Property Scout USA

More Bad News coming down the Pipe??!!

2009-06-13T13:57:00.000-07:00

I keep reading articles that say commercial Real Estate is headed for a major train wreck, unless the financing for commercial properties can be worked out. Some companies are at the door of foreclosure and more will be, as more and more of the debt becomes due and can not be paid.

Here are a few excerpts from the Wall Street Journal:

'With the commercial real-estate industry bracing itself for the onslaught of hundreds of billions of dollars in maturing loans, the Treasury is considering issuing rules that will make it easier for property developers and investors and their loan servicers to restructure debt, according to people familiar with the matter.
Tax rules make it difficult for borrowers who are current on their payments to hold restructuring talks with the servicers of commercial mortgages that were packaged and sold as bonds. This lack of flexibility was one of the reasons cited by the management of mall giant General Growth Properties Inc. for its Chapter 11 bankruptcy filing in April.
At present, developers and investors complain that only those who are delinquent can talk to servicers of these bonds, named commercial-mortgage-backed securities, or CMBS. But now the Treasury is considering issuing guidance that would allow servicers to start talking about ways to avoid defaults and foreclosures sooner, possibly at least two years ahead of the maturity date of a loan, these people said. The Treasury guidance, which could be released within weeks, would essentially enable loan-modification talks to take place without triggering tax consequences, these people say.' by LingLing Wei and Kris Hudson

Another article mirrors the same train of thought:
This is from a staff writer on the Mercury Sun in the Silicon Valley, George Avalos. This article is specific to the San Francisco, Oakland and San Jose Area.

'A vast auto dealership is empty in Oakland, visible from the freeway. In Pittsburg, a big housing development looms over a downtown street, unfinished and vacant. Hotels in Brentwood and Oakland are isolated behind cyclone fences. A mammoth residential development is idle next to the Caldecott Tunnel.

These troubled projects all are mute testimony to a financial malaise that first sickened the housing market and has now infected a broader part of the wheezing regional economy.

During a half-year period stretching from October through the end of March, mortgages totaling $784 million have slumped into default for dozens of commercial or development properties, including some huge residential subdivisions, in the East Bay.

"The commercial real estate shoe has dropped, and it is sitting on the ground crying," said Christopher Thornberg, partner and economist with Beacon Economics. "This is a huge problem."

This new downturn is also a significant challenge for the economy generally. Undeveloped or partially built projects stalled by foreclosures or bankruptcy can weaken economic growth in a community. Existing projects that are in default can fail to attract retailers or new businesses to a city. Buildings that are delayed in getting off the ground because of financial woes portend fewer construction jobs.

Bottom line: The recession that began with sales of individual houses, then spread to banks, retailers and automakers, now has commercial real estate in its grip. This relapse for the economy has arrived just when the fallen residential sector has begun to stagger off the ground.'

The article goes on the state 'Compared with the October-through-December quarter of 2008, the pace of commercial property defaults accelerated during the January-through-March quarter of 2009, a six-month analysis shows. The survey done by MediaNews compiled data on delinquent mortgages with loan amounts of at least $1 million.'

That is in just one region of California, Other articles report the same thing happening across the nation.

Now would be a good time to get to know commercial mortgage brokers and bankers and investors with deep pockets. Build the relationship's that will bring you deals and money. Investors are always looking for a good deal. If they can come in a save the day and save money, they will happy campers. You will be to, if you can put the deal together.

We at the National Association of Commercial Real Estate Property Scouts (NACREPS) have been training people from all walks of life to be property scouts. Check us out on the web at http://www.nacreps.org

Opportunites In Commercial Properties

2009-04-05T15:15:00.000-07:00

It has been said that America is the land of opportunity. In residential properties that is so true. Low values means cash flow the investor that can buy the houses. Also, for the hard working American's that can afford to buy a house at a price where they can have the monthly payment they can manage. Not living on the edge, concerned about whether they make that next payment is one of them loses their job.

O.K., enough the house buyers, what about Commercial Real Estate? What is the wide, wide world of commercial is going on? Who are making the deals? Where are they making the deals? Why are they making these deals?

There is opportunity at every turn, you just have to look. Some are finding them the traditional way, through a commercial Real Estate Broker. Some are finding them through special asset managers in banks, or the short sale managers. Some are finding defaulted notes, or notes about to go into default. Some area's are coming out of the ground on new projects. Some buyers are finding projects that have run out of funds and need a white knight. Some banks are letting the notes float, hoping that the mortgagee will catch up the back payments and come current.

In some parts of the country, building cranes can be seen all over the place, other cities, not so many. Raw land and residential developments are definitely on the back burner except for the rare land banker, that is dug in for the recovery.

Some investors are motivated by the headlines of doom and gloom and do not take action. While the real investor is guided by the numbers and a few other factors. Do the numbers work? Will I make money it I make this purchase? Can I get this financed or backed buy securities and equity partners.

So at the end of the day, the commercial real estate market is an opportunity either way. You can get in and find a deal, money opportunity. Or you can wait on the sidelines and have a missed opportunity. As always, the choice is yours.

What are you going to do? Pass or Play.

If you do not have the money to play, you can sure learn a lot about commercial property by checking out http://www.nacreps.org and learn to scout for commercial property.

Take Care,
Ted

Is the Sky Falling??

2009-03-10T08:38:00.000-07:00

Everyone knows the story of chicken little. The little chicken that thought the sky was falling on her, when she was hit on the head by a falling acorn. In today's economic climate, a lot of people are joining the band wagon, thinking the sky or building as fallen in on them.

True, time are tough, if you listen to the news for any length of time. We have new leadership in Washington and their actions do not seem to be making a difference except putting the nation under a greater burden of debt. Companies, small business owners, the workers in the plants and industries across the nation, as well as the home owners and renters are wanting debt relief.

The experts are predicting the start of the commercial down turn in a lot of metropolitan marketplaces. Some of the cities are already seeing it in the number of vacant retail spaces and big box stores, as major chains are closing their doors.

So is the sky falling or is this the time for doing your homework and finding the commercial deals that can be salvaged and help turn the economy around, buy creating jobs and cash flow.

The Wall Street boys have been waiting on the side lines for the last year or so waiting to see which way the wind was going to blow. They are still waiting. Some bankers are working with commercial notes that are in default and helping to get things sorted out. Some are not and as a result we have a foreclosures, climbing on the commercial side of real estate.

