Property Inspection: There are 2 main reports for commercial properties.

• Your advisor will order a property inspection report from a commercial property inspection company and provide you with a report. This report will assess the condition of the property including the description of the building, site drainage and paving, structural components, roof composition, parking lot and landscaping, cursory inspection
  Tradeshow Booth Cures - Living Color
  Feng Shui is the Ancient Chinese practice of configuring home or work environments to promote health, happiness, and prosperity. By utilizing elements such as light and color, Feng Shui Masters used their skill to promote the flow of “chi”, or vital energy , to protect and enhance the prosperity of the Imperial Dynasties. Widely practiced today, Feng Shui theory focuses on methods to manage the flow of energy and with skillful application, can effectively lead people into your booth.Johnny Cash had his all-black attire, Christo had the saffron-draped “gates” in Central Park. Were they embracing Feng Shui color principles? Perhaps not consciously, but both men instinctively knew the incredible impact that color has on our mood and our perceptions. Retailers and marketing professionals embrace color as one of their most effective tools. Psychologists have suggested that color impression can account for 60% of the acceptance or rejection of
  Now that your offer for a commercial property has been accepted, your purchase contract will specify that you have somewhere between 15-30 days due diligence period to investigate about the property. As a result of your investigations you will decide either to:
  • Cancel the purchase and get your full refund of your deposit. It's important to know that during this due diligence period you can cancel the transaction for any reasons and are not required to justify your reason with the seller.
  • Continue on with the transaction.

  So it is important that you investigate thoroughly about the property. Once the due diligence period expires, you can only cancel the transaction if the loan if not approved. While your real estate advisor will assist you with the following tasks, you may want to know the whole process to make sure you understand what is going on.
  
  Physical Inspection: This may be the first time you visit the property as it may be located far away from your home. You could either visit by yourself or make an appointment with the current property manager to show you around (if so, use this as an opportunity to meet and evaluate a potential property manager). It is very common that the seller does not want potential buyers to talk to existing tenants and let them know that the property is for sale. Refer to the articles "What ‘Location' Means in Commercial Real Estate" and "Things to Consider When You Purchase a Commercial Property" posted on http://www.efundingcom.com/ website to identify things you should pay attention and evaluate. You may want to plan ahead and have a list of things that you want to find out about the property and the method you use to get the information. You may need to be creative in your method of getting the information. For example: you may want to find out:

  • If the restaurant tenant is doing well by having lunch there.
  • If the Dry cleaner tenant plans to renew the lease by asking casually if the business is doing well.
  You will get a lot of information by talking to the tenants (don't let them know the property is for sale) in the center without letting them know you could be their landlord.
  
  Book & Records: Normally within 10 days the seller will provide you with information about:
  • Income and expenses: this includes rent, reimbursements from tenants from the last 2-3 years. Ideally the income should go up from year to year due to rent increase. If the income fluctuates from year to year, then it's a red flag that you need to understand the reason. You also want to know if the tenants pay rent on time or not. Regarding expenses, you want to make sure you receive property tax statements, trash bills, utilities bills, sweeping bills, and landscaping & maintenance contracts. In California, property taxes will be automatically adjusted based on the purchase price. They could be a much higher if the purchase price is much higher than the current assessed value. However, in many other states properties are re-assessed for property taxes purposes every few years and are not necessarily based on the purchase price. As a result, new property taxes may not increase as much as in California. The bottom line is you want to verify the Net Operating Income (Income after all expenses or NOI) is correct as advertised.
  • Leases: commercial leases are typically 20-40 pages long. However, they are often identical except the tenant name, unit, rent and lease terms. You will need to verify the rent, lease term are the same or better than the numbers in the rent roll. If the seller says that the leases are NNN, verify in the lease which expenses paid by the landlord are reimbursed by the tenants. You also want to find out who pays for property management fee and the repairs of roof and structure. Sometimes the listing broker advertises that leases are NNN but does not mention the landlord has to pay for those expenses or include these expenses when calculating NOI.

  Property Inspection: There are 2 main reports for commercial properties.

