Browsing the archives for the Commercial Real Estate tag.

Why Use a CRE Mentor?

Commercial Real Estate, Real Estate

Mentoring Testimonial

 

Real estate is a complex business and it becomes even more complex once you add the variables of a commercial income property.  The rules are similar but applied differently than residential. The motivations of buyers, sellers, landlords and tenants are also different.

A tenant might ask for a location based on demographics, traffic counts, signage, foot traffic, required parking ratios and so on. For a retail center or an office building, a landlord will want to maximize their income with the right tenant mix and market rents. Multifamily residential landlords may want to maximize their income with tenants at market rates, reduce operating expenses that they pay to increase NOI and create a minimal vacancy loss factor. Multifamily landlords can’t choose where to put their tenants for the best mix per the requirements of fair housing. All these distinctions of the different product types in commercial real estate make it critical to have a mentor in your corner.

Find a mentor who can guide you in the product types you want wish to focus on.  They will help you grow in your focus from counting mailboxes on a multifamily building to get an idea of the number of units to understanding desirable parking ratios for a tenant going into a retail center. There is always something to learn in this business. Building your knowledge from an industry veteran’s experience is one of the fastest ways to get up to speed.

In the Chicago market, I would recommend the mentoring of Paul Martis of Newcastle Team, Coldwell Banker Residential/Commercial in Oak Brook, IL. He can mentor for an office as well as individuals. Paul is a 20 year industry veteran who is experienced and respected as a commercial broker, an instructor, a mentor and as someone who gets involved in the real estate community at large. Many Realtor brokerages do a mix of residential and commercial but their resources for commercial are limited to what the association provides.  Paul Martis provides knowledge through his programs that helps brokers understand how to get deals done.

Best of luck to all who venture into this industry and I hope to see you at a closing table someday.

John Guill

Advisor

Sperry Van Ness

25 N Third St.

Geneva, IL 60134

630-699-4914 Direct

630-938-4950 Office

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Mission Statement

Commercial Real Estate, Real Estate

Cincopa WordPress plugin

At Newcastle Team, we are commercial realtors® who deliver on tenacity, competence and experience to assist you with locating, evaluating and negotiating your next commercial transaction.

Real estate professionals, who understand technology, utilize best practices in research and deliver the right message to local, regional, national and international markets.

We are producers, portfolio builders and entrepreneurs, well equipped for the challenges, insights and opportunities associated with real estate.

Warren Buffet once said “In Business, I look for economic castles protected by unbreachable moats”.

Whether leasing, selling or buying, let the Newcastle Team strengthen your opportunity for success.

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Free App for Commercial Real Estate Education

Commercial Real Estate, Real Estate, Uncategorized

Free app for Commercial Real Estate Education http://newcastleteam.isites.us/

WordPress Blogs, Tips, Checklists, Useful Commercial Websites.

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Real Estate Agents Opportunities

Uncategorized

Agent Relationships-Building Better Referral Bridges
http://wp.me/pzXV5-8

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Working with Commercial REO’s

Commercial Real Estate, Real Estate, Uncategorized

As-Is Asset Memorandum, BOV, BPO

Bank determines level of reporting

 

1. As-Is Asset Memorandum:

Property owner misses several payments, doesn’t communicate with bank and foreclosure proceedings start.  Bank requests  full inspection and comprehensive report or drive-by to see condition of outside if building exists.

Comments include observation of current or future sales activity, tax delinquencies and pricing evaluation.  Asset memo should always include pictures, comments.

 

2. BOV   (Broker Opinion of Value): Provide comments about regular marketing cycle needed to sell property and for a quick sale. Supporting documents if available, tax records, parcel map, aerial maps, appraisal, survey, citations, environmental, easements.

