http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/real-estate/where-have-all-the-commercial-lenders-gone.html http://www.articletrader.com/finance/real-estate/where-have-all-the-commercial-lenders-gone.html Thu, 11 Jun 2009 22:32:27 -0500 Do you remember that song from the 1960's that went something like: "Where have all the flowers gone, long time passing?" Oh … you don't? Hmm, maybe I really AM old! Well, I would update that song for the current decade to something like this: "Where have all the lenders gone, no loans funding!"

My walk down memory lane notwithstanding, I am getting a LOT of calls from people telling me that they can't find commercial financing ANYWHERE. Even our correspondents are making it harder to get projects financed, with a notable exception. Our Construction Project Rescue Financing is going like gangbusters … for the very reason that everyone is calling: No one else is financing!

Our leaders in Washington have not yet realized that you cannot "beat" the market. Or in this case, "beat it into submission." It is too big to be effectively controlled, as the former Soviet Union discovered. The question remains whether we will be able to afford the education our Congress and President are now getting.

That aside, just WHERE can you get financing for projects right now? Here is what I see in the market and please use these thoughts as a guide as you contemplate placing your financing requests:

Projects that will be considered seriously:

• Borrowers with good liquidity (10% or more of the loan request),

• Good credit (minimum 680 credit score), and

• Good quality properties (quality tenants with reasonable lease rates), that have minimum two years of stabilized operating history.

Lenders and Loan Programs that are active:

• Government Agency guaranteed or sponsored transactions, including: SBA 7(a) and 504, HUD construction loans for multifamily projects, Community Reinvestment Act loans, USDA Business and Industry loans, and to a lesser extent, Fannie Mae and Freddie Mac multifamily loans.

• Life Insurance Companies looking for Class "A" commercial properties that would have gone to a conduit lender. $3MM to $50MM loan amounts, top quality projects, good borrowers and strong tenants describe the kind of projects they like.

• Private Funds taking the place of individual private money. They are buying notes from banks and other troubled institutions.

Other than those areas, it is going to be pretty quiet out there for a while. There is very little trust among financial institutions and borrowers right now and the contracting economy make new projects harder to justify given what can be purchased in distressed situations. However, positioning yourself to take advantage of these niches could lead to, dare I say it, personal riches!



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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘"The Investment Property Insider" is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: "The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them." '



Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/trading-up-using-the-1031-exchange.html http://www.articletrader.com/finance/real-estate/trading-up-using-the-1031-exchange.html Thu, 11 Jun 2009 21:20:46 -0500
A powerful method for building real estate holdings is the use of 1031 Exchanges, which lets investors defer capital-gains assessment on investment property by reinvesting sale proceeds into the purchase of new property within a set time period. Though 1031 Exchanges have grown in popularity as the number of active real estate investors has grown, 1031 misperceptions continue. Here are some basic 1031 Exchange questions.

What is a 1031 Exchange?

A 1031 Exchange is a tax avoidance tool that allows you to defer capital gains tax to a later date when selling investment real estate, permitting you to reinvest money from the sale of one property to another. You are, essentially, ‘exchanging" one property for another investment property of equal or greater value. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.

Why do a 1031 Exchange?

There are three basic advantages to investors in making an exchange:
1. To grow your portfolio: In deferring your tax burden, you are getting an interest-free loan on the tax dollars you might have owed on your property sale. Your immediate tax savings is, thereby, employed instead as investment capital in a replacement property.

2. To convert your "gain" into immediate equity and tax-free cash: The 1031 Exchange provides more equity, which lets you to move up into properties of increasingly higher appraisal every time you perform a 1031. Also, there's an another benefit: Once your old property is sold and the succeeding property is purchased, you can turn around and refinance the new property, taking cash out as a loan for anything you want, and the money tax-exempt as income.

3. To utilize as an estate planning tool: Families that intend to pass along real estate holdings typically deed them into a family partnership or LLC (limited liability company). Management income can continue to be drawn from the properties by the parent or principle, but heirs will inherit the property without taxation .and "can continue to 1031 Exchange the property and grow a real estate portfolio," according to attorney David P. Greenberger.

How do I get started?

The opening move is to identify real estate to purchase, and contract to sell your property. Although you can sell your property to anyone you want for an exchange, you must identify in a written document signed by you and executed with a qualified exchange agent, the property you plan to buy within 45 days of giving up your original property. The exchange, or final sale of the property, must be completed within 180 days after the transfer of your property. Sale proceeds must be escrowed in an account with a qualified intermediary, until your "exchange" is complete.

