Executive suites is a generic name for a type of rental office available in cities all over the U.S. and overseas. They are also called ‘shared office space’ or ‘temporary office space’, but don’t let these terms throw you. Executive suites are not expensive CEO type of corporate offices. Nor does ‘shared office space’ mean you have to share an office with another business.

Also, the name ‘temporary office space’ doesn’t have to mean temporary. They can actually be as permanent as you like. Rental plans are so flexible you can arrange their use for a day, week, month or how everlong you want.

But the best part is the look of success you get without the expense. For example, you don’t have to buy a stick of furniture. It’s all there waiting for you when you walk into your executive suite. Also, there is no need to hire extra staff. A professional receptionist will be available to greet your visitors and answer your telephone when you are out of the office.

From the viewpoint of a prospective customer, you will have the look of an established and successful business, rather than a rickety, run of the mill office of a struggling start-up. It is possible that a boring, cluttered, or sterile office space lacking in style and the modern touches of a professional designer may cause top-notch potential clients to rethink doing business with you altogether. Remember, first impressions really do mean a lot when attracting new business.

Please note that when it comes to building a professional company image, the office space you select is paramount. After all, you are really sending an intangible type of message which one that should represent a thriving and successful business in the mind of your prospective client. The image you project begins the moment your clients walk into your building the first time.

Executive Suites: The good news is …..

Executive suites are often located in buildings with a Class A rating. Once again, your professional image is further reinforced when your clients are greeted in the lobby by a friendly receptionist, just like in those large corporations. All in all, everything works together seamlessly to build the type image of you desire.

To find an executive office space in your preferred city, you can do a simple key word search on “executive office space” and include the city or zipcode. You will be pleasantly surprised at the many options provided by in your area.

Cheree Dohmann, an internet marketing consultant, works with Premier Business Centers promoting their services. For details visit Premier Business Centers-San Gabriel Valley Office Space

Interested in Real Estate investing? There are so many options to real estate investing from residential properties to multi unit housing. Multi unit housing is a common investment, although it can be risky, there is great potential to make a lot of money.

There is not a steep learning curve to multi unit housing, it is very similar to buying a home, or second investment property just on a much larger scale. Like buying a home, you have to find a property that suits the your needs. Does it fit in your budget? What kind of revenue will it produce? Is it in a desirable location? The process to find a multi unit may take a bit longer; it’s not like the residential market where new properties are on the market continuously. You have to be a bit more patient when finding those perfect multi unit properties.

Once you have found that perfect property, it is now time to make the purchase. This seems to be the point when most multi unit properties don’t become multi unit purchases. Most of the time you have to put down a lot of money, to secure the purchase. The amount is considerably larger than the down payment on an average single family home, which scares a lot of people off. However if you can get passed this point, the chances of making money on a multi unit property is much higher.

This is best part, once you have completed the purchase there is so much you can do. You can fix up the property and find tenants for your suites. You can hire a property management company that will take care of the building operations. You can even turn around and sell the property.

Investing in multi unit housing can be a great experience. It is a fabulous way to make large profits. If you are serious about these types of investments, there’s information available on the Internet or ask your real estate agent.

Dan Standeven is an Author and seasoned Real Estate enthusiast who provides Free Real Estate Articles including articles such as
Commercial Investing - Multi Units provided through his website at http://www.realestateeditorial.com

If you want to avoid any surprises the day after you close on a piece of property, then due diligence is highly important. Simply put, due diligence is examining and investigating that many different details that are a part of a potential investment. Doing this extensive investigation will allow you to get a better idea of what you are getting into and will let you see whether or not this investment is for you. Before you even make an offer on a piece of property, you should be starting this process, but after the offer is made you can make provisions that will allow you to look over important documents and have inspections done before you actually close on the property. It can be very difficult to get all the information you need during the due diligence process, and unfortunately may buyers are not prepared for this process. Buyers who are not adequately prepared usually end up bailing out on the deal or trying to get a settlement. Knowing where to look for the information you need is important for you to be successful at this process. The following is a list of helpful resources for you to add to your due diligence toolbox so your due diligence process will not end in disaster.