So if the commercial down turn accelerates, there is a good chance more and more property owners are going to need help. Who will be there to help them? Will you? Will a team of knowledgeable team of committed people be in place to help? Will the government help? Will the bankers help? Will investment groups help?

I know that there are people who scout for commercial properties on a regular bases. They are trained and work hard at finding the deals that make sense. They watch the market and keep an ear to the ground for possible deals everyday.

If you are motivated and committed to finding commercial deals. If you are interested in getting active in commercial property scouting, check out http://www.nacreps.org/

Till next time, enjoy life.

Is Now the Time to Invest??

2009-03-01T10:59:00.000-08:00

Hey, I am back. Did you miss me? Just joking...
Took some time off to enjoy the family and life. There is more to life then blogging.

New president, new faces in Congress and the Senate, new spending galore, but to what end. Still lots of gloom and doom. Market tanking here, market tanking there, foreclosures up, bank failing, bad loans left and right. People losing their jobs, companies bleeding all over the street, going out of business, leaving the landlords and property owners holding the bag.

From talking to other Phoenix Commercial investors, they are looking forward to the turn down in the Phoenix Commercial marketplace. They are actively looking, they know that good deals can be had. When I talk to other investors and brokers in different parts of the USA, they to are looking to make deals, both on the buy and sell side.

While the Wall Street boys are standing on the sidelines watching to see which way the wind is blowing, they to are looking for good deals in the major metropolitan areas. They have been out of the raw land deals for the last two years, whether commercial malls, office buildings or new residential. Everybody is holding their investment dollars, but they to turn the page soon or stand to lose even more money because the money is not moving.

This is the perfect time to strike a deal, but you really have to do your homework and due diligence, for money is tight on certain types of commercial loans and private money will only move when the deal is vetted to the core, not based on a lot of speculation.

Investors are looking to find properties that cash flow or break even, that can be turned around with better management or taking care of the deferred maintenance. Or will cash flow, as they fix the building one unit at a time and make plans to convert to condo's for when the market turns around. Lots of plans and ideas. Certain parts of the country are building new apartments and office complexes.

So, go out there and find those deals, hook them up with investor's and let the games begin.

To find out more on Commercial Real Estate Property Scouting, check out http://www.nacreps.org and get in action.

Till next time.

Five Things to Do in the Troubled Times

2008-12-15T15:38:00.000-08:00

Mostly in the blog I talk about Commercial Real Estate and investments. Today, though, I came across an article that caught my eye, and I’m going to pass these suggestions on to you - just in case you might be tempted to panic with the stock market gyrations. The news is grim. No doubt. The stock market hasn’t seen this level in many years and people are worried. The bailout of the banks and financial institutions is all the talk.

Still, you can protect yourself. Here are five tips to help you weather this storm.

1. Don’t panic. This market has given even the hardiest investors a case of the heebie-jeebies.

Converting all of your investments to cash at this time may cause you more harm that good. Unless you need the money short term - say, within two years, its best to remember that good and bad times pass. Historically, the market’s made up all its losses fairly quickly.

Since 1945, there have been 11 recessions as officially defined by the National Bureau of Economic Research. The S&P 500 — the index of widely held stocks used as a barometer for the overall market — generally has hit bottom six months into the typical 10-month-long recession.

After that point, the market typically starts regaining its footing. If you include the very worst meltdowns, when the S&P 500 lost more than 45 percent of its value, it took 19 months for investors to recoup their losses. But exclude the mega losses, and you find that it’s actually taken just eight months on average for the index to bounce back.

In other words, don’t freak out. Stay calm.

2. Don’t put all your eggs in one basket. We’ve all heard this many times, and actually, right now would probably not be the best time to re balance your portfolio.

But, if you’re reading this you are probably already a Property Scout. And as all good scouts know, investing in Commercial Real Estate takes time. But if you’re working the process, you have definitely started another nest for your “eggs for the future.”

Some of you may already have a good job - that’s great. I’ll be talking more about that in Tip number 4. Even if you do have a good job, Property Scouting can be a hedge against losses you might be taking now in the market. If you’re losing money now, even though the market will eventually rebound, continuing to invest in your future through Property Scouting may pay off big for you down the road.

This is the time to ramp up your search and find the golden opportunities.

3. Don’t allow your home to become a trap. This could be a catch-22 if you still have a mortgage on an option ARM (Adjustable Rate Mortgage.)

If, you’ve been reading anything lately — and how could you not-about the sub-prime melt-down and the supposed catalyst to the current market debacle, you know the dangers of the option ARM.

You may have gotten in to your home with an initially low interest rate - knowing that at some point the interest rate would rise - along with the payments. If you’ve got a relatively new loan with an ARM, you may be able to ride it out until the storm abates.

If you’re unlucky enough to be nearing the end of the low rates, you could be in for some problems. Try to get your house refinanced if you can. Otherwise, tighten your belt and hold on as long as you can. New legislation passed within the $700 Billion rescue package, could help you!

4. Update your resume. Working hard can help protect your job, but may not be enough. Instead, be strategic and figure out where you stand. Workers who cost employers money are most likely to be laid off. These include support staff in bureaucratic positions or workers in overstaffed departments.

By contrast, employees who add to a company’s revenues are more likely to be viewed as valuable assets. So, try to take on work that no one else can do, or volunteer to head up long-range projects vital to your employer.

Meanwhile, start networking now. It takes time to get a new job, especially if you’re already several rungs up the career ladder. Entry-level employees in lower-paid positions need roughly two months to get re-employed. But higher-paid executives generally will spend five months on average to find another position.

5. Look to the long term. Its’ more important now than ever to take a long-term approach to your future.

That’s the good news with Property Scouting. Finding the right property in this market, that our investors can pick up at bargain prices, will mean a big payout for you in a few years. This could be just what you need to weather the storm.

It seems that everyone I talk to now, is amazed by what’s going on. It’s actually a historical time to be alive - and for some it’s very exciting! For others its more disconcerting.

Just remember, the market always recovers. We live in the greatest county in the world, and we Americans are not just survivors - we’re THRIVORS! I plan to thrive - I hope you’ll join me!

So as a property scout, I am always talking to and listening to my friends in the know. I am also asking about new properties and deals all the time. YOu never know when one will show up.

