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Digg it UP - What Investors Should Know About Commercial Real Estate Loans
Planning on visiting or doing business with an Arab company? Here are few tips about Arab business and culture for visitors, exporters, and international traders to understand the culture, business culture, and how to do business with Saudi Arabia, Kuwait, UAE, Qatar, Bahrain, Oman, Yemen, and other Middle East countries.Conservative behavior: In public, Arabs behave conservatively. Display of affection between spouses is nonexistent. It is a private society and display of one’s feelings is kept private. You will also notice that laughter and joking in public is toned down, which is not the case in private gatherings. Arguments between spouses, friends, and people in general are also kept private or conducted in a way that guarantees no one else is aware of it.Invitations: If you are invited to dinner or lunch, you are not expected to bring food, drinks, or gifts. Upon entering the house notice the guest room you are taken to. If shoes and sandals were left at the door by other guests, then take off your shoes. It is customary when entering guest's room or office to greet everyone there by saying Alsalamo-Alikom, which means "peace be with you". The reply to this greeting is "Wa'
Many women are running hairdressing and beauty salons and nail bars from their homes and doing it very successfully. Clients enjoy the intimacy of a home to have their beauty routine looked after. You can run so many types of businesses without having to rent premises and have expensive overheads every month.Many people have tried network marketing as a way of starting their own business. This type of selling can earn you a very good income. You must be selling quality products that you can be proud of. If you do not believe in a product yourself you will not be successful at selling it to someone else. When you have found a company that supplies excellent products and you get a fair deal from them you can make a lot of money.Many of these network marketing companies encourage you to recruit people to join your ranks and when they make sales you will benefit from their commission as well. The more people you recruit who are selling products the more you can earn every month.Once you have built up your clientele you will just have to deliver products to them, as they will be glad to try anything new that you bring to them as they will have learnt to trust you and the products.<
Loan Qualification: Most of you have applied for a residential loan. You provide to the lender with W2’s and/or tax returns. In general the more income you make the higher loan amount you qualify. You could even borrow 100% of the purchase price if your income or stated income is strong. For commercial loan, the amount of loan the lender will approve is based on the rental income of the property, not your personal income. So the more rental income the property generates, i.e. the higher the CAP rate, the higher loan to value (LTV) the lender approves. If you buy a vacant commercial building, you will have difficult time getting a loan as it does not have any rental income unless you plan to occupy it for your business.
Loan to Value: Commercial lenders tend to be more conservative about the loan to value. Most commercial lenders loan up 75% of the value of the property. The following is just a rough guideline for LTV based on the CAP rate as the actual calculation is beyond the scope of this article.
CAP ----- LTV
8% ----- 75%
7% ----- 67%
6% ----- 55%
5% ----- 45%
Lenders will only loan you the amount such that the income after expenses, i.e. net operating income is at least 20-25% more than the annual mortgage payment of the property. Or another words, the loan amount is such that you will have positive cash flow equal to at least 20-25% of the mortgage payment. So if you purchase a property with low CAP rate, you will need more down paym
Florida individual health insurance refers to the individual health insurance plans offered by the Florida health insurance companies for the residents of Florida. Individual health insurance is an ideal option for one whose employer doesn’t provide health coverage, or if you or your dependents are not properly covered by the present group policy. According to the individual health care plan the insurance company offers health care protection for only one individual, or family.Today, there are several Florida individual health insurance providers offering various health insurance schemes. There are mainly two types of Florida individual health insurance policies - major medical insurance and disability insurance. Major medical health insurance offers wide coverage for most types of injuries and illnesses, even though coverage for some conditions is excluded. Disability insurance, sometimes called income replacement, provides coverage for the period when you are unable to work because of disability such as illness or severe injury.Individual health insurance policies are generally more expensive when compared with group insurance. But that doesn’t mean it can’t be affordable. Signing up a polic
Loan to Value: Commercial lenders tend to be more conservative about the loan to value. Most commercial lenders loan up 75% of the value of the property. The following is just a rough guideline for LTV based on the CAP rate as the actual calculation is beyond the scope of this article.