Ownership Data

If you want ownership data, one of the best places to start looking is at the local courthouse. Recorded documents such as deeds, liens, subdivision plans, and easements are usually kept up by the government. As a general rule you will be able to find this data at the courthouse, and usually they will be found in the Tax Assessment Department or the Recorder of Deeds Department. If you are not able to go to the courthouse for the information, there are a variety of online databases that may be able to provide you with the information you need, such as www.realquest.com and www.searchsystems.net . It is important to keep in mind that unless it comes directly from the courthouse, there could be problems with the accuracy of the data.

New Construction Communities

You may also want to find out who the builders are in your specific area. There are a couple ways that you can obtain this information. You can go to the land development or code enforcement offices of the municipality and get a list of approved developments and subdivisions. Another option to find out this information is to go out and visit the construction sites yourself. At the sites you can speak with the construction agents and pick up brochures on the builders.

Municipal Records

Municipal records can be a great help to you, but you need to develop a list of the properties you are interested in for further investigation. After you have your list you can then make an appointment at your local municipal building to review development plans and files that are available. This type of information is available to the public, and you can review material from municipal meetings relating to actions taken by the municipality.

Utility Maps

Having utility maps can prove helpful when you are going through the due diligence process as well. If you want to acquire these maps you may need to check out the mapping that is available from the water and sewer authorities in the region. Private water companies may be able to help you find these maps, or you could even try to get them from the county planning commission as well.

Zoning

Zoning information can be difficult since the zoning properties are different everywhere you go. You will want to find out zoning information in the area you are interested in. You can contact the zoning officer at the local municipal office for information on zoning, or you may be able to find it through private vendors as well. Once you have this information, it is important that you read through each ordinance and not just the zoning classifications. There can be important information that is hidden within the ordinances that you need to know, so read it thoroughly.

Proposed Highways and Facilities

When going through the due diligence process, it is helpful to know about proposed highways and facilities. If you need this type of information, the best place to check is with the local municipality, or through the regional planning commission or the county planning commission.

Floodplain Maps

When you are considering a piece of property it can be very helpful to know whether or not that property is located in a flood zone. If you need floodplain maps of the area you can check with the local municipality or you can go online to www.FEMA.gov to find the information as well. If the land you are investigating is subject to any flooding you will be able to see this by looking at these maps.

Whether you are going to close on a small single piece of real estate, or you are working on a larger deal, due diligence is extremely important to the entire process. If there are any problems, due diligence will give you the opportunity to get a better deal on the piece of real estate, to have problems dealt with, or to walk away from the deal if that is necessary. Do yourself a favor and keep these due diligence tools in mind and use them to their fullest potential to prevent any real estate disasters and buyers regrets.

Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

After owning your commercial property for several years, it’s time for you to sell the property. There are a few things you should know and consider before listing your property.

What Commission You Should Pay?
It’s often a percentage, typically from 3 to 6% of the list price. The commission is negotiable and dependent on various factors

1. Price: in general the higher the price, e.g. $10M, the lower the percentage.
2. How difficult it is to sell it. For example to sell a vacant building in a declining area, you should pay a higher commission.

As a seller, it is tempted to think your net proceed is more if you pay low commission. However, when you take away the commission, you take away a very strong and perhaps the only incentive from people who make a living selling your property to their investors. They may choose to sell other properties instead. Less competition may result in lower price for your property.

The commission is often split 50/50 among the listing office and the selling office. However, it’s not always the case. Some listing office feels it deserves 2/3 of the total commission because it has 2 people working as a team. The question to ask is “Does this commission split best serve your interest?” As a seller, you want to get the biggest bang for your buck. That means a fair split that will most likely bring the most number of offers to the table. So you should consider asking the listing broker to:

1. Split the commission 50/50 with the selling office.
2. Make the listing available to all brokers inside AND outside of the listing company at the same time. Some companies have the policy of keeping the listings in house for the first 30 days. This allows the office to sell the property to just their own clients and keep the all the commission. Once they cannot sell the property to their own clients, they make the listing available to all other offices. This action is in conflict with your interest and may even be unethical because the property does not have maximum exposure to all the potential buyers.

