Commercial real estate listings in Michigan area are
available for your review and purchase. You can
purchase a commercial site that is already
established, or you can purchase a commercial lot that
is just waiting for you to build, develop and bring in
the people to make the sales. The average family
income in Michigan during the year 1999 was about
$42,000. For the business, this means there is money
available in the family units to support various types
of industry, such as pools, spas, camping, and many
other types of hobbies and sports as well.
Commercial real estate listings are those that will
include retail centers, doctor's offices, business
settings and similar retail situations. Commercial
listings are wide ranging, from the small lots, to the
huge office buildings where hundreds of employees
could be located. Commercial real estate in Michigan
is one that you should consider if you are thinking
about relocating your business, or if you are
contemplating starting a new business venture.
Mortgage rates are always changing, and for the prime
locations in Michigan you will find your real estate
investment is well worth the mortgage you will be
paying. If you have completed a business plan,
detailing your business ideas, your business traffic
needs, and the demographics of who your customer base
will be, you can find a real estate investment in
Michigan that will fit this requirement. Many
commercial real estate settings in Michigan will
service many functions in promoting your industry.
When you are looking for commercial real estate
listings in Michigan, there are many different ways to
go about it. You may have a pacific idea to where you
are looking for the commercial property. If you know
where you want to have your company that is a big
advantage because you will be able to narrow down your
search a little because of where you are looking.
Some of the listing areas are the Lakefront Real
Estate Michigan or Waterfront Real estate but there
are many more areas that you may be looking at for the
commercial real estate that you whish to have your
company at for business, some are considered prime
locations, while others are commercial settings thatdo not have the heavy traffic. One thing that you are
going to want to do is check out what area in Michigan
would be the best for your companies business and for
the consumers as well. If you need heavy traffic to
get the high numbers of customers, you should seek out
some of the prime locations, which can be a bit higher
in cost, but well worth the investment.
Once you have done some of the work on checking out of
the different locations, you will notice that there
are areas of the state that is going to be a great
location for your business of operation. Many
companies may choose to have their business location
near the lakes so that they have some easy access for
shipment and deliveries in many different ways beside
vehicle. If you are checking out the lakefront real
estate in Michigan, you may notice that you are going
to need to be ready to pay a little more for the
property because of its location but it could be a big
benefit in the long run when you think about the
different ways that you are going to be able to ship
and receive deliveries and even the possibility of how
many consumers that would be available if you are in
the business of sales because of the visitors that
could come to your shop some supplies or needs for
their vacation. That right there would be a great
advantage to acquiring some Michigan waterfront real
estate when you are going to start up a business of
sales that would be a benefit for the vacationers. If
you have, a product or service that would benefit the
many who love to vacation you should search commercial
real estate in the Waterfront Real Estate Michigan
listings.
Michigan waterfront real estate is a prime location
for many types of business, not only because of the
high number of tourist that come to this area, but
also because of the high number of traffic daily that
will see your business in this area. Grand Blanc
Michigan Real Estate is also a prime location for
commercial real estate, as this is an area that is
growing yearly, with new residential areas expanding
around the commercial area. About seventy percent of
the homes in Michigan are two and three bedroom homes,
housing families that are available to support the
commercial sales needs.

Financing for commercial real estate is a completely different game when compared to residential mortgage loans. It moves much faster and is much more flexible.

Commercial Real Estate - Hard, Hard, Hard Money Loans

When purchasing commercial real estate, financing is the most significant factor in determining whether the project is worth pursuing. Although there are a variety of commercial real estate loans on the market, we are going to look at hard money loans in this article.

Hard money loans for commercial real estate are often a matter of last resort. They aren't good deals, but they can save a financing situation that has gone critical. Most hard money loans come with significant upfront costs and astronomical interest rates. When you are facing the prospect of losing a commercial property, however, they can be a godsend because they also are granted very quickly.

Hard money loans are considered very risky and are issued by private financing groups, not banks or lenders. The loans tend to be only available as the primary loan on the property, which isn't that rare a situation in commercial property.

Unlike home loans, hard money loans are all about the potential sales price of a piece of commercial real estate. The party considering lending you money is not going to look at the appraised value of the property. They are going to look at the probably sales price if the commercial real estate has to be sold a few months after making the loan. Depending on the condition of the property, this figure will typically be between 50 and 75 percent of the appraised valued of the commercial property.

Put another way, a hard money loan is a short-term loan designed to get you past an immediate problem. It is undeniably a loan of last resort and is not an ultimate solution to a financing problem with a commercial property. It does nothing other than buy you time, and at a fairly hefty cost. If you are in a tight spot and can resolve the problem with a few extra months time, a hard money loan may be the answer.

