Just Elementary, Inc. » Real Estate Tips
Realtor & Real Estate Agents Referring Business Owner Clients to Business Brokers
Often times Real Estate Agents and Realtors are asked by their clients to help them sell an on-going business. (The industry jargon for selling businesses, is ‘Business Opportunity Listings’). But, can Real Estate Agents and Realtors sell businesses? In California they can, as the Department of Real Estate licenses Real Estate Salespersons and Real Estate Brokers to sell Real Property (Real Estate) and Chattel Real (Business Property). However, most real estate offices do not specialize … Read entire article »
Filed under: Real Estate Tips
Five Rules for Negotiating Commercial Leases
Your Bottom Line, is it important to you? Yes, ok, then let’s see where you can increase it. Occupancy cost is typically the first expense item we review as Commercial Brokers are at Just Elementary, Inc. Every business has a physical cost to exist and occupy space, even virtual businesses (think server space). For those business owners that lease the space that their business occupies, this post will cover Five basic Rules to negotiating or … Read entire article »
Filed under: Business Tips, Commercial Leasing, Landlord, Negotiation, Real Estate Tips, Renegotiation
Is My Industrial Business Lease Good or Bad?
Simple Things to consider whether your lease is friendly to your business, or is it holding your business back from growth and great profits and your lifestyle growths. Number 1, the occupancy cost. Simply put, this is the lease rate, plus NNN charges including other cost variables such as transportation costs and operational efficiencies. Ideally, the occupancy cost would be as low as possible. Given the fact that Industrial properties are not the ideal ‘outside investor’ type properties, the only major factor affecting real estate prices and lease rates is the health of the economy. In this recessionary market, most local industrial markets have seen lease rates plummet with skyrocketing vacancies. This means Industrial property prices have plunged and availabilities are high. So the good news is that you can attempt … Read entire article »
Filed under: Commercial Leasing, Landlord, Negotiation, Real Estate Tips, Renegotiation
CDC/504 SBA Loan Program
SBA/CDC 504 Loan Program The CDC/504 loan program is the only SBA loan in which the SBA puts up a single penny. Unlike other SBA loans, in which the SBA only provides a guarantee to the bank, in the CDC/504 program the SBA injects 40% of the Project cost into the loan. Fifty (50%) percent comes from the bank and the remaining (10%) comes from the borrower. So how does this program work? Well, a little … Read entire article »
Filed under: Business Tips, Real Estate Tips, SBA
Free Upgrades for Investment Rental Properties
Today’s RIAOC meeting was a quick meeting, but one that came with a good reminder. We all have probably heard of rebates and other programs from the major utility companies to help with energy savings. Well, today’s RIAOC guest speaker was Rosemarie Malijen from the Telacu Agency. Her agency is one of many that works with major utility companies to reach out to people to offer free energy efficiency upgrades for residential dwellings, multi family properties included (such as duplexes and fourplexes). Very important to note this program offers free upgrades to rental properties that are tenant occupied and even primary residences. Here is a link from the Southern California Gas Company that will let you check on the eligibility of your primary residence and any investment rental properties. … Read entire article »
Filed under: Business Tips, Real Estate Tips
Jargon
When reading online you may come across a plethora of acronyms and real estate terms that sound familiar, but you don’t know what they mean. Here are some Common Commercial Real Estate Terms: Leasing Related Terms: NNN: This is referred to as ‘Triple Net.’ This is a commercial leasing term that refers to leases in which the Lessee (tenant) pays the operating expenses of the property. In a full Triple Net lease, all of the operating expenses will be paid by the tenants, including, but not limited to, real property taxes, property maintenance (including the parking lot) and even the cost of the management company managing the property for the Lessor (Owner). Thus, in a NNN lease, the tenant pays a fixed Base Rent, and then pays additional NNN fees to … Read entire article »
Filed under: Business Tips, Real Estate Tips