Category: Sale

Six Terms To Watch For In A Purchase Contract

Six Terms To Watch For In A Purchase Contract

Before signing on the dotted lines….

  1. The closing date. See if the date the buyer wants to take title is reasonable for you.
  2. The deposit. Look for the largest deposit possible. A large deposit is usually a good indication of a sincere buyer.
  3. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable.
  4. Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount.
  5. Contingencies. See what other conditions the buyer wants to have met before the contract is final e.g., inspection, sale of current residence, financing approval, review and approval of contract by their lawyer. Set time deadlines for completion of each of these contingencies, so that they don’t drag on and prevent your sale from being final and binding.
  6. The contract expiration date. See how long you have to make a decision on the contract.

As with all contracts – commercial real estate is just another area where getting the help of a professional real estate agent can be invaluable.  From start to closing.

Check out our agents’ profile or give us a call !

 

Source: http://www.albertarealestatelawyers.com/resourceinformationcommonrealestateterms.html

Searching For It Or Getting It From A Pro?

Searching For It Or Getting It From A Pro?

Do you have questions about commercial real estate? As a tenant, deciphering all the lingo in a commercial lease can be a daunting task. How to you know if you are getting the lease deal?

 

Alternatively, as a landlord do you have the time to market your industrial vacancy, review all the offer to lease being presented and ensure you get the best tenant for the space?

 

For sellers and buyers, things get even more complicated when selling or buying industrial properties or investment properties.

 

Do you think you are achieving your industrial or commercial real estate goals by going at it alone? (i.e. without the help of real estate pro)

 

Like everyone else – you could “google” and do some research. However, like finding out why you have an itch (answer: insect bite to more serious afflictions) finding real estate information online can lead to more confusion.

 

First – often the information found is general in nature. Based on our experience, each lease or purchase transactions are unique. What may work for one, may not work for another.

Secondly – does the information found is specific to the location (i.e. what’s acceptable in the US may not be applicable in Canada (or Alberta)

Thirdly – the sheer volume of information you can find online is mind boggling and confusing at best.

And lastly, the time required getting it all done while running your business.

 

What’s the solution to ensure your achieve those commercial and / or industrial real estate goals?   Get the advice of a qualified commercial real estate pro!

 

After taking the time to clearly understand your business, our real estate professionals will use their vast market know-how and experience to identify and present your best options. From leasing warehouse, storage, assembly space, to office space, to buying a commercial/industrial building as an owner/user or as an investment to industrial land. We are your one stop-shop in Calgary for industrial and commercial real estate services.

 

We will work for you – while your continue running your business!

 

What have you got to lose? Nothing….What you have got to gain?  EVERYTHING!

 

Let us search for the IDEAL space for your business!

4 Questions To Ask When Shopping For Acquisition

4 Questions To Ask When Shopping For Acquisition

 

 

Buying a business is a complex and important step in your life as an entrepreneur. Take the time to prepare now it will save you headaches down the road. Buying a company without a plan is like going on a road trip without a map.

Acquiring an up-and-running business can help your company to grow and diversify by giving you an established client base, eliminating a competitor or providing access to new products, equipment and markets.

 1) Does it make sense?

Don’t buy a business just because you can. You need a clear vision of where you want your company to be in future years and how an acquisition will help you get there. Will an acquisition increase your market share? Differentiate you from the competition? Diversify your revenue streams?

 2) Is your business ready?

Entrepreneurs often think exclusively in terms of what they can afford. You also need to ask yourself whether you are able to integrate the new company into your existing business. Acquisitions can be disruptive. They bring an influx of new clients, employees, infrastructure and organizational changes.

 3) What will the impact on your business?

Acquiring a company creates financial obligations and operational changes that can drain your cash-flow in the short run. If those changes aren’t properly handled, they can cause your company to spin out of control. That’s why it’s important—once you have a shortlist of potential acquisition targets—to simulate how different scenarios will impact your company.

