Simply Junior

To build your commercial real estate business as an office in your local town or city, and to gain the right market share for yourself, you are going to need a ‘Strategic Marketing Plan’. Before you create the plan, you will need a ‘Strategic Marketing Position’.

In this way will you make an impact on a consistent basis with the right prospects and players of the commercial property industry. Simply you want the market, the business owners, the property investors, and all the local tenants and buyers, to know that you are the best out there and can help them with their special property need.

So before you start to consider your marketing plan it is worthwhile considering what makes you better than the other agents and brokers in the area. You should have a real reason in being different in your property business, and your prospects must know you for that. This is both an issue for the office and for you as an individual. Everyone in your office should be pushing the same story when they talk to prospects.

Do not say that:

You are the best in the area, and you know what you are doing You are honest with the client from the outset You communicate with the client every step of the way You have operated locally for 20 years and know everyone in town, etc

These generic statements are just that and are of no relevance to the people that you want to attract. Your reason for serving the property marketplace has to be significant and of benefit to the people that you deal with.

You can specialise in a single property type to achieve that relevance to the prospects that you want to attract. Consider statements like this:

We specialise only in retail shopping centre leasing and sales so that the properties we handle can optimise their rental performance, sales turnover, and landlord return given the local demographic and community. We know the industrial leasing and sales market and have a database that captures all the businesses and properties locally for that very reason. This helps out property clients know what competition they are up against, and how they can adjust and target the real opportunity available out there. Office property sales and leasing is our specialty because we have tracked the majority of local major buildings and tenants for some years now, and because of that we know who the major players are, and when they will need to relocate or dispose of critical assets.

This valued approach gives the client or prospect real comfort in knowing that you have something they can use. If you run a typical commercial real estate office, your major services to the clients you serve could be repackaged and focused as:

Professional advisory services in the strategy behind leasing, selling, and managing commercial property in the local business community. You incorporate the trends and sentiment of the local business community plus the decisions and directions of planning authorities so that your clients make the right property decisions based on facts. Target marketing of commercial properties for sale, and lease, using special marketing packages that offer the investment client real impact beyond the standard ‘advertise and wait’ approach that many other agents or brokers use. Property management services offering significant income and expenditure solutions that package and target the asset to the client’s investment cycle of property holding and expected returns.

This rebranding approach is like a business plan in one or two sentences. You give your office a reason to serve the local property investors and those landlords that need your help. When you and your staff start to live and work within the ‘brand’, the market starts to see that you are really different and better than the rest.

If you’re a foreign national thinking about investing in the real estate market in Canada here’s a run down of the typical buying process you should expect to encounter together with a general explanation of mortgages available to assist with the purchase.

First things first though, you have to find your ideal property of course!

But let’s assume you’ve done that with the help of a good estate agent and you’re ready to move forward with an offer.

It’s important to know that from the outset the entire process surrounding the buying and selling of real estate in Canada is a regulated process. This means the process should follow the basic format as described below and that you will be protected throughout by the rules governing the process and the actions of those involved in it.

Once you find your dream home in Canada you make a financial offer to purchase to the vendor – probably via your agent – which your estate agent is legally bound to submit to the vendor whether or not it matches the asking price. Negotiations proceed until a purchase price is agreed upon between you and the vendor, at which point both parties sign the ‘Offer to Purchase’ – also known as ‘Agreement of Purchase & Sale’.

This is a preliminary contract and it is either ‘firm’ or ‘conditional’

A conditional preliminary contract usually contains terms relating to the successful securing of finance to buy, or to the satisfactory completion of building surveys etc., and it only becomes firm when all the conditions have been met.

If you are using a mortgage to purchase your home it is essential to have this noted as one of the terms, because if you fail to secure your mortgage and the contract falls through you will want your deposit back!

A firm preliminary contract is not subject to any terms or conditions, if it is broken by the purchaser they lose their deposit, if it is broken by the vendor they may be subject to a financial penalty.

Your deposit will be required when signing the Offer to Purchase, and the contract will contain your completion date.

When the completion date is reached and all conditions for the fulfilment of the contract have been met, the remainder of the purchase price together with all fees will be payable.

Monies are paid to the vendor via the solicitor or notaire handling the legalities of the sale. At this point both the purchaser and the vendor sign the ‘definitive contract’ which is called ‘Acte de Vente’ in Quebec.

If purchasing in Quebec this final part of the sale is managed by a notaire who in this case is a government official – s/he is responsible for the conveyancing and as a result s/he represents both the purchaser and the vendor…it therefore makes sense to employ your own legal representative in Canada to make sure your best interests are served and protected throughout the process.