If you are a scout keep looking. If you want to be a scout, check out http://www.nacreps.org

Till next time.
Ted

Market Cycles for Commercial Properties

2008-08-30T08:18:00.000-07:00

Now you might not all be fans of The Apprentice, but certainly you can appreciate all that The Donald has done for Commercial Real Estate! If you’re ever feeling like you need a motivational read, pick up one of Donald Trump’s books. I like “The Art of the Deal” and I also like “Trump - Strategies for Real Estate: Billionaire Lessons for the Small Investor“ which was written by Trump’s long time attorney, George Ross.

They said all markets have phases that they go through — some phases favor the buyer and others favor the seller. Let’s take a look at the phases in real estate market and see what we can expect.

The the first phase is the Expansion Phase. This is a time of prosperity and market growth as the name implies. People are buying, and building, and selling – the money flows freely in many directions. What eventually happens however, is that the market becomes over-built. So many people see the incredible profits being made, they all jump on the building band-wagon at once, causing huge numbers of unsold inventory to come online at the same time triggering the next phase which is the Decline Phase. The economy may begin to slow, unemployment creeps up and property movement becomes stagnant - seller’s aren’t selling, buyer’s aren’t buying. Finally, the market moves into recovery, the over-building is becoming absorbed, and the flow begins again. This is called the Absorption Phase and heralds the beginning of recovery.

Someone like George Ross, who is 80 years old, has seen markets go through these phases many times over the years and its always the same — like winter, spring, summer and fall. The phases come in exactly the same order over and over again. The only difference is how long each phase can last. A complete cycle of Expansion, Decline and Absorption can last anywhere from 8 to 12 years — no exact science here!

He is very quick to point out that The Donald loves being in the Decline and beginning of the Absorption Phases as those are truly the market in which you can make the most money.

If you read either of the books I mentioned above, you’ll read the story of when Trump bought one of his first buildings in a horrible part of town, in an economy in which New York City was in dire straits financially. The entire purchase of the Commodore Hotel was literally pieced together one tiny step at a time. Donald was able to purchase the old hotel in 1975 for $1 million! Today it is the Grand Hyatt Hotel at Grand Central Station — one of the most luxurious Hyatts in the world and worth hundreds of millions! It’s a great story with all kinds of twists and turns, but the point is this:

At the time, the real estate market in New York City was in serious Decline, which makes for a buyer’s market. The old hotel was purchased for only $1M by 27 year old Trump and he’s turned it into a thing of beauty. So Trump’s motto is to buy in the Decline Phase and during the first part of the Absorption Phase, then fix the property up and sell it toward the end of the Absorption Phase into the Expansion Phase.

Another thing to keep in mind is that one area of the country may be in a very different phase from another. Let’s take a couple of examples. Phoenix, Las Vegas, Miami and the like were in an Expansion Phase just a few short months ago. But what happened is that over-building flooded the market with excess inventory and building came to a halt. When building shuts down, many jobs are impacted. Construction workers migrate to where they can find work, construction wholesalers and retailers lay off workers, the service industries are impacted by people tightening their belts — its a chain reaction that causes the Decline Stage to trigger. Now Phoenix, Las Vegas, Miami and other areas have inventory just sitting.

On the other hand, places like Dallas, Atlanta, Denver, and Chattanooga to name a few, were in the Declining Phase several years ago. The excess inventory in those areas has been used. Over time the population continues to expand, people begin to move in and eventually, the supply of housing has reached equilibrium with demand. Now building starts are beginning to increase, and those areas of the country are in the Absorption Phase. This is a GREAT time to buy in these areas as demand is picking up and when demand exceeds supply the advantage shifts from buyer to seller. Right now, buyers who are savvy enough to read the signs in the market phase can end up making large profits very quickly!

This is an excellent time to be buying in MANY areas of the country — find areas where the over-supply of housing is declining, where job growth is increases, where existing properties are being rehabbed, where rents are beginning to rise. These are the market areas that are ready to move into the Absorption Phase — buy with both hands!!!

So take some time and find out what phase your area is in and plan accordingly. Also, find an area that is moving into the Absorption phase and network with the broker's in that area, because good things are about to happen.

Happy scouting. Go to http://nacreps.org to become a commercial property scout.

Commercial Real Estate is not Folding, Just Slowing Down

2008-07-18T15:00:00.000-07:00

While the housing market continues to decline in a lot of the nation, the multifamily sector is still growing. Let's face it, people need a place to live. Apartments, duplex, triplexes, fourplexes, etc are in great demand, especially ones that are cash flowing and have a good upside. Or even ones that have gone into foreclosure due to any number of reasons and are now being bought at prices will below market value.

There is money out there for commercial aquistions, but you can rest assured the properties are vetted and number are verified really work before they are purchased. The big boys on wall street are buying defaulted mortgage notes for both single family residences (SFR) and commercial property.

Land banking is not happening, except in very hot growth area's and only in the path of progress. Developer after developer of SFR's are unloading some, if not all of their land holding to free up cash and stop the bleeding. Some few builders/developers are converting to apartments, which are marketable the majority of the time.

While Fannie Mae and Freddie Mac are in the SFR mortgage business, it is interesting to see them get on the multi-family housing mortgage train. While their investments tend to be on the smaller order of multi-units, they are building their mortgage portfolio.

The Federal National Mortgage Association (Fannie Mae) and the Federal Home Mortgage Corp. (Freddie Mac) hold or guarantee more than $6 trillion in mortgages - nearly ½ the nations total. Most of that is for single-family residences, but the two agencies and the Government National Mortgage Association (Ginnie Mae) also held $157 billion in multifamily debt in their portfolios at the end of the first quarter of 2008 and nearly $143 billion in mortgage-backed securities.

These agencies hold more than a third of the nation’s multifamily mortgage debt. Even though experts believe Fannie and Freddie are too large and too important to fail, some investors worry about their continued role in multifamily mortgage financing.

But in a article I read yesterday, a Fannie Mae representative came out touting their current role in supporting the apartment industry. In fact, the volume of deals done the first half of 2008 was larger than it was in the first half or 2007. The spokesperson reiterated, “We plan to continue investing and growing the multifamily mortgage market.”

The article was extremely optimistic about the assurances from Fannie Mae and Freddie Mac of their financial health and their ability to continue sponsoring loans. With the regulators and the Fed’s willingness to provide additional liquidity, the risks seem minimal.