Unfortunately, commercial real estate is not for everyone. Before taking the plunge into this vastly competitive field, you may want to ask yourself the following questions, all of which relates to how you work and your personality.

-Do I Have an Entrepreneurial Mindset?

Successful professionals in commercial real estate tend to have an entrepreneurial spirit. The have a motivated drive or desire to succeed. Having an entrepreneurial mindset could mean that you possess the following qualities:

-hardworking
-innovative
-goal oriented
-passionate
-organized
-creative
-a leader
-a risk taker

Some people describe having an entrepreneurial mindset as having a "fire in the belly." In short, you have burning desire for success in commercial real estate and you have the creative and innovative spirit to translate that fire into concrete action.

-Do I Have a Passion to Help Others Succeed?

If you want to be successful in commercial real estate, particularly as a commercial real estate mortgage broker, property broker, agent or lender, you must have a passion to help other people succeed. In the end, your success in any one of these specialties within the realm of commercial real estate depends on your own ability to assist other people achieve their own goals. Do you thrive on seeing others succeed and knowing that you were able to contribute to that endeavor?

-Do I Have an Internal Personal Belief System That Supports My Success?

Finally, when it comes to achieving success in commercial real estate, it is absolutely fundamental that you develop and maintain a personal belief system that permits you to fully understand that you are capable of achieving any goal. Although some people may conclude that it is a trite saying - you have to BELIEVE in yourself. If you do not believe in yourself, how can you expect your clients to trust and believe the advice that you give them? By believing in yourself, you will have the ability to develop an appropriate plan of action that will ensure that your important dreams become realities. By setting goals and by believing that through your own best efforts you can achieve those goals, you will enjoy significant and lasting success in the commercial real estate profession.

If your answer was "yes" to each of the questions above, you are well on your way to finding a great career in commercial real estate. The industry is not made for everyone, but for those who can appreciate what it takes to succeed, they are in for one exciting ride! Best of luck to you!

Have you gone to a shopping complex? There, you will see different novelty shops, grocery stores, and other small businesses. If you will decide on whether you want to enter such business, it is important that you will understand the basics of commercial real estate investment and how you can gain profit from real estated investing.

Understanding Commercial Real Estate.

Real Estate is defined as a certain property that can possibly generate revenue for its owner. It generally includes office buildings, shopping malls, service stations, restaurants, apartment units, and raw land.

You must understand that only properties, which have a potential to produce income for its owner, is categorized as commercial real estate.

Therefore, it will not include real estate of habitable characteristics such as houses and apartment buildings.

So how is it leased to the potential clients? Usually, the owner of the property leases it through a licensed broker. Then the broker will make the necessary arrangements with regards in advertising that property.

In addition, the broker can make some agreement with the owner or seller of the property about its improvements such as renovating or clearing the perimeter of the ground where it is erected.

How to Get Started in Commercial Real Estate Business

If you want to start with this type of investment and yet, you do not have a concrete property to sell, maybe the first thing to do is to have some guidelines that you can start with. Here are the things that you should consider in building your commercial property:

* Determine what are the hot business are around. Decide if you will cater to the needs of individual or partnership that wants to rent spaces for their food or novelty shops.

* Choose the best location of your property. Go for the finest piece of land that you can utilize efficiently. You can consider erecting commercial property nearby high traffic areas can be easily accessed for full-service restaurants, hotels, and other shopping centers.

* In aid of choosing your property's location, you consult the planners of the local government where it will be built. They have a zoning system, which separates industrial, residential, and commercial properties. It will help you to obtain the necessary clearance and permits from them.

* You can opt to hire some financial advisors. They can help you to plan for the revenue aspects of your investment. Always keep in mind that the right investment is the best chance to earn more profits.

* In case that the property is funded under a mortgage, it will be wise on your part to repay it religiously. Do not let it be your liability; remember that your goal is to earn money, not to lose money.

* If the property is now ready for leased, always have the necessary arrangements with your real estate agents with regards in advertising your property.

* Check the rates, terms and conditions, and other related aspects concerning the lease of your commercial property. You must also serve the interest of your potential clients that will avail it.

Earning money through commercial real estate property requires enough planning. This is an investment; either you lose or gain money.

One of the signs of the times that indicates how any nation's economy is doing can often be determined by how well businesses are expanding in real estate. Right now, there is a continued expansion of commercial real estate and loans for these new projects. The current commercial real estate lending trends indicate that now is a good time to expand your business with a building program or new land purchase.

While the housing market has certainly taken a real dip, and has hurt the sub prime lenders in particular, commercial lending goes on. Many new projects, especially in the income producing properties realm, is seeing solid expansion. This includes the construction of office parks and buildings, multi-family dwellings, hotels, and other general land development programs.