By doing so, you will be likely to get the most number of offers. As a result you will be likely to get the highest price for your property.

Some brokers specialize on “no commission to the buyer’s broker” listings. Sellers only pay commission to the listing office and buyers must pay commission to their agents. This may sound fair to you as a seller and you would think your net proceed would be higher because you don’t have to pay a commission to the buyer’s broker. However, this author is not ware of any studies showing the seller gets more money with this approach. The reality is different because:

1. You take away the most important incentive from the selling brokers: money. They may decide to sell other properties to their clients instead.
2. Even when sellers pay commission, mentally the buyers still think they are really the ones who pay the commission which is included in the purchase price. This is the reason some buyers prefer to buy “For Sale By Owner’s” or FSBOs.
3. Buyers must come up with more money to buy your property. They cannot get financing for the commission since it’s not included in the purchase price. This may discourage buyers from making offers.
4. Buyer’s broker may present an offer and state that the real price is the purchase price in the contract minus his commission.

As a result, you are less likely to get the maximum numbers of offers and consequently not the highest price for your property.

Does it matter which broker should you hire?
While any licensed real estate agents can list your commercial property, you don’t get any benefits when you hire a residential specialist to do the job. Commercial and residential properties are 2 totally different products which require different marketing plans and selling process.

1. The brochure: commercial properties normally have a brochure instead of a flyer as often used in residential properties. The brochure is given to potential buyers who may be out of the area, out of state or even out of the country. This brochure contains pricing, property pictures, site plan, satellite map, rent roll, income, expenses, demographic, and traffic volume information. Investors often look for information that they really care about such as Net Operating Income (NOI), cap rate, and lease term (gross or NNN). They often make offer based on the information in the brochure alone without even seeing the property personally (they inspect the property during due diligence period). Some of the information in the brochure may be confidential, e.g. rent roll, in which you may want the buyer to sign a confidentiality agreement first.
   

2. Pricing: Most commercial properties are one of a kind and very unique in appearance, quality, location, lot size, number parking spaces, tenants list, etc. Many have no comparables like residential properties. So setting the right price is more complex and not as straight forward. Should it be priced based on net income, market value or construction cost? The property would not sell if priced too high. You lose potential profits when priced too low. So you want a commercial specialist to do this.
   

3. Documentation: sellers are required per contract to provide various documents, e.g. survey and environment assessment report, not typical needed in a residential transaction but required by commercial lenders. Not providing all the required documents to the buyer in a timely manner may jeopardize the transaction.
   

4. The offer process: In commercial real estate, the selling broker often presents a one-page Letter of Intent or LOI instead of a contract. This LOI states the key points: price, earnest money, due diligence period, financing terms, and closing date. Once the LOI is accepted, both parties will work on the contract. A commercial listing broker will not ask the buyer for a prequalification or pre-approval letter which is typical in residential transaction but not in commercial transaction. This is because the loan approval process for commercial property is so different such that lenders don’t issue a pre-approval letter.
   

5. Escrow: it normally takes 21-30 days for due diligence or buyer to investigate the property and 60 days to close escrow when financing is involved. A commercial real estate broker won’t demand 30 days escrow like in a residential transaction because he knows it takes a long time for a commercial lender to approve the loan.
   