What if you can't locate a property within 45 days?

There are no extensions allowable. So, it is important that you start researching your acquisition as soon as you anticipate your sale is close at hand, and try to time the closings accordingly, since 45 days goes by very quickly.

Is there a limit to number of properties that are identified in the 45-day period?

You may identify more than one property as a potential replacement property, but be aware of the rules. You can identify up to three properties without consideration to fair market value or you may identify any number of properties provided that the total value does not exceed 200% of the value of the original property sold. You don't have to close on all properties - and you may prefer to identify several just in case the sale of any one falls through. But you must be in compliance with these rules … or you pay taxes!

Is there a limit to the number of properties I can "exchange?"

You may "exchange" a single property for multiple properties. Or, you can buy a single property from the proceeds of several, as long as all the related timeline, identification and value rules are met. However: proceeds not used to purchase new investment property are taxed as a cash sale. So, if you "exchange" only part of your original sale profits, you will be taxed on the rest.

What are "qualifying properties"?

* Exchanged property must be of "like-kind," which broadly speaking means property of greater or equal value. You can exchange a duplex for a five-story building or even a vacant lot, as long as you meet all other 1031 requirements, including the holding time required before re-selling real estate.

* Property exchanged must be held for productive use in trade, business or investing, which may include a residential rental property, strip mall, warehouse or land held for speculation. Private residences or land in a developer's inventory to sell later are not permissible. It is possible for property purchased in an exchange to be converted at a later date to a primary residence or a vacant lot may ultimately be sold to a developer, but it is tricky. Therefore, it's advisable to consult with a 1031 expert and wait at least two full tax years before to do this.

Trading Up with a 1031 Exchange

It should be apparent, the tax-deferred exchange is a excellent way to build up your net-worth and maximize your investment dollars. There are many more aspects to the 1031 exchange instrument that are not discussed in this article that advanced property investors regularly utilize, such as using them in concurrence with "triple net leases."

However, the regulations regarding 1031 exchanges are complex, they vary from state to state, and are subject to change by the IRS. It's best for property investors of all skill levels to consult with a professional trained in these transactions on a regular basis, as well as with your accountant, before engaging in a 1031 exchange. Once done, you will be able to trade-up on a tax-free basis and accumulate a significant real estate portfolio applying the tax code to your best advantage.

* Excerpted from "Real Estate Flipping: Growing Rich Buying and Selling Property," by Mark B. Weiss, C.C.I.M., published by Adams Media.



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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘"The Investment Property Insider" is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: "The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them." '



Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/survival-tips-for-commercial-retail-properties.html http://www.articletrader.com/finance/real-estate/survival-tips-for-commercial-retail-properties.html Thu, 11 Jun 2009 20:20:03 -0500
Remember: It's never as bad as the guy selling you the news says it is!

Strategies for Improving the Future for Retail Properties

In the fourth quarter of 2008, the overall vacancy rate for retail properties rose to 8.9 per cent. While asking rents rose at year-end, effective rents fell by 1.1 per cent during 2008.

Given negative job growth and the sharp decline in retail spending (due to falling consumer confidence), Victor Calanog of Reis, Inc., is projecting continued turmoil in the retail property market through 2011. (For more on Victor's outlook, see
http://www.sg-comdigital.com/comdigital/200903ce/?ul=texterity.)

The International Council of Shopping Centers (ICSC) suggests that greater cooperation between landlords and retailers will be crucial to the industry‘s future. As discussed by Sasha M. Pardy of CoStar Group (www.costar.com), ISCS suggests both short-term and long-term strategies that will contribute to a successful future for property owners as well as for retailers.

To have an immediate impact, ISCS recommends the following:

• Shorten the shopping center's operating hours in order to reduce overhead. While this means that retailers have less access to potential customers, the sharp decline in mall traffic has led to periods which are unproductive for sales. The expense reduction should more than offset the resulting revenue decline.

• Allow landlords to maximize occupancy by not exercising co-tenancy clauses. A mix of retail tenants (as opposed to specific retailers) should generate higher traffic.

• Provide greater transparency in the reporting of sales. If retailers report sales more frequently and with greater clarity, landlords are more likely to respond to requests for rent relief.

