Commercial Mortgages & Commercial Properties Blog

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Gas Station Franchise...Top 5 Reasons Why They Fail!

Most gas station franchises fail within the first year. Before you buy your first gas station franchise you will want to make sure that you are not making these simple mistakes.

What does LIHTC mean?

LIHTC is a federal subsidy program aimed at increasing the availability of affordable rental housing. Find out what it means and how developers are using them to provide equity for their projects.

LIHTC Developers Are Starting To Feel The Credit Crunch

You can't turn on the news or pick up a newspaper without hearing about how the subprime mess is affecting the U.S. financial markets. The affect is also being felt by multi-family developers.

Developers of affordable rental housing, commonly use Low Income Housing Tax Credit (LIHTC) to raise equity for their projects. The developers sell these credits to investors, at a discount, to obtain capital.

Well with the recent upheaval in the financial markets, investors are paying less for these tax credits. Depending on the market location, developers may start seeing $0.87 to $0.92 per dollar of tax credit.

The result is that developers now have to borrow more to finance their projects, which is killing some projects. This may mean that less affordable housing projects will be developed, which can only hurt an already hurting housing market.

FHA Section 232 Is The Best Financing Program for Construction or Substantial Re

FHA Section 232 is the perfect solution for construction of new or substantial rehabilitation of Nursing Home/Assisted Living Development Projects. Non-recourse, long terms and fixed rates, and much m

Don't Get Burned By Commercial Hard Money Lenders!

I've talked to lots of borrowers that have been burned badly by Commercial Hard Money Lenders. Learn what pitfalls to avoid when trying to obtain a commercial hard money loan.

Gas Station Financing...Don't Blow It!

A Gas station can be one of the most difficult property types to get financed. Learn the reasons why lenders don't want to finance them.

Top Executives Exuberant About Commercial Real Estate

A recent survey conducted by DLA Piper Law Firm, of the top 274 executives in commercial real estate, concluded that there was excitement concerning the future of commercial real estate.

The survey reveals that abundant capital flows from both private equity funds and traditional lending sources have spurred an insatiable demand for real estate assets as 78 percent of respondents describe their 12-month outlook for the U.S. commercial real estate industry as “bullish,” up from 43 percent in 2005. When asked the primary reason for their confidence, 48 percent cited the continued growth of the U.S. economy.

Also, with a slowdown in the single-family residential housing market and the subprime lending situation, multifamily continues to be the most attractive real estate investment opportunity in the coming year as 26 percent of survey respondents chose multifamily over other investment options.

Why Is It So Hard To Get Hard Money For Raw Land?

A year ot two ago, it was so easy getting hard money for a land deal. The lenders were fighting you for your business. But the business climate has changed...drastically.

Why?

According to a lender I talked to last week, the main reason is because the default rate has become so high, that most lenders, can't take the risk to put these types of deals on their books. So what should you do if you need a hard money loan?

#1 - Expect low LTV's and plan accordingly. Don't expect more than 50% of the appraised value of the land (another gotcha is that your appraisal might be high but rest assured that the lender's appraisal is going to be low!).

2) Use other income producing commercial property as collateral.

3) Have a strong financial statement.

And if all else fails, instaed of hard money, you can look for an equity partner. But this should be your last resort...an equity partner will expect a big piece of your project.

Do You Need A Real Estate Development Business Plan?

I get asked that question so much, "Do I really need one?". The answer is, YES!

How can you expect a bank or private investor to loan you millions of dollars and you can't explain your project in a business-like and logical manner with all the financials?

Trust me, from my experience, when a developer has taken the time to investigate & research his project (so that it makes financial sense), they have never been turned down for financing.

So take the time and have a professional help you. You won't regret it!

The Wave Of The Future...Assisted Living Facilities.

As our aging population continues to grow, there is a shortgage of good assisted living facilities (ALF)to chose from. This is especially true in more rural areas. So now is a good time to look into owning an ALF's.

So where do you build or buy these facilities.

Some possible target property types are: schools, churches, municipal buildings, small hospitals or long term care facilities. When looking to develop ALF, here are a few things to remember:

#1 40 plus bed capacity (in order to financially acceptable).

#2 Each room should have a window.

#3 Be within 10 - 15 minutes of a hospital.

#4 If more than one floor, it should have an elevator.

Now Is The Time For Apartment Developers To Get Your Projects In!

Are you an aprtment or multi-family developer? Are you looking to get funding before the end of this year?

Well you need to hurry because we're quickly approaching the mid-year mark. Construction financing typically takes 4 to 6 months (from start to finish), so you need to get on board NOW!

What type of information do you need to get started? You will need your proforma construction costs and your expected income & expenses. Its that simple. So don't delay, get your projects submitted ASAP.