6. Financing: in commercial real estate a higher percentage of transactions do not close because the buyer cannot get the loan. In a transaction that involves SFRs, if the buyer has 30% down payment then it’s almost certain that the loan will be approved. However 50% down payment is not even sufficient for many properties in California with cap rate of 5% or lower. Please refer to the article “What Investors Should Know about Commercial Loan” written by the same author. So a listing broker with experience about commercial financing will be able to advise the seller not to accept an offer with a remote chance of getting the loan approved

David V. Tran is the CEO eFunding Inc., a commercial real estate brokerage, commercial loan broker, property management, self-directed IRA investment, TIC and syndication company in San Jose, CA. His website is http://www.efundingcom.com. He may be contacted at (408) 288-5500. eFunding does business in all 50 states. He is selected as Pensco Trust’s (a major self-directed IRA custodian) Preferred Professional. David is well-known for his 3 FREE real estate investment seminars:

1. How to invest in commercial real estate for retirement income NOW.
2. How to maximize cash flow with 1031 tax-deferred exchange.
3. TIC/Syndication: strategy for small investors and self-directed IRA investors to acquire high-valued properties.

   You are welcome to share this report, unedited and in its entirety, with anyone you like. You may not remove this text. © 2007 eFunding, Inc.

Is golf a passion of yours? Perhaps it is, but the wife would rather relax in the sun or by the pool. There are many places in Costa Blanca, Spain where you can both have what you want from your vacation. Golf property Costa Blanca style puts you within minutes of several scenic courses, and the close proximity lets you enjoy some time on the course and by the pool or at the beach.

Top Picks in Golf Property Costa Blanca

Four star golf properties abound along the Costa Blanca. With each you will find luxury accommodations, perfectly manicured greens and often, top-notch golf instruction.

A sampling of some of the best properties within 50 km of the Alicante and Murcia airports include:

Alicante Golf, Alenda Golf, Campoamor Golf, Don Cayo Golf, El Plantio Golf, and Villamartin golf. These courses are not only considered first rate, but they also offer reduced greens fees for guests staying at the nearby resorts, such as the Campoamor Golf Hotel.

If a vacation is not enough, you can purchase a golf property that will give you the choice of popping in and completing a round anytime the urge to travel to Costablanca strikes you. You can purchase penthouse and high end apartment properties that are just steps from the golf courses. On the off season, not that there is one in Costa Blanca, is the perfect time to rent out your property for some investment income. You can also purchase a time share only and choose the dates you want to visit.

New in 2005, close to the Atalaya, Puerto Banus and San Pedro Alcantara golf courses are new projects from some of Spain’s top developers. This new development and others like it have what is known as golf share. The location of the development along the golf course and close to others in the region takes into account residency and offers membership shares in the courses themselves.

Planning Your Golf Holiday

A good golf holiday of course includes many hours of golf. However, there are other activities both on and off the course that are enjoyable for the traveller looking for some serious golf and some serious relaxation.

After a long, yet enjoyable day on the course, you can look forward to spa treatments of the most luxurious kind. Massages, facials, manicures and the like are conveniently housed on the premises and appointments run into the evening hours.

There is a night life element to a golf property Costa Blanca vacation too. Restaurants and bars can start the day off right, followed up by dancing or a quiet stroll along the harbour. Shops will often stay open late into the evening during peak tourist times to maximize your vacation experience.

What to Pack

The beauty of have your own golf property is that there is little to pack for each visit. You can keep all of your vacation clothes conveniently stored at the villa or apartment and all of your other accessories and toiletries. Bed linens, towels, dishes and dry goods will all store nicely, ready for your next vacation. Even if you have a time share or lease out the apartment when you are not there, you can keep one closet or a trunk with your own belongings handy. And if you really want convenience and ease a second set of golf clubs can be stored as well. That way, you need only step on the plane, train or into the car and await your final, fully-furnished destination.

Let the golf vacation tee off to a great start at your home away from home!

Jerry Blackburn regularly creates newsletters on topics related to costablanca and Spain. You can see his work on Costa Blanca at http://www.alicante-spain.com and different sources for Costa Blanca news.

Golf property Costa Blanca has become very popular in the past few years. It’s easy to travel to the Costa Blanca. There are plenty of discount flights available into the Alicante airport. The availability of flights makes it easy to travel to your property several times each year. Most areas of the region are convenient to this airport.

