I’m here to report to you personally from the front lines!

As I’ve been informing you “sellers of all types of commercial property” have been actively defaulting on their loans the cutting edge secrets are – it’s only just begun! Yes, you got it right… the loans on commercial property are exploding and news on the street is “they are going to continue well into 2013.”

What does all this mean?

This means you have an opportunity of a lifetime! No more mining the streets for diamonds (save that to the niche pitchers) stay focused on the BIG picture and you can make an absolute killing.

I’m so excited about all of this opportunity I’ve dedicated myself (again) to share my message with the masses.

I’ve been booked solid for some really exciting opportunities myself… this past week I’ve been inspired by several influential leaders within the “Message to the Market” arena and I’m really excited to share what’s going on so… Stay tuned!

At a few of these power meetings the buzz in the air was social marketing and it totally applies to reaching to the masses within our (you and I) “Message to the Market” arena too! Letting everyone know you are in the market place looking for Commercial property.

Of course if you’re reading this then you know the power of taking action and staying away from the negative garbage out there. It’s funny… everyone has an opinion but most are negative and misery loves company.

When it comes to choosing the right vehicle to get you to success its best to see things for yourself… with that said I highly encourage you to come see:

Click This Link Now ——-> CLICK HERE

Commercial properties can be leased with several types of lease agreements.  The tenant, or possibly the owner could be responsible for all repairs and insurance premiums. It all depends on how the lease is negotiated… we’ll get into “Negotiations” a little later next week so make sure you check back with me.

OK here’s the meat… there are three different types of leases that are most common:

Full-Service Lease - this is where the owner is responsible for all of the operating expenses.

Net Lease - is a lease when a tenant pays some of operating expenses, most commonly the two major expense items being taxes, and insurance.

Triple Net Lease - is a lease when the tenant is responsible for “All” of the operating expenses. This includes the three major expense items taxes, insurance, and utilities. Also referred to as a Triple Net Lease or commonly referred to as a Net – Net – Net. It is best to negotiate and set up a triple net lease where the tenant pays all of the operating expenses each and every month separately, and just sends you a BIG FAT Check. If this is not negotiated properly, then often times the tenant pays for most but not all operating expenses.

You may be wondering about property types… so here it is:

Multi-tenant office and retail buildings are usually leased on a triple net basis. This is where the tenant will cover the real estate taxes, the insurance, and the common area utilities. When it comes to the common area maintenance (CAM) this is done on a pro-rata basis split between any of the tenant’s.

Net rentable square footage means the space they occupy not the gross square footage that would include hallways, stairwells, elevator shafts, lobbies, and common meeting area.

Here’s the deal… I have a system in place and highly suggest you get it now so you can learn the strategies and techniques for non-conventional investing with Commercial Real Estate

All you have to do is click this link ———> CLICK HERE

From the desk of Terry Hale:

I’m sure this will help… See the answers below!

QUESTIONS: I have a couple of questions about a broker’s commission using
the master lease option technique.

1. How does a commercial broker & real estate agent get paid their commission when the MLO
technique is used ?

ANSWER: The commission still get’s paid no matter what. It’s typical for the seller to pay out commissions but I always say if you get a smoking MLO deal don’t blow it for 3%-6% commission. You can also negotiate with the broker and pay out a smaller % upon commencement of the Master Lease and then more when you exercise the option to purchase.

2. How can we entice a commercial broker with up front commission using
MLO technique when they have a listed property ?

It seems brokers shy away from using this technique, because they don’t get paid like
a typical convential loan

Any help is greatly appreciated

ANSWER: Simple, the broker (especially if they have 180 plus DOM “Days On Market”) will be happy the deal is done… let them know we need a little time to turn the property around, get it to its highest and best use and then we’ll buy it and then they get paid.

MLO is a great tool when used and explained the right way. I have 2 trainings coming up. Los Angeles CA June 27^th and 28^th and New York July 16^th 17^th and 18^th and I highly suggest you come and learn it all the right way.

It’s next to nothing to register, go see at http://www.terryevent.com

There’s a video that explains everything.

Best,

Terry Hale

Hey Terry here,

I keep getting the same question asked over and over again “What is the fastest way to get deals moving forward?”

The Answer is: Negotiations

Having the tools to negotiate is the fastest way to make things move forward with any type or size property. You must know a few things like how to identify and then what to say…

I created a system you can learn from: click here

There isn’t any other so-called Guru/speaker/trainer out there speaking about the “How to’s” combining negotiations with any type of real estate.

I guess you could read several boring books on negotiation and then stumble through countless calls trying to perfect an easy 1-2-3 system or you can click here

When you get to the other side there is a video waiting there for you and a couple tickets to my next upcoming event… if you hurry you can grab a spot!

Oh, by the way, if the site says “sorry too late” you can be put on a waiting list for next time.

Have a great holiday weekend!

Your friend and mentor,

Terry Hale

Hope everyone had a great holiday (mini vacation) and ready to get back to it Monday morning!

If your new to my blog or one of my many students I encourage you to visit and take advantage of all the benefits I offer.

So What’s Going On With Commercial Real Estate In 2010?

