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Archive for the ‘Lending’ Category

Buy Unfinished Commercial Property in South Florida?

February 1st, 2010

By Mark Schecter | No Comments »

unfinished-commercial-propertyAs South Florida’s real estate market attempts to rebound, there is a large supply of commercial properties available for purchase. While many are ready to go, other properties have been left unfinished and require more building to complete.

For the most part, the stall in building can be attributed to the real estate market crash and frozen credit lines. When the capital stopped flowing, builders were forced to halt several commercial building projects indefinitely.

When you purchase an unfinished commercial property, you can save a substantial amount of money. This can help keep your monthly mortgage payments low and enable you to secure a property you otherwise could not afford.

Investing in unfinished properties can be tricky as well. Before you invest, it is important that you thoroughly research the property and determine what is needed to finalize the building. Mandatory repairs may include new plumbing, wiring, roofing, framing or all of the above. If you know beforehand the costs associated with finishing the property, you can decide if the investment is worthwhile for you

If you are considering buying an unfinished commercial property, you may want to confirm with your bank or lending institution that the property, in its unfinished condition, is eligible for a loan. As lending remains tight, banks have strict criteria for deciding which properties they will finance. In most situations, lenders require that the property complies with the local building codes and is in a condition that will allow you to start occupying the property right away. If the property is lacking a lot in its unfinished state, the bank may deny your application for a loan. It is imperative that you check with you lender before investing in an unfinished commercial property.

Buying an unfinished property can provide a good way to acquire prime commercial real estate at a fraction of its value. In this market, builders are looking to get rid of unfinished real estate they are holding on to. If you do your research you can find a property that’s suitable for you.

If you are interested in buying an unfinished commercial property in South Florida, you should speak with our real estate attorneys as soon as possible. They can help you negotiate with builders and help you secure a loan to purchase the property. In no time, you can have the commercial real estate you’ve dreamt of and save money in the process.

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Posted in Commercial Foreclosures, Fort Lauderdale Real Estate, Lending, Miami Real Estate, South Florida | No Comments »

Extension of $8000 Tax Credit for First-Time Home Buyers

October 31st, 2009

By Mark Schecter | No Comments »

home-for-saleEarlier this year, lawmakers passed an $8000 tax credit for first-time home buyers. As the tax credit gained popularity, first-time buyers began taking advantage of the credit which resulted in a welcomed increase in the number of home sales.

In August 2009, the National Association of Realtors (NAR) reported that for the first time in five years, real estate sales increased for four consecutive months. Home buyers are not only using the tax credit to purchase new properties, a large amount of foreclosures and distressed properties are being purchased as well.

As the November 30th deadline approaches, home builders and real estate professionals are concerned that home sales will drop. They, with the help of NAR, are urging lawmakers to extend the $8000 tax credit to give more people an opportunity to purchase homes.

Majority Leader Harry Reid, Chairman of the Senate Finance Committee Max Baucus, and other top Democrats are pushing a plan to extend the tax credit deadline for first-time home buyers from November 30, 2009 until March 31, 2010. Their plan counters a bipartisan plan that’s aiming to extend the tax credit until June 30, 2010, increase the income limitations, and offer the credit to all buyers, not just first-timers.

There is a possibility the Reid and Baucus plan will be presented to the Senate for a vote in the next few days. We will keep you posted on the tax credit extension.

Update (as of November 9, 2009):

On Friday, November 6, 2009 President Obama signed into law an extension of the $8000 tax credit. Now, first-time home buyers have until April 30, 2010 to take advantage of the extended $8000 tax credit. In addition to the extension for first-time home buyers, a tax credit of $6500 will be available for current home buyers that have been waiting patiently for the right time to purchase a larger home.

With the new law, the income limits have been increased substantially, by nearly fifty percent (50%). Married couples making less than $225,000 and single individuals making no more than $125,000 will be eligible for the new tax breaks.

You can compare the details of the initial and expanded tax credits here.

Read the NAR’s article regarding the tax credit extension to first-time and current home owners.

And, listen to NAR President Charles McMillian’s podcast announcement here.