Jamie Woodwell, vice president of commercial/multifamily research at the Washington-based Mortgage Bankers Association had this to say: “From my perspective on commercial real estate and commercial real estate finance, the commercial and multifamily mortgages have been performing extremely well. They’ve been strong assets for those investors in the mortgages. So I think there are a lot of reasons for those investors to continue to look to commercial real estate finance as a place to put their money.”

This is good news for us. Multi-family properties will continue to do well AND with the commitment of Freddie Mac and Fannie Mae to continue to support multifamily mortgages, this is one segment of Commercial Real Estate that is remaining strong.

If you are interested in getting into commercial real estate at a scouting level, check out http://www.nacreps.org

The National Association of Commercial Real Estate Property Scouts stays on top the shifts in the commercial real estate market and keeps their scouts looking for the next deal.

Isn't Commercial Property Really About the Numbers?

2008-06-28T19:49:00.000-07:00

I was in a meeting just the other day and the speaker was saying, "Listen guys, it is really all about the numbers, it is simple math." I got me to thinking. Are not, all of businesses about the math at the end of the day?

Every commercial building started with the land and an idea of what to do with the land, did it not? Next came the money men, did the numbers work to start the project? Would he make his money back after getting it zoned and entitled? Then the builder is brought in, could he build the building with in the budget? Would the developer make his money based on his projections of construction? Could he get a loan to pay off his construction loan? Then the leasing and management company, could they lease enough of the building to start paying for itself? When they got it fully leased, did it make the money it was projected to make?

All these things came down to math at the end of the day. Did they make more then they paid out? Is that not the true nature of business? Win and take the money to the bank? Lose and close up shop, file bankruptcy and start again.

Look at some of the developers in this current real estate down turn, a lot have folded, some are still standing, much smaller in size, however; they are still in business and still selling homes.

Commercial buildings have been built, only to stand vacant, because the tenants downsized or closed up shop.

At the end of the day it is all about the math, dollars and cents. Do the numbers work?

This is part of the training provided by the National Association of Commercial Real Estate Property Scouts. Check them out at http://www.nacreps.org/

Ted,
Professional Commercial Real Estate Property Scout

What is Commercial Real Estate Scouting?

2008-06-11T16:26:00.000-07:00

O.K., you are looking for commercial property. You find one, o.k., now what? Do you have the investor or partner to buy the deal? How do you know it is a deal? How do you know, what to do?

Commercial Real Estate Property Scouting is a learned art and a practiced art. You have to know what you are looking for to know if the property you found is a deal or not. So you do you know? You get yourself trained.

So how do I get trained? You can buy books on the subject and learn the mechanics. You need a money partner or investor to make the deal work. What are their critirea? What do they think is a good deal. Every broker or owner thinks they have the best deal, and they can show you on paper. Unfortunately, paper does not pay the bills or buy the property.

You can attend a boot camp on how to find commercial property and the basics of how to tell if the property is a viable deal. Again, I ask, how can you know for sure it is a deal and who will buy it?

If you network with people and find partners and investors and do your homework, verify the numbers and other information you have gathered, then maybe you can put a deal together.

So to be a professional commercial real estate property scout, you have to get trained and find investors that will look at your deals. You have to find out what makes a good deal for them. You then have to scout for the property that meets their requirments and verify the numbers and particulars that make it a good deal. Then the investor has to make the offer and get an accepted contract. The deal has to close and you as the scout get paid. Then you are a Professional Commercial Real Estate Property Scout.

You can find out more at http://www.nacreps.org/ They provide training and have investors that will take the deals.

Successful Commercial Brokers, marketing kings?

2008-05-30T09:32:00.000-07:00

What makes commercial real estate brokers so busy? Why do some do so well and others just kind of get by? In today's commercial real estate market, what role do the commercial brokers play? Are they just the listing agent or the buyer's agent? Do they not market for commercial properties?

While it is true a commercial real estate broker is one who has the client with the property that needs to get sold, how did they get that client? They have personal and business contacts and bird dogs that do the looking for their next client. They also advertise their business and all the things that make them different then the next broker. Some brokers work hard at networking and building a client base and other do not, making it clear that some make more money then other brokers.

In today's commercial real estate market, what role do the commercial brokers play? Commercial brokers do provide a great service and get paid very well for their expertise. They work with buyers and sellers of commercial properties and close the deal.

Do they not market for commercial properties, seller and buyers? Whether it be by full page ads or word of mouth, is it marketing (aka scouting for prospects)?

How do they find a buyer for the property? Broker's can advertise locally in the paper, nationally in real estate magazines and on the world wide web on places like Loopnet and other commercial property web sites depending on the property. They can go through their customer list and see if there is a match. They can contact fellow brokers and pitch the property to them. At the end of the day, they are scouting.

So I see a new niche in the commercial real estate world. Professional Commercial Real Estate Property Scouts.

There is one forward thinking groups that has established an association for commercial property scouts. It is called the National Association of Commercial Real Estate Property Scouts, NACREPS.

NACREPS is a true association that provides training on how to scout, what to look for in a commercial property. They provide the guidelines for the scout to look for and evaluate each property. They provide a place to get coached on the finer points of analyzing a property.

They also have investors that will take the deals that meet the criteria for the various types of properties.

If you are interested in finding out more about the Association, go to http://www.nacreps.org

Professional Commercial Property Scout
Ted Stevens

Commercial Scouting? for Apartments

2008-05-22T19:38:00.000-07:00

The apartment market is a place to focus in the commercial world of real estate. You can have income to pay for the property, while you turn the property around.

Where do you look? How do you know the best places are to look? It is called research, whether you do it personally or get it from other sources. You can search the web, you can listen to the guru's of real estate, you can subscribe to newsletters and buy books or pay for someone to do the research for you. The information is available and the properties are advertised one way or the other. You can look at the statistics, like the ones following this paragraph, but you need to look in order to find commercial properties.

Nationwide, the numbers of renters is projected to increase by 4.3 million households over the next decade, said a spokesperson for the National Multi Housing Council. Additionally, apartment demand is forecast to increase by 430,000 units ANNUALLY!

Wow! Those are BIG numbers!

Just a month ago, there was concern that the possibility of a national recession would drive down sales and returns for investors. But the official ruling is that we are NOT in a recession. That’s good news for us.

Unfortunately, the housing market in many areas of the country has suffered so much because of the sub prime mortgage debacle. This naturally drives the increases in the rise of the number of apartment dwellers. Much of the country can no longer afford home ownership.

