tag:blogger.com,1999:blog-41646690731856112782011-11-27T19:20:12.166-05:00Expert Advice for Small Busines and Commercial Real Estate InvestorsMichael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.comBlogger191100tag:blogger.com,1999:blog-4164669073185611278.post-44051445570433527932010-03-31T08:06:00.002-04:002010-03-31T08:18:45.601-04:00

As commercial real estate enters the second year of its downward slide a new problem is arising for many commercial borrowers. Valuation!Because of the down economy many business have failed and left large swaths of commercial, retail and office space vacant. The large numbers of vacancies are causing the value of current leases for some industries to be discounted and is pushing down the rent

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-86472083543397325682009-05-06T08:03:00.002-04:002009-05-06T11:51:50.926-04:00

“In describing the increase in CMBS loans going into special servicing, Fitch Ratings uses the term "rising tide," and that phrase could also apply to the Q1 jump in CMBS delinquencies.”This is the opening line of an article written by Paul Bubny, an author and expert on Commercial finance. In the article he goes on to describe the coming wave of foreclosures in the Commercial Mortgage Backed

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-1913409581545758982009-05-01T16:27:00.003-04:002009-05-01T16:30:56.359-04:00

To many investors are in the game for the short term. They see big money (or here big money) and never realize it because they lack commitment.The truth is that it takes commitment to succeed at any thing. For those looking to make the transition into small commercial from residential investment property, I have a questions for you.What is your commitment?Think carefully and then make your answer

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-68576653651206535502009-04-23T08:27:00.003-04:002009-04-23T08:41:58.064-04:00

My mother always taught me to be a leader, not to follow the pack, to be out in front and be different. That works well when you are the head of an organization but it doesn’t work so well in other areas.One of the areas that this sort of thinking doesn’t work well in is lending. This type of thinking can be especially troublesome when trying to borrow money from a lender.I see a lot of

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-73003921475795086912009-03-19T18:41:00.003-04:002009-03-19T18:59:17.335-04:00

Have you ever heard anyone say that they are so lost on a subject that they don't even know what they don't know? I have heard that recently and it came from a very bright person.What they mean is that they understand that they can't get started until they learn where to start. Growth only comes from being able to understand where you are at. In commercial real estate this saying is very true.

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com1tag:blogger.com,1999:blog-4164669073185611278.post-84318544607107938452009-03-15T17:17:00.008-04:002009-03-15T18:17:12.797-04:00

One of the best strategies an investor can use to create profits with commercial properties is to purchase fully depreciated buildings and reposition them. But what does it mean to 'reposition' a property?Repositioning a property is when the use for the property is changed in order to suit the new demographic of the neighborhood it is located in. Many times we think of this when we see older

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-26436356020784797992009-02-06T12:48:00.004-05:002009-02-06T13:31:00.759-05:00

Just when you think you're winning the battle, the enemy will counter attack. That's right, when they think your weak and vulnerable they will try to pierce your center and make a run straight for your supply lines!It's crazy and if you're not diligent you can fall for their game. I love history and many times I associate historical events on the battlefield with everyday delimas in the business

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-82867290190135058512009-02-02T21:02:00.002-05:002009-02-02T21:05:32.543-05:00

I've been to battle lately and I'm frustrated as hell. It seems like every deal I look at is dead before I even get started. The problem is those darn cap rates!Newbie agents spew their drivel about how a cap rate of 6% is standard for a C-class apartment building in the Atlanta market. The stabilized rents will net a 'nice' return on the investment is what they try to tell me.Here's my problem

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-32332133782608950562009-01-28T08:04:00.004-05:002009-01-28T08:58:06.871-05:00

Getting a deal done can be tough sometimes, especially if that deal is an Acquisition and Development deal. The transactions are often referred to as A&D funded loans.So what is an A&D loan? It can be a traditional conventional style commercial loan, a hard money/private money style loan or anything in between. You'll ofter hear terms like Mezzanine or Carry-Over loans used.These loans typically

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-105626113017250972009-01-21T20:47:00.007-05:002009-01-21T22:32:22.324-05:00

