Commercial Real Estate Closing Checklist

One of the main reasons that a commercial property transaction might fall through when it is near to closing is because one of the parties has forgotten an important aspect of the transaction that needs to be considered before the relevant documents can be signed.

With that in mind we have created a small checklist of things that you need to keep in mind when closing on a commercial real estate property, to make sure that you cover all of the bases.

Acquisition Documents

You need to ensure that all of the documents relating to the purchase are in place and ready. This includes all of the following:

• A signed letter of intent

• Any and all drafts of the purchase contract

• Any information relating to your legal counsel

• Access agreements

• Any client or portfolio manager authorisation that is required

• A fully completed purchase contract, that will be delivered into escrow

• Documentation for the initial cash deposits for the purchase

• Arranging for any bank accounts required to be set up

Title Matters

Title and zoning issues are also a high priority, so make sure you have the following:

• You have selected a title company whom you can send the seller's title commitment to

• Have an ALTA survey carried out and ensure you have the right documentation

• Verify that all relevant leases and assets are in the seller's name

Tenant Issues

If you are buying an apartment building or any form of commercial property where other businesses may become tenants and lease out space, you need to have all of the following:

• A current certified rent roll

• A review of all current leases and the related documentation for each.

• Your legal counsel should look over these leases and compare to the current review

• You need to look over all current tenant files

• Resolve any outstanding issues regarding lease

• Receive all reports relating to the tenants, including sales and receivables reports

• Transfer all tenant security deposits

• Review the tenant credit and payment history

• Prepare and sign the tenant Estoppel Certificates

• Final check on all documentation

Financial

The transfer of all relevant financial information is extremely important as well. This includes:

• Copies of any historical or proforma financial information

• Copies of utility bills

• Most recent tax statements

• An expense list for all expenses currently operating under the property

Litigation

You will need to consider the possibility that there is any current action against the property or the existing owners and take that into consideration.

Insurance

Getting insurance for the building is crucial, so it is important to get a quote as early into the proceedings as possible. Some of this may be covered by the Property Management Agreement.

Physical Property Inspection

Before any transaction is completed a physical property inspection must be carried out by the buyer to ensure that they are getting everything that they expect from the property.

Final Closing Documentation

To complete the transaction all of the relevant financial and legal documentation must be completed and handed in on time and be completely accurate.

Make a Fortune With Real Estate

Property consisting of land and the buildings, as well as with its natural resources such as minerals or water, crops, immovable assets of this nature and buildings or housing in general. The business of Real Estate is the profession of buying, selling, buildings or housing and renting land. Before going ahead, some important factors about estate should be kept in mind to do your job well.

Types of Real Estate

• Residential:

Containing either a single family or joint family, that is available for non-business purposes. There may be different types of housing tenure also, and the size of an apartment or house can be described in meters or square feet. But the area of “living space,” excluding the garage and other non-living spaces may differ in some countries.

Real Estate Investment

This Investment is the thing that generates income or is otherwise intended for investment purposes. Investors own multiple pieces of real estate, which serves as a primary residence.

• Commercial:

It is a property that is used the design for business solely. For instance, commercial estate includes restaurants, offices, parks, malls, gas stations and convenience stores

• Industrial:

The property that is used for industrial work. But it covers a vast range of business types and comes in all shapes and sizes.

Industrial Real Estate includes single or double-storey buildings. Small industries have flexible interior space. Large industries include medium to large warehouses and factories that are designed to store goods or manufacture.

To become.

Fortunate Real estate agents, need to be familiar with their locality, reasons to increase or decrease property prices. For instance, if a new airport or road is to be built this can increase the price of nearby houses. Equally, improvement of an area can enhance prices. The agent must be aware of recent sale prices or rental for comparable properties of the area.

To become estate agents or professionals, dealing with all residential, agricultural and commercial property. They should adhere to a code of conduct, which includes regulations about looking after their clients' money.

If the deal complete, then estate agent may charge anything from 1% to 2%, and this is calculated on the sale price of the property.

Making an online fortune as Real estate agents or agencies working most notably online, normally offer a choice of fees, most of which are paid in advance. The range of prices is from $300 to $800, which is payable in advance. Many online estate agents offer their service up front but they deferred the way of payment, it means there is nothing to pay in advance, but after a period a fee will become payable.

Property Management 101 – My Tips To Retain Property Managers

1. Employ systems and procedures into residence – Property Director are mortals of garb and love to know what is needed and required of them. They want to know that the work is ready to go and they don't need to go searching for what to do next. They want to be reactive , not proactive.

2. Time management – Possibly the biggest gripe from Asset Overseers is that there is too much to do and not enough time to make love in. The systems and procedures will assist a great deal with this hurdle.

I have a policy that tenants cannot walk in without an appointment. This is not accepted in any other the businesses and should be explained at sign up. Invite your Admin Team to let the tenant know that they are sorry but you are in another appointment, when would you like to work?

