Category: Real Estate

Eyes On The Prize Five Important Questions To Ask Before A Small Business Signs A Lease

A small business considering leasing commercial space AND a landlord in pursuit of filling vacant space have some interesting, and surprisingly similar issues to consider in hammering out a deal. In most cases, experienced landlords know that certain rights will be requested, and knowledgeable small business tenants will know how to ask these questions. Before diving into the minutiae of default provisions, environmental issues, indemnity rights and other essential terms, the parties should consider some basic, but essential issues. This article will examine five such “game changers”, although by no means is this an exhaustive list.

Whole or Partial Exclusives –

Small businesses need the protection and security that enables them to sell their products and provide services without running afoul of exclusives that bigger tenants in the center, business park or office space may have relating to their business operations. In addition, small businesses also need affirmative exclusive rights in their leases to prevent the landlord from leasing to a competing business in the future. An example is where a bakery shop wants to lease a space where the grocer anchor tenant may already have an exclusive on selling “bread and baked goods”. Since most smaller tenants do not have the negotiating leverage to demand complete exclusives, alternatives could include carve outs for specialty goods and services (e.g. birthday cakes)and/or caps on sales of certain items (e.g. bagel sales cannot exceed 20% of total gross sales).

One-North Eden floor plan will allow you to ask the questions. The answering of the questions is with the experts to get the desired results. The solving of the issues is excellent to offer the right results. The selling of homes will deliver the best results at online platform. 

Flexibility to Assign or Transfer the Lease –

Small business will need the ability to easily assign or transfer/sublease in the event of ownership or business operation changes. This is especially true with franchised companies who may start off as a corporate store and then want to assign or transfer the lease to a local franchisee. Landlords often resist these requests because of the uncertainty that could result from an unknown assignee taking control of the shop. Perhaps the best way to deal with this concern is to provide the landlord with additional security in the event of an assignment, such as the tenant remaining liable for a certain amount of time after the assignment is complete or a corporate or personal guaranty that was not part of the original lease terms.

Restrictions on Relocation within the Center –

One of the biggest problems for small operators in multi-tenant properties is where the lease allows the landlord to relocate them to anywhere on the property. This situation creates moving costs, lost profits and potentially extended reductions in sales as a result of being placed in a less visible or accessible part of the development. Small businesses need to ask for tight restrictions on relocation and build in protections in the lease that require the landlord to provide adequate notice, as well as reimbursement for moving, new upfit and business interruption. Tenants should also ask that they not be moved to areas of low visibility or access within the property (such as the end cap, next to a competitor or behind the major storefronts).

Limitations and Alternatives to Personal Guaranties –

Landlords will almost always require that small businesses provide a person guaranty of the Lease. In order to protect themselves, tenants should ask their landlord for a “sunset” provision on the scope of the guaranty that either limits the duration or the amount of liability. This way, the tenant has a chance to show its landlord the business can grow and remain viable, while limiting the overall exposure of its principals. Other forms of security can also be offered to landlords in lieu of personal guaranties such as security interests in business assets or other real property, letters of credit or corporate parent guaranties. The goal here is to strike a balance between providing adequate assurance of performance to the landlord and constraining the liability of the persons operating the tenant business.

Define Option Rental Rates Up Front! –

Many times small businesses receive a lease from their landlord that grants option rights to extend the term of the lease “at rates to be determined by the parties at a later date” or “at the prevailing market rate at the time of the exercise of the option to extend the lease.” The first of these is an agreement to agree, which may be unenforceable in many states. The second is an invitation to a future disagreement. Both of these clauses will often cause discord between the parties when trying to determine “market rent” years into the future. By requesting that the option rental rates be specifically defined or tied to a known formula at the time the lease is executed, tenants can remove this uncertainty and the attendant costs and consternation involved with determining the rental amount at a later date.

4 Things To Consider As A First Time Home Buyer

There are plenty of things that can go wrong when you’re buying a home. Luckily, the process becomes easier the more homes you buy; this is simply due to the fact that you are more informed about the process the more times that you experience it. However, there is a way to become a well-worn home buyer before even purchasing your first home. The key to this is becoming educated. Throughout the course of this brief article, you will learn about 4 things to consider as a first-time homeowner.

Mortgage Payments, Etc.

The key to this heading is the “etc.” portion. Many first time home buyers believe that they can easily afford a home because they can afford the mortgage involved with purchasing a home. However, there is more that goes into purchasing a home than simply paying for the mortgage. The “real cost” of purchasing a home involves several things in addition to the mortgage. Property insurance, homeowner’s association dues, taxes, maintenance, and a slew of utility bills mean that the real cost of buying a home is much higher than what’s on the papers for the mortgage.

Mortgage Pre-qualification

Most people assume that the first step that goes into home buying is looking for and subsequently finding the right home. However, this is not the case. The first step when it comes to finding the right home is becoming pre-qualified for a mortgage. The fact of the matter is, if you don’t pre-qualify for a mortgage, you definitely won’t qualify for a mortgage from any respectable bank. Therefore, any time and effort spent looking for the right home before becoming pre-qualified will have been in vain, as the simple fact of the matter is, you won’t even be able to purchase a home. Learn about pre-qualification before going house hunting!

Professional Help

Don’t attempt to purchase a home — especially if you’re a first time home buyer — without some professional help. There are several professionals that are in your corner when it comes to helping you find the right home. Professionals such as real estate agents, any credible realtor, brokers, and sometimes even lawyers can help ameliorate the process of buying a home for the first time. Real estate agents are particularly good to have in your corner, as they are people that are trained to deal with the logistics and contingencies of the housing market in the neighborhood where you’re looking for a home.