Fees you will likely incur on top of mortgage arrangement fees, legal and survey fees include provincial fees and land transfer taxes.
Provincial fees are around CAD 100 depending on the province in which you’re purchasing, and they are charged for transferring the title of the property etc.
Land transfer taxes are again determined by each province and they are calculated as a set percentage of the purchase price.

If you are interested in securing a mortgage to fund your purchase it is interesting to note than depending on your country of origin and circumstances, there are a number of major financial institutions in Canada willing to lend to non-resident buyers.

The following is only meant to serve as a general guide to Canadian mortgages – it may not apply in every case.

Most Canadian mortgages are what’s known as “full status” – a full status loan is where complete checks are made on the borrower’s credit history and income.

To apply for such a mortgage you will have to have proof of income and outgoings. Such finance can be raised for the purchase of property, the renovation of real estate or for house construction purposes.

Generally a 35% deposit is required and the purchaser is also responsible for all legal fees involved in the arrangement and purchase process.
35% is just a guideline, some provinces require deposits of up to 50%, and in special circumstances a deposit lower than 35% may be acceptable.

Most mortgages are repayment over a maximum of 25 years with pay back due for completion before the purchaser’s 70th birthday.
Most lenders make life cover a further lending requirement.

When it comes to eligibility for a loan and size of a loan you need to know the following: -

- Eligibility is based on the applicant’s current ability to fulfil the financial terms of the loan, it is not based on any potential rental income the applicant may generate from the property he is hoping to purchase with the mortgage.

- Taking the applicant’s gross income into account, 40% should cover all existing outgoings and commitments AND the monthly repayments for the proposed new mortgage.

- If you’re self employed then your income will be taken as the average of your last three years’ net income.

- If you have existing rental and/or investment income this may be taken into consideration as well.

- Outgoings in this context are any current mortgage or rent you pay, any personal loans or credit card payments you have and any child support payments you have to make.

If your mortgage application is successful it will of course be secured on the property you’re buying in Canada and not on any property you currently hold in which ever country you are a resident.

The mortgage company carry out a valuation of the property you’re looking to buy to make sure it’s worth the purchase price, and you’ll probably end up paying any fees they incur making this valuation. Finance arrangement fees can sometimes be charged as well, they are usually 1% of the loan amount.

The money you borrow will be paid to the vendor via the solicitor or notaire responsible for the completion of the purchase contract and process.

That’s it in a nutshell!

As stated though, the entire real estate purchase process and application for a mortgage will depend on personal circumstances.

Programs like Bank of America’s Keep the Change, Wachovia’s Way2Save, and Capital One’s SmartCents offer easy, hardly noticeable ways to save your money while you’re spending it. They allow customers to boost their savings accounts without altering their day-to-day behavior. Seems like a great deal – but how do you know if one of these programs is right for you? As in all things, the happiest customer will be the one whose expectations are set correctly at the outset. With that in mind, we’ve compiled a list of four simple rules you should follow when researching debit card-based saving programs. Read on to learn more.

Rule #1: It Won’t Make You Rich

On average, customers who enroll in a debit-linked saving program save $120-$150 annually. If your goal is to save a few hundred dollars for a purchase or a contribution to your summer vacation fund, slow build-up of a moderate nest egg may be an ideal solution for you. Programs like Bank of America’s Keep the Change and Wachovia’s Way2Save offer attractive account-opening bonuses, high-interest bonuses, and matches on saved funds throughout the first year of account activity – so while they won’t make you rich, you’ll at least turn a tidy profit.

If your goal is to build significant capital, however, you are always better off investing your money where you cannot spend it (e.g., a company-sponsored 401K plan or a CD or money market fund). Ultimately, the size of your reward depends on the frequency of your debit card usage. Of course, the flip side of high debit card usage is high spending – which leads us to our next rule.

Rule #2: It Might Encourage You to Overspend

Since the rewards (i.e., the savings) are tied to your spending habits, you may be tempted to use your debit card more frequently to transfer more funds to your savings account. Ultimately, such behavior may lead you to spend more than you intended, or even spend more than you save. Adjusting your spending habits to accrue rewards only makes sense if the adjustment benefits you, and not just your bank. Always keep in mind that banks are not altruists, and they are not encouraging you to save just for savings’ sake. Every time you deposit funds into your savings account, the bank makes money. Make sure you’re in control of your spending and saving habits and not allowing them to be dictated by a bank that is most interested in bringing about a behavior desirable to their bottom lines.

