A lot of new investors have tried to first invest in other types of commercial properties such as office buildings or shopping centers; only to realize that the transition is just too drastic and it ends up costing them the property, all their money leaving them deep in debt, destroying their credit and it takes years for them to recover.
Apartment buildings are tremendously easier to purchase, maintain & put on auto-pilot simply because most of us already understand how to rent an apartment and tenants are almost always readily available.
The buying process for other commercial properties (like shopping centers or office buildings) is not much different however the financing is much more difficult to obtain and leasing usually requires a team of very experienced individuals to negotiate contracts with business tenants.
If you're a new investor with little or no cash to invest, you MUST first start out with apartment buildings. Once you own at least 2 properties with at least 50 units in each property (which should be more then enough to pay you over ,000 a month in net passive income cash flow) you can then branch out to other areas of commercial real estate.
After you own a few apartment buildings and have those properties generating you enough monthly cash flow; THEN you can absorb any vacancies that might come from not being able to rent out space in your office building, warehouse or shopping center.
Apartments are where just about all successful commercial real estate investors started out, so why try and fight the odds. Apartments are the fastest, easiest and safest way to create monthly income and massive profits.
While it is technically possible to have your first deal be a warehouse, shopping center or office building... the statistics show that it almost never happens.
Most investors who first try to jump to other commercial properties before they own a couple of apartment buildings, inevitably fail and quit this business never to return...
That's why I teach boot camps training seminars on how to buy apartment buildings with no money at all and create a steady stream of monthly Passive Income each and every month for the Rest of your Life!
Showing posts with label Down. Show all posts
Showing posts with label Down. Show all posts
Monday, December 10, 2012
Friday, June 29, 2012
Fitch Thinks of Down Rating Euro BVanks with Too Much Commercial Property Exposure
European banks, including those in the U.K., Spain and Ireland, have high exposure to the crisis-hit commercial real estate sector, and some of them could face negative rating actions as loan losses peak next year, Fitch Ratings said in a report today.
"Fitch believes that there will be instances of banks being over-optimistic about economic recovery prospects and future asset price trends, and may be somewhat reliant on sentiment improving before leases (and to some extent loans) fall due for renewal," the agency said.
"A prolonged period of economic weakness and/or further asset value declines could therefore result in a significant rise in defaults and losses," it said.
According to the report, the U.K. banks have the highest exposure to commercial real estate, with Royal Bank of Scotland Group Plc's put at 106 billion at the end of September, followed by Lloyds Banking Group Plc, with a 100 billion exposure at June.
HSBC Holdings Plc comes in third with a 1 billion lending exposure at June, and Barclays Plc with 43 billion at the end of June.
In Ireland, the bank with the highest exposure to the market is nationalized Anglo Irish Bank Corp., with 56 billion at the end of March. In Germany, Commerzbank AG is first with 82 billion.
Although it didn't provide a list of banks for Spain, Fitch said the Spanish economy has had a greater reliance on the construction sector than its european peers, including Iceland and Ireland.
"This has made the Spanish economy and banking system more sensitive to the construction cycle and to a collapse in the property market," it added.
However, it said the two largest banks, Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA, have lower exposure to the property sector among country peers when measured by the proportion of their businesses.
The firm also said that although some banks have high exposure to commercial real estate, potential damage from falling asset values will mostly depend on the underwriting standard they have employed, where the properties are located and the quality of the tenants.
Fitch said it is in the process of collecting data from banks, and it will conduct a stress test that could lead it to changing the rating at some companies.
"Since market dynamics remain fragile and the outlook for the sector generally remains uncertain, there is justifiable concern that some banks may be storing up problems for the future," it said.
On the two banks with the highest exposure to the sector, Fitch said RBS is somewhat protected against severe losses, as almost 40% of its exposure to commercial real estate will be protected against losses by the U.K. government through an asset protection scheme.
On Lloyds, the firm said most of its problems "derive mainly from its acquisition" of mortgage lender HBOS. On the contrary to RBS, the bank isn't participating in the government's insurance scheme, leaving it "dependent upon its own resources to deal with continuing pressure in CRE markets."
Fitch also said corporate defaults typically peak after economic contraction ends, which suggests that loan losses are unlikely to peak until into 2010.
"Refinancing will be a particular concern in 2011 and 2012 when a high volume of property loans fall due," it said.
"Fitch believes that there will be instances of banks being over-optimistic about economic recovery prospects and future asset price trends, and may be somewhat reliant on sentiment improving before leases (and to some extent loans) fall due for renewal," the agency said.
"A prolonged period of economic weakness and/or further asset value declines could therefore result in a significant rise in defaults and losses," it said.
According to the report, the U.K. banks have the highest exposure to commercial real estate, with Royal Bank of Scotland Group Plc's put at 106 billion at the end of September, followed by Lloyds Banking Group Plc, with a 100 billion exposure at June.
HSBC Holdings Plc comes in third with a 1 billion lending exposure at June, and Barclays Plc with 43 billion at the end of June.
In Ireland, the bank with the highest exposure to the market is nationalized Anglo Irish Bank Corp., with 56 billion at the end of March. In Germany, Commerzbank AG is first with 82 billion.
Although it didn't provide a list of banks for Spain, Fitch said the Spanish economy has had a greater reliance on the construction sector than its european peers, including Iceland and Ireland.
"This has made the Spanish economy and banking system more sensitive to the construction cycle and to a collapse in the property market," it added.
However, it said the two largest banks, Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA, have lower exposure to the property sector among country peers when measured by the proportion of their businesses.