Some experts, with ties to Washington are hearing rumors of putting the empty houses back to work. While that’s a great strategy for some, and while it may ultimately impact the number of apartment dwellers, we still see apartments being a strong investment.

People continue to point to problems in the financial markets and the tightening of credit as being responsible for a downturn in activity. But in actuality, total volume for 2007 exceeds $91 BILLION.

Overall apartments performed well as an investment with returns to privately held apartments, in the first nine months of 2007 achieving an annualized rate of 12.6%. That rate is off from the 2006 return of 14.6% and down significantly from the 21.2% returns of 2005.

Still, in this current market a 12.6% return is a respectable showing. I wish some of my other investments would have done as well!

The nation’s apartment stock of buildings with at least five units is valued at $1.6 trillion, and rental revenues from apartments total more than $120 million per year. With this much inventory around, it is likely there are many units which will fit our buying criteria.

Apartments are a solid investment strategy - especially when we can buy it right.

I have talked to several Property Scouts are among the best trained folks in the country, and they are sniffing out the great properties. One's that need a problem fixed, whether management, remodel or both. They are looking for value add and finding the super deals that are out there. They were trained by the National Association of Commercial Real Estate Property Scouts (NACREPS). Visit http://www.nacreps.org if you are looking to start scouting.

Till next time.

Ted

http://visit.dirtintocash.com

Are you still commercial property scouting?

2008-05-06T09:38:00.000-07:00

Why would you want to be scouting for commercial properties in this market? Where do you look?

To answer the first question, it is real easy. You want to look because commercial property is everywhere. Even in this market of doom and gloom, if you believe the news media. For those of you who do not listen to the news or just do not care, know the answer is the commercial market is going strong.

The one area that is not moving is raw land for residential development. Raw land for commercial in the path of progress is still going strong. Apartment houses are doing well, as are mobile home/RV parks and self storage.

Where do you look? Again, you look everywhere there are building and there is a pattern of growth. You do research to find the growing areas and look in those areas. Or areas that are starting to turn the corner from having bottomed out.

So now is a great time to be scouting. You just have to look, look, look and look. The ask for the information about the property to see if it fits the needs of you investor.

visit http://visit.dirtintocash.com

Happy scouting to you all.

What you should look for in Commercial Real Estate today!

2008-04-23T15:22:00.000-07:00

When the market was hot in a growth area, raw land was the king of the hill. For some investor with deep pockets, land banking of raw land is their current strategy. Others are staying on the side lines, knowing it will be a few years before residential construction starts up again. Some developers and builders are selling off inventory to reduce their expenses.

There were two recent acquisitions that catch my attention.

In the first transaction, luxury destination club Quintess announce a $210 million equity commitment from an unnamed investor to pursue luxury residences and residential development sites around the world. This infusion of capital is the largest of its kind for this Colorado-based company in its 10 year history.

“There are so many distressed properties out there,” remarked the Vice-President of Quintess. “Like every other investor, you don’t want to catch a falling knife, but it’s certainly easier for us to get in on the ground floor of five-star resorts.”

I love the visual. And he’s right. You’ve got to be VERY careful attempting to catch a falling knife, but there are many investors flush with cash just looking to take advantage of this market.

The second huge transaction in this market segment was made by a privately held Dallas investment group who announced the purchase of five resort communities, in three states, for approximately $181 million from Centex Homes. When fully developed the acquired portfolio will be worth about $1 billion. Nice.

These five communities will be re-branded TerraMesa Resorts and are located in The Hollows on Lake Travis and The Waters at Horseshoe Bay Resort, both near Austin; Pointe West in Galveston, Texas; Bear Lake Reserve in North Carolina; and South Peak Resort in New Hampshire.

Other investors are looking for properties that have some current cash flow and the numbers show that after the purchase, there will still be a little cash flow, as the property is rehabbed and management problems are fixed.

Savvy investors I meet, are now looking at hitting a little single here, a little single there, not a home run (big payday).

Not surprisingly, they are looking at cash flow. They are looking to expand their portfolios by including properties that bring in cash.

They don’t have to be in the best shape, but they should be producing some income. They are now looking at office buildings, apartments, self-storage units, and mobile home parks.

So as a scout, I still look at raw land, but I have added looking for office buildings, apartments, self-storage units, and mobile home parks to my searches.

To your scouting success.

Are you Scouting?

2008-04-18T15:02:00.000-07:00

Are you scouting for Commercial Property? If you are, are you making progress? Who are you scouting for? Do you have your investors lined up to make the deal happen?

Are you scouting for Commercial Property? Did you get trained or did you figure it out on your own?

Where are places where you can get trained? You can go to a 4 or 5 day live seminar for $4995.00, but will you know how to look for a commercial deals? You can then attend to a day or two day seminar on the how to evaluate a commercial. When what?

O.K., now you are a property scout. What are looking for? Raw Land? Apartments? Office building? Industrial or warehouse? Self Storage? Mobile Home Parks? What are your requirements?

Who are you scouting for? A single investor, a group of investors or a company? How deep are their pockets? What is their criteria for each type of property?

A lot of questions, huh?

Well good news! There is a place you can find the answers and and get help when you need it.

It all starts with a visit to http://visit.dirtintocash.com

There is a great organization that stands behind the training and the scouts that have been certified.

Check it out and start scouting for real.

Ted

Are you scouting hard or hardly scouting?

2008-04-13T06:57:00.000-07:00

Are you scouting hard to find properties or are you hardly scouting, thinking that a property will just magically appear? What are you doing to make it happen?

I had a friend of mine said one of his favorite quotes was “You can’t hire someone else to do your push-ups for you.” If you’re planning on reaping the rewards of stronger muscles, and bones, and toned arms, chest and back - you’ve got to do those push-ups yourself!

Some of you might be thinking, “Geez, how profound!” But its amazing to me how many people are willing to make excuses for their lot in life, but not be willing to take the responsibility to change it!

One of the most pervasive myths in American culture today is that we are entitled to a great life. Somehow our lives are to be magically filled with abundance, and great career options, and joy, and wonderful relationships.

To a certain extent, I agree. We should have abundance, and great career options, and joy, and wonderful relationships and super health. The difference between what I believe and what others might believe, is that I believe we are in charge of creating those things in our lives rather than being entitled to those things.