  • Your advisor will order a property inspection report from a commercial property inspection company and provide you with a report. This report will assess the condition of the property including the description of the building, site drainage and paving, structural components, roof composition, parking lot and landscaping, cursory inspection o
    Top Ten Buyer Searches For Fine Jewelry On eBay!
    Are you looking for "Hot Items" to sell on your eBay Auction? Are you having trouble deciding on a category? Being an active eBayer, I am often asked about what products to sell. As explained in my book "eBay Marketing Wholesale SourcePak" finding the right product in the right category is cruical.Many people ask me whether jewelry is a good item to sell on their eBay auction. My opinion is yes, it can be. For the most part jewelry is easy to package and easy to ship. And provided you have done your research first, you should be able to make a good profit selling it. One of the points you will need to research before adding any jewelry to your eBay auction is, what are eBay shoppers looking for in the jewelry niche? Knowing this will help you to decide just what type of jewelry you could include in your auctions. Below you will find the "Top Ten Buyer Searches for Fine Jewelry on eBay" (at the time of this writing).10 - Earrings
    l Inspection: This may be the first time you visit the property as it may be located far away from your home. You could either visit by yourself or make an appointment with the current property manager to show you around (if so, use this as an opportunity to meet and evaluate a potential property manager). It is very common that the seller does not want potential buyers to talk to existing tenants and let them know that the property is for sale. Refer to the articles "What ‘Location' Means in Commercial Real Estate" and "Things to Consider When You Purchase a Commercial Property" posted on http://www.efundingcom.com/ website to identify things you should pay attention and evaluate. You may want to plan ahead and have a list of things that you want to find out about the property and the method you use to get the information. You may need to be creative in your method of getting the information. For example: you may want to find out:
    • If the restaurant tenant is doing well by having lunch there.
    • If the Dry cleaner tenant plans to renew the lease by asking casually if the business is doing well.
    You will get a lot of information by talking to the tenants (don't let them know the property is for sale) in the center without letting them know you could be their landlord.
    
    Book & Records: Normally within 10 days the seller will provide you with information about:
    • Income and expenses: this includes rent, reimbursements from tenants from the last 2-3 years. Ideally the income should go up from year to year due to rent increase. If the income fluctuates from year to year, then it's a red flag that you need to understand the reason. You also want to know if the tenants pay rent on time or not. Regarding expenses, you want to make sure you receive property tax statements, trash bills, utilities bills, sweeping bills, and landscaping & maintenance contracts. In California, property taxes will be automatically adjusted based on the purchase price. They could be a much higher if the purchase price is much higher than the current assessed value. However, in many other states properties are re-assessed for property taxes purposes every few years and are not necessarily based on the purchase price. As a result, new property taxes may not increase as much as in California. The bottom line is you want to verify the Net Operating Income (Income after all expenses or NOI) is correct as advertised.
    • Leases: commercial leases are typically 20-40 pages long. However, they are often identical except the tenant name, unit, rent and lease terms. You will need to verify the rent, lease term are the same or better than the numbers in the rent roll. If the seller says that the leases are NNN, verify in the lease which expenses paid by the landlord are reimbursed by the tenants. You also want to find out who pays for property management fee and the repairs of roof and structure. Sometimes the listing broker advertises that leases are NNN but does not mention the landlord has to pay for those expenses or include these expenses when calculating NOI.

    Property Inspection: There are 2 main reports for commercial properties.