Wasting Savings

One of the biggest mistakes that first time home purchasers commit is spending all of their savings on down payment and closing cost. If you have the cash to spare, it is wise to meet the average of a 10% down payment on your mortgage and lessen the cost over time. If you don’t have enough for a larger down payment, you will end up taking up a larger mortgage. By using all of your savings to meet a down payment, you are forgetting to factor in the real cost of owning a house. Remember: there are other bills to pay and other loan quotes that must be met, so you should keep savings on hand in case of an emergency.

Buy Your Dream Home With Home Loans

It is always good to live in a comfortable home without landlords bothering you every month. Having your own home could also mean you can enjoy the comfort of living in a private setting. You can even have your own house design or own pets without having to worry if you would be allowed to do so. But how can you purchase your dream home if you do not have any budget or savings? That is when home loans come into the picture! You need these loans to finance construction of your dream home or directly buying a well-designed house. Parc Central Residences will offer the homes with the loans. The installments of the loans are less to offer the benefit to the individuals. The construction of the homes is with the best material. The availability of the dream home is possible with the services. The selection of the right one is with the intelligence.

Home loans have made buying your dream home affordable and easier. But that does not mean you just have to walk into a lending institution or bank and ask for a home loan. There are so many things that you should look at before you take and be approved for a home loan. For instance, you would need to compute how much cost you have to face to take the loan. You need to consider the interest amount that you could possibly be charged for borrowing money. You have to check the repayment policy too that the bank or lending institution is following, so you can ensure that you will meet the schedule of payment.

Choosing the Right Interest Rates

There are two types of interest rates you can select from. If you wish to secure yourself from rate of interest that keep fluctuating because of market condition then you should go for a home loan that has fixed interest rate. This can ensure that you will be protected from the change in rate of interest over the extent of your home loan. However, it could come at a much higher value than the prevalent market price at the same time.

If you are uncomfortable with paying high price and can take the risk of changing interest rate then you

can opt for a home loan with floating interest rate. If the rate of interest becomes higher after you have taken the loan then you would be paying higher amount. Likewise, if the rate of interest reduces then you would pay lesser amount. Hence, it is both disadvantageous and advantageous as well. It is your decision what kind of home loan package you would want to take to buy your dream home.

Home Loan Details

Applying for a home loan could mean great responsibility on your part. This is because you will be entitled to pay every month a certain amount until the given time period. When you apply for a home loan, carefully examine all the details of the loan. Aside from the rate of interest, you should consider checking the processing fees, prepayment fees, home loan tenure, guarantor requirement, home loan amount funded and preclosure fees involved.

Home Loan Eligibility

Almost everyone can apply for a home loan but not all can be eligible for it. There are certain criteria that should be met in order for a home loan application can be approved of. Before you apply for a home loan, check the maximum loan value that you may qualify to have. This will depend on your monthly income and credit rating. The best thing that you can do is to approach different home loan providers so you can have many options to select from. Make sure to know first the home loan requirements or eligibility criteria to prevent wasting time applying for a home loan.

Luxury Living in the exclusive gated community

Calgary Luxury Homes is a dream of many and reality for a few. If you are interested in learning more about luxury living in Oklahoma City, Edmond, and the surrounding communities, then you should definitely take note of the luxury gated community of Rose Creek here in the Edmond Area.

One of the biggest factors moving people in their desire for high-end luxury living in OKC and Edmond is having SPACE. Everyone wants more space in their home and living area. Space gives you options for style, design, entertaining, display and decor of high-end furniture and lifestyle possessions and just plain room to grow. Spacious, upscale, and quality constructed homes are what make Rose Creek homes really stand out!

The homes for sale in this upscale luxury community are huge and beautifully landscaped and designed. You are close to all the choice activity in Oklahoma City and Edmond but secluded behind a gated security access controlled environment. You have access to a beautiful country club, private pool, and golf course.

Living in luxury in this distinctive gated neighborhood is like living in another world, but you can still easily get to the ‘outside world’ due to its perfect location close to turnpike access and the growing North Memorial Road OKC area. Quality school systems such as Deer Creek and Edmond are available if you choose not to utilize the excellent private school options here in OKC.

Call me direct at 405-414-5022 for a personal consultation on your goals for luxury homeownership here in OKC. You can also review the luxury home listings in Rose Creek HERE and keep up on what new property is coming on the market. If you are interested in the private off-market ‘pocket listings’ that sometimes come up on my Realtor database, call me and I can keep you notified of private luxury home buyer opportunities in this very desirable community as well as other luxury home options in the Oklahoma City Metro area.

Buying a home in Rose Creek is a project that requires plenty of serious planning. You need to be getting good solid and current pricing data for your new home neighborhood. Buying a home in this private community of luxury homes can be a pleasant and stress-free experience if you use the tools and resources of an experienced local Rose Creek Realtor to educate yourself on making the best offer for your new dream home.

Feel free to call me at 405-414-5022 for immediate assistance on making your move to the luxury living options of Rose Creek or use the web-based resources at www.listedbyvalerie.com for all the tips and community data you will need to understand and effectively buy a home in this fabulous housing community. I look forward to helping you achieve success in making your new Rose Creek home purchase a reality here in Oklahoma.