One particular market that has held up its own is office rentals. The demand for office space - even at increased rent values - has grown. This is especially true in New York City (Manhattan), and some other large cities, too. This means that the available office rental space has actually decreased as office space is being filled - much to the owner's delight. In New York City, office space is being grabbed up - even though the rent has risen to nearly $70 per square foot.

A few other cities, however, still show a slow office rent market. In fact, much office space remains unoccupied. In those cities, though, where office space is in demand, the number of office buildings and office parks are certainly on the rise, as developers rush to fill in the gap. Commercial lenders are also seeing the need and providing the necessary bridge loans and commercial loans for these massive projects.

When compared to last year, there is an increase in the overall amount of activity in commercial real estate lending. This shows a growth of about 0.8 percent that is expected in the third quarter of 2007, according to the National Association of Realtors.

Over the last few years, commercial real estate lending has shown a strong increase. The Federal Reserve (Philadelphia) indicates that large mortgage lenders have gone from about 150%25 of loans (compared to non-commercial) back in the 1990's, to over 300%25 last year.

The number of commercial real estate loans is increasing and lenders are continuing to offer excellent interest rates. The market has begun to show a slight decrease in recent days, but for right now, the rates needed to expand business could not be much better. The qualifications needed to get such a loan also could not be much softer than they are right now, too.

Seeing this kind of commercial real estate trend, and the market's favor for this kind of loan, you also may be able to benefit greatly by investing now in a new building project or land development program. Check on availability of office space (in particular) in the area, find out how fast it is being secured by new businesses, and if it is in demand, be ready to move on the opportunity. Scope out possible land available, or existing structures that can easily be renovated into office space, get your paperwork in order, and talk to a commercial lender about your goals before someone beats you to it. Now is the best time for action on this kind of opportunity, while commercial loans are still available at great terms.

A GOOD OUTLOOK FOR COMMERCIAL REAL ESTATE IN 2007

I had the opportunity to sit in at the International Council of Shopping Centers (ICSC) annual "Power Breakfast" that featured some high powered institutional investors as panelists. They included Erwin Aullis, the Managing Director of Transwestern Investment Company, Stanley L. Iezman, the President of American Realty Advisors, Inc., and Glen Sonnenberg, the President of Legg Mason Real Estate Services. The panel was moderated by Mark Schurgin, the president of the Fesitval Companies.

These are some high-powered commercial real estate fund managers who don't even get out of bed for a deal less than $50 Million! They were there to give us some of their thoughts on how the economy will impact commercial real estate investment, where interest rates might be headed in the coming year, and how buying and selling parameters have changed for shopping center owners.

Some of the thoughts that came from these guys were fairly insightful. Here's what I got from the breakfast that I think you'll find interesting:

1. Commercial real estate lenders are awash in money thanks to Collateralized Debt Obligations. These are derivative debt instruments that allow lenders to dramatically increase their ability to raise money at low overall costs.

2. The ageing of the population and the retirement of the Baby Boomers means that there is a large chunk of retirement money looking for alternate income opportunities … think "income property."

3. Large funds are taking on more real estate, making it a legitimate "investment class" like stocks and bonds.

4. The REIT Index was up 35%25 last year, trouncing the S%26P 500.
Large urban areas can expect low cap rates in the months ahead, meaning that there are opportunities in secondary areas, but you still need to beware in "tertiary" markets, like Detroit and St. Louis.

5. Oversupply of commercial properties is not yet in evidence.
1031/Tenants-In-Common buyers are drying up, slowing price appreciation.

6. "A" quality commercial properties are becoming "commoditized," meaning that there are real opportunities in "B" and "C" product.

7. The big players are getting out of condominium product at significant discounts to original asking price (which means you might get a nice home for cheap). This was in evidence in San Diego and South Florida. Residential projects are taking a back seat to commercial in the minds of the big investors.

There's some good intelligence in these observations for anyone serious about investing in commercial property this year.

The final few minutes of the session were devoted to a group consensus on where interest rates and cap rates would be a year from now. While not a real prediction, the sense of the room was that the Prime Rate would be .75%25 to 1%25 lower, commercial mortgage rates for "A" product would be about .25%25 to .5%25 higher than today, and cap rates for class "A" properties would be essentially unchanged.

My conclusions are that there will be some opportunities to make money in smaller commercial properties in outlying areas and smaller urban markets. New construction and other "value added" projects should also do well. One caveat is do not make the mistake that rents will continue to trend upward, though. Stay conservative in your projections and you should be able to ride out any recession that might follow in the wake of possible Congressional tax hikes.