    • Your advisor will order a property inspection report from a commercial property inspection company and provide you with a report. This report will assess the condition of the property including the description of the building, site drainage and paving, structural components, roof composition, parking lot and landscaping, cursory inspection
      Going Back To Get Ahead
      Have you ever run DOWN an escalator that was going UP? Well, I did at the Tampa Airport last week. Here's what happened:Last Wednesday I was scheduled to fly from Tampa through Dallas to Phoenix on American Airlines. I just got back from Chicago the day before. It was a very busy week for me.Usually I fly United Airlines but I just fired them. I'm not a spoiled brat or upper crust in any way. But I do like to treat myself and upgrade to first class once in a Blue Moon.United Airlines has managed to p_ _ _ off most of their Executive Premier status flyers with the introduction of "Ted," and the elimination first-class upgrades when flying from Tampa.Back to the story. I'm checking in for my American Airlines flight, using the self check-in terminal. As soon as I swipe my credit card they know who I am. The screen shows my itinerary and YIPPEE - my upgrade request for both legs of the flight to Phoenix have been app
      ative in your method of getting the information. For example: you may want to find out:
      • If the restaurant tenant is doing well by having lunch there.
      • If the Dry cleaner tenant plans to renew the lease by asking casually if the business is doing well.
      You will get a lot of information by talking to the tenants (don't let them know the property is for sale) in the center without letting them know you could be their landlord.
      
      Book & Records: Normally within 10 days the seller will provide you with information about:
      • Income and expenses: this includes rent, reimbursements from tenants from the last 2-3 years. Ideally the income should go up from year to year due to rent increase. If the income fluctuates from year to year, then it's a red flag that you need to understand the reason. You also want to know if the tenants pay rent on time or not. Regarding expenses, you want to make sure you receive property tax statements, trash bills, utilities bills, sweeping bills, and landscaping & maintenance contracts. In California, property taxes will be automatically adjusted based on the purchase price. They could be a much higher if the purchase price is much higher than the current assessed value. However, in many other states properties are re-assessed for property taxes purposes every few years and are not necessarily based on the purchase price. As a result, new property taxes may not increase as much as in California. The bottom line is you want to verify the Net Operating Income (Income after all expenses or NOI) is correct as advertised.
      • Leases: commercial leases are typically 20-40 pages long. However, they are often identical except the tenant name, unit, rent and lease terms. You will need to verify the rent, lease term are the same or better than the numbers in the rent roll. If the seller says that the leases are NNN, verify in the lease which expenses paid by the landlord are reimbursed by the tenants. You also want to find out who pays for property management fee and the repairs of roof and structure. Sometimes the listing broker advertises that leases are NNN but does not mention the landlord has to pay for those expenses or include these expenses when calculating NOI.

      Property Inspection: There are 2 main reports for commercial properties.

      • Your advisor will order a property inspection report from a commercial property inspection company and provide you with a report. This report will assess the condition of the property including the description of the building, site drainage and paving, structural components, roof composition, parking lot and landscaping, cursory inspection
        Mobile Home Owners Are Put On Alert
        Do you own a Mobile Home? Do you live in a Mobile Home Park? Is your rent going up, up and up? Do you know when the rent hikes are going to stop? If this fear is what you live with on a daily basis, read on.Mobile Park owners have complete control over the amount of money they charge you on a monthly basis. They can raise your rent anytime whenever the whim hits them.We are the home owners? Don't we have any rights or say so in this matter?Every person that lives in a Mobile Home Park and pays rent must read this article and respond. This is your home. This is the place where all your money is tied up and where you raise your family. This is where you hang your hat and call home.If rent hikes get any higher how long are you going to be able to continue living in your Mobile Home?What is going to happen to your wonderful home?There is legislation in Washington being discussed right now. You must be aware of th
        Regarding expenses, you want to make sure you receive property tax statements, trash bills, utilities bills, sweeping bills, and landscaping & maintenance contracts. In California, property taxes will be automatically adjusted based on the purchase price. They could be a much higher if the purchase price is much higher than the current assessed value. However, in many other states properties are re-assessed for property taxes purposes every few years and are not necessarily based on the purchase price. As a result, new property taxes may not increase as much as in California. The bottom line is you want to verify the Net Operating Income (Income after all expenses or NOI) is correct as advertised.
      • Leases: commercial leases are typically 20-40 pages long. However, they are often identical except the tenant name, unit, rent and lease terms. You will need to verify the rent, lease term are the same or better than the numbers in the rent roll. If the seller says that the leases are NNN, verify in the lease which expenses paid by the landlord are reimbursed by the tenants. You also want to find out who pays for property management fee and the repairs of roof and structure. Sometimes the listing broker advertises that leases are NNN but does not mention the landlord has to pay for those expenses or include these expenses when calculating NOI.

