Residental vs Commercial Real Estate?
I feel your frustration. The major pro of commercial real estate are that your typical work hours are the same as regular business hours. In general commercial real estate is focused on your ability to work on a business to business development. The major con is that it is a lot harder to make a live-able wage in the beginning of your career. The major pro of residential real estate is that you can make money faster. In general residential is primarily about marketing yourself (but networking is part of it too). The major con is that you tend to do the most work when everyone else isn't working. Both can make great money if you are good at what you are doing.
Real estate...residential or commercial?
Commercial real estate usually involves a depth of understanding of these properties as the sale of an ongoing business, a site for a potential business, a possible business investment property, etc. That means you need a good solid familiarity with the concept of EGIs, GIMs, GRMs, NOIs, capitalization, depreciation, economic life, market and investment values, sales comparison, vacancy and collection losses, zoning and permitting and licensing - etc. - depending on what kind of commercial properties you are going to be working with. This is all great stuff, and a wonderful challenge, if you have the expertise. If your background includes this kind of experience (as an accountant, lawyer, banker, property manager, county or state employee - whatever) use your old contacts as a launching point in your marketing plan. People who know you already, professionally, will have some amount of faith in your abilities and can send you business - if you ask them to keep you in mind. If this is all new to you, you will need to build credibility. Take classes that pertain to this field (business, real estate, accounting - whatever you can find) and join the local commercial real estate associations. Build up your resume and network, network, network - and have a solid marketing plan to put your face out there. Ideally, you will find a mentor to help you along the way - perhaps in your local commercial real estate association? If this is your dream and your passion, and you are willing to set logical goals and work hard, you can do it. Good luck and best wishes.
Commercial real estate?
Tripple Net (NNN) lease means the tenant pays rent plus all other expenses such as real estate taxes, insurance, common area maintainence, electricity, janitorial etc, etc. Below is the model I use to track income and expenses for our properties. There are many variations of the Net leases. Please be advised that all all the items are applicable. It depends on the property. Hope this helps. INCOME: 30000 Rental Income 31000 Svce Allowance (CAM) Note 1 31100 Reimb. Utilities 33000 Late Charges 35000 Misc. Income 36000 Interest Income TOTAL INCOME Less Sales Tax Collected Effective Gross Income EXPENSES: Note 2. 40010 Electricity 40020 Lot Lighting 40030 Water/Sewer Total Utilities 41000 Lawn 41005 Lawn Treatment 41020 Janitorial 41030 Trash Removal 41040 Window Cleaning 41050 Grounds Maintenance 41060 Elevator Maint. 41070 Maint. Labor/Fringe 41080 Pest Control 41110 HVAC Maint 41130 Parking Lot Maint 41140 Fire Alarm/Extinguish 41160 Light Bulb Repl. Total Building Maintenance 42010 Locksmith Svce 42030 Plumbing Repair 42035 Electrical Repair 42050 HVAC Repair 42060 Roof Repair 42070 Exterior Building 42080 General Repairs 42100 Decorating Expense 42110 Signage 42400 Non-Recurring Chg Total Repair & Replacements 43000 Management Fee: Note 4 43040 Marketing Expenses 43120 Misc Expenses Bank Charges Office supplies Administrative Other office expenses Total other operating expenses City/Town RE Taxes Property Insurance Total Taxes & Insurance Total Operating Expenses: Note 3 NOI Debt Service Debt Service coverage Cash Flow 42500 Tenant Improvement 42501 Tenant Lease Cost 42502 building Replacement Total Capital Investment
How to find Commercial Real Estate?
EDIT: My apologies. I get the question now. :) If this church is building a mall in order to raise money, I'm not sure I would agree with it. Though someone above gave some examples of churches that DID do it to raise money, so I guess it depended on what they used the money for. If someone donates $X and the church turns it into $10X somehow and then helps 10 times more people than they could have with the original donation, I guess there are worse things. On the other hand, if the leaders of that church use the money for themselves (e.g., buying nice cars, etc), I think I would definitely have a problem. The above is all based on if that church was actually MAKING any money off of it; if they are actually losing money, I would like to know their motivation. Though if they are losing money out of the endeavor, I gotta believe that at least in their mind they have a good reason for doing this. If this church is, for example, undertaking this development to help maintain the area surrounding its headquarters or other important sites, and keep it from getting run down, I'm ok with it. P.S. - I never thought the intent of the question was to bash, sorry if I gave that impression. I just misread what you were asking and thought a little clarification was in order. I understand the question...FINALLY. ;-)
Selling commercial real estate and ad placement?
I would strongly suggest calling a realtor, especially one that specializes in commercial real estate (most residential agents are not trained in commercial transactions). If you can find an agent with the letters 'CCIM' behind their name, that is even better (that is the highest designation in commercial real estate, although only about 5% have it). Remember that the real estate and the business are 2 separate entities. You need to make sure you are clear about what you want to sell. I am not sure if liquor licenses can transfer... check on that. The sales value of the business itself is figured differently than the improvements. Do you intend to sell the restaurant name, menu, and staff? Again, this makes a big difference (if the restaurant is not mega-popular, then buyers may not want to buy the business... they would prefer to start with a new name and menu). Don't bother trying to sell the business itself if you don't have 30 to 45-minute wait every Friday night, for example. You may not like the idea of paying 4 to 7 percent (depending on many factors) for someone else to do this work, but I must assure you: if you are not experienced in this sort of thing, a Realtor will save you at least that much due to their expertise. There are SO many factors to consider when determining a sales value, including CAP rates, NOI, NNN expenses, cash-on-cash return, etc. If you are not fluent in things like this, you might sell yourself way short, or perhaps the opposite (asking too much, and never getting a sale). Loopnet is a decent way to get an idea of rates in the area, but it is difficult to know if your property is an 'apples to apples' comparison to other properties, or perhaps an 'apples to onions' comparison. Location, access, age of building, condition of building, visibility, utilities and neighboring uses are all things that can positively or negatively affect how buyers will look at your property. Good luck!