 

3. BPO   (Broker Price Opinion):

Bank defines specific information required to complete a comprehensive spreadsheet for Broker Price Opinion.                       This spreadsheet if required should be attached to the Asset Memorandum or Broker Opinion of Value (BPO)

 

12 Comments

Checklist for Multi-Family Unit Preview

Real Estate

CHECKLIST FOR MULTI-FAMILY UNIT PREVIEW

Unit #____________

 

1. Address_________________________________________________

                  _________________________________________________

                  _________________________________________________

 

2. Vacant? _____________

3. Appliances: Refrigerator__________________, Stove______________

                         Other________________________

4. Systems:                       Electrical                                        Plumbing

                  Kitchen      __________________                      _____________

                  Living Rm __________________                      _____________

                  Bed Rooms _________________                       _____________

                  Bath Room _________________                       _____________

 

5. Mechanicals Condition (Good, Fair, Bad): Hot water Heaters_________; Furnaces__________; Air Conditioners_______; Sump Pumps_______; Water Softeners_______  (owned or leased)________.

6. Cleanliness and general upkeep: Good___  Fair___ Bad____

General Comments ___________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

 

Date:_________________________________________

 

Real Estate Agent_______________________________

3 Comments

Real Estate Investment Financial Model

Real Estate

When you are working with a real estate investment client or analyzing income producing properties for yourself, a good finacial model can give you a quick financial snapshot of the purchase or sale potential of a given property.

Find a real estate financial model thats easy to understand, that calculates as you to tab to the next open entry and that generates an amoritization table.

7 Comments

Checklist for Multi-Family Building- Agent Inspection

Real Estate

CHECKLIST FOR  BUILDING PREVIEW

 

1. Address__________________________________________________

2. Meters – are they separate for: Electric_____; Water_______; Gas_______.   Yes/No.

 

3. Leases._______ Yes/No.   Duration________.

 

4. Vacancy %: _____________

 

5. Number of apartments: ________

 

6. Mechanicals Condition (Good, Fair, Bad): Hot water Heater_________; Furnace__________; Air Conditioner_______; Sump Pump_______; Water Softener_______  (owned or leased)________.

 

7. Cleanliness and general upkeep: Good___  Fair___ Bad____

 

8. Roof Age: ______. Type of roof: _______

 

9. Neighborhood: Good____ Fair____ Bad____

 

10. Appliances that stay: Refrigerator___; Stove____; Dishwasher____;    Washer____; Dryer____; Window Air Conditioner____; Dehumidifier_____; Humidifier_____; Air Cleaner_____.

 

11. Financials: Rents by unit; property taxes; insurance; other.

 

12. What papers are ads run in to rent a unit? ______________

Cost? _______

 

13. Seller assistance in financing? ______         How much? ________

 

14. Why is owner selling? _________________________________

 

15. Available parking: # of spaces______    Garage: # of cars________

 

16. Property Taxes: Date of latest reassessment:___________

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Useful Commercial Real Estate Websites

Real Estate, Uncategorized

Useful Websites

 

Commercial Organizations

 

Building Owners and Managers Association

www.boma.org

 

Shopping Centers

www.icsc.org

 

National Apartment Association

www.naahq.org

 

Certified Investment Commercial Member (CCIM)

www.ccim.com

 

Society of Industrial and Office Realtors (SIOR)

www.sior.com

 

Real Estate Land Institute (RLI)

www.rliland.com

 

 

Land Listing Sites

These Internet sites provide information about current listings. Most are

searchable by specific criteria. Many also offer a place to list what type of

property you are looking for so that others can match their property to your

needs.

 

  • Costar

www.costar.com

A robust site for comparable analyis.

Free to list.

 

  • LoopNet

www.loopnet.com

Extensive commercial and land-listing database,

Free to search.

 

  • MLS

www.connectmls.com

Listings within limited geographical boundaries.

 

  • Ø Gensburg Commercial and Industrial Services

www.gensburgltd.com

Free to list

Land Values

There are many sites available on the Internet that provide information to help

calculate land values. These include agricultural land surveys, State

Universities and the United States Department of Agriculture (USDA).

