KW Commercial - A Division of Keller Williams Realty

One of the Best Kept Secrets in Commercial Real Estate: The SBA 504 Loan Program

admin — Tue, 22 Jun 2010 21:29:31 +0000

Regardless of what you think of our government currently, you have to love a program that gives a business owner a leg up in owning their own commercial property. The value of many of the most successful businesses is not the worth of the business itself, but the real estate it is built on, or owns.

Per an article on McDonalds from Seeking Alpha: “Most people don’t realize it, but McDonald’s (MCD) is not a burger-flipping restaurant chain; it is one of the world’s best real estate portfolios. Franchisees flip the burgers. McDonald’s simply owns the best commercial property all over the world.”

So if you’re a business owner, and want to have your business worth more when you go to execute your exit strategy, read on.

Here are both a brief summary and the benefits of the SBA 504 program, as well as your next step.

The Small Business Administration provides this loan program opportunity to:

Anyone who qualifies as:

A for-profit business
That has a tangible net worth BELOW $7.5 million
Its average net income DOES NOT EXCEED $2.5 million after taxes for the preceding two years.
A business that can or does occupy at least 51% of the property or 60% of constructed building

Benefits:

Low down payment — 10% (CAN be as low as 5% in special circumstances)
Low, fixed interest rate currently around 5.520% as of this writing vs. bank rate of 6 or 6.5%
20 year term — no balloon payments
Loan fees and soft costs can be financed

What can it be used for?:

Can be used to buy buildings — including renovation costs
Can be used to buy land and construct buildings
Can be used to modernize, renovate or convert existing facilities
Can be used to buy equipment

Sure, it sounds good, but really, can it really make that big a difference to my bottom line, or make moving worth the hassle? YES! Look at our LEASE vs. BUY case study below. You’ll see that given this example, you could actually SAVE around 50% on your yearly lease costs — AND OWN a piece of real estate in the process. CLICK HERE to see the financials!

Sure it looks easy, but if you go look at all the paperwork at sba.gov, it makes your head swim. Don’t go there, go here: we have a team that includes: SBA loan officers, paired up with our real estate team (who have years of small business experience too, by the way), to bring all this together for you, so you don’t waste your time trying to become an SBA or commercial real estate expert. We work for you, to acquire a real estate investment — just like we would for ourselves. So what’s your next step?? Call Peter 770.356.5506, email him at peter@petertennis.net, or see us on the net at www.petertennis.net.

1http://seekingalpha.com/article/73533-mcdonalds-is-a-real-estate-company

P.S. – If you know a small business owner, please, do them a favor and share this with them.

10 Reasons Why You Want A Rep In Commercial Real Estate

admin — Tue, 25 May 2010 20:09:24 +0000

1. You will save time: As your agent I will do all the homework for you; make you aware of all properties that seem to meet your needs, gather data on each property, and handle all of the arrangements for you to view and evaluate each property.
2. You will save money: Just as the owner’s or seller’s agent must work to get the owner or seller the most advantageous transaction (highest price) I, as your buyer’s agent or tenant’s representative, have the duty to work to get you the best deal. It is that simple. In addition to being charged with getting you the best deal,
3. You will get the “best fit”: With my extensive knowledge of metro Atlanta and specifically Cobb County, I will work to ensure that any property or space you acquire is truly appropriate for your needs. Unlike when you work with the owner’s or seller’s representative or “listing agent”, I have no incentive to steer you to any one particular property.
4. You can broaden your choices: With me as your agent you will see all available properties on the market, not just the ones listed by any one firm or agent.
5. I can disclose information to you that other agents can’t: As your buyer’s agent or tenant’s representative I can disclose information to you concerning the seller’s or owner’s motivation, prior transaction data, or other information that the listing agent may not disclose to you.
6. I can keep private information that other agents cannot: You may disclose information to me about your situation. As a seller’s representative or owner’s agent, I might be required to transmit that information to the seller. As your exclusive agent I do not have that requirement.
7. Commercial real estate is not the same as residential: The same rules do not apply. I know the commercial real estate rules and know how to use them to your benefit. At this time, and in this market.
8. I can help you keep it simple: As your exclusive buyer’s or tenant’s agent I will be your one contact. This is much simpler than maintaining a contact for each property.
9. My services generally will not cost you anything: Generally my services are free to tenants and buyers. This is because Georgia RE Law allows me to represent buyers and tenants but to be paid through the listing agent as part of the normal cooperation or brokerage fee sharing arrangement. This is a “no lose” situation for buyers and tenants.
10. Our Keller Williams family of brokers and agents is firmly rooted in sound morals and good faith practices: It’s you, your needs and wallet first.

Predictable Outcomes

admin — Mon, 24 May 2010 19:21:28 +0000

As Your Advocate:

No wasted time
No down time
No fee paid by your firm
Simplified decision-making
Phone calls returned promptly

AND the Primary Outcome is…

Our group will exceed your expectations.

Our evidence includes 22 years of experience in Atlanta, our reputation, satisfied clients, market knowledge, professional relationships with landlords, and a skilled team of specialists on your side.
Our group never forgets that as a business owner, you deserve personal, professional attention to your facility needs. When YOU are ready to review your long-term plans, KW Commercial is ready to work on your behalf.

Our mission is:

To provide superior value to our client’s management team, through our real estate consulting and brokerage services.
To develop a facility plan that combines our client’s business, personnel, financial and strategic needs.
To continue to achieve extraordinary results.
To become a valued partner in our client’s real estate decisions, not just another vendor.
To serve our clients, both locally and nationally.
To retain and oversee a network of dependable resources to implement your facility plan.

Hello Business Owner!

admin — Thu, 13 May 2010 15:32:07 +0000

I’d like to take this opportunity to welcome you to my new and improved website/blog!! I hope you will check back in often for updates. I plan to help educate the business owner, whether you’re buying or leasing your office space. If you have a topic you’d like me to discuss, please let me know!!

After 15 years as a lone wolf commercial broker for my own firm, Tennis Advisory Group, I am really excited to be a part of the KW family. I feel exceptionally blessed to be asked to join the incredible strong, faith-based, agent-driven family as a Director.

My career has spanned more than 30 years — 10 years in Dallas, TX, and over 20 years here.

BBA in Finance University of Texas at Arlington
Worked with foreclosed commercial real estate specialist for Bank of America – Dallas, Texas
Manager of building services for a 56-story office building
Landlord leading agent and property manager for absentee landlord – 3 properties downtown
My most interesting land sale as trustee, I purchased 10 acres for the expansion of a cemetery
Broker for Experian 14 leases in 12 cities
Team member for a 100,000 square foot lease for Coopers & Lybrand
Joined Merrill Lynch Commercial Real Estate in Dallas and relocated to Atlanta
Joined Grubb & Ellis in 1989 – top 5 producer 2 years running – sale of a 20,000 square foot office building
Started my own firm in 1994 – office just off the Marietta Square, Marietta, Georgia
Started a successful Medical Office development company
1st sale of a major retreat and conference center
Cooper Lake Medical Center, Phase I 100% leased
August 12, 2009, official 1st day East Cobb office!!!!

Again, any questions or comments, I’d love to hear them!