Archive for September, 2010
Sep
25
Commercial Mortgages for Small Business
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By the word “mortgage” We used to have begun only recently: a relatively new concept for the Russian practice. If the mortgage housing is becoming more common, the commercial real estate mortgages - has only sporadic cases.
Mortgage commercial real estate or commercial mortgage (mortgage business), is widespread throughout the world. Western experience shows that with sound operation of commercial real estate - rental of premises for offices, shops, business services - its yield is comparable to any other area of small business and allows the use of mortgage loans.
The essence and conditions of commercial mortgages
Mortgage loan is granted for the purchase of non-residential premises: warehouse, office, etc. The meaning of the mortgage is to lend the purchase of commercial real estate under the same pledge. In contrast, housing loans, commercial mortgages are short term loan, but rather high interest rates.
Typically, the annual rates of commercial real estate mortgage loans range from 12 to 16%, mainly in the currency. The term of the mortgage real estate - a maximum of 10-12 years and the most common term - 5 years. Borrower must make an initial contribution of 25-40% of the value of real estate. In doing so, the client must be profitable and a minimum balance of the year on the market.
The legal nuances of commercial mortgage loan
The scheme of the commercial mortgage is similar to non-residential mortgage housing: there are the same procedures for assessing the borrower and the facility, the requirement of the initial deposit. But there is a fundamental difference - the law does not allow companies to draw up a mortgage on the property until the conclusion of the sale. The object must first acquire and then you can pledge to get the money.
An important legal aspect of commercial mortgages - the registration of ownership of non-residential premises, while mortgage encumbrance Federal law does not provide. The Treaty on mortgage commercial real estate is subject to general rules of the Civil Code of the Russian Federation on the conclusion of treaties, as well as the Federal Law “On Mortgage (mortgage). According to paragraph 1 of article 9 of the federal law in the contract of mortgage must be given to mortgage his assessment of substance, size and term of the obligation secured by a mortgage.
Who will benefit from the commercial mortgage?
Participants in the commercial mortgage market agree that the development of the mortgage business is constrained primarily loopholes in the law. However, it is not clear, and someone who will be the borrower, what is its quality. Reliable stable companies can take to acquire an ordinary commercial real estate loans on bail of any property, they do not particularly need a mortgage. And if the company has no collateral or banks do not consider it possible to give her credit based on the evaluation of such a company - why would need a mortgage borrower?
It is for this reason that Russia mortgage commercial real estate still is, essentially, for large companies. For small businesses do not have sufficient collateral. On the specific risks of small businesses overlap problem opaque commercial real estate market.
Commercial Mortgage Scheme
So, the existing legislation in respect of the mortgage business is not perfect. It defines and possible arrangements for the mortgage lending business. According to the law “On mortgage” for commercial real estate, as opposed to living quarters, is an entirely different mechanism of registration and registration of collateral. Therefore, the market has developed a number of ways to carry out this kind of transactions, enabling them under current legislation.
Scheme I
The conclusion of the sales contract. The seller receives a portion of their funds from the buyer, as well as the guarantee of a bank. Then the registration of ownership of the new buyer. Further, the registration of a collateral agreement, followed by the issuance of credit and final settlement. This scheme experts called the most complex and lengthy.
Scheme II
The buyer pays for pre-contract owner (the seller) of its own funds, and the seller receives from the Bank’s obligation to pay the missing funds in the event of registration of mortgage. Followed by registration of collateral on a bank and registration of all documents on the transfer of ownership of the new owner, that is, the buyer (the conclusion of a contract of sale), after which the seller receives the full amount, but registration is taking its course.
Scheme III
Realtors latest scheme called “Ransom entity.” A company, which is made out of real estate object (entity). Then the borrower to buy shares of the company by paying the loan. In doing so, the company arranged for the property.
Leasing - an alternative to commercial mortgages
According to experts, a good alternative business imperfect until the mortgage can become a commercial real estate leasing. In this case, the leasing organization - an analogue of a cooperative - gives credit for the purchase of the property and is the owner of the facility until the loan is not repaid. One of the advantages of leasing is that his arrangements clearly stated in the legislation. On the other hand, in case of bankruptcy leasing organization all of its property may depart for the debts of third parties, such as banks.