 

  • REALTORS® Land Institute (RLI)

www.rliland.com

Many of the properties are rural

Urban Development Information

  • The U.S. Department of Housing and Urban Development

www.hud.gov/states.html

The U.S. Department of Housing and Urban Development site that lists

executive summaries of consolidated plans for communities across

America.

  • The U.S. Department of Housing and Urban Development- Community

www.hud.gov/commut.html

HUD connections to community topics, cities, and governments on the

Internet, community maps, local plans, brown fields, and other community

resources.

  • Urban Land Institute (ULI)

www.ULI.org

ULI is a community of practice for those engaged in the entrepreneurial

and collaboration process of real estate development and land use policymaking.

Recreational Information

  • Bureau of Land Management (BLM)

www.blm.gov/nhp/index.htm

The Bureau of Land Management (BLM), an agency within the U.S.

Department of the Interior, administers 262 million acres of America’s

public lands, located primarily in 12 Western States. Contact the local

BLM office for additional information about local BLM recreation uses.

  • Recreation on Public Lands

www.recreation.gov/

Contains information on recreation sites for all Federal public lands.

 

Gend l Systems

GIS (Geographic Information Systems)

Geographic Information Systems are computer-based tools for mapping and

geographically analyzing objects and demographic patterns. These tools can

help to determine the best locations for your client’s needs. Some examples

include:

Choosing the best site for restaurants, stores, warehouses, and corporate offices

Proximity to suitable customers

Location of potential competitors

Crime rates

Transportation infrastructure

Local labor pool characteristics

Environmental Risk Factors

Flood plains, toxic sites, etc

 

 

There are many sites available on the Internet that provide information about

GIS, links to GIS sites, and links to companies that provide GIS tools.

 

Environmental Systems Research Institute

www.esri.com

Web site for ESRI, the makers of Arc View© GIS software. Information on

products, map information, training. Software that help to create maps by

themes such as population, gender, marital status, etc. Very useful to help

your clients find a location with specific demographic information.

 

GIS WWW Resource List

www.geo.ed.ac.uk/home/giswww.html

A page of resource links for GIS resources around the world. Created and

maintained by University of Edinburgh.

  • The GIS Data Depot

www.gisdatadepot.com/

Information about GIS, software and tools. Free data and downloads.

  • The GIS Portal

www.gisportal.com

Links to other GIS sites, mapping technology and software.

  • Guide to GIS Resources on the Internet

http://sunsite.berkeley.edu/GIS/gisnet.html

Internet guide to GIS Resources.

 

  • National Atlas of the United States

www.-atlas.usgs.gov

 

Provides searchable, downloadable maps of the U.S. from United States

Geological Survey (USGS).

  • U.S. Census

www.census.gov/geo/www/gis_gateway.html

The U.S. Census hosts this page as a gateway to GIS resources.

U.S. Census Frequently asked questions about GIS

www.census.gov/geo/www/faq-index.html

  • United States Geological Survey (USGS)

www.usgs.gov

The official site for the United States Geological Survey. Great

information, maps, and links. Free and for sale resources, including maps and GIS data sets.

 

 

Mapping Services and Products

These are services and products that will create maps. They are useful to help

with driving directions and times, locating landmarks, and locating specific

addresses.

  • Satellite Images

www.earth.google.com

On-line mapping service from Google

  • On-line Map Creation

www.aquarius.geomar.de/omc/

Create your own maps.

  • Street Atlas

www.delorme.com

DeLorme Home Page – Home page for Street Atlas 4.0 and other mapping products.

 

  • Ø MapBlast!

www.maps.live.com

Contains: maps, directions and 3D.

 

  • Maps.com

www.maps.com

Contains driving directions, address finding, on-line Yellow Pages,

weather, center & maps, geography, business traveler reference guide.

