Archive for June, 2008

19 Jun

Should a company own or lease its property?

There is no right or wrong answer whether a company should lease or own the property from which they operate their business. Leasing frees capital for a company to operate its business. Buying the property gives the company control of its operating facilities. The company’s cash flow, cash requirements, management resources and flexibility for needing […]

17 Jun

Oil, Commercial Real Estate, and Nugatory Jargon

“I can buy it below market.” “This one feels good.” “It’s priced below replacement cost.” “The rents are below market.” “I think this is a good one.” “It looks good.” “It hasn’t been managed right.” When it comes to buying commercial real estate, those are perfect examples of nugatory jargon. Who buys property using nugatory […]

16 Jun

How do you get the best price when selling income property?

First make sure you get an accurate picture of the current market. The sales price for comparable properties can be very deceiving. It is important to note that the price at the close of escrow was a price negotiated two months earlier. Given the trend of the market, there has to be an appropriate adjustment […]

12 Jun

What are the options for a $12,000 commercial real estate investment?

There are four fundamental ways to invest in real estate.
1) Public Company: This approach offers minimal control. The most common type is the real estate investment trust (REIT). Your only decisions are when to buy, and the issues on the agenda at the annual meeting. REIT management makes all the real estate decisions. $12,000 can […]