Why Is It So Hard To Find Commercial Mortgage Broker Training?

Have you been searching for commercial mortgage broker training program? Then I bet you're having a hard time! When I first became interested in commercial finance, I started looking for any type of training or books on the subject. I just couldn't find much. The few training programs were for specific lending banks and they just wanted you to push their programs. They didn't provide a strong background on commercial finance.

So what should you expect? The training should provide a strong background on commercial finance basics. It should give you enough information that you can start your business without feeling that you don't have enough knowledge.

But remember, knowledge is just a portion of your business...you also need ACTION! Without action, your business will shivel up and all that knowledge will be lost.

The Fear of Writing LOI's

Most new comers to the commercial arena have a fear of writing or submitting LOI's (letter of intent). But don't fear them! They are the best tool and most investors don't utilize them enough. The LOI is where you hammer out all the details before you engage in the contract. You have a meeting of the minds.

Now where most investors have problems with LOI's is not really the LOI itself but how to structure the terms that are within the LOI.

If you're having problems with structuring your projects, then it is time to get help. A good consultant can help you get the best structure for your investment and help you put the correct terms into your LOI. This little step can save you a lot of money!

Why The SubPrime Debacle Is Good News To Apartment Owners?

Recently you can't turn on the news or pick up the newspaper, without hearing about the issues with sub-prime lending to homeowners. Basically, the "stated income", nomoney down loan boom is over. Freddie Mac has tighten the rules regarding these types of loans.

So what does this mean?

More people are losing their homes to foreclosure. More than 1 million homes faced foreclosure in 2006...that is almost double from 2005.

As an apartment owner or future apartment owner, this is good news for you. Apartment owners can expect lower vacancies and higher demands for apartments, especially in areas that are seeing large volumes of foreclosures. Also, apartment owners will have to offer less incentives to have tenants move in, as well as keeping current tenants.

Now is the time to buy an apartment complex. Do you need help in buying an apartment? Go here to learn more...

The Ellis Island of The Midwest Needs Help

The Mullanphy Emigrant Home was built in 1867 (which is 25 years before Ellis Island was opened for immigrants). The purpose of the home was to provide temporary housing and other services for immigrants arriving to St. Louis. This home helped the scores of immigrants that became apart of the legacy that built the gateway to the Midwest.

After years of neglect, abandonment and bad weather, the building is on the brink of collapse, which will be the end of an important piece of history. But local activists and preservationist are trying to keep that from happening.

To learn more and how to contribut to their cause, visit...

St. Louis Properties to Receive Missouri State Tax Credits

The state of Missouri offers Brownfield tax credits. Brownfield properties are abandoned commercial or industrial properties. These dilapidated buildings or eye-sore open spaces are known as "Brownfields". Usually these properties were abandoned by their former owners because of the presence of hazardous chemical contamination. New owners or developers typically avoid these types of properties because lenders are reluctant to provide financing for them. Some of these properties lie in economically blighted neighborhoods which are in need of jobs, or they are in highly desirable redevelopment areas such as downtowns or waterfronts. Despite the possible profitability of these properties, they remain vacant due to real or perceived hazardous substance contamination and the liability that contamination can bring. So the Missouri Brownfield Redevelopment Program (which is managed by the Department of Economic Development and the Department of Natural Resources) provides incentives for the redevelopment and revitalization of "environmentally challenged" properties. Four such properties will receive more than $2.5 million in Brownfield redevelopment tax credits.

The Metropolitan Building on North Grand

They will receive $1.4 million to convert the 97,000 sq. ft. building into a hotel, retail and commercial space.

Tudor Building on Washington

They will receive $216,324 to convert the 100,000 sq ft building into offices and retail space.

1911 Locust

They will receive $592,340 to convert a 2 story warehouse into a mixed use space.

The Monkey Building on Washington

They will receive $305,588 to convert the 30,000 sq ft building into a mixed use space.

He's In The DVD "The Secret"

It isn't often that I endorse other speakers or products, but the DVD 'The Secret' has made a huge impact on my life and business.

On April 5th, Alex Mandossian will interview James Ray on a live tele-training call.

Alex will interview James Arthur Ray during their "encore" tele-training on The Law of Attraction.

(They did this once last year and it SOLD OUT, now they're doing it again by popular demand!)

Perhaps you've seen him on The Oprah Winfrey Show or on Larry King Live or the #1 selling DVD, "The Secret"...

Next Thursday (April 5th) for ONE night only, you WILL get private phone access to James for 1/1,000th of his normal speaking fee.

I've even made special arrangements to save you $79 off the $99 tuition when you use the VIP Code:

Your VIP Code is: JR-April5

Even if you can't clear your calendar on the evening of April 5th, register anyway because you'll get unlimited, lifetime access to the recordings to this training within 48 hours after the event date.

