Cashflow Financing

When Your Tenant Is Not Paying Rent For Their Commercial Real Estate, What To Do?

When Your Tenant Is Not Paying Rent For Their Commercial Real Estate, What To Do?

Larry Gonzalez No Comments

Your Tenant Is Not Paying Rent – What To Do?

Many beginning investors do not know this interesting piece of knowledge, but they can receive local help for their commercial real estate investment ventures about what to do when your tenant is not paying rent. You can contact your local small business administration and take use of services that they may have for first time investors, as well as for small business owners.

Today there are lots of opportunities in commercial real estate investment. When you compare an investment in residential real estate with one in commercial real estate, it is quite clear that commercial real estate is the way to go.

Secure your lines of financing before you go looking for commercial real estate to buy. When you know exactly how much capital you have to play with, you will find it far easier to narrow your search. This will also give you an upper hand in negotiations as you’re ready to purchase immediately.

Today there are lots of opportunities in commercial real estate investment. When you compare an investment in residential real estate with one in commercial real estate, it is quite clear that commercial real estate is the way to go. The biggest problem you may encounter however is tenants not paying rent. This is where having the right financing in place can help you in these times of reduced rental income.

During the process of looking for a commercial real estate property, it is important to ask your broker any questions you may have. You could end up agreeing to something that you are not pleased with or losing out on something that you were really looking for if you don’t.

Secure your lines of financing before you go looking for commercial real estate to buy. In the long-term, commercial real estate investments are bound to be among the most profitable investments possible. It can be frustrating to find a good commercial property, and managing commercial real estate can be quite challenging.

Finding commercial real estate to invest in is a daunting and time consuming process. If you do not take the time to carefully calculate the costs and fees that are involved, you may very well find that you have gotten in over your head and can not actually afford what you have invested in.

When purchasing an investment property, don’t forget to think sensibly. If a deal really is to good to be true if it appears that way.

Real estate often seems like a great way to invest, and it truly often is. There are, however, many pitfalls that can happen to a new investor, and so it is very important that you do not put all of your eggs into one basket when you think about real estate.

In the long-term, commercial real estate investments are bound to be among the most profitable investments possible. It can be frustrating to find a good commercial property and managing commercial real estate can be quite challenging.

If you get your emotions involved, investing in real estate can be a tricky proposition. Real estate deals will go and come and if you sacrifice your emotions on any given deal, you will surely make unwise choices or spend more time on regret than business. Keep your focus on the end result, not the deal that you missed.

Warren Buffett | Protect Yourself From Economic Inflation

Sam Johnson No Comments

inflation What is inflation actually

Here is definition of what it is in economics according to Wikipedia. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer services and goods. Consequently, annual inflation is also an erosion in the purchasing power of money. It is loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate. It is the annualized percentage change in a general price index (normally the Consumer Price Index) over time.

Weapon against Inflation

In my opinion, the only way to deal with it is to divert our funds into the investment world. I only recommend you this inflation killer weapon because of two factors. Investment instruments are secure and liquid.

Investment world is something which is totally unpredictable with certainty. Although it can be predicted through various approaches of knowledge. There is definitely something in the investment that can “kill the inflation” that erodes the value of your money. So what are you waiting for?

But before investing, it’s better for you to test drive your insurance first. So you can stay safe with your saving. Equip your weapon with third party protection like life insurance.

 

 

There are forms of investments that are considered more aggressive than others. The stock price changes tend to be more rapidly than gold. Stock market investment is a category of high risk high return, so you have to be more careful for these instruments. The development of the stock price is also very promising.

Pure gold is a relatively safe form of investment because its price tends to rise although slowly (within months). Please note the gold price movement over the past five years in goldprice.org. The development of the gold price is very promising for investors in this sector.in

Cashflow and the Family Business

Larry Gonzalez 2 comments

Most businesses have issues with cashflow as it never seems be that expenses need to be paid before you actually get paid.  Unless you are a well established business and your income is predictable for years, banks can be a very fickle place to get help with this issue.

