Small Business Financing

You Can Sell Your Commercial Property Regardless Of The Economy

You Can Sell Your Commercial Property Regardless Of The Economy

Sam Johnson No Comments

Sell Your Commercial Property Regardless Of The Economy

Nowhere else in real estate is this as true, as with a commercial property. When dealing in anything commercial, you need to stay fully informed.

You can’t always rely on commercial real estate listings if you want to find the best property available for the best price. When deciding to invest in commercial properties, the idea is to make a profit, or an income. If you buy a property that does not make you money, you are simply a property owner, and haven’t really made an investment.

Network and make connections with other real estate investors, as this is an excellent way to learn about great deals. Not only is this a good way to find possible properties to buy, but you will also gain a great deal of knowledge from the different experiences of other investors.

If investing in commercial properties, always be aware that there are many other properties available. Nowhere else in real estate is this as true, as with commercial properties.

Instead of simply accumulating commercial properties, become on investor. When deciding to invest in commercial properties, the idea is to make a profit, or an income. If you buy a property that does not make you money, you are simply a property owner, and haven’t really made an investment.

Buying a commercial property is a process that takes much longer than purchasing a single family home. It is going to take more time to prepare the property so keep that in mind. Because you may end up making bad decisions as a result, do not try to rush and do things too fast.

Commercial real estate is a tricky business. If you do not take the effort to do a thorough inspection when you’re about to sell a piece or buy of commercial property, you may end up losing money in the long run.

When shopping for commercial real estate, using a property broker will save you a great deal of money and time. The broker will do a good bit of the grunt work for you and will be able to broker a better deal for you as they have a better knowledge about the market and more information about it.

One important tip to remember when investing in commercial real estate is that you are going to not only need a lot more money for a down payment, but you will have to pay much more for inspections and appraisals than you would for residential real estate. You may not end up purchasing the property you are investigating either, so you really need to have funds available for several inspections.

Always be aware that there are many other properties available if investing in commercial properties. Because you feel it is a last-resort, you should never allow yourself to feel pressured into a sale. Other properties always go up for sale, so keep away from becoming emotionally involved with your sales.

If you want to find the best property available for the best price, you can’t always rely on commercial real estate listings. Check out the article below and use these tips in order to find what you’re looking for in the commercial real estate market. Approaching the market from an informed standpoint, is always the way to go.

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.

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.

 

 

Heavy Equipment Financing

Sam Johnson No Comments

Have you ever tried to get Equipment Financing for your Heavy Equipment at a bank? If you have, you will relate to this article.

Last year I had to purchase a new combine for my farm and I just happened to be in my bank doing a deposit and I mentioned that I was on my way to the John Deere dealer to shop for a new combine. The teller I was dealing with, who was doing her job, suggested I speak with one of their representatives so the financing could be set up for the purchase. Since I had a bit of time on my hands, I decided to see what they had to say.

JD Combine

Let me say at this point, I have grown accustomed to dealing with a particular Alternative Lender for my Equipment Financing but I thought why not see what they can offer me.

To make a long story short, I met with the banker and he told me all about how the bank can offer. Once the niceties had concluded the bank proceeded to advise me of all the information they would need to have me supply they with which were the tax returns for the last 3 years, audited financial statements for the last 5 years, they wanted my wife to come in to fill out an application as well because they would need a joint personal guarantee from both of us and once they had that, they would be able to review the application to see if we could get approved. The review process was expected to take about 4 weeks once all information would be provided to them.

At that moment, I thanked the banker for his time and excused myself from his office.

Generally speaking, when you are dealing with an Alternative Commercial Lender, they will want the application completed, bank statements for the last couple of years and sometimes confirmation that our taxes are paid to the current date.

Processing time with the Equipment Finance Company I use is normally within 48 hours of submitting the application, we always have a response.

Despite from the fact that the Alternative Commercial Funder is so much quicker, the fact that they only have a lien on the equipment I purchase, not everything our family owns is a lot more comforting than the bank who wants to have everything we have as collateral as well as personal guarantees from both my wife and I.

If you have had similar experiences or any comments, it would be great to hear from you!

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