There are a lot of people that want to invest but they can't overcome one main barrier ... financing! With the tightening credit requirements of many banks, real estate investors are finding it tough to finance their deals.Investors can get financing, however they have to realize the new market realities. For small commercial projects, I recommend that investor use a system that has been used for

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-66570624843589230762009-01-18T10:58:00.005-05:002009-01-25T19:51:29.525-05:00

It's tough to get financing for all those houses you want to buy and there is a good reason for that. Traditionally, if you wanted to own multiple units of rental properties, it made no economic sense to own more than two or three houses.In most markets a detached home costs about 25% more than an attached home but the rents that one could receive from an investment with equal bedrooms and baths

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-25606187885294991582009-01-09T13:43:00.003-05:002009-01-09T14:27:38.551-05:00

Warren Buffet is buying! The man who has been sitting on piles of cash for years is now in the game. This proves one thing, there’s blood in the streets and he’s making his move. So what is he buying? He’s buying banks! That should be a signal to all of us that the time is right for us as well. This huge government bailout is associated with one thing, the credit crisis. That crisis has reached a

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-18843325523749943872009-01-03T13:02:00.001-05:002009-01-03T13:05:07.864-05:00

Cows in the city, is that possible? You bet ya, we’ve got Long Horn Steer, Herefords and Black Angus. All top of the line, all A-class, all the most expensive. There out there in the big city and ready to be bought, sold and leased.But you don’t want to pay top dollar for your cattle. Paying top dollar for anything in an economy like this makes it tough to turn a profit.Besides, you need a

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-20027565534842053952009-01-03T12:59:00.002-05:002009-01-03T13:02:22.398-05:00

Residential, Residential, Residential! It’s all I hear form investors these days. Everybody sees the potential in residential right now because there are a lot of great deals out there. And to a certain extent, they are right. However, I still don’t think people truly understand the investment. Residential real estate is an annuity. I say this because when you invest in a single family home, a

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-67497207491274265962009-01-03T12:55:00.002-05:002009-01-03T12:58:12.399-05:00

Watch the politicians and you'll see it happen over and over again. They take a position on a subject one day only to reposition themselves the next. Why do they do this? Because it is beneficial to their campaign.If the politicians can do it for personal gain, then you should do it to gain profits. Commercial property is a business and sometimes the business needs to take a new position. Many of

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-75304192885445389832009-01-03T12:53:00.000-05:002009-01-03T12:55:31.713-05:00

Many real estate professionals that invest mostly in residential housing are reluctant to even attempt to enter the market for small commercial. This is because they have a perception that it is very expensive to get into commercial properties.Well, that may not be exactly true. It actually costs about the same in terms of percentages to get into commercial as it does residential. Think about

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-87665769190717065662009-01-03T12:48:00.004-05:002009-01-03T12:53:47.072-05:00

Hedge funds are a great thing for those wealthy individuals that can afford to invest a small amount of ‘risk’ capital to boost their returns. Think about it, you can invest about 10% of your wealth and generate returns that can boost your overall portfolio from a paltry 6-8% per year to 12, 15 or 20% if you are in the right fund!Hey, if you loose money theirs good news as well. The loss is

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-34164629904873382202009-01-03T12:36:00.004-05:002009-01-03T12:47:53.383-05:00

Business cycles, we read about them all the time and many times we never slow down to think about how the national economic cycle affects our own local small business. That is until we are knee deep in debt and wondering how we’ll dig our way out.As real estate investors we have a unique opportunity if we can recognize the cycles and use them to our advantage. For instance, when credit became

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0tag:blogger.com,1999:blog-4164669073185611278.post-71699420545525044972008-12-30T21:47:00.000-05:002008-12-30T21:53:44.762-05:00

There is an old saying that I learned from a teacher of economics and it goes like this; As America goes, so goes the world. I think that it is poignant to point out that since the Credit Crisis started in January of 2007, the U.S. economy has been in a slide. This downward spiral precipitated a weakening dollar, which in turn helped to hyper inflate the already increasing per barrel price of oil

Michael Grosshttp://www.blogger.com/profile/10091173709622907367noreply@blogger.com0