The warm weather in this region makes it perfect for a golf vacation. The summers are hot and dry. The climate is favourable all year for playing golf. The weather is warm and there is very little rain at most times of the year. You will be able to enjoy golf in all seasons here.

Amenities at Golf Property Costa Blanca

When you are looking for a golf property, consider the amenities offered by the community. Some amenities are centered on the game of golf. These include a club house and a pro shop to purchase supplies. Some places have a golf pro on staff that can help you improve your game. If you plan to play a lot, you may be interested in having these features right in the community.

Other amenities offer something to do other than playing golf. This may be important for you to have activities to do after you have finished playing for the day. If you will be travelling with your family, you will want fun activities available for the kids as well. Some great family features include community pools and private beaches.

Some communities offer restaurants and bars within the community. This is a convenient way to get a bite to eat or enjoy some night life without going far from home. Some even have shops or convenience stores located within the community for quick shopping. Even if these aren’t available in the community, you may want to be in close proximity to restaurants and shopping.

Some communities offer help in maintaining your property. Some offer outdoor maintenance. You will pay an annual fee for this service. The maintenance staff will take care of landscaping, the upkeep of the property and make some repairs for you. This may be important for the times when you aren’t staying at the property. Some offer a maid service as well to take care of the inside of the property.

Finding Golf Property Costa Blanca

There are many golf communities on the Costa Blanca. Consider whether you want to purchase property in the northern area, such as Altea or Javea or in the southern costablanca. Torrevieja is a popular spot in the southern part of the region.

Once you have decided where you want to purchase property, you are ready to start viewing properties. The internet is a good resource for viewing properties. Many sites offer plenty of pictures and a virtual tour of the property. Read the descriptions and look at pictures to get an idea of what is available and the price range.

Once you have gotten an idea of the market, you will need to travel to Spain to view properties. Make several trips and rent properties each time to get a better idea of the communities available. Look for the proximity to the beach and other attractions, such as shopping and night life.

You will need to find a real estate agent to take you to view the properties. Look for a reputable and licensed real estate agent. If you know anyone who has recently purchased property, ask for a referral. Ask friends and neighbors who they have used and if they were happy with their agent.

After you’ve found a property, you will want to hire an attorney. A lawyer can help you navigate Spanish real estate law and will help with the language barrier. You want an independent attorney who will look out for your best interests. He will read over the contract and mortgage application to be sure you are getting a fair deal.

The technical writer Johnathan Bakers is interested in news similar to costablanca. You might come across his abstracts on Costa Blanca and costablanca at http://www.alicante-spain.com .

Why Should You Care?

Cost Segregation Study (CSS) allows you to claim 50-70% more depreciation on your commercial property. This reduces your income taxes and in turn increases your cash flow from the property.

What is Cost Segregation Study?

This IRS-defined engineering approach accurately classifies an investment property into two asset groups:

• Structural components which have longer depreciation schedule;
• Non-structural components, e.g. furniture, carpets, landscaping, plumbing, electrical, HVAC systems, parking lot which have shorter 5, 7, or 15 years depreciation schedule. So the more non-structural components the property has, the more extra depreciation you can claim.

CSS is normally done by an appraiser or an engineering company. The company will visit your property for a site inspection to fully understand its use and condition. It then provides you with a CSS comprehensive report. This report includes pictures and information to support and document the classification of costs according to the strict IRS-approved methodologies. The result of CSS is then given to your CPA or tax accountant for income tax filing.

Without CSS, you will just use the standard depreciation schedule for improvement: 27.5 years for apartments and 38.5 years for other commercial properties. This is the way 90% of investors are doing. So if you have not heard of this term, chances are you are not taking advantage of the higher depreciation the IRS allows you to.

Benefits to Investors

By shifting a portion of the property into the non-structural assets, CSS allows you to reduce your income tax by generating extra 50-75% depreciation tax deductions and thus increase your after-tax cash flow. The extra depreciation basically converts ordinary rental income at your current tax bracket to tax-deferred capital gain when you exchange the property.