The firm also said that although some banks have high exposure to commercial real estate, potential damage from falling asset values will mostly depend on the underwriting standard they have employed, where the properties are located and the quality of the tenants.
Fitch said it is in the process of collecting data from banks, and it will conduct a stress test that could lead it to changing the rating at some companies.
"Since market dynamics remain fragile and the outlook for the sector generally remains uncertain, there is justifiable concern that some banks may be storing up problems for the future," it said.
On the two banks with the highest exposure to the sector, Fitch said RBS is somewhat protected against severe losses, as almost 40% of its exposure to commercial real estate will be protected against losses by the U.K. government through an asset protection scheme.
On Lloyds, the firm said most of its problems "derive mainly from its acquisition" of mortgage lender HBOS. On the contrary to RBS, the bank isn't participating in the government's insurance scheme, leaving it "dependent upon its own resources to deal with continuing pressure in CRE markets."
Fitch also said corporate defaults typically peak after economic contraction ends, which suggests that loan losses are unlikely to peak until into 2010.
"Refinancing will be a particular concern in 2011 and 2012 when a high volume of property loans fall due," it said.
Saturday, May 19, 2012
Home Accounting Software To Help Pay Down Debts
Getting home accounting software is not really a fun adventure. After all, this is software that's a tool, not a game. That's so partly because of the association with taxes and loans and such makes it a less that fun effort. However, in spite of all that, accounting software serves a useful function and may be a really powerful tool. Following are 5 ways the right product can help...
Follow The Money
Money tends to mysteriously disappear. There are financial leaks everywhere in the ship of personal finance. That leaking must often be stopped if progress is to happen. The right software helps spot the leaks and stop movement of your finances in the wrong direction.
See Information In One Spot
In the perfect financial world, the picture of your financial status would be right close at hand at any time or at least quickly available. Otherwise, it's possible to make major blunders and not find out until it is quite clearly too late. Invisible opportunities are hard to take advantage of as well. That up-to-date picture that software can paint is often worth more than you think... Then an overall picture of finances helps put all the detail together. That might mean putting all your bank accounts as well as loans and investments in easy view. That's what software and computers can do. Without having to do anything, you should be able to see an up-to-date picture of where you are.
It's About A Plan
Putting together a plan makes for getting a picture of what's coming in and going out. That's what a budget is anyway. It's a target based on what's happened and what's expected in the future... Find out what's happening and you have a better chance of getting a plan that's workable. Simple accounting software may be all you need to get control of spending and debt.
Software Two Ways
Free software online may be all you need to do whatever you must do. At least two sources online let you keep up with just about any financial details all online and all for free. There really are free options and good ones at that. The big advantage of online software is ease of keeping information current. That's all for free too if you know where to get the right products.
Free accounting software exists that works on your computer, rather than online, to help you track your progress. Several types get the job done using different methods. Look out for software that's very limited in what it can do. For example, some software has no capability to analyze debt payments and balances... Also, consider whether training materials and documentation is there so it's easy to learn and maintain.
The Disappearing Debt Trick
If elimination of debt becomes your goal, home accounting software will monitor your plan to get the debt paid off and the progress you make toward that worthy goal. Keeping track of progress and goals is one place where computers can be a plus. That's so because much of the tracking can be done with computers with little effort on your part.
Home accounting software can be the tool that assists you to wipe out debt and get control of your money matters. The best accounting software can do most of the number crunching and analysis with little effort. Online accounting software puts up-to-date information right where you can get to it.
Follow The Money
Money tends to mysteriously disappear. There are financial leaks everywhere in the ship of personal finance. That leaking must often be stopped if progress is to happen. The right software helps spot the leaks and stop movement of your finances in the wrong direction.
See Information In One Spot
In the perfect financial world, the picture of your financial status would be right close at hand at any time or at least quickly available. Otherwise, it's possible to make major blunders and not find out until it is quite clearly too late. Invisible opportunities are hard to take advantage of as well. That up-to-date picture that software can paint is often worth more than you think... Then an overall picture of finances helps put all the detail together. That might mean putting all your bank accounts as well as loans and investments in easy view. That's what software and computers can do. Without having to do anything, you should be able to see an up-to-date picture of where you are.
It's About A Plan
Putting together a plan makes for getting a picture of what's coming in and going out. That's what a budget is anyway. It's a target based on what's happened and what's expected in the future... Find out what's happening and you have a better chance of getting a plan that's workable. Simple accounting software may be all you need to get control of spending and debt.
Software Two Ways
Free software online may be all you need to do whatever you must do. At least two sources online let you keep up with just about any financial details all online and all for free. There really are free options and good ones at that. The big advantage of online software is ease of keeping information current. That's all for free too if you know where to get the right products.
Free accounting software exists that works on your computer, rather than online, to help you track your progress. Several types get the job done using different methods. Look out for software that's very limited in what it can do. For example, some software has no capability to analyze debt payments and balances... Also, consider whether training materials and documentation is there so it's easy to learn and maintain.
The Disappearing Debt Trick
If elimination of debt becomes your goal, home accounting software will monitor your plan to get the debt paid off and the progress you make toward that worthy goal. Keeping track of progress and goals is one place where computers can be a plus. That's so because much of the tracking can be done with computers with little effort on your part.
Home accounting software can be the tool that assists you to wipe out debt and get control of your money matters. The best accounting software can do most of the number crunching and analysis with little effort. Online accounting software puts up-to-date information right where you can get to it.
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