Reasons to refinance your home loan
The 4 primary reasons to refinance your home loan are given below:

1. Reduce your monthly mortgage payments: One of the primary reasons to refinance your mortgage loan will be to reduce your monthly mortgage payments. When you have to make low monthly payments, you’ll be able to save a portion of your hard earned money each month. This money can be utilized for emergency purposes.

2. Adjustment: If you’re finding it difficult to make payments on your fixed rate mortgage due to some financial problems, then you can consider switching over to an adjustable rate mortgage. The reason is the initial rates of the adjustable rate mortgage are low. But, before changing your loan type, you should analyze whether you’ll able to deal with a higher rate later on. On the other hand if you have an ARM (adjustable rate mortgage) and you want to switch to an FRM, then you can do so through refinancing.

3. Reduce the loan term: A lot of people assume that refinancing means extending the mortgage loan term. Well, it is not true. Several people opt for refinancing simply because they want to reduce the loan term. Yes, this means that monthly mortgage payments will increase, but in the long term it will enable you save a huge chunk of money.

4. No need to purchase PMI: When you take out a mortgage loan from the lender and are not able to make 20% down payment on the purchase price of the property, you’ll be required to buy private mortgage insurance or PMI. However, when you refinance, you don’t have to make this extra payment as you pay off your mortgage loan.

Finally, if you’ve equity in your home, then you can take out a cash-out refinance loan. The money that you receive from this loan can utilized for various purposes such as home improvement and paying off debts.

Speaking in person to other tenants on the property is an important part of the screening process to determine satisfaction with the landlord’s performance regarding the following issues:

Is the landlord responsive to tenant concerns?
Are repairs to the premises done in a timely manner?
Is the building or shopping center well maintained?
Is the landlord accessible when needed?
Do other tenants consider the landlord fair and reasonable in business practices?

Three Qualified Properties is the optimal number to contact with a Request for Proposal (RFP) which should include request for a copy of the landlord’s Standard Form Lease agreement. This is sometimes referred to as the landlord’s “Wish List”. This form is subject to modification based upon their concept of the desirability of the tenant (size of organization, Fortune 500 credit, etc.), while the RFP is often thought of as the tenant’s “Wish List”.

At this point, the landlords will be aware that they are part of a competition and often, at least one will strongly express interest in completing the leasing transaction. Since we are currently experiencing a very strong tenant market with high vacancy rates, you as a tenant are now free to make requests for concessions that would not likely be available in a different marketplace.

Electricity, of course, and elevator service are to be expected. However, there are some services that may not be routinely provided during hours when the building is not operating. If you need security guards or maintenance at this time, if these services are available, the extra cost will be charged to you.

Commercial leases are usually prepared with up to four copies and each copy must be signed by you with your original signature. To be sure there is not an accidental substitution of pages, you should initial each and every one of these lease pages.

Tenants renting space in retail shopping centers or malls are usually required to pay a share of advertising fees. Serious consideration should be given as to requesting a limit on annual increases as this cost is part of the landlord’s operating budget and if the center is not doing well, you may be charged more than you can realistically afford to pay.

Requirements of the tenant for payment of repair and maintenance of the premises should be clearly set out in the lease. Commercial tenants renting space in office buildings are routinely responsible for the interior while the landlord is responsible for the exterior of the building and for common areas.

This month, you will not be able to make a full rent payment. Business is not bad enough for you to consider bankruptcy. What do you do?

Communicate with your landlord. Be honest about your financial situation and ask for modification in your rental payments. If you have been financially responsible, paid your rent and other obligations on time and are not considered “difficult”, your landlord will probably be willing to make concessions to keep you as a tenant especially if there are several vacant offices or stores on the property.

Some options you might suggest are a temporary reduction in rent for a short term – such as ninety days – in exchange for an early renewal of your lease. In some instances, landlords have been known to offer up to four months of free rent to keep their property occupied by a tenant who was previously financially stable.

You should be willing to provide financial statements to your landlord when requesting rent concessions to prove that your situation is really dire and that you are not merely attempting to take advantage of the economic downturn as some tenants have done. Bringing your records with you when initially asking for rent relief will likely go far to prove your sincerity.

Based on the problems in the nation’s economy, some commercial tenants are asking for a rent reduction in exchange for an early lease renewal. Before making this accommodation, landlords should request a copy of the tenant’s financial records to be sure that there is actually a problem and not merely a desire from a financially sound tenant for a reduction due to the overall economy.

When entering into a lease agreement with a new tenant or renewing with an existing tenant, landlords should keep lease terms short and not commit for more than three years. Eventually, the market will improve and making renewal options fewer and for shorter periods of time will help landlords to recoup their losses.

Giving each tenant one month’s free rent per year instead of rent reduction may help to stabilize rates of rental when the market begins its recovery. Spread the free months out among all tenants so that there is not one month when rent is not paid. Consider a provision in the lease so that if a tenant defaults, the free month will be added back when totaling damages.

Another possibility for landlords when granting a reduction in rent is to ask for collateral such as personal guarantees of the tenant’s owners or guarantee of the parent corporation.

Your real estate broker will likely make this suggestion to you since real estate costs are typically the largest line item expense and normally equate to some 25% to 40% of a corporation’s overall budget.

There are a number of clauses in a standard commercial lease that can be added or deleted by the landlord based upon the requests of a sophisticated tenant with the help of his or her attorney. In this economic climate where a great deal of square footage has become vacant in office and retail establishments, financially stable tenants are a desirable commodity and competition among landlords is fierce.