• Encourage uncommon strategies. Landlords should allow retailers to clear merchandise faster by holding auctions. To lure local tenants, landlords can offer a package of tenant services, such as accounting or marketing, in order to reduce the tenant's overhead.

Three strategies are offered to improve long-term prospects:

1. Invest in new concepts. By taking an equity interest in and reducing rent to "fresh" retail models, landlords will drive traffic to shopping centers and improve investment returns on the entire shopping center.

2. Add service providers to the tenant mix. Non-traditional tenants-such as financial services and medical offices-can complement retail stores while filling vacant spaces.

3. Work toward obtaining intra-industry financing. The development of an agency that makes loans based on "covered bonds" (similar to those for mortgage- and asset-backed securities) can provide capital to the retail industry.



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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘"The Investment Property Insider" is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: "The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them." '




Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/segregate-costs-for-better-cash-flow.html http://www.articletrader.com/finance/real-estate/segregate-costs-for-better-cash-flow.html Thu, 11 Jun 2009 16:12:48 -0500
Everyone knows that a dollar today is more valuable than one received in ten years. Tweed Financial Services, Inc. suggests that a Cost Segregation study, which reviews the depreciation schedules related to your real estate investments, may reduce your taxable profits and thereby enhance your after-tax cash flow.

Certain assets may qualify for classification as tangible personal property, which can be depreciated over a five to seven-year life. Therefore, Cost Segregation studies can produce substantial savings because depreciation is shifted to the earlier years of the building's depreciated life, thus increasing their present value.

While costs such as office equipment and furniture are easily recognizable as personal property, construction-related costs that are often included as part of real property may also qualify for a shorter depreciable life.

For example, the 1997 Hospital Corporation of America ruling by the Tax Court allowed the assignment of a five-year depreciable life to a number of building improvements, such as primary and secondary electrical distribution systems and vinyl wall and floor coverings.

To segregate costs first requires an engineering-based study to determine reallocation of real property to personal property. Although the expense associated with this previously made it feasible only for multi-million dollar properties, the proliferation of providers has made it worthwhile for properties over $750,000.

In order to benefit from Cost Segregation, an individual should own a property constructed, acquired or improved within the last 15 years. Even if the property has been sold, there may be benefits.

If you are considering a Cost Segregation study, the first step is to consult your tax advisor for an initial evaluation. If you approve the results, then a team of construction engineers and CPAs work together to develop a list of assets that qualify for accelerated depreciation and to determine each asset's depreciable life.

Finally, a change of accounting method is filed so that the depreciation schedule can be adjusted. Note that a Cost Segregation study requires a thorough knowledge of IRS regulations and tax rulings, as well as Senate reports and expertise regarding building costs and engineering reports.

As is true for all property-related decisions, the owner must consider the disadvantages associated with a Cost Segregation study. Although it is deductible as a business expense, the price of the study may outweigh the benefits of accelerated depreciation.

In addition, if the property is sold, depreciation recapture provisions will be triggered. Furthermore, should the property be involved in a Section 1031 exchange, a Cost Segregation study will also be required for replacement property.

Additional information from the Tweed Financial Services, Inc. report can be found at www.aoausa.com.



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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘"The Investment Property Insider" is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: "The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them." '



Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/picking-the-right-commercial-property-lender.html http://www.articletrader.com/finance/real-estate/picking-the-right-commercial-property-lender.html Thu, 11 Jun 2009 07:32:45 -0500
And many thanks to the Cardinals and Steelers for putting on an amazing show of their own. We have had two years in a row of "Good" Superbowls … the ones that live up to the hype and don't have you dipping deeper into the chips before half time for something to do. Congratulations, Steelers for Championship #6. And may Kurt Warner come back one more season for another run to the Superbowl.

Both of these events highlight the importance of having a coach get you to the top of your game. That's why I talk about great sporting events so much. None of these players or teams would be where they are without the help of their coaches and mentors to help them fill the holes in their games and get more effort from them each and every week.

This week's commercial loan origination tip concerns your lender choices. When seeking commercial real estate financing for your clients, picking the right lender is half of the battle. There are different types of commercial lenders, each with its own set of lending preferences:

• Depository Institutions which include Banks, S&L's, Credit Unions, and Mutual Savings Banks. They prefer shorter term financing such as construction and bridge loans with adjustable or short term fixed periods and are very borrower oriented in their underwriting.