In the words of Jack Canfield, “If you want to be successful, you have to take 100% responsibility for everything that you experience in your life. This includes the level of your achievement, the results you produce, the quality of your relationships, the state of your health and physical fitness, your income, your debts, your feelings - everything!”

Ok. That all sound nice. But what does it really mean?

It means you’ve got to manage the things you can manage. Monitor them. Evaluate them. Change them if necessary. You are the manager of the thoughts you think, the images you visualize, and the actions you take. If you don’t like what you’ve produced so far, then its time to monitor your thoughts. Evaluate them - are they more negative or more positive. If they are more negative, change them. You’ve got to monitor the images you hold in your mind. If they are images of lack, or fear, or worry over some negative outcome. Change them. Change what you dream about. Dream big! Dream positive! Dream wondrous dreams of a bright future! Finally, monitor your actions. If you are not doing the things that support your goals, then evaluate what needs to be done, and take the actions necessary to change them.

You must decide to take 100% responsibility for everything that happens in your life. That’s the hard part sometimes. You must acknowledge that you have created your experiences - your successes and your failures. If you accept that premise as true, think of the POWER you now possess! If you are responsible for all experiences in your life, you can change them and take charge of creating the future you want!

Of course, you’ve got to give up any excuses. You’ve got to give up the blame game. You have to give up complaining.

You must monitor your own reactions to the events that surround you everyday. As a Property Scout, searching for the best Commercial Real Estate Oportunity — you can get off track. But expect the best, and that’s what you’ll get!

It reminds me of an old story about a wise man sitting at the side of the road on the way to a nearby village. A traveler stopped and asked the wise man, “What are the people in this village like?” The wise man responded, “Well, what were the people like where you came from?” The traveler said, “They were mostly sullen, and angry - not at all friendly.” To which the wise man said, “These villagers are much like the ones where you came from.” A while later, a second traveler stopped and asked the wise man, “What are the people in this village like?” The wise man asked the same question of the traveler about what the people were like where he came from. The traveler responded, “Oh, they were very friendly, happy, helpful - all in all joyous people.” The wise man said, “These villagers are much like the ones where you came from.”

The point of the story is obvious. You get what you expect.

As Property Scouts, you will get what you expect. You work hard, you monitor your thinking, and your images, and your actions. You change what’s not working for you. You don’t make excuses. Your results begin to improve in ways you only imagined.

Is this easy? Nope. It takes focus and practice and awareness. It takes desire to achieve abundant results.

Remember, you’ve got to do your own push-ups if you plan on reaping the rewards.

If you are serious about scouting, check out http://visit.dirtintocash.com and get all the training and skill set to scout hard and find lots of good deals.

Looking High and Low

2008-04-08T16:55:00.000-07:00

I get asked a lot, what is it like to scout for commercial property? I say scouting for commercial real estate is easy, because commercial property is everywhere. But how do you find the deals, is really what they to know.

The way I scout is totally systematic. State by state and property profile by profile. What that means is each type of property has certain parameters that have to be met. For example, when looking at raw land, you look to see if the property is in the path of progress. What is the price per acre? What is the as-is value? What is the highest and best use of the property? What will the property be worth after it has been entitled?

When looking for office building one key factor is price per square foot. The Net Operating Income (NOI) and capitalization rate (cap rate) are also key factors in determining the value. What condition is the building? Is the building located in an area where you will be able to rent up the building after repairs? You would not want to buy a building is a declining area.

In apartment building you go by the price per door and the NOI and cap rate. Again, the condition of the building, plus the vacancy rate are terminating factors. Management of the apartment complex is another major factor in figuring the viability of turning around the property.

Mobile home parks are figured by per door price along with the NOI and cap rate again. Also, what class is the park, A, B, C? What amenities are in the park? How old is the park? What size are the slabs? Are the spaces individually metered for electric, gas and water?

Assisted and senior living, the price per bed is critical. What is the occupancy rate? What is the NOI and cap rate? What services and licenses are in place?

Industrial and warehouses are pretty user specific. So you have to have a user in mind or know you can change the use of the building before you chase the deal. Price per Square foot is king, because most building are vacant or will be vacant soon. Again, location is very important and is that part of town still growing.

So at the end of the day. You have to look high and low, state by state and property by property.

The property deals are out there everyday and in every state, you just have to look.

If you really want to learn commercial property scouting, check out http://visit.dirtintocash.com

Happy scouting

Ted

Commercial Real Estate, Who is still playing?

2008-03-26T11:16:00.000-07:00

Changing economic times and recent events in the Real Estate market place had brought about moves and changes in the financial market place. We are witness to the collapse of companies we all thought would never get into serious trouble, to the point of actually going under and closing their doors or being taken over for ten cents on the dollar.

I came across an article just a few days ago about this new market being responsible for forging some atypical unions. Just because it’s difficult to borrow money doesn’t mean development plans need to come to a halt. In fact, the credit crunch–and the resultant drop in available construction financing–has given rise to some new partnerships.

Retail REITs (Real Estate Investment Trusts), with mountains of cash at the ready, are increasingly joining forces with small local and regional developers to enable projects that otherwise might not move forward.

For example, two weeks ago, Santa Monica, Calif.-based Macerich Co. announced a joint venture agreement with DMB Associates, Inc., a Scottsdale, Ariz.-based diversified real estate investment and development company, to build One Scottsdale, a 120-acre mixed-use project in Scottsdale. Macerich will head up the retail component of the project, while DMB will oversee the residential, office and hospitality portions.

In another example, Chattanooga, Tenn.-based CBL & Associates Properties, Inc. broke ground on two large-scale shopping centers in Florida–Pavilion at Port Orange in Port Orange boasting 550,000 square feet and the 750,000-square-foot Hammock Landing in West Melbourne. Both open-air centers result from a partnership with the Benchmark Group, an Amherst, N.Y.-based privately held real estate developer.

REITs have been forming joint ventures for decades. This time around however, the joint ventures are very different. In recent years, REITs primarily have joined with institutional investors, such as pension funds, largely for the purpose of making big acquisitions.

The latest round of joint ventures are horses of a different color. The unions are more for developing projects, rather than acquiring them. And the partnerships are coming at a time when many firms are scaling back projects, delaying construction or scrapping plans to build altogether. Developers are seeing retailers close stores and scale back on expansions. Others are having difficulties lining up the necessary financing to build.