Get more details at...

The 2007 Financing Bootcamp Is Now Open - Sign Up Now!

Durante Parks has just sent word that he is starting his 2007 Financing Bootcamp. This will be the only one he offers this year.

Learn more about this live training event...

Commercial Mortgages...Everything You Needed To Know And More

Understanding Commercial Mortgages & Commercial Properties Is The Key To Your Investing Success

Using FHA Section 223f Is The Best Way To Buy Or Refi An Apartment Building!

FHA Section 223f offers an affordabale way to buy or refinance apartments or other multifamily properties. The program offers long terms, fixed rates, non-recourse, and much more…

FHA Section 221 Is The Best Apartment / Multifamily Construction Loan Program Av

FHA Section 221 is the best choice for Multifamily Development Projects. Non-recourse, long terms and fixed rates, and much more…

The Top 4 Commercial Mortgage Broker Mistakes

Are you a commercial mortgage broker or are you interested in becoming one? Then you need to learn what the top 4 commercial mortgage broker mistakes. These mistakes can end up costing you!

What does BSPRA mean?

BSPRA is term that will be found with government sponsored loan programs. Find out what it means and how it can add 10% profit to your commercial project!

On-line Commercial Real Estate Financing Training Is Now Available!

It’s not often that I take time from my busy schedule to endorse a product, but, in this instance, I felt that I had to.

Why? Because, simply put, the Virtual Money Broker Commercial Financing Boot Camp is absolutely the best commercial financing training resource I've ever seen and EVERYONE can afford it!

If you want to move into the commercial financing and investing arena But just didn't know how to do it, you need to check out this insane offer!

Inside, you'll discover how to do all of the following quickly and easily:

- How To Locate Commercial Lenders - How To Approach Commercial Lenders - How To Screen and Qualify Commercial Lenders - How To Select the Best Financing program - How To Test Commercial Lenders - How To Develop A Lender Relationship- - How To Work With Lenders As Vendors - How To Locate Commercial Property Buyers - How To Approach Commercial Property Buyers - How To Screen and Qualify Commercial Property Buyers - How To Locate Prime Commercial Properties For Commercial Property Buyers - How To Start Your Own Commercial Financing Business

and much much more!

If you are serious about moving into the commercial investing business or just want to learn more, then I highly recommend you check it out right away!

And as a special thank-you, you will receive our latest training guide

"Interviewing Commercial Lenders Guide"

for free!

"What Would You Do If You Weren't Afraid?"...Invest In Commercial Properties!

My specialty is helping residential investors make the leap to commercial property investing. The number one reason why they don't make the transition or they take too long to do it is FEAR. They are afraid of the committment or the big numbers or any number of things.

So many times they have convinced themselves that they couldn't invest in commercial properties.

Well I'm here to tell them that they can do it. I recommend that anyone I talk to that seems to have that level of doubt or fear to read,

"Who Moved My Cheese?" by Spencer Johnson, M.D.

This is an excellent, short book on how to deal with change in your work and life.

A Georgia City Approves A 99ft Tall Apartment Building

Decatur City, Georgia has approved a developers request for a 99 ft tall apartment building.

This building will be downtown with apartments and mixed use.

The apartment building almost didn't receive approval due to lack of public parking spaces...

Madison Landlords Win Appeal

The city of Madison, Wisconsin had an ordinance that required all new apartments, that had more than 10 units, set aside 15% of the apartments for low-cost rentals. This ordinance had a serious impact on the number of new apartments being built in the city...there were none!

That sort of law makes it tough for developers to receive financing when 15% of the units have to be low-cost.

I know the city is trying to address affordable housing concerns, but it shouldn't put the burden on free enterprise.

Hurrican Katrina's Latest Victim...Insurance Premiums

Apartment or multifamily property owners have seen tremendous increases in their insurance premiums...to the tune of over to 500%! Along with the high premiums, owners are also now being hit with higher deductibles. Most owners are only given a short period of time before the increase, where they must either pay or lose their coverage. Neither of those options is very promising.

There is one temporary reprieve, a state insurance regulation called Rule 23 that basically requires insurance companies, if you request it, to renew policies under the exisiting terms through the end of 2006 if the property has not been put back into service yet due to storm damamge. But their is a drawback for invoking Rule 23...insurance companies can drop your coverage altogether at the end of 2006.

If you're interested in learning more about how Louisiana apartment owners are resolving the insurance issue, contact David Abbenante, President-Elect of the Greater New Orleans Apartment Association at david@hrihci.com.