• Life Insurance Companies and Pension Funds prefer longer term fixed rate loans, only lend on high quality properties, and usually offer only permanent financing.

• CMBS or Collateralized Mortgage Backed Securitizers (Wall Street) usually only get involved in fixed rate permanent financing (although sometimes will do "floaters" or adjustable). They are "conduits" for mortgage originators, buying loans and putting them into securities.

• Private Investors and Funds also like short term construction and bridge financing, although they are property oriented (looking for lower LTVs) and will lend on higher risk projects.

• Mortgage Banks and Direct Lenders represent one or more of the above, fund or table fund the loan, do not keep it, but may service it.

• Mortgage Brokers represent one or more of the above, but originate only.

Researching the proper type of lender can save you hours of frustration and thousands of dollars in lost time and mis-applied fees.


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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘"The Investment Property Insider" is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: "The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them." '



Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/multifamily-properties-strategies-for-increasing-profits.html http://www.articletrader.com/finance/real-estate/multifamily-properties-strategies-for-increasing-profits.html Wed, 10 Jun 2009 21:37:56 -0500
1. Analyze markets so that you understand the economic fundamentals that drive them and can anticipate which ones are most likely to rebound first and strongly.

2. Plan by identifying deal parameters (such as targeted geography) and the associated time-lines for staffing and raising necessary capital.

3. Network with those who control or may control in the future the real property that your plan has denoted. This will enable you to generate new deal flow prior to an upturn in the market.

4. Expand by considering entry into areas where you were previously prohibited by price. They are now likely to be more affordable.

5. Hire because this is the time when you are likely to find experienced talent that might not have been available previously and may be open to a variety of working arrangements, such as consulting or temporary assignments.

6. Cash will allow you to make the best acquisition deals in the current slowdown. Strategies for raising capital include tapping existing investors, refinancing or drawing capital from your current portfolio, and seeking new investors, such as those who benefit from current currency exchange advantages.

7. Operations, at both the corporate and operating property levels, should be scrutinized for ways to reduce expenses as well as for areas where income might be enhanced.

8. Negotiate with your service providers by reviewing their fees, delivery schedules, and personnel assigned to your projects.

9. Time Deliveries for renovations of existing apartment properties and for new construction. Ideally, your units will become available when the market recovers.

10. Build, even if you have not considered it in the past, because labor costs are lower and the quality of work has improved.

Mr. Simons summarizes by emphasizing the following: plan for the recovery, rather than focusing on today's gloomy news; and act upon your market analysis so that you will thrive in the future. Details of his remarks are available at www.aoausa.com.



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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘"The Investment Property Insider" is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: "The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them." '


Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/is-a-sba-7-a-loan-still-a-wise-choice.html http://www.articletrader.com/finance/real-estate/is-a-sba-7-a-loan-still-a-wise-choice.html Wed, 10 Jun 2009 20:34:42 -0500
Jeff Rauth, president of Commercial Financial Advisors Inc., cites the supply and demand issues that caused banks to reduce their SBA lending. These need to be understood as you evaluate SBA funding.

On the supply side, banks have liquidity issues that have resulted in their reducing their SBA 7(a) loan volume. If a bank sells the guaranteed portion of a loan into the secondary market, it must only reflect the remainder in its reserves. However, the secondary market slowdown is partly due to the fact that many investors have funding sources coupled to LIBOR (London Interbank Offered Rate). LIBOR has risen dramatically in comparison to the prime rate, which is the rate to which the majority of SBA 7(a) loans are linked. This has made it disadvantageous for foreign investors to purchase commercial-mortgage backed securities tied to the prime rate, as well as creating a more difficult environment for banks offering SBA loans.

Fortunately, the SBA addressed this issue. In November, 2008, it changed the loans base rate calculation to eliminate the LIBOR/prime rate spread. Banks are now allowed to use the one-month LIBOR plus 3% (in addition to the prime) as a loans base rate. Banks are once again able to tap into the secondary market to sell the guaranteed portion of these loans, resulting in increased availability of SBA 7(a) funds.

The demand for SBA loans is affected by three factors. The first is that SBA loans have higher associated fees than conventional loans, which can create a difficult sales situation for a commercial mortgage broker. In reality, given current conditions, this may be the sole option for your clients that require a high-leverage loan. The fees can be financed by rolling them into the loan amount and recent proposed changes to the program have dramatically reduced fees on the SBA portion of the loan.