My phone calls under 9 minutes ruler has been a lifesaver. At the start of an surprising entitle, especially when I know they like to chat, I explain that I am happy to discuss the issues but I exclusively have 9 minutes until my next appointment. The caller expects to need to get through everything in these times and they do. Magic!

3. KPI's – We all have purposes and without our KPI or Key Performance Show, we have nothing to contact for. Contribute your Quality Administrator their clear situated of KPI, give them time frames and reward the team and individuals with incentives.We all love to reach our goals.

4. Make your own blessing – Things do not happen by themselves. Mean your year ahead for schooling, consultations and vacations. Your Property Director need to learn and treated with peers and mentors and vacations are important so that they are able to do not burn out. This helps to bond the team and they learn and change together.

5. Impart back to the community – I worked for a company who did society work one day a few months. As a unit they went to a person's home or a donation group's build and did whatever they needed for a half to a whole date. This is likely to be cleaning up a farmyard, bundling chests of meat goods for homeless or folding paper to throw letters into envelopes. It is not about what you just wanted to do, it is about doing what is needed. This can double as commerce for your Property Management Department.

Lastly, experience and appreciate your unit and celebrate your successes.

Property Management 101 – My Vision for Property Management

Creating an effective Vision is a way to share an understanding of a common purpose as well as to generate a clear image of the future success you strive to achieve. It is the work of leaders and the managers, to help to create this Vision.

I believe all teams require direction and Vision to become successful. Without this teams will generally flounder and success will seem like a distant image.

The Vision becomes the key driver of change and a powerful Vision has the following characteristics:

1. It outlines a compelling reason for change – People do need a reason to change, they are not going to commit to the extra effort to change without any motive.

2. It delivers a picture of the future – We all need to see what we are working towards.

3. It is focused on what needs to be achieved – Without direction we are wandering aimlessly. Tell the team what they are achieving.

4. It appeals to the long-term interest of all stakeholders – If I was a business owner, I would need to see continuous improvement before I put any further funds towards the business, including the team.

5. It can be communicated easily – Have discussions at your team meetings, put the visions on your internal communications, on your walls, on the top of your computer monitors. Live it and breathe it.

Teams without clear direction often experience the following obstacles to high performance:

1. Increased conflict among team members on how to achieve goals – Too many bosses and no clear direction or vision equals everyone heading in a different direction.

2. Lack of agreement on team direction – No one is clear how to get to the goal.

3. Team activity does not translate into clear progress – It is hard to progress with-out knowing where the team is headed.

4. People work in different directions – All roads do not lead to Rome! It is perfectly fine for people to work on a slightly different route if the destination is the same.

5. A lack of focus on future success can lead to setbacks When staff have no vision, they become disheartened. They ask questions like: Why bother? Why do I come to work every day? What are we accomplishing by being here?

Improvements in team effectiveness that come from a clear, compelling Vision of the future lead to new paths of excellence. I would love to hear about your visions and direction for the future of your team.

How Property Management Firms Are Making Affordable Housing Desirable

According to the Economic Times, “affordable housing” refers to housing options within the budget of those whose income is below the median household income of a particular area. While some may assume that affordable housing automatically means giving up certain amenities that are common in society today, property management companies all over the country are working to ensure that this is not the case. Indeed, in 2016, low income doesn't have to mean low quality. From the very basic needs of safety and shelter to the most deluxe offerings like on-site laundry facilities and fully equipped community areas, property management companies are providing rentals that get the most out of every dollar. Whether you are looking for a cozy apartment or a large, master-planned community with organized activities, you don't have to sacrifice access for affordability.

The need for affordable housing spans every demographic and age group, and property management companies take note. For instance, some rentals provide amenities geared toward older residents, such as retirement facilities with mobility-accessible features, while others are more geared toward families, offering two bedroom units with balconies and lots of storage space. Because families typically include children of school age, some communities will be established in areas with access to great schools and within proximity to local restaurants and entertainment. Many rental communities also include extras like off-street parking and built-in alarm systems, as well as access to on-site recreational activities.

Regardless of your specific needs, a property management company can assist you with locating properties available in your price range and working through the application process. Not all managers are created equal, so to ensure you're getting the best representation and amenities available, look for certifications or designations from organizations like the Institute of Real Estate Management or the National Association of Realtors. Ideally, you want to work with a company that has a long history in the industry, with many years of expertise and a clear passion for providing tenants with wonderful homes. The company should also have a cooperative relationship with HUD, the government's Housing and Urban Development agency, whose mission is to create strong, sustainable communities and quality affordable homes for all.

In addition to providing leasing services to tenants and management services to property owners, many property management companies also act as development consultants or work to obtain federal funding for affordable housing projects in their communities. This commitment to providing a platform for individuals and families to gain access to a place to live and work benefits everyone involved, from saving taxpayers money by reducing demand for government services, to improving education for students who would otherwise be moving around when their parents are unable to afford a stable home.