Professional Real Estate Marketing For Business

The people involved in this property transactions include buyers, sellers, lenders, insurance companies, legal entities and buyer and seller real estate agents. Each of these professional groups may target the same clients with different types of services on offer. Property transactions involve a multitude of professional inputs to achieve successful outcomes. Buyers of property have different motivations and levels of economic strengths. This makes choices depended on personal or business circumstances. The various types of property offered cater for the varying purchaser needs.

Agents representing owners and purchasers of property target buyers and sellers primarily. Lenders are focused on the lending needs of clients involved in property dealings. Insurance companies provide all manner of coverage for owners of property. They very often place emphasis on their low rates relative to competitors.

Non electronic advertising includes mass type mailing to targeted residential areas. Many real estate agents holding listed properties open on weekends for buyers and sellers also use these functions as lead generators. Other more traditional forms of advertising include contact information and business promotion advertised on vehicles. Many also use printed media outlets which may the national, regional or local. Cold calling on the telephone can also be incorporated.

The twenty first century has seen a revolution in commercial, residential and industrial property advertising channels. One such channel many successful professionals harness is online advertising through websites. These websites can be developed to match client specifications by website programming entities and business concerns. The key is effectively targeting the provider of the services area of expertise to client needs in order to generate more business.

Websites come in different forms and are designed for different types of business providers of property related services. One common factor relevant to all websites is the professional design. These sites should be easy to navigate, have content that is relevant to the targeted searchers and have a compelling marketing message.

Social media services are fast becoming indispensable for a significant number of business entities providing property know how for the public. There are various and growing numbers of these mediums for advertising purposes. The most effective media outlet for each business or self employed entity must be investigated as competition exists. Standing out from the pack is always a key goal.

For professionals in the property business enhanced real estate marketing is vital. Traditional forms include open houses, referrals, bulk mailing to targeted areas and street signs. Many focus on the web centric ways of advertising. This includes the provision of websites with online search engine capabilities. The increased potential reach capabilities of web based self promotion makes this approach increasingly appealing. Whether more traditional or new innovative web based are utilized the generation of new leads and growing the business is paramount.

Why Real Estate is a Good Business

Investing in buildings and houses is one of the most talked about wealth accumulation vehicles. It is an option that offers almost the same advantage all over the world. However, it commands a large volume of funds and demands specific and specialized knowledge.

Here are seven top reasons why real estate is a good business-

* The demand for housing is insatiable. The mass available on earth is limited and depreciating daily while the human population is at a constant increase, so also the demand for housing units. As more people of people bid for the limited available pieces of land, the price cannot but appreciate.

* It is a good store of wealth. Among many of the trappings of wealth, real estate is the best option. Ownership of pieces of real estate is personally satisfying and makes wealth tangible. Also, the rate of appreciation is regular on yearly bases irrespective of economic situations. It can serve as personal shelter, it could be rented. Either way, it still appreciates, thus a two way income or service provider.

* It is also among the creative models of businesses. A singular piece could be rented, leased and mortgaged. Remodeling and upgrading of facilities on an old piece adds more value to it.

* It has a multiple utility. It could be used for residential, recreational, social, commercial, religious et cetra. Most times a piece of estate could be used for all of these needs simultaneously. An example is an hotel.

* The market is played by three major insider groups. They are the end users, the speculator and gamblers, then lastly the real investor. Their money backed demand for pieces of real estate makes the business a vibrant one.

* The business is the only business that can offer a three fold advantage of leverage, cash flow and tax sheltering.

* Real estate does not stop with buying an already finished homes, one can also buy a land and build anything he desires on it. Not only is it a store of wealth, it also accounts for growing of individual and cooperate net worth.

Small Business Real Estate Financing Opportunities

I had a lot of great questions come in over the past week that covered topics such as construction loan interest calculations, multifamily financing, hotel financing, and private money lenders. The one that was the most interesting concerned small business real estate financing.

Buying real estate for your small business offers you, as the business owner, several advantages over leasing. The first advantage is that financing the real estate purchase helps small businesses grow into larger businesses by preserving capital during expansion. Growing a business is a cash management balancing act and the less money buried in facilities means more money for other necessary functions.

The second advantage is tax related. Funds to support the business can be diverted to help your personal portfolio by building equity in the commercial real estate housing the business. The lease payment that benefited your former landlord is now helping you reduce current business income from a tax standpoint, yet keeping it in your pocket through your real estate. Many owners take the property in their personal names and have the business pay rent to them rent to cover the property’s operating expenses. Some even have additional tenants to supplement the cash flow.

The third advantage relates potentially to your estate. If the property is in personal name and the business is unwound, sold, or terminated for any reason, that asset is not part of the business transaction. This can simplify an otherwise complex situation.

