Commercial Buying Specialist
- How can the CENTURY 21® Commercial Program help me achieve my investment goals?
- The CENTURY 21 Commercial program is a unique network within the CENTURY 21 System. With over 1000 offices in the United States and in Canada, CENTURY 21 Commercial has a network of experienced and knowledgeable commercial investment professionals who specialize in the field. This network has complete access to the referral services of the CENTURY 21 Global Support Network of 8,400 offices and 142,000 sales people across 57 countries worldwide. Our network is your edge. Members of the CENTURY 21 Commercial are active and productive in the commercial investment field and are committed to achieving your goals.
- What investment specialties are available within the CENTURY 21 Commercial Program?
- Included within the CENTURY 21 Commercial Program are qualified professionals who focus on the sale and purchase of Business Opportunities, Motel & Hotels, Mobile Home Parks, as well as Apartments, Commercial Retail or Office properties, Industrial facilities, Leasing, and Sale of Land for development. Mr. Sheddy is an experienced Commercial Realtor in all of these subspecialties and can help you whether it's your first purchase, or just your latest addition to your portfolio.
- Why is leverage important to my investment decisions?
- The purchase of real estate is one of few investments where leverage is available to the investor. This involves a small down payment, usually 25% of the purchase price, by the investor, with the balance, usually 75% of the purchase price by the lender. With a 25% down payment the investor controls the entire property and the cash flow. After the lender is paid, this becomes the Return on Investment (ROI) for the investor.
- What are financial ratios and why are they an important part of the decision process?
- Financial ratios are used throughout the commercial industry by investors, lenders, real estate agents and brokers. They provide a common "yardstick" by which buying and lending decisions are made. Some of the financial ratios are Capitalization Rate (CAP Rate), Gross Rent Multiplier (GRM), Debt Coverage Ratio (DCR) and Loan to Value (LTV). Your CENTURY 21 Commercial associate can explain these and many more commonly used financial ratios.
- Do I need Property Management and how can this help me?
- Professional Property Management may be required by your lender, especially on major properties. Property Management companies take the day-to-day contact and management out of your hands. They provide rent collections, expenses payments and monthly financial reports to you. They also provide maintenance, late notices and oversee legal, landlord-tenant services. Your property is professionally managed with one point of contact for the tenants and that single point of contact then sends timely reports to you, the owner. Century 21 Power Realty Ltd. has a Property Management Division. You can speak to Bob Sheddy or view more information at www.rentdrumheller.ca
- What is a cash flow analysis and why do I need it?
- A cash flow analysis is a report showing the current or scheduled income including rents and other income, vacancy and/or credit loss and a complete list of all operating expenses. With this information you get a Net Operating Income figure which is the net income of the property before loan payments or debit service. Loan payments are subtracted from the Net Operating Income to get the cash flow before taxes for each property. These reports may be done on a monthly, quarterly or annual basis. The larger the property the more often these reports need to be completed. Most property management firms will produce these on a monthly or quarterly basis in addition to the annual report that is necessary for preparation of income taxes.
Broker of Record
CENTURY 21 PowerRealty.ca