Consequently, a commercial tenant should take the time to plan and shop for an office or retail shop which will meet as many leasing needs as possible. (Landlords on your list of possible qualified properties should be aware that you are considering other options, which will increase the possibility of leasing concessions. )

A realistic analysis of space requirements is important with a view to company growth and increase in number of staff. Do the locations being considered have enough parking spaces for customers and staff? Are the building amenities and services in line with your organizational needs?

Your real estate broker can help you survey the market and prepare a list of qualified properties.

Now is the time for you to prepare – with input from your real estate broker – the RFPs including all of your needs and basic requirements which are more likely to be met by the landlord early in the negotiation process. These would cover such issues as possible expansion, renewal options, and corporate signs/building directory listing.

Also included in the RFP should be areas in which you are flexible and willing to yield. Sometimes called “throw away issues”, these are legitimate requests based upon what you as a tenant can expect in this current market condition. Part of the negotiating strategy should include asking for concessions which are not really necessary but because you can!

Comparably, a number of landlords have their own lease clauses which they are willing to amend or delete – based on how much you are wanted as a commercial tenant.

In order to document the negotiating process, the RFP should list specific points requested by the tenant with the landlord’s responses in the Word program. After points are accepted or rejected or modified by either or both parties, Comparative Lease Analysis software can be used to input basic information for up to five different leases. You and your real estate broker can review and evaluate financial information to help you make your final decision.

This is the time to consult your attorney before you and the landlord execute the lease – and then you are good to go.

Carolyn Capalbo, a high-profile REALTOR based in Virginia, has plenty of ideas to make your next commercial real estate transaction a smoother one. Carolyn Capalbo, who has extensive experience in both the residential and commercial real estate market, lists three, main factors to consider when buying commercial real estate: Don’t let the idea of commercial real estate intimidate you! Let Carolyn Capalbo help guide you through the process!

Here are Carolyn Capalbo’s top three commercial real estate buying tips:

1. Understand the purpose of your purchase – What you decide to do with your piece of commercial real estate will largely dictate what tactics you will employ during the purchasing process. For example, your game plan will be decidedly different if you plan on purchasing commercial real estate for your own use versus purchasing commercial real estate to lease out to other companies or businesses. For example, if you plan on leasing the space out, you will need to consider how much you can charge and how much your overhead will be before deciding if the investment will yield you a healthy return.

2. Understand the complexity of commercial real estate loans – Purchasing commercial real estate comes with its share of challenges; particularly because lenders see this type of purchase as being much more risky than residential purchases. Therefore, you will need to expect that securing a commercial real estate loan will be decidedly more difficult than a residential real estate loan. Commercial real estate loans may also come with charges such as prepayment penalties and large fees for late or missed payments, so it pays to research the commercial real estate loan industry before jumping in with both feet.

3. Hire a commercial real estate professional – Although you may have successfully negotiated and purchased residential real estate by yourself in the past, you will need to understand that, because commercial real estate is an entirely different entity, that you will need the assistance of both a commercial real estate agent and a real estate attorney. It is imperative that you have the backing of commercial real estate professionals so that you fully understand the entire process that is involved with purchasing commercial real estate.

With that said, there are a number of things you can do before you lease Dallas warehouse space that will help guide you in the right direction:

1. Make a concise list of exactly what your business needs to operate. Do you need a certain number of electrical outlets; a water source; or does your ceiling need to be a certain height? Many times, companies must find Dallas warehouse space that is kept at a certain temperature. The bottom line is that all of these things must be considered before deciding on Dallas warehouse space.

2. If you are using your Dallas warehouse space as a working warehouse, instead of simply a storage facility, you will need to deal with issues surrounding your employees, including adequate parking, adequate ventilation and adequate restroom facilities, for example.

3. Because most Dallas warehouse spaces are leased by the square foot, you will need to take the time to consider how much space you will realistically need.

4. Decide which location is best for your Dallas warehouse space. If you receive deliveries on a constant basis, make sure that you are in an easily reachable location. The amount of shipments you receive and the number of shipments you receive must both be considered before deciding on which Dallas warehouse space is right for you.

5. Ask other tenants in the building about the landlord and property management, and make sure that the services provided are adequate and up to safety codes.

6. Take the time to thoroughly read and understand the terms of your commercial lease. Many time, the terms used in commercial leases can be quite confusing, so don’t sign the lease until you fully understanding the terms of the lease. It’s also never a bad idea to have an attorney skilled in commercial leases read over your lease agreement before it is signed.

McKinney Place in Dallas’ dynamic Uptown section has struggled with low occupancy rates ever since a large fitness center left in 2009. The developers hope to not only update and upgrade the current space for new tenants, but also make room for additional Dallas retail space and lobby space.

Continuing to Protect the Investment

These long-term owners, who have owned McKinney Place since 1996, are showing tenants that they will continue to do what is necessary to protect their investment, both for the “present and the future.”
Glenn Lickstein, Gaedeke’s president, wants to capitalize on the popular McKinney Avenue by adding a significant amount of Dallas retail space. He says he wants “McKinney Avenue’s evolution to enhance our investment.”

More Dallas Retail Space Envisioned

The two-story wing of One McKinney Plaza that faces McKinney Avenue will be overhauled to accommodate Dallas retail space, while the ground-floor lobby will be enlarged from around 2,000 square feet to over 11,000 square feet. The building’s main entrance will be extended, along with the lobby. The result will provide additional space on both the first and second floor of the building. The 14,000 square-foot annex will then be renovated to suit Dallas retail space.

The developers expect the project to take about eight months after its start next month. BOKA Powell of Dallas is the architect for the project and Austin Commercial is the general contractor. Once the space has been renovated, the Weitzman Group has been hired to handle leasing the Dallas retail space.

Most of the vacant office space in One McKinney Place is on the third and fourth floors, which were the sight of the old Bally’s fitness center. This space is currently available for lease as office space.