|
CENTURY
21® Commercial has the power to help bring investors together! CENTURY
21® System professionals who are specially trained in the commercial and
investment properties markets can help you choose the investment that is
most appropriate for you.
Through the use of targeted advertising, industry-leading technology,
creative marketing materials, and one of the largest referral networks
in the real estate industry, our CENTURY 21® Commercial sales associates
are committed to helping you maximize your commercial property
portfolio.
CENTURY 21® Commercial
Program - Overview of Services
CENTURY 21® Commercial professionals can help
to successfully purchase or sell commercial investment properties such
as:
-
APARTMENT BUILDINGS
that range from low-rise, one-story buildings to high-rise, upscale
developments
-
RETAIL PROPERTIES
for individual retail and services businesses, strip centers or
large shopping centers
-
OFFICE BUILDINGS
ranging from single story to multi-story, high-rise buildings
-
HOTELS AND MOTELS
ranging from country inns to multi-story, multi-unit, upscale
properties
-
INDUSTRIAL PROPERTIES
for manufacturing, warehousing and distribution centers
-
UNDEVELOPED PROPERTIES
for office or industrial development
-
BUSINESS OPPORTUNITIES
including retail business, service and professional companies and
major corporations
-
FARMS AND RANCHES
including cattle, dairy and agricultural
CENTURY 21® Commercial professionals
also provide management decision support with a range of services that
include:
-
INVESTMENT ANALYSIS
that provides comparative cash flow scenarios for better informed
decision
-
PROPERTY MANAGEMENT
consulting to explain how properties are professionally managed and
what responsibilities are entailed in the proces
-
COMMERCIAL AND INDUSTRIAL LEASING
services that help you understand how rental properties are
categorized, how to prospect for tenants and how to create a niche
in your marketplace
-
EVALUATIONS
that teach you the art of accurately establishing property values
-
EXCHANGE
transactions that inform you about the Internal Revenue Code 1031
created to provide a tax deferment for capital gains taxes on the
sale of income property
-
SITE SELECTION
that supports you in identifying site locations that meet your needs
and conform to the criteria you establish at the beginning of the
engagement
FAQ’s
CENTURY 21® Commercial
Program
FREQUENTLY ASKED QUESTIONS
1. How can the CENTURY 21® Commercial Program help me achieve my
investment goals?
The CENTURY 21® Commercial Program is a unique network within the
CENTURY 21® System. With approximately 550 offices and 2,000 sales
associates nationwide and in Canada, the CENTURY 21® Commercial Program
has an enormous network of experienced and trained commercial investment
professionals who specialize in the field. This network has complete
access to the referral services of the CENTURY 21® Global Support
Network of 6,600 offices and 109,200 sales people. Members of the
CENTURY 21® Commercial Program are active and productive in the
commercial investment field on a daily basis.
2. What investment specialties are available within the CENTURY 21
Commercial Program?
Included within the CENTURY 21® Commercial Program are qualified
professionals who focus on the sale and purchase of Farms & Ranches,
Business Opportunities, Motel & Hotels, Mobile Home Parks, Golf Courses,
as well as, the complete field of Apartments, Commercial Retail or office
properties, Industrial facilities, Leasing, and land for development.
3. Why is leverage important to my investment decisions?
The purchase of real estate is one of few investments where leverage is
available to the investor. This involves a small down payment, usually
25% of the purchase price, by the investor, with the balance, usually 5%
of the purchase price by the lender. With a 25% down payment the
investor controls the entire property and the cash flow. After the
lender is paid, this becomes the Return on Investment (ROI) for the
investor.
4. What are financial ratios and why are they an important part of
the decision process?
Financial ratios are used throughout the commercial industry by
investors, lenders, real estate agents and brokers. They provide a
common "yardstick" by which buying and lending decisions are made. Some
of the financial ratios are Capitalization Rate (CAP Rate), Gross Rent
Multiplier (GRM), Debt Coverage Ratio (DCR) and Loan to Value (LTV).
Your CENTURY 21® Commercial associate can explain these and many more
commonly used financial ratios.
5. Do I need Property Management and how can this help me?
A Professional Property Management may be required by your lender,
especially on major properties. Property Management companies take the
day-to-day contact and management out of your hands. They provide rent
collections, expenses payments and monthly financial reports to you.
They also provide maintenance, late notices and oversee legal,
landlord-tenant services. Your property is professionally managed with
one point of contact for the tenants and timely reports to you, the
owner.
6. What is a cash flow analysis and why do I need it?
A cash flow analysis is a report showing the current or scheduled income
including rents and other income, vacancy and/or credit loss and a
complete list of all operating expenses. With this information you get a
Net Operating Income figure which is the net income of the property
before loan payments or debit service. Loan payments are subtracted from
the Net Operating Income to get the cash flow before taxes for each
property. These reports may be done on a monthly, quarterly or annual
basis. The larger the property the more often these reports need to be
competed. Most property management firms will produce these on a monthly
or quarterly basis in addition to the annual report that is necessary
for preparation of income taxes.
7. What is a 1031 Tax Deferred Exchange?
Internal Revenue Code section 1031 allows investors meeting certain
qualifications to sell an investment property and reinvest in another
investment property within certain prescribed time periods and defer any
capital gain income taxes on this transaction. There are specific time
periods that apply and the basic rule to defer capital gains income
taxes is the price and mortgage of the new property must equal to or
greater than the old property and all the cash involved in the sale must
go to the new property. Your CENTURY 21® Commercial professional can
inform you of all the details.
|
|
