion of the issue but the question "I'm looking for a commercial mortgage, what's the best rate you can get me ?" is equally difficult to answer if a useful response is expected. Not least because different people have a quite different understanding of what types of commercial mortgage will qualify for a headline rate.
Of course there are some brokers who will quote you a very favourable rate "off the top of their head." This is a little disingenuous in that any rate will be largely meaningless and is probably made in the hope that they can impress the potential client and give him reason to return to them first.
Without doubt the best commercial rates are only available from the mainstream banks, including the likes of HSBC, Barclays, RBS etc. and some other commercial lenders such as The Skipton and Norwich & Peterborough Buildings Societies.
Remember though, before these organisations will consider offering their best rates they are going to want to know quite detailed information about the business they are lending money to, the people who control the company and full details about the property.
Typically speaking the best rates are only available for established businesses with a clean credit history and plenty of good quality and verifiable accounting information. Professional property investors are also generally considered good quality applicants, but only if the rental income stacks up. The following points should explain what a lender would generally look for:
1. Established Business: Would mean that the business has been profitably trading for about 3 years.
2. Good quality and verifiable accounting information: Accounts that have been professionally prepared by a qualified accountant and if appropriate filed at Companies House.
3. Clean Credit: All existing loans and mortgages are up to date, no late payments to suppliers. No CCJ's either in the business name or the individual director's personal names.
4. Investment properties would usually need to have a formal lease in place with a good quality tenant. The rental income will need to cover the mortgage payments by a healthy margin.
The above points only relate to applicants chasing the headline rates. There is now a good degree of flexibility for businesses who cannot fulfil the above criteria.
When approaching a lender or broker with a view to obtaining the best possible commercial mortgage rate (or re-mortgage) an applicant should be prepared to divulge all the above information before expecting a sensible answer. At the very least it would be recommended to have the last three years' accounts, brief CV's for each director, an up to date business plan and as much information as you can muster about the property in question.
There is no doubt that there are some very competitive mortgage rates available for the right businesses and researching the market has never been more important. By all means approach your existing bankers first as they most likely to be keen to keep your business but having other options available puts you in the strongest position when looking for the best commercial mortgage rate.
Contact ICON Commercial Lending to get the most competitive rates.
Tuesday, November 20, 2007
Commercial Real Estate Lending Trends
One of the signs of the times that indicates how any nation's economy is doing can often be determined by how well businesses are expanding in real estate. Right now, there is a continued expansion of commercial real estate and loans for these new projects. The current commercial real estate lending trends indicate that now is a good time to expand your business with a building program or new land purchase.
While the housing market has certainly taken a real dip, and has hurt the sub prime lenders in particular, commercial lending goes on. Many new projects, especially in the income producing properties realm, is seeing solid expansion. This includes the construction of office parks and buildings, multi-family dwellings, hotels, and other general land development programs.
One particular market that has held up its own is office rentals. The demand for office space – even at increased rent values - has grown. This is especially true in New York City (Manhattan), and some other large cities, too. This means that the available office rental space has actually decreased as office space is being filled - much to the owner's delight. In New York City, office space is being grabbed up - even though the rent has risen to nearly $70 per square foot.
A few other cities, however, still show a slow office rent market. In fact, much office space remains unoccupied. In those cities, though, where office space is in demand, the number of office buildings and office parks are certainly on the rise, as developers rush to fill in the gap. Commercial lenders are also seeing the need and providing the necessary bridge loans and commercial loans for these massive projects.
When compared to last year, there is an increase in the overall amount of activity in commercial real estate lending. This shows a growth of about 0.8 percent that is expected in the third quarter of 2007, according to the National Association of Realtors.
Over the last few years, commercial real estate lending has shown a strong increase. The Federal Reserve (Philadelphia) indicates that large mortgage lenders have gone from about 150% of loans (compared to non-commercial) back in the 1990's, to over 300% last year.
The number of commercial real estate loans is increasing and lenders are continuing to offer excellent interest rates. The market has begun to show a slight decrease in recent days, but for right now, the rates needed to expand business could not be much better. The qualifications needed to get such a loan also could not be much softer than they are right now, too.
Seeing this kind of commercial real estate trend, and the market’s favor for this kind of loan, you also may be able to benefit greatly by investing now in a new building project or land development program. Check on availability of office space (in particular) in the area, find out how fast it is being secured by new businesses, and if it is in demand, be ready to move on the opportunity. Scope out possible land available, or existing structures that can easily be renovated into office space, get your paperwork in order, and talk to a commercial lender about your goals before someone beats you to it. Now is the best time for action on this kind of opportunity, while commercial loans are still available at great terms.
For more Commercial Lending info, Contact ICON Commercial Lending.
Read more articles by: Eric Morgan
Article Source: www.iSnare.com
While the housing market has certainly taken a real dip, and has hurt the sub prime lenders in particular, commercial lending goes on. Many new projects, especially in the income producing properties realm, is seeing solid expansion. This includes the construction of office parks and buildings, multi-family dwellings, hotels, and other general land development programs.
One particular market that has held up its own is office rentals. The demand for office space – even at increased rent values - has grown. This is especially true in New York City (Manhattan), and some other large cities, too. This means that the available office rental space has actually decreased as office space is being filled - much to the owner's delight. In New York City, office space is being grabbed up - even though the rent has risen to nearly $70 per square foot.
A few other cities, however, still show a slow office rent market. In fact, much office space remains unoccupied. In those cities, though, where office space is in demand, the number of office buildings and office parks are certainly on the rise, as developers rush to fill in the gap. Commercial lenders are also seeing the need and providing the necessary bridge loans and commercial loans for these massive projects.