You should be particularly mindful of overusing your debit card if you are carrying credit card debt. If your credit card has a balance on it, your payments might have interest rates as high as 30 percent. Placing your money into a low-interest savings account, rather than using it to pay off your debt, does not earn you more than you owe.

However, if

(1) you pay off your credit card in full each month
(2) your debit card is your go-to card of choice

You won’t be tempted by the fallacy of spending more to save more a debit-linked saving program offers minimal downside.

Rule #3: Hidden Fees Can Cost You

While banks may promote their savings programs as free, you may find that gratis service is based on you meeting your end of the bargain. You may be required to:

* Maintain an account balance above a minimum threshold (Bank of America’s Keep the Change requires a minimum $300 balance to avoid a $5 monthly maintenance fee)

* Transfer funds from checking to saving each month in addition to the funds you deposit through your standard debit card usage (Bank of America’s Keep the Change requires you to deposit a minimum of $25 monthly into your savings account)

* Make a debit card purchase once per month or pay an online bill once per month to avoid a servicing fee (Wachovia’s Way2Save charges customers who do not meet this minimum threshold)

If your spending and saving behavior places you comfortably, and without adjustment, within the restrictions set by your selected program, then these monthly maintenance fees may never haunt you. But it’s always better to know about them ahead of time than to face an unpleasant surprise later on.

Rule #4: Privacy is Paramount

We’ve all heard that debit cards are generally not as secure as credit cards – so do we expose ourselves to unnecessary risk and the possibility of debit card fraud if we link those cards to our savings accounts?

The answer is yes and no. It goes without saying that by managing your finances online, you are exposing personal information – such as your name, address, phone number, and bank account – to a potential security breach. The risks don’t seem to be any greater for debit-linked savings programs than they are for online banking as a whole – but if the risk of online banking are enough to deter you, then you may want to steer clear of these programs as well.

If you are committed to opening a spend-to-save account, you can at least minimize your security risks by taking the following actions:

* Never send your savings account details by email
* Beware of emails that ask you to follow a link to a website and input details for verification (they’re usually fraudulent)
* Always log out of your online account when finished – especially when you’re transacting in a public place
* Ignore the “remember my password option” on your bank’s web site
* Contact the fraud department at your bank immediately to cancel your card and your savings program if you find that your information has been compromised or that your card has been used fraudulently

At the heart of the matter, the purchase or sale of a home is a legal transaction. When we mention the world legal, lawyers cannot be far from the discussion.

Whether you are buying or selling, the real estate industry has developed forms that often can be used to get the deal done. Many people rely on these forms every day, but the outcome isn’t always so great. If there is any problem in the transaction, the forms become obsolete. At that point, it is time for legal representation in many situations.

The first thing to know about a real estate lawyer is you may be legally required to have one involved in the transaction. The rules vary by state. In California, for instance, you are not required to use a lawyer and they usually only get involved in disputes or commercial transactions. Florida, on the other hand, has a strong policy towards using lawyers with the idea being to get the matter right at the outset instead of having problems later on.

Whatever your particular reason of needing a real estate lawyer, you are still going to need to find one. There are a couple of things to keep in mind when selecting one. Here are some tips.

1. Find a real estate lawyer. By this, I mean someone who practices primarily in the field of real estate. Most lawyers own homes, so they think they can handle real estate transactions. This typically is not true. Real estate law can be complex, so get someone that already knows it.

2. Go local. Real estate laws tend to be state wide, but regulations tend to be local. Obviously, it depends on the situation in your state, but you need to seriously consider getting a lawyer in the area you are selling or buying.

3. Comfort Level – Many people just choose any old lawyer. This is a mistake. Get one who speaks your language and you are comfortable. If you like aggressive people, get an aggressive lawyer. If you like yellers, get a yeller. If you prefer a more poised attorney, a yeller is probably not a good choice.

4. Know Your Purpose – Lawyers have distinct styles. Some prefer to try to find solutions to disputes. Others prefer to crush the other side. You need to know what your goal is when interviewing lawyers and communicate it clearly. Their reaction should give you an idea of whether they are a good choice or not.

Perhaps the biggest rule to remember when dealing with lawyers is your role. You are the client. They represent you. Most people hire a lawyer and then ask for advice on what they should do and what decisions they should make. This makes lawyers uncomfortable because they don’t know you from a hill of beans. Know what you want and communicate it to them. Their job is then to go get it.