Proficient commercial real estate brokers are the most ready, willing, and able to assist new clients who are financially capable and ready to invest.
This headline suggests that the broker is prepared to dedicate their time and expertise to helping clients find and purchase properties as long as they have the financial means to do so.
In essence, it emphasizes the importance of having financial readiness and the broker’s commitment to assisting clients in their commercial real estate endeavors. Tire kickers beware.
Having financials in order before searching for commercial property is crucial for several reasons:
Realistic Budgeting: Understanding one’s financial capabilities helps in setting a realistic budget for your property purchase or lease. It prevents clients from wasting time and effort on properties that are well beyond their financial reach.
Faster Transactions: With financials in order, the transaction process can proceed more smoothly and quickly. Sellers or lessors are more likely to take serious offers from clients who have demonstrated financial readiness.
Loan Approval: If clients intend to finance the purchase, having their financials in order streamlines the loan approval process. Lenders require detailed financial information to assess creditworthiness and determine loan terms. I suggest starting with your current banking relationship!
Clear Investment Strategy: Knowing their financial capabilities allows clients to develop a clear investment strategy. They can identify the types of properties that align with their budget and investment goals, whether it’s income generation, long-term appreciation, or other objectives.
Risk Management: Understanding financial limits helps clients manage risk effectively. They can avoid overextending themselves financially, reducing the risk of default or financial strain in the future.
Having financials in order prior to searching for commercial property is essential for making informed decisions, negotiating effectively, and ensuring a smoother transaction process. It also sets the foundation for a successful and sustainable investment in commercial real estate.
By Matthew Harris
Northern Nevada businesses and residents will be experiencing the negative effects of inflation for potentially longer than similar markets, and here’s why.
“Entrenched inflation” is a persistent and sustained increase in the general price level of goods and services in an economy over an extended period of time. This type of inflation is characterized by its deep-rooted nature, making it challenging for policymakers to control or reverse the rising prices for property management in Reno.
Policymakers (the Fed) really only have one tool to fight it- that's interest rate hikes, which they just bumped again by 0.25%. Think of Fed rate hikes like brakes on a train, once applied it takes an enormous amount of time and energy to stop the forward momentum of the train. The economy was pumped so (mistakenly) full of liquidity during covid that we're all aboard a runaway train.
Northern Nevada has a decade long real estate shortage. It's most evident in residential and industrial real estate. Residential, industrial, & property management pricing in Reno, has been pushed to heights never thought possible due to lack of supply. Our only way to fix the critical lack of supply is to build more, and guess what- the cost of capital due to historic Fed rate hikes makes building anything way more expensive. Real estate shortages can exacerbate entrenched inflation, especially if the shortage of housing supply is persistent and severe like that which we’ve experienced here in Reno / Sparks.
The real estate markets play a crucial role in the overall economy, and shortages can have ripple effects that contribute to inflationary pressures in various ways like cost overruns, supply and demand imbalances, upward wage pressure, and increased travel times which make Northern Nevadans less productive and making property management in Reno more pricey. Left unchecked, it can lead to stagflation in our economy. These elevated costs have yet to work their way through our local economy; this is why I think it’ll be here for a while.
Don't present a problem without a solution, so how can it be fixed? The Fed is trying to “stop the train”. I say, give it more track by lowering rates to free up capital to address real estate shortages head on, open zoning, increase densities, and incentivize construction. Nevadans must support the lands bills, which will assist in creating more development and to help manage our growth. All aboard approach.