Condo-Hotels...The Latest Trend For Hotel Developers

With construction costs rising at least 30% over the past two years, hotel developers are finding it hard to get financing for their projects. So what is a hotel developer to do? Well instead of a traditional hotel, they build a condo-hotel. They will sell off a percentage of the rooms or suites as condos to raise the capital to build the hotel. The owners of the condos usually have a limited number of days per year that they can use the condo. The rest of the time, their condo is rented out as hotel rooms. Usually, the condo owner will get a part of the rental income.

These condo-hotels are really popular in hot spots like Hawaii, New York and Florida but they are starting to take off in other parts of the country.

St. Louis Real Estate Scandal!

Doug Hartmann was a successful real estate developer from the St. Louis area, who has tumbled down the social ladder...kind of like a Ken Lay of Enron. So how did all of this happen? Well the judge hasn't sorted it all out yet, but there are a lot of accusations of fraud. Its like a who's who of local banks, local hard money lenders and title companies. Read the full story...

What Is An Acre?

Acre is a common unit used to measure land.

Is The Condo Bubble Bursting?

For the past two years, the craze has been to convert every building you could find into a condo. These condos were usually in downtown areas and sell for very high prices.

Well here is an article that is talking about the possible downturn in the market. The downturn is due to higher costs and less demand. I think the real problem is the oversaturation of condos in the market. There are only so many condos, one city can hold...

Escazu, Costa Rica Is A Prime Location For Commercial Real Estate Developments

Escazu and the central valley of Costa Rica is a prime area for developers. Learn why...

Gross Leasable Area Definition

What is Gross Leasable Area?

Capital Expense Definition

Capital expense are expenses that include capital expenditures required to maintain a building and future capital improvements.

Ginnie Mae Definition

Ginnie Mae is the informal name for the Government National Mortgage Association (GNMA).

Downtown St. Louis...Condo Heaven

Downtown St. Louis has seen a flurry of condo developers. It is estimated that investment into downtown St. Louis to reach $655 million...just this year alone. Most of those projects will start late this year. Just compare to the $807 million that was spent in downtown from 1999 to 2005!

One developer from Chicago, Silverstone Communities plans to convert an empty 13 story building into 127 reasonably priced condos. Prices for these units will range from $80,000 to $200,000...almost unheard prices for condos in the downtown area. The developer is targeting young professionals and 1st time home buyers as a niche market for moderately priced downtown homes.

Costa Rica Developments...Commercial Real Estate's Next Hot Market!

International commercial property is where some developers are making a huge return on their investments. Costa Rica developments are gaining in popularity and demand.

Real Estate Development Business Plan Is Essential In Obtaining Financing

Learn what to include in your real estate development business plan so that you can get all the financing you will ever need! The first thing lenders of any type look for is...

Denver Has A New Apartment Brokerage Firm

Hey Denver, are you looking for a new apartment brokerage firm? Well Cushman & Wakefield located in Denver, Colorado has decided to include apartment brokerage in its services that it offers.

With apartment construction & sales on the rise in Denver's hot market, it only makes sense that one of the area's largest commercial real estate firm, join in the bounty.

If you're interested in learning more about Cushman & Wakefield and the hot Denver Apartment market, visit their site...

Class C Property Definition

A Class C property is a property classification for properties that provide adequate functionality and ...

Gross Reimbursement Structure Definition

Gross Reimbursement Structure is a type of lease where the lessor (or landlord) has to pay all costs for maintaining the property.

Commercial Properties...Before You Buy Your 1st Property, Read This!

Commercial properties can be a big step? Are you ready to buy? Then you must read this! Here are 3 items you must do before you buy.

Freddie Mac Definition

Freddie Mac is also known as the Federal Home Loan Mortgage Corporation...

Denver Commercial Property Is Hot, Hot!

You will find that commercial real estate outpaces stocks & bonds investment returns, so investors in key markets are gobbling up a lot of commercial property! According to a market overview by Cushman & Wakefield of Colorado, $2.3 billion worth of commercial properties sold in the Denver area for the 1st half of 2006. That is compared to sales of $3.2 billion for all of 2005.

The majority of buyers of commercial properties in this area are both institutional & private investors, from here in the states, as well as from overseas.

The key sectors are office buildings, industrial and warehouse/distribution centers.

So if you're an investor in the Denver area, it is really difficult for you to get a good deal on commercial property. The demand is just too great.

Commercial Property Types...Know The Differences

There are so many different commercial property types available. In order to make a wise investment, you should know the pros & cons of each property type.

Loan Assumption Definition

Loan assumption is the act of assuming the previous borrowers...

How To Find Commercial Properties?

So you want to invest in commercial properties, but how do you find commercial properties to buy?

NOI Definition

The NOI (or Net Operating Income) is the total income minus...

Non-Recourse Definition...No More Personally Guranteeing Loans!

Non-recourse is a type of loan where the lender will not pursue