In any case, the risk is unavoidable. Banking experts advise entrepreneurs themselves to influence the terms of lending. According to most experts, the most urgent problem hindering the development of commercial mortgages, the low culture of the financing of small businesses. Mortgage becomes reality when the small business “Light”. The lower the tax culture of small business, the worse the conditions of mortgage lending for the same - the withdrawal of real market-mortgage business.
Real Estate Proffessionals
Sep
11
How can I lease my property for commercial use, preferably for Assisted Living?
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Hello,
I have a 2.5 acre property in Murrieta, California that I would like to lease for commercial purposes, but not sure where to go. Preferably, I’m interested in the field of Assisted Living. In other words, I would love to lease my property to a company that will make it an Assisted Living facility. But who do I talk to? Where do I go? I don’t want to run it, but to lease to someone who will.
Thanks.
Rent Back
Sep
04
Your 30-Second Commercial and What To Say Next
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Is your 30-second commercial or elevator speech powerful? Does it invite others to want to know more? Do you even have a 30-second commercial? How do you know if someone’s really interested and wants to get more information? And what do you say next?
A 30-second commercial or elevator speech is a brief introduction of what you do. This is the start of a conversation to find out if someone wants to know more about what you do.
Whether you sell products in your home business, or whether you are looking for other distributors, it’s important to take the time to create an interesting, but brief intro to your business.
So how do you create an effective 30-second commercial? First, realize that most people are dissatisfied with one or more of these areas:
1. Their finances 2. Amount of free time they have 3. Their job or current business 4. Their health
Taylor your 30-second commercial to hit one of those areas. Start with a question that addresses one of those key areas. “Do you know how concerned people are about making ends meet?” “Do you know how disappointed people are with never having enough time with their family?” “Do you know how people just don’t have enough energy?”
Find a hot button that you know people struggle with. Then show them how you solve that problem. “Well, what I do is to help/show/work with people to….”
Let’s say you meet Jane at a business mixer. The first thing to remember is to forget about YOU and learn about Jane. Ask her questions about her family, her job or business, how long she’s been in that job, etc. Be sincerely interested in Jane, who she is and what she does. If you are, then in almost every situation, Jane will ask you what you do.
Instead of answering Jane in just one or two words, start by asking a question. “Do you know how frustrated people are with their jobs?…Well, what I do is to show people how to get out of the rat race and start their own fun, simple and profitable home business with a product people already love.”
You can design your 30-second commercial around your product or service, or around your business opportunity. Either way, you are stating a common problem and then offering a solution through what you do.
Now, if Jane has no interest in what you do, she might say. “Oh.” If she doesn’t ask any questions, then either she has no interest in what you do, or your 30-second commercial wasn’t powerful enough. If someone doesn’t ask any other questions, that’s your clue to move on to another topic of conversation.
However, if Jane can relate to what you’ve said, she’ll probably say something like, “Really? What’s your product?” or “Hmmm, how do you do that?” What you do next is critically important.
Do NOT start rattling off all the facts about how great your product, service or business is. Avoid getting so excited about your product and business that you start talking non-stop. At this stage, if you start giving detailed facts about every aspect of your product or business, you will turn people off very quickly.
Answer the questions directly but also ask Jane another question to learn more of her situation. By asking Jane questions you’ll learn more about how you could really help her. If Jane asks you more questions, then the door is open to have a true conversation with her about your business.
Make sure that you keep the focus on HER and if your product or business could help her. Do not focus on “selling” her on your product or business. Just relax and listen for a way you can sincerely help. After talking for a few minutes, if there appears to be a genuine interest, ask if you can get together for about 30 minutes (by phone or in person) to give her all the details. That’s the time for a complete presentation.
This all starts with an interesting 30-second commercial. Perfect yours and be able to say this in your sleep. Ask questions, listen more than you talk and keep the focus on how your product or business can solve an area of dissatisfaction for the other person.
Passive Income