 4) Do you know what you’re buying?

Shopping for a company is like shopping for anything else: Buyer beware. You want the best value, the best fit and the best price. Ask yourself why a company is for sale and what lasting value it offers, starting with the profits it’s generating. Financial records may not always reflect reality.

 

IMPORTANT TIPS:

 –  Avoid impulse buying.   Your accountant, business adviser and banker can all help you decide whether an acquisition is the best route for your business, given your overall strategic plan.

–  Technology can help you work smarter. Formal, system-based workflows will make your life easier when the time comes to integrate a new business.

–  Proper planning helps you evaluate the impact of an acquisition on your working capital and allow you to properly structure your balance sheet.

–  Do your homework on the business you’re buying. Find out as much as you can about the company and its employees as well as the industry or region they operate in (if they are different from your own).

 

 

6 types of commercial real estate investments

6

Types Of Commercial Real Estate Investments

 

Each type of commercial property has different risks and rewards. When you’re comparing properties, it’s a good idea to ask yourself some questions. How much income do you expect the property to generate? How long do you want to hold the investment? How hot is the market for this type of property? How much risk are you comfortable with?

The more research you do beforehand, the better your chances of succeeding as a commercial property investor.  This is where

1. Land Investments

Investing in raw land can be extremely lucrative for an investor who understands the market. There are several ways to make money with land. If you own farmland, for example, you could allow local farmers to use the land to grow crops or raise livestock.

If the land is wooded, you could allow logging companies to harvest the timber on the property. You can also buy and hold a piece of land, with the intention of selling it to a real estate developer later on. With the first two options, the financial payoff is more immediate but if you can find the right developer, you could end up with a nice profit from the third option.

2. Office Buildings

Office space is often in demand in cities big and small. If you live in a major metropolitan area, for instance, you could invest in a high-rise with multiple office units. If you live in a quieter town, you could opt for a medical office with a single tenant. The upside of investing in office space is that tenants may sign long leases, making it easier to project future profits.

3. Retail Space

Investing in retail space is similar to investing in office space in terms of the way you can make money. One important thing to consider when investing in retail space is location. If you’re investing in a strip mall with a dozen units, for example, it’s best to make sure the area has a steady stream of traffic. Otherwise, you could have units without tenants, which can drag down your profit margin.

4. Storage Units

Storage units don’t exactly sound glamorous but there’s definitely money to be made with this kind of real estate investment. You don’t have to invest in a large market either. Even small towns can have multiple storage facilities. Again, the key to predicting profitability is location in addition to local competition.

5. Multifamily Housing

Multifamily housing is a complicated way of saying apartment buildings. Even though these are residences for the people who rent out the units, they still fall under the category of commercial property. With the high demand for rental units and increasing rental prices, investing in an apartment building can generate a consistent stream of income for investors.

6. Industrial Property

Industrial property can mean lots of things – warehouses, manufacturing facilities, research facilities and the like. With these kinds of properties, it can be more difficult to gauge demand and you might have to look at the broader market to get a feel for how easy it’ll be to find tenants.

Choosing a Commercial Real Estate Investment

Each type of commercial property has different risks and rewards. When you’re comparing properties, it’s a good idea to ask yourself some questions. How much income do you expect the property to generate? How long do you want to hold the investment? How hot is the market for this type of property? How much risk are you comfortable with?

The more research you do beforehand, the better your chances of succeeding as a commercial property investor.

Source http://finance.yahoo.com/news/6-types-of-commercial-real-estate-investments-194654661.html

7 Commercial Investing Real Estate Terms

If you plan on investing in commercial real estate you should know the following terminology:

  1.  Net Operating Income (NOI)
  2. Cash and Cash Return (ROI)
  3. Capitalization Rate (Cap Rate)
  4. Debt Coverage Ratio (DCR)
  5. Price Per Unit
  6. Building Classification
  7. Types of Leases

Continue reading “7 Commercial Investing Real Estate Terms”