Of course the higher your tax bracket, the more tax savings you will get. The saving is even more if you also have to pay state income tax as CSS is also allowed in state income tax return. These tax savings tend to occur in the first 5 years of ownership. Once the extra depreciation runs out, it may be a time to evaluate if you should exchange the property and repeat the whole process again.

CSS allows you to increase tax depreciation. This is not the same as accelerated depreciation which simply shifts a higher percentage of depreciation deduction to the early years. This accelerated depreciation is subject to Alternative Minimum Taxes while depreciation from CSS is not.

Who Can Benefit from CSS?
If you own any of the below, you should be able to benefit from CSS:

• Retail/shopping Center,
• Office building
• Restaurant
• Nursing Homes, Assisted Living Facilities
• Hotel/Motel
• Warehouse/distribution center
• Industrial building
• Public Storage
• Resorts
• Auto Repair Shop
• Auto Dealer Property
• Hospital, medical center
• Sport/entertainment Facility

CSS Companies

Below are a few companies that do CSS. Most companies will provide you with a free estimate for the CSS of your property. The author does not endorse any company.

1. Commercial Cashflow Advisors, (408) 213-2530, www.ccashflow.com.
2. O’Connor & Associates, (800) 856-7325, www.cutmyfederaltaxes.com
3. Source Corp., (817) 732-5494, www.sourcecorptax.com.

Do’s and Don’t

1. If you own commercial property valued at $1M or more, you should explore the benefits of CSS especially when you are at high tax brackets and can benefit from additional depreciation.
2. Use the Cost Segregation Calculator on www.cutmyfederaltaxes.com. You just need to provide: property type, building cost, your tax rate, date of purchase and it will give you an estimated tax savings. Use this as a go, no go test to see if it’s worth pursuing further.
3. Take advantage of free estimate most CSS companies offer. It tells you the costs of CSS, and estimated potential tax savings in the first 5 years.
4. Don’t let the cost of CSS deter you. It costs money to make more money.
5. Discuss the estimate provided by the CSS companies with your CPA or tax accountant to see if your CPA would advise you to proceed.
6. You may want to consider CSS at the time of purchase of a commercial property as part of your investment and exit strategy.
7. You will maximize the tax savings benefits if you hold the property for 5 years, i.e. it probably does not make sense to do CSS and sell the property shortly after that.
8. If you own the property for several years, the IRS allows to “catch up” underreported depreciation from prior years by filing a form 3115.
9. If you have remodeled and renovated your property, CSS can also recover a significant portion of the asset value which you have abandoned.

David V. Tran is the CEO eFunding Inc., a commercial real estate brokerage, commercial loan broker, property management, self-directed IRA investment, TIC and syndication company in San Jose, CA. His website is http://www.efundingcom.com. He may be contacted at (408) 288-5500. eFunding does business in all 50 states. He is selected as Pensco Trust’s (a major self-directed IRA custodian) Preferred Professional. David is well-known for his 3 FREE real estate investment seminars:

1. How to invest in commercial real estate for retirement income NOW.
2. How to maximize cash flow with 1031 tax-deferred exchange.
3. TIC/Syndication: strategy for small investors and self-directed IRA investors to acquire high-valued properties.

   You are welcome to share this report, unedited and in its entirety, with anyone you like. You may not remove this text. © 2007 eFunding, Inc.

A commercial mortgage is a mortgage for a building that will be used for business. Commercial mortgages are like a residential mortgage, but can differ in a few ways. Commercial mortgages are a little riskier than a residential mortgage. They are not for someones home, but rather for business use, usually a start up business which in and of itself produces a risk to the lender.

Commercial mortgages require the same steps as a residential mortgage. However, with a commercial mortgage if the business has an established line of credit separate form the individual business owner, then the businesses credit is used to secure the loan.

Commercial mortgages can have a fixed or variable interest rate. A fixed rate will stay at the same percentage for the life of the loan. A variable rate will change as interest rates change. With a fixed rate the benefit is that a person will always know the cost of their mortgage payment, however, a variable loan allows a person to take advantage when rates drop, immediately.