These joint ventures signal that there are still areas across the country that can sustain new construction. Moreover, they solve the financing conundrum by teaming developers that have assembled sites, but have no funding, with REITs that have deep pockets and see an opportunity to grow portfolios without shouldering all the development risk. The joint ventures also minimize the risk for both parties, which is helpful given that projected development yields have dropped from the high double-digits to the mid single-digits in recent months.

There have always been the types of ventures where a small guy with land finds someone to help build, but given that capital is harder to come by now, it makes sense for REITs to get involved with these kinds of developers.

There are still many areas of the country that are experiencing a growing population. That growth signals a need for homes - either single family homes or multi-family units. These folks are NOT going to be living in tents, they are NOT going to grow their own food. They need places to live and stores in which to buy the products they need.

Those players in the Commercial Real Estate Investment industry that are savvy will see opportunities where others are stampeding for the exits. It’s easy if you subscribe to the theory that when one door closes, another door opens. If you can only focus on the closed door, you may miss the other door opening!

REITs continue to have huge amounts of capital and their investors want it put to work for them. This new economy has closed one door perhaps for now, but has opened another where REITS can move from acquisition to development. And developers can move from pulling up the stakes to moving forward with building. It’s another example of a win/win situation.

Be on the lookout. Just when you think there are no opportunities — watch for that new door opening just a crack! Be on the lookout for other investors that have been holding back funds to start moving on projects that make sense and money!

If you want to learn more about commercial real estate and what to look for in today's market. you can start where I started. The training materials are excellent. The support great, from live chat to support tickets as you learn and grow your knowledge. You get exclusive access to the website that offers a quick start program and ongoing training to stay current. Each week they hold either a teleconference or webinar with guest speakers on issues of the day or advanced training to keep you on the leading edge of the commercial world. Be sure to check out www.vip.dirtintocash.com

To your success in life,

Ted

Is Real Estate Dead?

2008-03-21T19:46:00.000-07:00

The stock market is running up. The residential real estate market is going down, with no stop in sight. Commercial is still going forward. Who is going to be standing at the end pf the day?

There have been No one comments on my blog. So I am beginning to think that commercial real estate is dead. Or the people that were interested in Commercial Real Estate have fallen over dead or do not give a flying F***!!!

No one in America wants to make money???? No one cares???!!! Everyone wants to sit on their front porch and watch the world go by???!!!!!!

Does no one get out of their recliner or has their ability to move be impaired?

What is up with America??

It is easy to make money. It is easy to learn to how to make money, but are you ready to take action and make a move to make it happen?

I have been on real estate for over twenty years and in commercial for the last three years. It is great. It is a great place to play and make money. What are you waiting for?

If you are interested in making money, check out http://propertyscoutcash.com/

Alternately, you can check out http://www.nacreps.org/

Get out there and get in the game.

To your success,

Ted

Commercial Scouting and More

2008-03-09T13:24:00.000-07:00

Commercial property scouting is growing everyday in America. More and more people are catching the bug and finding out what commercial Real Estate is all about.

What do you when you think you have found a good deal? Call your broker? Call your friend? Call you rich uncle?

How do you know if you have found a good deal? Just because the broker says it is a screaming deal, does not mean it is a deal! Or just because your friend knows a friend who knows this property is a great deal and it sounds good. Does not mean it is good!

What are all the things you need to know about evaluating a property? How did they set the price for the land or building? What method did they use? Where they get the comparable sales? Do they even have comparable sales?

Lots to know, huh? Do you think educating yourself might help you find a real deal??

As anything in life, you get what you pay for. So why not learn from the best. There is an
association that is dedicated to helping people learn how to look for property. Also you have the opportunity to participate in the purchase if you chose.

The association is The National Association of Commercial Real Estate Property Scouts, NACREPS for short. They can be found on the web at http://www.nacreps.org/

Check them out. They are for real and are worth checking out. How do I know? I learned scouting the hard way. NACREPS makes it a whole lot easier. They are there to help you succeed.

Until next time.

Ted

Time Marches On, Are you moving forward???

2008-03-02T11:19:00.000-08:00

March is here. Winter weather is still hammering a lot of the USA. As time marches toward April, the season will change. It is always good to change (your clothes). Unfortunately, we as human beings, like to keep things at a status quo. Don't make waves, don't stir the pot, stay the same. We have all heard those statements. Do we listen to them? Do we think about stirring the pot and see if we can come out with a new flavor or idea? Or do we stick with vanilla, mac and cheese, same o'; same o'?

Do you like the same thing the same way everyday? Do you ever look for something new? A different path, a different road, a road less traveled? Are stuck in the same rut, the same place in the rat race?

Do you yearn for something more? Do you to make more........??? Or are you convinced you can never break free and make a difference in your own life?

Heavy stuff??? Not really, just things to think about.....? What turns you on, gets you excited, gets out of bed (except for the alarm clock, mother or spouse) each day?

Do you like playing games on the computer and the internet? Do you like shopping on the web? Looking for the best value or coveted item you really want.

What do you do with your spare time? Watch TV, surf the net, play games, go to the movies, go out to dinner, order in pizza, read a book, write a novel, write a book, write and article, send emails, update your myspace, visit you tube, look for a lover and a friend, make money, take a drive???

We live in a very interesting age and time. Lots going on, lots of doubts, fears and concerns, lots of ways to communicate, email, cell phone, text messaging and Instant Messaging.

What to do? How do you stay focused? What are you looking to do?

My life is about family, friends and helping people in real estate. Both residential and commercial real estate, making a difference for them and myself. Continually updating my knowledge base in the world of real estate.

One of the resources is http://www.nacreps.org/. They offer good training with great content, that can be done at your own speed . The information is straight forward and very clear. They also offer benefits for being a member of the association.

The association is the National Association of Commercial Property Scouts. Check them out and join in the search for a commercial property. It is not a get rich scheme, it takes time and investigation, effort, learning, talking, asking the right questions, finding out what works and what does not.

Come join me in the pursuit of something bigger in your life.

Ted

Oscar Sunday and Commercial Real Estate

2008-02-24T11:04:00.000-08:00

Oscar Sunday and Commercial Real Estate, What do they have in common? Nothing!! But it is catchy.

Who will win at the Oscar's tonight? Are you excited??? Or do you care?? Not everyone lives or dies with Hollywood's elite. Are you a movie junkie?? Or are just into seeing how the other half displays their feathers???