There are two types of small business real estate loans. One is guaranteed by the Small Business Administration (SBA), the other we’ll call “conventional.” Both offer a business owner a loan amount up to 90% of the purchase price of the property used for the business. The government guaranteed financing tends to have a somewhat lower rate, but requires a great deal more paperwork. Conventional financing is the more flexible by offering different documentation requirements and potentially faster funding.

Conventional Small Business Real Estate Financing

In recent years, some lenders have created SBA “look-alike” or conventional programs that have fewer restrictions than SBA-guaranteed financing. For example, they allow the owner-user to occupy less space in the property than the 51% required by the SBA, allow for reduced or “E-Z” documentation (no tax returns), and don’t require additional collateral such as a primary residence. Depending upon the type property that is being financed, conventional small business real estate loans may allow as much as 90% loan-to-value (LTV) financing, although some special purpose property types, such as hotels, restaurants, and gas stations are limited to lower LTVs. Construction to permanent loans are also available on a conventional basis, allowing a business owner to custom design a property for the needs of the business.

The Small Business Administration

The Small Business Administration is a quasi-governmental agency established to assist small business owners obtain financing for their business operations. The primary form of collateral for SBA loan is owner-user business real estate. SBA funds can be used for a variety of purposes including the acquisition of business real estate, business property, operating capital and any other legitimate business purpose.

SBA loans are typically used for single-use or single-tenant properties where the owner of the property is the owner of the business using the property. The SBA’s rule of thumb is that 51% of the property must be used by the owner-operator to qualify for the agency’s guarantee. There are often other restrictions placed upon the owner to obtain this financing such as: Annual reporting and cross-collateralization with the owner’s primary residence. The SBA finances office buildings, retail centers, automotive centers, warehouses, light industrial (manufacturing) facilities and a host of other property types.

Most federally regulated financial institutions offer some form of SBA guaranteed financing. It’s too profitable for them to pass up. Unfortunately, not all of them are good at it.

Realistically, you should be in business at least two full profitable years and have another three to five years of history working in that business if you business if new. You’ll need to show a lender how the new property will benefit your business through projections and in particular, the SBA is always concerned with how many new employees you are likely to hire. In the final analysis, there is a wider range of financing options for the small business owner today than ever before. If the opportunity presents itself to you, small business real estate usually makes sense for both the business and to the owner as a personal wealth building tool.

Commercial Real Estate Financing for Business Growth

Commercial property loans are used by many sectors of the business world to finance future investments and expansion efforts to grow a business.

With the recent collapse of the U.S. sub-prime mortgage market, credit is increasingly difficult for consumers to come by. Lenders are reducing their exposure to high-risk ventures. Lingering uncertainty about the credit market as well as the stability of the international money market causes widespread reluctance to finance ventures.

Fortunately for investors seeking commercial real estate financing, the commercial sector is not directly affected by these developments. Although riskier ventures will still be more difficult to finance with credit, the current economic climate has not stalled lenders.

With the recent developments in both the U.S., and across the international credit market, debt is becoming a well known concept.

While economic uncertainty would demand that all investors be prudent about entering into debt, most Organization for Economic Co-operation and Development countries are not in recession. In fact, they have actually experienced record growth and prosperity over the past decade. This lends some robustness to the major western economies.

Most business expansion is financed using commercial loans, so provided debt is entered into for purposes of investment, building, and expansion of the business (rather than a fundamental cash-flow problem). Debt is not in itself a negative thing. It is the return on that debt that is the problem.

Commercial real estate financing can be secured to fund the purchase of land for infrastructure and services development. Power plants, streets, utilities, shopping complexes, office or apartment buildings, parking facilities, parks, resorts, and golf courses, and even medical clinics or private hospitals are just a few such real estate investments.

Frequently, commercial property loans are sought as a means of refinancing existing debt to increase the total value of the investment. It is possible for private investors and companies to make a career in the reiterative process of reinvestment. Financing the cost of expansion against the projected profits of the venture can be quite lucrative.

It is true that there is still some volatility and uncertainty about the stability of the western economies. Consequently, investors should be as vigilant as ever about entering into unprofitable arrangements. Such factors influencing profitability include cost blowouts, too little potential return, or inherently risky ventures.

Investment consultants have made a market for themselves in advising smaller scale investors on commercial real estate financing, and providing them with the means of determining which projects are worth entering into, based on the available information. This includes taking into account the possible blowouts, and considering what might go wrong with any given project.

By applying basic rules of thumb, and not investing beyond certain thresholds, investors can increase their chances of sticking to projects that are within their means.

With the use of specialized software, this process can be further streamlined, allowing financiers to quickly weed out which projects are potentially unprofitable. Based on the available data and taking into account uncertainties and potential threats to the project, financiers can make smarter lending decisions.