Commercial Real Estate, Who is still playing?

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?

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

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???

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