Fixed rate mortgages though can be refinanced when rates drop and therefore the rate will be fixed at that lower rate. The choice can be difficult and should be discussed with the lender to ensure the best one is chosen for the circumstances of the business.

When applying for a commercial loan a business owner should make sure they have all of their financial information prepared and documentation ready for when they meet with the lender. If it is a start up business then they will need their personal financial records. They will also need a comprehensive business plan including business finances.

If the business is already established and has its own line of credit then the business owner will only need to provide the businesses financial information. It is best to be prepared with income taxes from the last two years for both the business and business owner.

Commercial mortgages are pretty much a lot like residential mortgages. The basics of the mortgage terms are the same. The main difference is the documentation used. When applying for a commercial mortgage a business owner needs to ensure they are well prepared to offer the documentation to prove their business is going to do well or has been doing well.

The lender is mainly interested in seeing that the business is not likely to go under any time soon. If they have any doubts it could cause problems with getting the loan. Additionally, the business owner should be willing to put up some type of collateral to secure the loan, as this will make lenders more likely to consider approving the loan. Anything a business owner can do to ensure the loan will be repaid is worth doing.

Business loans of any type are often considered risky for a lender so they are extra careful in approving them. This is important for a business owner to keep in mind when searching for their commercial mortgage loan.

James Copper writes on all areas of finance and investment. He works for CFS who source commercial mortgages for business owners and people looking to starting their business.

Commercial real estate investing can be approached from a number of different ways. Like the many choices to invest in, there are also numerous ways to finance the investments. We’ll look at a few of the options you have when financing commercial real estate. One of the most important concepts to understand in finance is the time value of money. This concept basically says that a dollar now is more valuable than a dollar a year from now. This is due to inflation. The one advantage that you have is time. You can put your dollar to work for you and it will be worth more in the future. If you do nothing with that dollar, it will be worth even less in the future.

This concept is what makes the use of leverage so critical to any investor. Through leverage, investors can multiply the effectiveness of their money. This leverage is attained through the use of other people’s money. This borrowed money creates an ROI (Return on Investment) for the investor. This means that in order to benefit the most, you must utilize your cash more effectively now. Let’s say that you have $100,000 to invest. You may initially think that it would be best to buy a property without using debt for $100,000. However, under closer examination, this is probably not the best scenario. Instead of buying one property, why not buy ten? You could put $10,000 down on ten different properties and finance the remaining 90% of the properties. Then in 20 years, all of the properties will be paid off. You will now own all 10 properties and have a nice little nest egg built up. This is quite a substantial difference from the other scenario. In the first scenario, you still only have the one house. This is one of the best possible examples to illustrate the benefits of leverage. As a word of advice about this example… if you have cash flow, you have taxable income. If you increase the equity, there is no tax until the property is sold. You must factor in all of the other variables such as tax implications when making an investment decision.

Another important thing to consider is the cash flow vs. cash reserves. Many people will disagree on this point and it is pretty much a personal choice. This depends solely on your personal goals and how you picture your financial future. Some can handle no reserves, while others need the feeling of security that comes with it. You must decide what is important to you. For example, you could have a $200/month cash flow and no reserve. You could also have a $100/month negative cash flow and $20,000 reserve. Many people think that the first option is better, but is it really? If you come across hard times, the bigger reserve is obviously better. If you have a vacant property for even a month, you might lose out on $600. At only $200/month in positive cash flow, you’re quickly three months behind. This is a losing proposition. With a $20,000 cushion to fall back on you can handle a lot of trouble. You could possibly withstand a $1200/year negative cash flow for 16 years! Hopefully it would never come to that, but it is nice to know that you could. Closely consider your options and make the decision that makes the most sense in your situation. Everyone is different in this regard. Trust your instincts.

Another area that is focused on is whether or not to pay down debt. Many investors believe that the ideal situation is to own all of their properties “free and clear”. While there are advantages to this, it may not always be the smartest move. There are a few other things that one must consider first. If all of your properties are debt-free, all of the cash flow will now become taxable. This can amount to a substantial increase in your taxes.