Commercial is the most dangerous time for banks right now (including the smaller local banks in small towns)… 2010 to 2013 is when $1 trillion in commercial real estate loans will mature and — like homeowners before them — owners of commercial properties will need to refinance. If they do not refinance their property they will become a distressed seller.

Get this:

Blumberg estimates that $236 billion in commercial real estate loans that were turned into securities will need to be refinanced in this period and that $67 billion of that amount “will be lost.”

So here’s a HUGE opportunity knocking at your door… now is the time, click the link below and see for yourself: http://www.cashflowcommercial.com

Before I reveal these secrets let me explain exactly what MLO is in a “1-2-3 nutshell”

1.    MLO is where the Seller of a Commercial property agrees to lease “You” the entire property as their one tenant.  This means you become their one tenant hence the name Master Lease.  You guarantee the current gross rents (what’s coming in – as income).  You benefit by pocketing all the new income from bringing in new management, raising the rents and filling the vacancies.

2.    You control the entire property as the Master tenant by putting down a deposit.  You then have an “Option Agreement” to purchase the property at a later date for an agreed purchase price, hence the name Master Lease Option.

3.    You never actually close on the property since you have a lease in place until you exercise the option to purchase, so you can always walk away if you do not achieve the income potential of the property.  The only thing at risk is the deposit and even that can be negotiated as a refundable deposit if you’re dealing with a motivated seller.

If you happened to attend a multi-day event on this niche than consider it your intro to what’s yet to come and you’re in the right place now. If you’re fence sitting on attending one of these niche trainings, well you can thank me later!

What Are The Best Type of Properties For Master Lease Option?

You have the best shot for a Master Lease Option if you know what I’m about to reveal for the first time here.  It works best for Apartments and Self Storage facilities although it can also work for others.  My students using my techniques for MLO find Self Storage the ultimate property type with the best fit.  Remember; never try to pound a square peg into a round hole.  You need multiple exit strategies when it comes to commercial investing and for that reason alone, niches are tough if you don’t have an alternative approach.

So what are the criteria for the hottest MLO property type?

Self Storage MLO Criteria

1.    40% Occupied – 60% Vacant
2.    Second Generation
3.    Roll Top Doors
4.    Little To No Maintenance
5.    Easy To Manage
6.    Motivated Sellers

Chances are when you’re speaking to owners or brokers about Master Lease Option you’re going to hear a few rebuttals.  It’s important you know how to address them at the very least.  What I did was this… I noted where most of my students get hung up and here it is for the first time.
Q.  Why should I let you lease my property?
A. Your Property is on the market considered a liability (not producing income) not an asset.

Q.  What if you don’t do a good job leasing up the property?
A.  You can simply evict me just as a tenant because I am a tenant just under a master lease

Q.  I don’t want to do a Master Lease I want to sell not do a Master Lease Option
A.  Would you entertain any seller financing or a possible joint venture?

If you’re dealing with an owner that is less than motivated chances are you’ll be answering one of the above.  Master Lease Option is always a possibility just make sure you don’t put all your eggs in one basket as they say!

I always say “Be A Generalist Not A Specialist” concentrate on the low hanging fruit and have all the tools ready it’s best to know your exit strategies:

•    Seller Financing
•    Seller financed with a subordinated second
•    Low Ball all cash offer
•    Purchase Seller Lease Back
•    Joint Venture

Additional MLO Secrets Revealed

It’s very important to spell out the respective responsibilities and point out the benefits to the seller instead of to you.  Typically, the owner will remain responsible for taxes, insurance and capital expenditures.  That means if the HVAC (heating – air conditioning) goes or the roof leaks, it’s at the sellers expense. But minor repairs from broken glass to leaky faucets would be your responsibility as the master lessee.

When looking to move on an MLO make sure to take care of the property as if it were your own.  Not only is it the right thing to do but It will also assist you in having a good reputation and helpful when you pursue other Master Leases and purchase-option opportunities.  Since you won’t be living there, only accept tenants that will care for the property and be sure to have the right management in place! simply click the link below to learn more:

http://www.cashflowcommercial.com

And why would you want to do that for years to someday be able to scrape together enough cash to buy a commercial property the hard, risky way (the conventional way.)

I hear some investors and people teaching out there who think “inside-the-box” say just the opposite.  They actually encourage people to save up their hard earned money put down a whopping 20% to 30% down payment and then personally sign for a loan with risk to their personal credit.  Let’s stop right here for a second, I want to be clear “Investing with your cash and credit is against everything I stand for!”  How can I make that statement and justify it…

Here’s The Truth, Plain And Simple!

If you did get into a deal and play the “Conventional Wisdom” way chances are you would be buying pretty close to retail, right?  Well, investors who do just that end up having a projection of return also known as the “ROI” (return on investment) a lot of times anywhere between 3 to almost 5 years.  That means before they make a buck on their investment years will pass.

Think about it for a moment it doesn’t sound to appealing does it, I agree, it’s just not what we’re doing!  I would much rather invest in a project where the owner is motivated and willing to give a deep discount with some terms including seller financing to lighten the down payment, now were talking.

http://www.terryevent.com

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