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Business Success Today
Brought to you by: Randy Elgin
210-232-2310 | July 2009 |
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Tips to Help You Make a Wise Site Selection
Every real estate investor should be well schooled in the benefits of a good location. Site selection does not mean picking the right building, but rather establishing the best location to do business. Analyzing factors such as cost, convenience, facility requirement and zoning allows you to select the best location for the long-term success and housing of your enterprise.
The cost of a property is more than the initial purchase price and includes the financial impact on employees. Municipal and state taxes vary from one area to another, and significant long-term savings can be realized by doing a little bit of research into taxation in the area you are considering. The answers will have an impact on the overall long-term cost of any location you are considering.
Convenience can mean something as simple as whether there is convenient parking nearby. Considering the clients you hope to attract will help you establish which conveniences your business will require.
Facility requirements will vary from business to business. Do you have special power needs? Is a meeting space required? Do you require truck-level loading? Does the business require specialized storage? In many ways the facility requirements will dictate which locations will suitably accommodate the business in question.
Zoning is typically dictated by the municipality. Many cities have strict zoning requirements, and it is imperative that you understand the zoning restrictions because they can have a substantial impact on the cost of the location you are considering. Applications for zoning variances can be complicated and costly, and there is no guarantee of success. |
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What You Need to Know about Mortgages
In a competitive mortgage market, lenders are always looking for some sort of edge over the competition. For commercial investors this means that there is almost always a better mortgage solution out there.
By understanding the mortgage approval process and asking the right questions, you can often find significant savings in your business financing. A commercial mortgage is similar in many ways to a standard residential mortgage. Both types require a thorough appraisal, along with collateral to secure the loan and protect the lender from default.
The primary difference between residential and commercial mortgages is the amount of paperwork involved. Lenders have requirements for each purchase, and being prepared will save you time and money because the purchase you’re trying to make will not be slowed by financing complications.
Know the Property
Each type of property will have specific requirements and documentation required for financing. Gas stations, for example, often require detailed environmental assessment, and an office building will require rent rolls and vacancy rate documentation.
Equally important is the overall physical and financial condition of the property. Obviously, in the view of the lender the physical condition and financial viability of the property will represent the level of risk they are willing to accept when extending financing. The lower the financial risk of default, the greater the potential to generate multiple financing offers. This will increase the odds of negotiating better terms for your commercial mortgage.
Have All the Financing Documentation Ready
Each commercial property type has specific documentation that a lender will require before financing will be extended. If you are unsure, contact a commercial real estate agent, who can often clarify what the necessary documentation will be.
Having this documentation ready in a timely manner will prevent costly delays as well as eliminate potential doubts about the property. It will also allow you to obtain accurate offers to extend financing.
Be Prepared
Ask any questions that you may have, even after the full loan package has been submitted. Questions may include:
- Why should I select one specific lender over another? Be Patient.
Commercial mortgages tend to require substantially more due diligence paperwork than standard residential mortgages. This may mean that one lender will take longer than another. It is often worth the wait if one offer is superior.
Using the competition in the commercial mortgage market can work to your advantage as an investor. Preparation, questions, documentation and patience are all required in order to negotiate the best terms for your business’s financing needs. | |
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Use These Tools to Make Virtual Teamwork Easy
Today’s work teams often span the globe. Fortunately, there are many online collaborative work tools that can make outsourcing, telecommuting and collaborating on projects quick, easy and affordable. Collaborative work tools include everything from email, calendaring and text chat to virtual workspaces, project management devices and online conferencing capabilities. Here is a sampling:
Basecamp is a simple online project management, collaboration and task listing software that includes tools for managing to-do lists, wiki-style web-based text documents, milestone management, file sharing, time tracking and a messaging system. The free version has limited functionality.
Huddle.net is a secure online workspace containing a variety of project admin and collaboration tools. The free version allows unlimited users and features tools for document creation and management, notifications, storage and discussion forums.
Google Apps is a collection of web-based programs that includes communication tools (Gmail, Google Talk and Google Calendar), productivity tools (Google Docs: text files, spreadsheets and presentations), a customizable start page (iGoogle) and Google Sites. Google stores all the files and content centrally. Content sharing is enabled simply by granting access.
Backpack is a web-based service that enables teams to create pages of notes, lists, images, files, etc. Backpack’s free features include calendaring, "Writeboard" text editor and announcement services, but there is a two-user max.
Central Desktop is an online collaboration and workspace tool that can import and export spreadsheets, charts, formulas and functions. It includes calendar and instant message integration, task management, RSS feeds of workspace activity, personal dashboards and reminders, and it offers free integrated audio conferencing.
How to Survive the Recession...Stronger Than Before
As bad as it is out there, it’s important to recognize that this is a time of tremendous opportunity. Get my free report, "How to Survive the Recession...Stronger than Before" by calling 210-232-2310. | | |
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Business Success Today is brought to you free by:
Randy Elgin
10999 IH10W; Ste 175
San Antonio, TX 78230
210-232-2310
www.SARealtyWatch.com
Thanks for reading! If you'd like to tell me what you think about this newsletter, or if you're thinking of buying or selling real estate, please get in touch.
This newsletter and any information contained herein is intended for informational purposes only and should not be construed as legal advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible for errors or omissions or any damages, howsoever caused, which result from its use. Seek competent legal counsel for advice on any legal matter. This newsletter is not intended to solicit properties currently for sale. | | |
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