S.E.C. Real Estate Observer

First, I want to emphasize that the Society of Exchange Counselors does not endorse any political party and, as a non-profit organization, we cannot engage in any politics. I don’t believe I violate that rule by expressing my opinions in this article…

Veteran commercial broker, Alex Ruggieri, interviews leading comercial agents from across the state.

As you know, the last four years have featured plenty of glum economic news. Unless you’ve invested in the Bakken region of North Dakota. You see, while the national economy has been stagnant, the Bakken oil boom has been progressing at a breathtaking speed.

An interesting article in the April 14 issue of The Economist was entitled “The Question of Extractive Elites.” The article referred to a new book, Why Nations Fail: The Origins of Power, Prosperity and Poverty by Darin Acemoglu and Hanes Robinson, two economists that write quite a bit about what is going on in the USA and the world right now.

Most people like top ten lists because you know when they end, right? But if you manage, invest in, finance, or own apartments, you never want to see an end to good ideas for better performance.

In today’s real estate climate, making your property more marketable requires creativity and an open mind. Owners need to expand the benefits their properties offer. Along with physical aspects and pricing, the structure of the transaction, and your capabilities and expertise all figure into the formula. The key to completed transactions is determining which benefits appeal to a particular buyer and still provide the same or better benefits for you, the seller.

I turned on the TV this afternoon, and as it was CBS, an Oprah repeat was on, with a very pretty young girl from Pittsburgh singing. She’s a recent winner of a national talent contest, I think about 12 years old, named Jackie Evancho. Watch for this girl.

Just two letters, but “If” is one of the biggest words in the English language. “If” allows one to presuppose a situation in the future, try it on for size, so to speak, and see how it feels. Combined with the words, “would you even consider it?” the word “If” can let you “try on” a future situation. You are only being asked “if you would even consider” committing to a future action. It is very easy to answer yes to such a question, since you are not committing to anything except to “consider” doing something in the future.

In earlier articles, we briefly discussed some of the challenges, regulations and restrictions your local banker is dealing with. Knowing these will help you as a borrower, buyer, or broker be more profitable in 2010-11. Commercial Real Estate, CRE, ratios are driving many of the decisions your bank is making today. If you or your clients have a commercial investment or development loan coming due in the next 12 months, be prepared to move it or pay it off…

When a bank loan goes 30 days delinquent in payments or past the due date, it becomes a scheduled item with the auditors. They may or may not require any reserves be put aside for loan losses. As default status continues, the loan will be written down based on borrower financial strength, appraisal, strength of the bank, etc.