Interest rates are the second obstacle for the broker to overcome, since many borrowers are reluctant to accept the 7(a) programs quarterly adjustable rate. They are concerned about having to refinance in the future, which can be a time-consuming and costly process. It is important for borrowers to realize that with the prime rate at a historic low, it will take a significant ongoing rise in interest rates over several years for the favorable SBA interest rate differential to be eliminated.

The SBAs recent standard operating procedure (SOP) created a third issue, since it had resulted in a decline in the loan to value ratio. This meant that borrowers had to come up with additional cash. However, an SBA loan is often the sole alternative to the double-digit interest rates and lower loan to value financing available elsewhere. Recent proposed changes have brought the maximum combined loan to value back up to 90% on both the 7(a) and 540 programs, which may mitigate this issue.

Banks are still providing SBA loans to small business owners. It is important to consider this option, given the prospect that the secondary market is not likely to rebound soon. The limited choices currently available make it important to look beyond conventional financing for your business expansion needs.

For more of Jeffs comments, go to
http://www.sg-comdigital.com/comdigital/200903ce/?ul=texterity



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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: The Investment Property Insider is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them.



Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/individualist-vs.-collectivist.html http://www.articletrader.com/finance/real-estate/individualist-vs.-collectivist.html Wed, 10 Jun 2009 19:38:03 -0500
1. Trade with other nations has declined nearly 18% in the last quarter. Fewer people overseas are buying our goods and we are buying fewer foreign goods. This will make it harder to recover.

2. Major retailers are lining up at their attorneys offices getting ready to file for Bankruptcy proceedings. Note that Circuit City is already gone and many more will follow after this poor holiday shopping season. Do NOT be surprised if you read about some of these CEOs heading to the Great ATM Machine, i.e., Congress, seeking more bailout money.

3. Housing prices continue to fall, despite lowered mortgage rates. Just because rates are lower no longer means one can instantly qualify for a mortgage any more. If the loan to value is too high, there wont be a new loan. Period.

4. Commercial REITs and developers are facing serious financing trouble as more than $500 Billion in commercial loans come due this year with very, very few lenders willing or even able to lend.

5. The worst sign of all: More and more people are looking to the GOVERNMENT to save us from our excesses.

Folks, I dont care what your politics is, the bottom line is that Government policies caused most of this mess. Any serious digging on your part will bear this out (see FNMA and FHLMC). The real culprit is the belief that someone else is responsible for your prosperity. This happens at both the poverty and amazingly wealthy levels. Unfortunately, you wont find this information in the main-scream media nor will they teach it in school. Those avenues are already controlled by the bad guys.

We have allowed our individualism to slide into collectivism. I can give you all kinds of names for this crisis of the spirit: Marxism, Socialism, and Statism to name a few.

Here are some of the tools of this method of thinking: The creation of the Income Tax to promote class warfare for the sake of getting votes; the creation of the Federal Reserve Bank to supposedly control our economy (have you noticed how these huge bubbles tend to follow easy money policy at the Fed & and that they are getting worse); the creation of more and more bureaucracies to tell us what we can and cannot do; political correctness to stifle free speech and debate; the belief that only government can save us.

I DARE you to find any of these powers, beliefs, or inclinations in our Constitution, Bill of Rights, or the writings of our Founding Fathers.

Folks, the only way out is through the sound belief in and reasoned action of the individual. This is the core of what has made America the greatest nation on earth & ever. And we are sitting here watching our so-called leaders act without conscience, without accountability, and without a care for the consequences to the nation. We are giving our power away.

YOU need to do something about this economy and YOU can. Roll up your sleeves. Look around at the opportunities! Turn off your television set. Unplug your iPod. GO DO SOMETHING and stop waiting for someone ELSE to do it.

I see that $500 Billion in commercial loans that are rolling over as an AMAZING opportunity in my business. What diamonds are waiting for you to be picked up in yours? Be strong, get motivated, and by all means & get MOVING. Oh, and start writing your & ahem & representatives and let them know that their days are numbered!





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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: The Investment Property Insider is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them.



Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/going-green-what-is-a%80cleedsa%80%9D.html http://www.articletrader.com/finance/real-estate/going-green-what-is-a%80cleedsa%80%9D.html Wed, 10 Jun 2009 18:18:14 -0500
Leadership in Energy and Environmental Design (LEED) is an internationally recognized certification system developed by the U.S. Green Building Council (USGBC) to designate buildings which are notable for stewardship of our resources and for sensitivity to the structure's impacts. It is a voluntary program that measures how well a building or community performs in the following key areas:

- the choice of sustainable sites and managing the site during construction. Development on previously undeveloped land is discouraged. The goals are to minimize a building's impact on ecosystems and waterways; to encourage regionally appropriate landscaping; to reward smart transportation choices; to control storm water runoff; and to reduce erosion, light pollution, the heat island effect as well as construction-related pollution.

- water efficiency. Since buildings are major users of our potable water supply, the aim is to encourage smarter use of water, inside and out. This is typically achieved through more efficient appliances, fixtures and fittings inside, and water-wise landscaping outside.

- energy and atmosphere. The U.S. Department of Energy has determined that buildings use 39% of the energy and 74% of the electricity produced each year in the U.S. This category encourages such strategies as commissioning; energy use monitoring; efficient design and construction; efficient appliances, systems, and lighting; and the use of renewable and clean sources of energy, generated on-site or off-site.

- materials and resources. Buildings generate a lot of waste and also use a large amount of materials and resources, both during construction and when operational. The objective of this category is to promote the selection of sustainably grown, harvested, produced, and transported products and materials. It promotes the reduction of waste as well as reuse and recycling, and it takes into account the reduction of waste at a product's source.

- indoor environmental quality. According to the U.S. Environmental Protection Agency, Americans spend approximately 90% of their day indoors, where the air quality can be significantly worse than outside. This category promotes strategies that can improve indoor air as well as providing access to natural daylight and views and encouraging ways of improving acoustics.

The Green Building Certification Institute (GBCI)-an independent organization- administers LEED certification for all commercial and institutional projects registered under any LEED Rating System. It assures that LEED buildings are constructed and operated as intended, and it includes a network of ISO-compliant international certifying bodies that ensure the consistency, capacity, and integrity of the LEED certification process.

LEED points for Commercial Interiors are awarded on a 100-point scale, with credits weighted to reflect their potential environmental impacts in the categories listed previously. There are also 10 bonus points available, with 6 of these for innovation in design and 4 that address regionally specific environmental issues. To be certified, a building must earn at least 40 points. For 50 points it is rated "Silver", while for 60 points it is certified "Gold". The highest rating of "Platinum" is attained by scoring 80 or more points.

To learn more about the process to achieve LEED certification, go to www.usgbc.org. Since it is vital that planning for inclusion of green building practices begin at the inception of the project, the website provides a resource for connecting with LEED Accredited Professionals as well as detailing reference guides and templates for submitting the required documentation.


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WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘"The Investment Property Insider" is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: "The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them." '


Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/going-green-commercial-property-owners-can-cut-expenses-with-new-solar-film.html http://www.articletrader.com/finance/real-estate/going-green-commercial-property-owners-can-cut-expenses-with-new-solar-film.html Tue, 09 Jun 2009 18:07:23 -0500
Now, new thin solar films are available that cover windows of office buildings all around the country. They reduce the temperature inside the buildings as well as cut cooling costs. Earlier versions of solar film reduced heat getting through but the tint created a darker environment, more noticeable in northern parts of the country.

This new thin solar film is placed over the buildings glass, is crystal clear but cuts ultraviolet and infrared light while allowing the visible spectrum through. The reflection reduces 55% of the suns heat and increases the comfort of indoor environments. It is so clear it promotes natural light and reduces the need for indoor lighting. Tenants notice a significant heat increase in areas that are not filmed as opposed to those that have been covered.

The clarity of the new film allows in maximum light and decreases energy use. Some tenants have reported that they did not need to put any lighting in perimeter offices.

New technology has also allowed some films to not only block light, but actually produce energy. These new films contain ultra-thin photovoltaics which generate electricity during daytime hours. Depending on the geographic location of the building, the payback on this investment can range from six months to three years.

Since the inception of the October 2008 Emergency Economic Stabilization Act residential owners who install energy efficient improvements in 2009 can qualify for special tax credits, helping to defray the cost of installation.

However, interest within the Commercial Real Estate community has heightened with the recent spikes in the price of oil and decreases in average rents. Commercial property owners face greater economic challenges because of property size, but can also potentially get significant State and Federal tax deductions. Go to www.dsireusa.org for more information on tax incentives in your state.



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Source: http://www.articletrader.com ]]>