      Property Inspection: There are 2 main reports for commercial properties.

      • Your advisor will order a property inspection report from a commercial property inspection company and provide you with a report. This report will assess the condition of the property including the description of the building, site drainage and paving, structural components, roof composition, parking lot and landscaping, cursory inspection
        A Biz That Will Pay It Forward... Answer To This Calling & Start To Be A Blessing
        The Internet is often thought of being a Jungle! What should we believe or doubt? The crisis of faith in humankind is dramatically amplified with the birth of this Jungle...This is nothing new. The truth is, the internet is yet another means of human communication... People get excited when they can communicate using the walkie talkie, telephone, the newspapers, magazines, brochures, posters, radio, television... After some time, we have seen how such communication channels were used for both good and evil... What makes the Internet any different?What if we can one day teleport to any place in the world? Will there even be a need for earning money? Wouldn't there be thefts as people teleport into "unsecured" banks to conveniently take some cash? Crime rates could soar sky high too! Will there be some superheroes to save the day? Perhaps... Perhaps we need to start thinking of creating a world that does
        ter than the numbers in the rent roll. If the seller says that the leases are NNN, verify in the lease which expenses paid by the landlord are reimbursed by the tenants. You also want to find out who pays for property management fee and the repairs of roof and structure. Sometimes the listing broker advertises that leases are NNN but does not mention the landlord has to pay for those expenses or include these expenses when calculating NOI.

      Property Inspection: There are 2 main reports for commercial properties.

      • Your advisor will order a property inspection report from a commercial property inspection company and provide you with a report. This report will assess the condition of the property including the description of the building, site drainage and paving, structural components, roof composition, parking lot and landscaping, cursory inspection of electrical systems, plumbing systems, heat/ventilation/AC systems, fire protection, and compliance to Americans with Disabilities Act (ADA). The report also provides a rough estimate to correct critical deficiencies. You should take time to read this property inspection report, talk to the property inspector if needed and let your advisor know if you want the seller to repair anything, preferably at seller's costs. As a rule of thumb, you would like all deficiencies related to health and safety, e.g. emergency exit light not working or exposed electrical wiring to be taken care of before close of escrow. The language in some of these inspection reports may sound very scary as property inspection companies try to limit their exposure to liabilities for not warning the buyers about some of the deficiencies.

      • The lender will order a "Phase I" or Environment Assessment Report. This report will tell you if the soil is contaminated or not. It also provides a list of contaminated sites within ? miles from the property. The report could be several hundred pages long. You should at least read the summary which is 1-2 pages long to see if there are any recommendations and anything unusual. Normally there are 2 possibilities:
        • There is no evidence of contamination so there is nothing to worry about;
        • There is evidence of possible soil contamination, e.g. underground tank. The inspection may recommend a more expensive Phase II Report. This involves testing the water and soil to measure the level of contamination if any. If the level exceeds a certain governmental standards, the lender will most likely decline the loan.

      Title & Survey: You will receive a title commitment which insures that you have a clear title to the property. It will tell you who owns the property so this owner should be the seller in the purchase contract. You should review the requirements and exceptions to the title insurance to make sure you are comfortable with them. The survey should tell you the lot size, foot print of the building, the number of parking spaces (is there enough parking spaces for tenants & customers?) and notes from the surveyor. You may want to read some of the notes to see if there is anything unusual, e.g. the roof may encroach the adjacent property.

      Financing: your advisor should assist you with getting financing for the purchase by sending the loan application to several commercial lenders. Preferably you should receive a couple Letters of Intent (LOI) from commercial lenders stating

      • How much loan you can borrow
      • Interest rate
      • Terms
      • Loan fees
      While the LOI's are not final loan approval, they give you a rough idea if you have enough money to close the transaction and what your cash flow will be. This in turn helps you decide if it makes investment sense to move forward. Once you complete all the above steps, you should have enough information to make a decision to move forward or cancel the transaction.