When compared to last year, there is an increase in the overall amount of activity in commercial real estate lending. This shows a growth of about 0.8 percent that is expected in the third quarter of 2007, according to the National Association of Realtors.
Over the last few years, commercial real estate lending has shown a strong increase. The Federal Reserve (Philadelphia) indicates that large mortgage lenders have gone from about 150% of loans (compared to non-commercial) back in the 1990's, to over 300% last year.
The number of commercial real estate loans is increasing and lenders are continuing to offer excellent interest rates. The market has begun to show a slight decrease in recent days, but for right now, the rates needed to expand business could not be much better. The qualifications needed to get such a loan also could not be much softer than they are right now, too.
Seeing this kind of commercial real estate trend, and the market’s favor for this kind of loan, you also may be able to benefit greatly by investing now in a new building project or land development program. Check on availability of office space (in particular) in the area, find out how fast it is being secured by new businesses, and if it is in demand, be ready to move on the opportunity. Scope out possible land available, or existing structures that can easily be renovated into office space, get your paperwork in order, and talk to a commercial lender about your goals before someone beats you to it. Now is the best time for action on this kind of opportunity, while commercial loans are still available at great terms.
For more Commercial Lending info, Contact ICON Commercial Lending.
Read more articles by: Eric Morgan
Article Source: www.iSnare.com
Friday, November 16, 2007
What can your commercial mortgage broker do for you?
A commercial mortgage broker can offer you a wide variety of products and services - such as a commercial mortgage or a commercial bridge loan - to fit the needs of your company, whether you are rapidly growing or just chugging along slowly but surely.
The following are examples of some of the products and services a commercial mortgage broker might be able to offer your business:
Commercial Mortgage
Like you might imagine, any commercial mortgage broker will be able to extend you a commercial mortgage. A commercial mortgage is essentially a mortgage on the building and land that your business occupies. If you are looking to refinance your commercial mortgage you would be wise to talk with your commercial mortgage broker and see what kind of rates he can get you. Currently rates are at or near all time lows so now would be an excellent time to refinance your commercial mortgage and lock in those rates for the future.
If your business has just experienced a jump in growth then now might be a good time to build your office space and get out from under those lease payments. Again your commercial mortgage broker can help you by drawing up a contract for a mortgage that meets your needs.
Commercial Loan
Perhaps your business has experienced strong growth and you want to continue to push for more growth but your company is lacking the capital to do so. Your commercial mortgage broker can help you in this scenario as well by offering you a commercial loan. A commercial loan will give you the cash you need now and as your business grows and you are able to improve your profitability margins you can pay down the commercial loan. The size of the commercial loan your commercial mortgage broker is willing to extend to you will of course depend on the credibility of your business plan, the experience of your management team, and the risk involved, just to name a few of the factors that go into the lending decision.
The only surefire way to know what your commercial mortgage broker requires is to visit their office and find out what it will take to get their financial support.
Commercial Bridge Loan
Your commercial mortgage broker should also be experienced in issuing a commercial bridge loan. A commercial bridge loan is a financial instrument that helps companies acquire financing for mortgages in a relatively short period time. Likewise, a commercial bridge loan is typically only issued for a short period of time. You might need a commercial bridge loan if your primary mortgage is coming due and you do not have time to refinance. In this case you can work with your commercial mortgage broker to push through a commercial bridge loan rather quickly so that you are able to cover the mortgage that has come due. Then you can work with your broker to roll the bridge loan into a more long term form of financingComputer Technology Articles, such as a commercial mortgage.
If you have any further questions visit ICON Commercial Lending Today!
ABOUT THE AUTHOR
Adam Smith is an informational author for 10X Marketing.com To learn about an investment property, visit SNCLoans.com
The following are examples of some of the products and services a commercial mortgage broker might be able to offer your business:
Commercial Mortgage
Like you might imagine, any commercial mortgage broker will be able to extend you a commercial mortgage. A commercial mortgage is essentially a mortgage on the building and land that your business occupies. If you are looking to refinance your commercial mortgage you would be wise to talk with your commercial mortgage broker and see what kind of rates he can get you. Currently rates are at or near all time lows so now would be an excellent time to refinance your commercial mortgage and lock in those rates for the future.
If your business has just experienced a jump in growth then now might be a good time to build your office space and get out from under those lease payments. Again your commercial mortgage broker can help you by drawing up a contract for a mortgage that meets your needs.
Commercial Loan
Perhaps your business has experienced strong growth and you want to continue to push for more growth but your company is lacking the capital to do so. Your commercial mortgage broker can help you in this scenario as well by offering you a commercial loan. A commercial loan will give you the cash you need now and as your business grows and you are able to improve your profitability margins you can pay down the commercial loan. The size of the commercial loan your commercial mortgage broker is willing to extend to you will of course depend on the credibility of your business plan, the experience of your management team, and the risk involved, just to name a few of the factors that go into the lending decision.
The only surefire way to know what your commercial mortgage broker requires is to visit their office and find out what it will take to get their financial support.
Commercial Bridge Loan
Your commercial mortgage broker should also be experienced in issuing a commercial bridge loan. A commercial bridge loan is a financial instrument that helps companies acquire financing for mortgages in a relatively short period time. Likewise, a commercial bridge loan is typically only issued for a short period of time. You might need a commercial bridge loan if your primary mortgage is coming due and you do not have time to refinance. In this case you can work with your commercial mortgage broker to push through a commercial bridge loan rather quickly so that you are able to cover the mortgage that has come due. Then you can work with your broker to roll the bridge loan into a more long term form of financingComputer Technology Articles, such as a commercial mortgage.
If you have any further questions visit ICON Commercial Lending Today!
ABOUT THE AUTHOR
Adam Smith is an informational author for 10X Marketing.com To learn about an investment property, visit SNCLoans.com
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