Personally, I like to deal with non-bank lenders as I find them much better to work with.  In my family’s experience, asking a bank for a loan has always been an awkward experience so we tend to stay away from it.  What I mean by awkward is that they want to know everything about you and the business history for many years.  When I need Small Business Funding, I need it when I apply for it, not in 3 months from now and I do not want the bank to take a lien on every piece of machinery and acre of land we have when I only need funding to cover some Operating Expenses.

Create Cashflow with a Farm Market Stand

 

If I were looking to borrow money to buy more land, I would be willing to use that land as collateral, but if I only need a Short-term Business Loan, why would I be expected to tie up everything I own as collateral.  To me, that is just tying my hands so I cannot work forward.

Alternative Cashflow Lenders will generally take the items involved in the transaction as collateral, and that is it.

What I mean by that is if you are looking for Cashflow Financing to cover short term Operational Expenses, Accounts Receivable Factoring or Accounts Receivable Financing as it is also called, the lender will take the Accounts Receivables as collateral.  Generally speaking, they will not want to take a lien on everything you own – commercially and personally – like the banks will nearly always do.

Now I will say, that as far as interest is concerned, the alternative lenders do charge a bit more than a bank would but to me, the cost far outweighs the benefits of keeping your other assets available for leveraging if the need arises.  To me, if I had everything tied up with the bank and then I needed to get additional funding for something and because of that I would need to go back to the bank, hat in hand, asking to have permission to do something with my own property – that is awkward to say the least!

Now I am not going to tell you which alternative lender to go to because everyone has their preferences but I will say that for me, I tend to return to the same lender each time the need arises as I can work with them seamlessly from where I am, I do not need to travel to the city for countless meetings which takes me away from what I should be doing.  I like to do as much as I can over the internet and the Commercial Lenders on the internet allow me to get the funding I need with the least amount of inconvenience.

As always, if you have any comments or questions, feel free to message me.

 

 

AR Factoring for Farmers Market Operations

Larry Gonzalez No Comments

In Ohio, we have some of the best Farmers’ Markets anywhere and it can be a pretty good seasonal business. Many farmers have their own road side stands and these same farmers will sell on a wholesale basis to other stands or markets. While most farmers do require to be paid upon delivery of their produce, some of the bigger markets cannot operate that way and will pay on terms – usually net 30 days.

Farmers Market Sign

If you are working with the larger markets, which is much simpler for a farm to supply, not having to worry about the smaller markets who only need a little produce every few days, it is much better for business if you sell to the larger markets so that you have only a few customers to be concerned with.

The downside to that plan is that you will need to cover the expenses until the time that the large markets make the payment to you. This is where AR Factoring comes into play. These larger markets will typically be customers which most Accounts Receivable Factoring Companies will have no problem advancing funds against the delivered goods from which the invoices were generated for.

How this works is like this:

  • You deliver the produce to the market and raise an invoice at that time and have the market sign a confirmation of delivery for the order;
  • You provide the invoice and the proof of delivery to the Factoring Company;
  • The Factoring Company will then give you an advance on the sale based on the face value of the invoice raised;
  • The Factoring Company will then do the collection of the invoice from the market;
  • When the market pays, the Factoring Company will then give you the balance of the funds less a service fee for the advance based on the number of days the funds have been in your possession.

Financing of Accounts Receivables really is a simple solution for many businesses to help cover the costs of Farmers Market Operations which include the harvesting, packaging, shipping as well as fuel and labor costs related to all these activities.

Now a word of caution: Not all Alternative Lenders do work with food related industries so when you are looking for an Alternative Lender for your cash flow assistance, be sure to let them know up front that you are a farm and which products you work with. Some foods carry different ratings than other due to spoilage probability and price volatility.  You do not want to go through the process of getting approved for funding only to find in the end that you will not be able to put everything in place due to an oversight.

Personally, I have had great success with this type of funding for our Agricultural Business, hopefully this advice will help yours.

AB Don PicMy name is Don Goldberg and I am a farmer in Ohio, USA and my family has been involved with farming before our family made the move to the United States four generations ago. [more]
Ohio Farm Bureau