Recently, I was surprised to learn that many of my clients are unfamiliar with the term “LOI?" In the residential real estate world, the standard practice is to submit a contract and await the counteroffer from the seller. That method works very well in the residential setting; however, this method isn’t as efficient in commercial real estate applications. . . .Read more
How many counteroffers should I endure?
The short answer is, as many as it takes! Here’s why…
Negotiating real estate, whether residential or commercial, can be a gut wrenching, time consuming, labor intensive, hair-pulling series of events that ends up putting you and the family pet on edge! True that! But when do you say enough is enough? My answer; when you finally get your point across!
Recently, I had eight counters on a relatively small commercial sales transaction. Although my client was ready to throw up their hands and give in to the seller's desire on iteration number five, I encouraged them to hang in there strong, as the item which was causing the counteroffers was of the utmost importance; zoning approval. Without approval on this non-conforming property use, the client would be unable to “use” the property for their particular business. That’s huge!
In my visitation with the Zoning Director for that county, the time line was defined for the rezoning and the seller wanted nothing to do with the additional time required to get through the zoning process. However, on iteration number eight and three weeks later, the point was made, the appropriate time was defined, and our contract position was accepted and set for the duration of the contract.
Now, some terms and conditions may not be as important. How do you know? Have you or your broker consulted on the results of what happens if you "give in" on the term? My best advice is for you to have professional legal or realtor representation when working through a commercial sale or leasing of a space.
In this recent case, zoning mattered and it mattered in a big way! It was well worth the three week wrestling match and the family pet on edge for a period of time. Other terms, though, may not be as important. However, having a professional on your side can make the difference of purchasing a property that you can use and/or a property that you can't use. Never put the ease of making a deal and/or the other party’s terms ahead of your own. If you need assistance in discerning what is right for you, always consult a professional. . . .
PRICE REDUCED! . . .Read more
My involvement this week with the realtors was an eye opening and awesome experience! The realtors are out there making a difference in fighting for the property owner’s rights, as well as working on encouraging Legislation like HB 563 – The First-Time Homebuyer’s Savings Account. . . .Read more
I was recently contacted by a client to represent them as they had a request to sell just a few “mere feet” of their property to a residential developer. The client’s “mere feet” of property was required so the developer (who was developing next door), could add an additional home site to their development. . . .Read more
Are you looking to save money? Are you paying PMI (Private Mortgage Insurance)? Were you aware that conditions are right for taking a closer look at your mortgage statement? Check it out! If you are paying PMI, I encourage you to continue reading in hopes of saving some money each month. . . .Read more
Many times, clients ask me how to "make money" in commercial real estate. There are many ways to quantify the return on one's investment. CCIM'S (Certified Commercial Investment Members), are trained in mathematical and financial formulas, equations, and disciplines to determine one's return on and of an Investment. From IRR's to FMRR's, the commercial real estate professional can assist their client in evaluating their financial Investment.
Although the evaluating tools and functions listed above are important in determining one's Investment and they can quantify one's investment, the "make money" part of the equation often comes down to what price in which the property was originally purchased.
Yes, the purchase price matters! Many say that the "money is made on real estate when the property is purchased" and they are right! The management of the investment and other financial decisions associated with the property does matter, if the property is purchased right on "the day of purchase", it does help cover a multitude of lower expectations during the term of the investment.
If you need assistance in assessing your commercial real estate investment or if you are looking to invest in commercial real estate, allow us to assist in the effort. We can provide an assessment on existing or new investments and project performance goals, while suggesting the right number to buy or sell your commercial real estate investment.