 

  • Map Quest

www.mapquest.com

On-line mapping service. Get driving directions, locate specific areas, etc.

The maps are downloadable to Palm OS devices so they can easily travel

with you.

Government and Statistics

The Internet provides you with access to census data, crime rates, economic

data, and comparisons of information from state to state or neighborhood to

neighborhood.

Some of the sites available on the Web that provide statistical information are

listed below:

 

  • Bureau of Labor Statistics

www.stats.bls.gov/blshome.htm

  • Ø Fedstats

www.fedstats.gov/regional.html

Statistics by regional area, census data, agricultural information, crime

statistics, energy, and environmental information.

  • Stateline.org

www.stateline.org

Information on your state’s happenings, economic and demographic data

for each state, comparison information, etc.

 

Research Information

In addition to the sites listed below, do not forget your local library and college

or university. Many local libraries now have Web sites that will let you search

their card catalog from your home or office to see what books are available

before your trip there. In addition, many local libraries have many of their

periodicals on-line. You can locate the article you need, and have it faxed or Emailed

to you. If you are unsure how to access your local library, or how to use

their services, contact your librarian for assistance.

Some starting points for research on the Internet are listed below.

  • ACNOdyssey

www.ACNOdyssey.com

Detailed profiles of every city, county and metropolitan area in the U.S.

can be found at this economic and community development site.

  • All Experts

www.allexperts.com

Ask various experts questions about a wide range of topics.

 

 

  • Ø Refdesk.com

www.refdesk.com

A great starting point for research. Includes links to on-line dictionaries,

encyclopedias, etc.

  • National Trust for Historic Preservation

www.nationaltrust.org

 

National Trust for Historic Preservation’s National Main Street Center

www.mainst.org

Information and resources on downtown revitalization through preservation

and economic development.

  • International Economic Development Council

www.iedcon-line.org/

International Economic Development Council Web site that contains links

to resources for economic development of communities.

 

  • MISC.Commercial Real Estate Investment Services

www.NewcastleTeam.net

  • Commercial News

www.commercialpropertynews.com

 

www.cityfeet.com

97 Comments

5+ unit Apartment Buildings for Investments

Real Estate

April  2011

Building a Real Estate Investment Portfolio 5+ unit Multi-Family Apartment Buildings

Locating…MLS, Realtor.com, Loopnet.com, COSTAR….know what your client wants, hold, repair and flip, long term investment?

Evaluating…Financial Model..look at area rents, Sales and determine Cap rates, changes in area…..due diligence, maintenance and repair fund, unfinished projects, deferred maintenance, strength of leases, liens, violations, known survey issues?

Negotiating…finding that price which works for your client…..buyer is looking for high cap rate, seller is looking for lower cap rate.    Can the buyer increase the NOI by increasing rents and/or reducing expenses.  Will the bank finance and at what risks.   Cash, 1031 exchange or other vs bank financing.  Will owner hold paper, for how long and at what rate?   Exit strategy for seller.

How far will you go in negotiating?  What are the Risks vs. Rewards and who gets the best deal?

Always negotiate from a position of strength…determine early if the seller is in a healthy equity position….obviously this is greatly diminished if the property is in need of a quick estate sale, short sale or in foreclosure.     Ask what the buyer is looking for other than the best price, ask seller what they are willing to do to make the deal go through?  Does the existing lender have a penalty clause for selling early?      Points of contention in negotiating a purchase: Purchase price, items which pass with the real estate, high vacancy, weak leases, no security deposits, unwillingness or unable to provide estoppel  certificates, environmental cleanup, credit for necessary repairs or likely system replacements, who pays for inspection/reinspection/mitigation, unwillingness to show all units, potential or known survey issues, neighborhood crime to include tenant issues?

Paul Martis-BrokerAssociate                                                                                                                                         Coldwell Banker Commercial NRT

www.NewcastleTeam.net

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