If for some reason you need cash, debt can also help you out. If you own the property free and clear, any sale of the property results in a capital gain. You will pay taxes on the sale of the property. However if you refinance a property, there is no taxable action. You can get the cash you need without paying an arm and a leg in taxes. Consider this…the higher the monthly mortgage payment, the less cash flow there is. Therefore, you pay less in taxes. No one wants to shoot themselves in the foot by paying unnecessary tax bills. If you can avoid them, do it at all costs. Don’t be blinded by the promise of having a debt-free property. It may not always be the best route for you. In any case it is advisable to seek competent advice. Someone who has done this before can be of great help to you. A CPA should be able to advise you on the tax benefits that you should pay attention to. Any successful investor should have a sound grasp on all of these concepts. They will save you thousands of dollars in the long run.

With all of these different concepts in mind, remember that there is not just one way to invest in real estate. There are multiple avenues that you can embark on and they can all be profitable. The main thing to remember is that the financing can play a big role in the ROI.

When you are trying to make a choice, remember that the “obvious” choice is not always the right one. Appearances can definitely be deceiving in this industry. Just because many people are doing something, does not mean that it is the most financially sound advice. Before considering the information above, many people would obviously say that debt is never a good thing to have. However, in certain cases it makes more sense. Think about the implications of any decision you make. Down the road it can either be to your benefit or detriment.

If you’re looking for a quick source of cash, you might be saying to yourself: I want to sell my commercial real estate note. Well, that’s not a bad idea, given the fact that you can receive a lump sum of money without the headache of a loan. Nowadays, note sales can be executed very quickly, and you have more options today than ever before.

Regardless of whether you are looking to sell commercial real estate note, residential or any other type of cash flow paper, you need to find a reputable, experienced note buyer to ensure that a) you will get top dollar for your note and b) you are aware of all of your options. Although most sellers choose to sell the entire note, which yields the highest amount of money up front, it’s important to know that you can also sell just a portion of the note. This is known as a partial, and it allows you to get a sum of cash for “x” amount of payments. You then start receiving the monthly payments again afterwards.

So if you’re thinking: I want to sell my commercial real estate note, know that there are several ways you can go about it, and figure out which way works best for your particular situation. Whichever option you do choose, it always works out in your favor because money today is always worth more than money tomorrow. You might have heard this phrase before, but what does it mean for you when you sell commercial real estate note?

First of all, it means that the value of money decreases over time. For example, $50,000 today will buy you a very nice sports car. In 10 years, that same $50,000 will probably buy you a small entry-level coupe. So you can see that getting a lump sum of money is much more favorable than receiving small monthly payments for years and years, especially for those who need cash right now.

Another good reason to sell your commercial real estate note is it eliminates the uncertainty that comes with receiving monthly payments. Sure, the payments are coming in now, but what’s going to happen in 6 months, or a year, or 5 years? You just never know. Something could happen to the buyer that hampers his or her ability to make the payments. You might find yourself in a situation down the road where monthly payments are no longer a good option for you.

You might be asking yourself, I definitely want to sell my commercial real estate note, but how much can I get for it? That’s a good question of course, but there is no set answer. The amount you can expect to receive will depend on a number of criteria, including but not limited to: the balance remaining on the note, the time left, the property value, timeliness of payments received to date, financial stability of the payor, overall risk and other factors.

Keep in mind that the commercial real estate note buyer is assuming all of the risk that comes with purchasing your note, so it has to make sense for them financially. But even though you might sell commercial real estate note at a discount, the money that you receive in exchange is guaranteed, and you can’t put a price on that!

We hope that we’ve helped you answer the question: Should I sell my commercial real estate note? Feel free to visit our site for more information.

Jamie has been working in the finance industry for many years and is a contributing editor to http://www.selling-your-note.com. Visit the Sell Commercial Real Estate Note website for more information and to receive a free, no obligation quote from professional note buyers.