Finance – Page 4

Never Cross Collateralize Your Loan Arrangements

27 June, 2013 by Cameron Perry Leave a Comment

Part 2: Proper Loan Structuring can give you Protection.

LAST TIME (in Part 1), you discovered why the banks should not be allowed to call the shots. And perhaps a couple more Case Studies will help to further explain that.

Let’s take a look at what happened “Kevin”

He was a very successful property investor who had an impressive portfolio, consisting of several residential and commercial properties.

Kevin was able to build this portfolio through a mixture of a good knowledge of the market, savvy negotiating skills, a high-income job with a resources company and, it has to be said, some luck in picking the trends.

Kevin’s problem was that he wanted to retire early — which is something someone of his net worth should easily be able to do. But he made one major mistake. [Read more…]

Filed Under: *Expert Panel, Economic Issues, Finance, Industrial Sector, Interest Rates, Market Sectors, Offices, Opportunities, Retail Sector, Your Exposure

Never Cross Collateralize Your Loan Arrangements

13 June, 2013 by Cameron Perry Leave a Comment

Part 1: Don’t be easily Swayed by your Bank.

A COMMON piece of advice given by mortgage brokers to Commercial property investors — at least, by astute brokers — is to keep securities for each loan separate. In other words, any form of Cross Collaterization (as it’s known) is to be avoided at all costs.

So, just what is Cross Collaterization; and why is it so bad?

Put simply, it is the combining of one mortgage registered against two or more properties (or sometimes even your business) as security. [Read more…]

Filed Under: *Expert Panel, Economic Issues, Finance, Global Scene, Industrial Sector, Market Sectors, Offices, Retail Sector Tagged With: Australia, chris lang, commercial property investing, commercial property investment, commercial property made easy, commercial property real estate, commercial real estate investing, commercial real estate investment, interest_rates, investing in commercial property, investing in commercial real estate, Melbourne commercial property, property commercial

Be Wary of Bank Bills

29 May, 2013 by Cameron Perry Leave a Comment

Part 2: Remain in Control of your Destiny

LAST WEEK, we made a start on understanding the pros and cons of Bank bills. But you also have other options.

Non-bill facilities are available through the big four banks, but are generally priced in a way as to only be competitive at smaller loan amounts.

While the big four banks are generally able to price better than smaller lenders, there are other factors considered to be important than merely the cost. And for small business, the interest rate on their borrowing is a relatively small consideration, in the overall scheme of things.

Far more important is access to credit, and flexibility of being able to draw up and down on that credit. Because, having this ability will reduce your overall interest costs in the longer run. [Read more…]

Filed Under: *Expert Panel, Finance, Industrial Sector, Market Sectors, Offices, Opportunities, Retail Sector, Your Exposure Tagged With: Australia, chris lang, commercial property investing, commercial property investment, commercial property made easy, commercial property real estate, commercial real estate investing, commercial real estate investment, Interest Rates, investing in commercial property, investing in commercial real estate, Melbourne commercial property, property commercial

Be Wary of Using Bank Bills

20 May, 2013 by Cameron Perry Leave a Comment

Part 1: An Understanding, plus the Hidden Costs

WHENEVER YOU ARE financing a commercial property investment or a business, the types of funding can be broadly classified into two categories: bill facilities and non-bill facilities.

The Concept

Bill facilities are charged as a margin over the inter-bank lending rates, published each day in the Financial Review as commercial bills; while non-bill facilities are charged as a straight interest rate.

The funds for these facilities may also be raised through the money markets, but they are priced on a simple interest rate basis over a loan term. [Read more…]

Filed Under: *Expert Panel, Finance, Industrial Sector, Market Sectors, Offices, Retail Sector, Your Exposure Tagged With: Australia, chris lang, commercial property investing, commercial property investment, commercial property made easy, commercial property real estate, commercial real estate investing, commercial real estate investment, Interest Rates, investing in commercial property, investing in commercial real estate, Melbourne commercial property, property commercial

Arranging Your Finance

10 May, 2013 by Cameron Perry Leave a Comment

IT IS NO SURPRISE that banks are still rather coy about funding Developments, so maybe a few ideas on how to get your projects across the line could be helpful.

Here are the Top 5 Tips …

Properly Assess Your Capital Requirements
Do a thorough feasibility before proceeding with any project, to ensure you have sufficient funds to complete the project based on 80% funding of total costs. Make sure you factor into your calculations capitalised interest, for least 12 months.
.
Lock In Enough Pre-Sales
Make sure you are aware of the number of pre-sales you will require. And also properly research the market — so you are confident the properties in your development will sell off-the-plan. If your development is not suited to pre-sales, ensure that you are able to arrange finance without pre-sales (or with a lower pre-sale requirement through a non-bank) before proceeding. [Read more…]

Filed Under: *Expert Panel, Finance, Using Debt, Your Exposure Tagged With: commercial property investing, commercial property investment, commercial property made easy, commercial property real estate, commercial real estate investing, commercial real estate investment, investing in commercial property, investing in commercial real estate, Melbourne commercial property, property commercial

Commercial Property: The Interest Rate Dilemma

17 April, 2013 by Chris Lang Leave a Comment

SHOULD YOU be fixing the interest rate for the term of your investment loan … or simply running with the best variable rate?

Lurking behind that question is another concern: Will interest rates fall any further; and if so, by how much?

The Case FOR a further Interest Rate Cut [Read more…]

Filed Under: Economic Issues, Finance, Global Scene, Interest Rates, Opportunities, Stability, Using Debt, Your Exposure Tagged With: Australia, chris lang, commercial property investing, commercial property investment, commercial property made easy, commercial property real estate, commercial real estate investing, commercial real estate investment, interest_rates, investing in commercial property, investing in commercial real estate, Melbourne commercial property, property commercial

Commercial Property: Getting The Numbers Right

3 April, 2013 by Chris Lang Leave a Comment

OVER THE PAST few weeks … we’ve spent some time talking about the Anatomy of a Commercial Property Deal … how to to find Top Commercial properties and … the need for proper Due Diligence.

However, it’s probably worth showing you how to establish what funds you actually have available to invest upfront.

It’s certainly not a complicated process — but a vital one , nonetheless.

You see, many investors tend to overestimate (and will often even underestimate) the amount of the funds they may have available. And that immediately impacts upon the value of the property you can acquire. [Read more…]

Filed Under: Finance, Investment Opportunity, Opportunities, X~Factors Tagged With: Australia, chris lang, commercial property investing, commercial property investment, commercial property made easy, commercial property real estate, commercial real estate investing, commercial real estate investment, investing in commercial property, investing in commercial real estate, Melbourne commercial property, property commercial

The Anatomy of a Commercial Property Deal

27 February, 2013 by Chris Lang Leave a Comment

SO LET’S GO right back to basics … and just break down a Commercial property investment into its fundamental components.

You see, very few investors seem to spend enough time to fully understand what’s involved.

>>>>>Your Investment = Equity + Debt + Ideas + Time

And you may care to explore each of these aspects in a little more detail. [Read more…]

Filed Under: Finance, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Training Material, Using Debt, X~Factors Tagged With: Australia, chris lang, commercial property investing, commercial property investment, commercial property made easy, commercial property real estate, commercial real estate investing, commercial real estate investment, investing in commercial property, investing in commercial real estate, Melbourne commercial property, property commercial

Commercial Property Investing: How to Uncover a Good Deal

20 February, 2013 by Chris Lang Leave a Comment

IT’S TRUE … every deal will always be different. But that does not mean you can’t use a series of simple measures, to help you sift the “wheat from the chaff”!