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Posted in Fort Lauderdale Real Estate, Home Buyer Tax Credit, In the News, Lending, Miami Real Estate, Real Estate Law, Residential | No Comments »

Three Good Reasons to Purchase Commercial Foreclosures

September 25th, 2009

By Mark Schecter | 4 Comments »

notice-foreclosure-mdIf you’re considering relocating your corporation, expanding your facilities, or diversifying your real estate portfolio, you may want to give commercial foreclosures some thought.

The economy’s downward spiral over the last couple of years has resulted in business layoffs, strategic downsizing and some business closures. This historic blow has left the commercial property market crippled and in need of major recovery. As property owners work feverishly to climb out of their respective holes, many will not survive and will succumb to these difficult times.

As companies continue to dissolve, we’re witnessing an increase in the foreclosure rates within the commercial property market. Whether you’re shopping for a property for your company or an investment, you’re likely to find bargains in the most sought-after and competitive real estate markets throughout the US.

According to Costar, the go-to-resource for commercial property information, Florida is one of the nation’s leaders (ranking #2) when it comes to distressed commercial properties. Florida has more than 7700 commercial properties that are delinquent, behind on loan payments or in some stage of repossession. California occupies the #1 spot with over 10,000 distressed commercial properties.

Here are 3 good reasons business owners and investors should purchase commercial foreclosures:

1.  Commercial foreclosures are sold at a fraction of their value

An obvious benefit to purchasing any foreclosure is the reduced sale price. Most properties that are recovered by the banks through foreclosure are resold at a fraction of its value. Oftentimes, they’re sold for less than half of the original asking price. For a property investor, grabbing a property for significantly less than it’s worth, will provide for a better future investment.

2.  Commercial leases can produce steady income

As the real estate market attempts to recover, commercial leases are becoming more attractive. Property investors can purchase commercial properties in prime South Florida locations, and then lease those properties to companies in need of office or industrial space. With the monthly rental, an investor can cover his/her monthly mortgage and annual property taxes, and watch their investment grow until they’re ready to sell the property and receive a larger return on investment.

3. Good Return on Investment

If you’re like most investors you want to buy foreclosures for pennies on a dollar, but you want them to be worth much more by the time you’re ready to sell them. Smart investors will hold on to their commercial properties for a few years as the market rebounds and the value increases, and then sell them for two or three times the amount they paid and enjoy a nice project.

There are many good reasons to purchase commercial foreclosures, although we’ve only discussed a few. If you’re looking to buy commercial property in South Florida, regardless of your motivations, you may find what you need in the commercial property foreclosure list. As you begin your search, don’t forget to enlist the services of an experienced property acquisition lawyer in South Florida to help you navigate the process and secure the ideal property.

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Posted in Commerical, Fort Lauderdale Real Estate, Lending, Miami Real Estate | 4 Comments »

Lending Down Nearly 50% in South Florida

July 9th, 2009

By Mark Schecter | No Comments »

According to the South Florida Business Journal, as of June 30th, the number of loans backed by the Small Business Association had fallen nearly 50% in South Florida.

What does this mean for South Florida businesses?

In the past nine months, only 367 loans backed by the SBA were given to South Florida businesses; compared to more than 1300 SBA loans offered during the same time frame last year. This drastic decline in loans has resulted in a loss of approximately $100 million in funds for South Florida businesses.

Although the stimulus package passed earlier this year increased the guarantee on SBA loans to 90 percent in an attempt to reduce the risks to lenders, the package has not caused an increase in lending from many banking institutions.

Is all hope lost for businesses in need of SBA loans?

No. Despite the decline in SBA lending, there is much to be hopeful about. While large lending institutions like Bank of America and UPS Capital are cutting back on the number of SBA loans they’re offering, smaller community banks in South Florida are not.

According to Althea Harris, spokesperson for the SBA South Florida district office, “As these newer banks get efficient in making these loans, we will see an increase in lending activity among those banks.”

Total Bank and BankAtlantic are a couple of local community banks that are not reducing, but increasing their lending to businesses.

Source: South Florida Business Journal

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Posted in Lending | No Comments »