CAP ----- LTV
8% ----- 75%
7% ----- 67%
6% ----- 55%
5% ----- 45%
Lenders will only loan you the amount such that the income after expenses, i.e. net operating income is at least 20-25% more than the annual mortgage payment of the property. Or another words, the loan amount is such that you will have positive cash flow equal to at least 20-25% of the mortgage payment. So if you purchase a property with low CAP rate, you will need more down pay
Old style management doesn't encourage personal mind control, employees aren't encouraged to think. That was certainly the case when I started work back in the bad old days however it's still prevalent in many businesses today.It's evident in many of the organisations that I work with that there's a culture of - "I'm the boss - I tell you what to do - you don't question it."The successful manager doesn't react that way, he or she employs people who think; people with a mind of their own who aren't afraid to say what they think and feel. You need people who question, who challenge you as a manager.I remember sitting in on a second interview with John, a manager client of mine who was interviewing candidates for a sales job. One of the candidates was a guy called Phil; he was a very strong character, full of questions and suggestions on how the job should be done.John turned to me when Phil left the room - "That guy's good, I reckon he'd be a good salesman for us, but I don't think I could handle him." John was a much quieter type of person than Phil and I knew he felt uncomfortable with his style.So I asked John - "What do you want this new salesman to do?"
Loan to Value: Commercial lenders tend to be more conservative about the loan to value. Most commercial lenders loan up 75% of the value of the property. The following is just a rough guideline for LTV based on the CAP rate as the actual calculation is beyond the scope of this article.
CAP ----- LTV
8% ----- 75%
7% ----- 67%
6% ----- 55%
5% ----- 45%
Lenders will only loan you the amount such that the income after expenses, i.e. net operating income is at least 20-25% more than the annual mortgage payment of the property. Or another words, the loan amount is such that you will have positive cash flow equal to at least 20-25% of the mortgage payment. So if you purchase a property with low CAP rate, you will need more down pay
Florida health insurance that meets your health care needs is very essential. Over the past few years, the cost of Florida health insurance is on the rise. Because of the high cost, the number of uninsured in Florida continues to rise. The state government and certain non-profit organizations in Florida have taken efforts to reduce the cost of health insurance so as to provide medical care to those people who need it most.Florida health insurance is for individuals as well as groups. It not only protects you, but also provides access to quality heath care services. Health insurance in Florida provides medical coverage to children up to age of 19, pregnant women, self employed individuals, and families. In Florida, the rate for health insurance varies significantly from one insurance company to another. You can save time as well as money by comparing the different health insurance plans in Florida.In Florida, a wide range of health insurance plans are available to choose from. Most of them provide benefits such as the cost of medicine, prescriptions, doctor visits and hospital stays. The types of health insurance plans available in Florida include individual health insurance, small group health
CAP ----- LTV
8% ----- 75%
7% ----- 67%
6% ----- 55%
5% ----- 45%
Lenders will only loan you the amount such that the income after expenses, i.e. net operating income is at least 20-25% more than the annual mortgage payment of the property. Or another words, the loan amount is such that you will have positive cash flow equal to at least 20-25% of the mortgage payment. So if you purchase a property with low CAP rate, you will need more down pay
Are looking to start a new business adventure? What type of business opportunity are looking for? A home based business? Buying an existing business that’s for sale from a private individual? Starting your own business? Or are you interested in purchasing a franchise? These are all viable options and there are advantages to each, it just depends on what you’re interested in. If you are more drawn to having your own business, but want to get a piece of a large established market, then possibly a franchise could be just what you’re looking for. Franchise information is abundant on the internet, which is a good place to start if you are seriously looking at this type of business option.There are many different types of franchise opportunities to choose from, which are discussed in detail on many sites that feature franchise information. There are home-based franchises for health and beauty products along with real estate investment, vending or ATM machines, and internet franchises. There is also quite a bit of franchise information available on businesses that sell food, such as Subway, Blimpies, Caliche’s Frozen Custard, Papa Murphy’s Take n Bake Pizza, and a number of other franchise opportunities. A
Interest Rate: The interest for commercial is dependent on various factors
- Loan amount: In residential mortgage if you borrow less money, i.e. a conforming loan, your interest rate will be the lowest. When you borrow more money, i.e. a jumbo or super jumbo loan, your rate will be higher. In commercial mortgage, the reverse is true! If you borrow $200K loan your rate could be 9%. But you borrow $3M, your rate could be only 5.9%! In a sense, it’s like getting lower price when you buy an item in large volume at Costco.
- Property type: the interest rate for a single tenant night club building will be higher than multi-tenant retail strip because the risk is higher. When the night club building is foreclosed, it’s much harder to sell or rent it compared to the multi-tenant retail strip. The rate for apartment is lower than shopping strip. To the lender, everyone needs a roof over their head no matter what so the rate is lower for apartment.
- Age of the property: loan for newer property will have lower rate than dilapidated one. To the lender the risk factor for older properties is higher so the rate is higher.
- Area: if the property is located
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