Are you already rich and famous and set for life? Do you have a plan to get rich and live the life you dream about? Do you let life live you? Just taking what shows up on your front door? Or are you into instant gratification and live with the attitude of what have you done for me lately??

The question is what have you done for yourself today to make your life better? Are you planning to make your life better? Are you waiting for the moon and stars to a line to make your big move? Are you taking small steps to get where you are going?

What do you want to do? Sit on the couch and watch TV or spend a couple of hours doing a little research on the web for something new to do or a new way to make money?

One thing you can do is check out http://www.propertyscoutcash.com

See what they have to offer. It is not a get rich quick scheme. It is a very good to way to learn how to find good commercial opportunities and then letting investors take over and make money for you. They buy, finance, build, sell and you get paid.

Check them out today.

May your success be great.

Tom

Valentines, Hearts and Real Estate???

2008-02-16T07:23:00.000-08:00

Here is two days after Valentines Day and the world is still spinning. Did not get a single Valentines day card or gift? You live in hope; well maybe next year.

What are you going to do? What you want to do? What will you do today to make your life work or take the next step to having what you want or dream of having? What is your plan? Or are you just going to let life happen to you? You decide......even if you don't make a decision.....you have decided.

What is your passion? What makes your heart happy? What makes you feel good all over? Money?? Love?? Riches?? Pets?? Hiking?? Skiing?? Travel?? Gourmet food?? Great wine?? Planting a garden?? Fixing your home?? What gets you out of the bed in the morning?? (besides the job)

One of the things that gets me out of bed is Real Estate, residential and commercial. I love helping people with their housing issues. I also love to search for a good commercial property or vacant land that is the path of progress. The former makes me feel good to help families resolve their housing problems. The later makes me rich. It takes a while to get to the payday, but boy what a payday!!!!

Think you could find properties that will make you money?? Are you willing to spend 4 to 6 hours a week getting educated and looking for properties that fit a certain set of criteria?? Are you willing to invest in yourself on a daily basis? A little time and a little money? Or are you going to just sit back and watch TV or what ever you do to pass away your time and life?

The ball is in your court. Are you going to follow your heart and your passion and go for what you want in life? Or are you just going to go along as usual....hoping to win the lottery?

Do you want to start learning, now? Are you willing to do what it takes to make money in commercial real estate as a scout? The go sign up at http://www.nacreps.org Now would be a good time to start.

Super Bowl Two Days Away and still Scouting

2008-02-01T08:11:00.000-08:00

Well it is Friday and the teams for the Super Bowl have be picked. Their rosters have been set. They are ready to go. Scouting days are over for teams until next season. Oh, right there is the NFL draft coming up during the off season. But the scouting is done. I will be on the couch like a lot of fans on Sunday, but I will have been scouting for commercial properties on Sunday.

Commercial Property Scouting goes on everyday, by someone here in the USA and around the world. Why not you? Have you got what it takes to 'find the deal'? Can you sift through the pile of available properties and find those few gems that are ready for the taking.

Yes, all deals can be made in time, but why try and make a deal out of one that will never fly right now. Just because it is a smoking deal of the week and you are in love with it. Does not mean that it is a deal.

What makes it a deal? What are the numbers the work? Where do I look for the deal and numbers? Want the answers??? check out the National Association of Commercial Real Estate Property Scouts http://www.nacreps.org/

They have the answers.

Middle of the Week, What to do???

2008-01-30T08:00:00.000-08:00

Oh, what to do today? So many choices, so many things to do, all important I am sure (not)!

Aren't some days just that way? Can not decide what to do. Can not get started on anything. Did not sleep good last night. The dog is barking, if you work at home. You cube mate has to tell you about the things happening in their life. You are worried about the economy, the upcoming presidential election, making the house payment and a whole lot of other thoughts and concerns.

The one thing you do want to do is find a way to make more money. Right??? Never enough to go around. The kids need new clothes, the wife wants to shop, the husband wants to buy a new toy and you want to plan and take a nice vacation.

Everyone is looking for a way to make more money. Some take a second job, some sell on the Internet, others have a hobby and sell what they make. Some get a real estate license and sell real estate part-time. Others, just wish or daydream, but do not take action. It takes action to move forward. You have to want it, to get it.

You can get what you want, if you decide and take action.

One thing I have found is to get yourself trained so you know what you are doing. I have invested in real estate for twenty years, slowly, gradually until about 5 years ago. I took action and got myself trained in investing in real estate the right way.

Then got trained in commercial real estate. Not the traditional, 'becoming a Commercial Broker', but a Commercial Real Estate Property Scout. Finding the deals that will work. Handing them off to investor's to make it work and getting a piece of the pie. Knowing what to look for and how to find the right information.

It does take work. It does take time, but so does everything is life, except for instant messaging. Training is the key. It give you the edge, it gives you the tools to be effective.

If commercial real estate scouting speaks to you, or interests you, take action and cruise over to http://www.propertyscoutcash.com and get started....NOW.

Be in action for your success.

Till next time.

Ted

A new day

2008-01-28T09:21:00.000-08:00

I have been cruising around and see a lot of activity for http://www.propertyscoutcash.com/

Seems I am not alone it my interest....Imagine that!!! People looking to make money in their spare time, with no risk of losing big money.

It is another great day in the world of commercial searching. Looking high and low, hither and yawn, top to bottom, side to side.

It is almost like playing, playing hide and go seek. Once you have found one, it is then like peeling an onion, getting to real meat of the deal.

To everyone's success.

Ted Stevens, signing off for today

http://www.nacreps..org

P.S. What's happening in your world???

Welcome to Property Scout USA

2008-01-24T12:59:00.000-08:00

Welcome to Property Scout USA.

I have been a commercial property scout for two years. It has been a fun and exciting journey, and still is. I thought I would share a little about what has happened with me in the last two years.

I have always loved real estate, residential and now commercial. It is easy and challenging at the same time. It is easy to find properties. The challenge is find the information needed to make sure your deal has chance to make it to the finish line.

I started part-time and used the internet as my prospecting world. Friends, family, associates and strangers helped out along the way. I have submitted a lot of deals, looked at even more then I can remember and got a few into the pipeline.

Recently I started teaming with a new group of property scouts. They offer great training and a real association for property scouts.

http://www.propertyscoutcash.com/ is the starting place for this for the next part of my commercial property scouting adventure.

Till the next blog,
Enjoy.

Ted Stevens