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Avoid Critical Commercial Mortgage Mistakes

By: Stephen Bush

By devoting extra caution and time, commercial borrowers can avoid serious commercial real estate loan mistakes. The most obvious investment benefit will be to reduce the potential for critical commercial mortgage problems, both now and throughout the life of the business finance terms arranged.

While we will not be addressing all possible commercial mortgage mistakes in this article, we will include several of the most severe issues to anticipate. The problem areas described below are typically more critical than expected by most business borrowers.

Inexperienced Business Finance Brokers and Lenders -

Commercial mortgage financing has recently become more popular with brokers and lenders that previously focused on residential real estate financing. With the increasing chaos associated with residential financing, many lenders and brokers which primarily provided residential mortgages have been forced to look for alternate sources of revenue. Many of them are devoting increased attention to business finance and investment loan services.

While this shift might eventually result in a positive outcome for commercial borrowers, the immediate impact is a sudden influx of inexperienced residential mortgage brokers and lenders attempting to provide investment advice for business financing and commercial real estate financing. For most business borrowers, the use of inexperienced business finance advisors will be a mistake of potentially serious proportions. As we have written about extensively, there are approximately 25 major differences between residential financing and commercial financing, and most residential financing experts are simply unprepared for business loan complexities.

SBA Loan Refinancing for a Commercial Mortgage -

Because it is more difficult to refinance an SBA loan or conventional commercial mortgage than many borrowers realize, it is advisable to thoroughly review refinancing options before completing the initial business financing if at all possible. The biggest potential business finance mistake involving an effort to refinance is likely to be an assumption that refinancing can be easily accomplished and whenever the commercial borrower chooses.

In reality most business and commercial mortgage refinancing situations will require less attractive terms than the initial business financing. Since acquisition financing includes terms not possible upon refinancing, this observation is particularly relevant for SBA loan refinancing. Another potentially critical mistake is to overlook short-term business financing options which will eliminate refinancing problems.

A major obstacle to refinancing a commercial mortgage, whether it involves an SBA loan or not, will be prepayment penalties and other financial restrictions that effectively prevent refinancing for several years. Short term possibilities should be considered if a borrower expects that commercial loan refinancing in the first three years of the business financing is likely.

Specialized Commercial Real Estate Investment Property Issues -

With more specialized commercial properties and investments, the potential for serious mistakes increases substantially because of the advanced business financing complexities. Commercial mortgage loan choices are also likely to be more limited because there are fewer lenders which will provide this kind of specialized commercial real estate financing.

From a lending perspective, office buildings, apartments and retail stores are less specialized. This is due to the likelihood that potential users and renters of such properties are more interchangeable than for a business investment involving specialized uses such as a funeral home, golf course and gas station.

The business finance costs for more specialized properties are likely to be more variable and unpredictable than for office buildings, retail stores and apartments. For example, environmental and appraisal requirements for properties such as funeral homes and gas stations will be extensive and time consuming.

Solutions and Strategies for Avoiding Business Financing Mistakes -

The potential business finance mistakes described above can be overcome successfully. Commercial borrowers should look for resources which will provide relevant strategies and solutions for a business owner contemplating business purchase or refinancing as well as facilitate a better understanding of complex commercial real estate financing issues. Business borrowers should thoroughly discuss business financing options with a business loan expert before refinancing or buying a commercial property or business investment.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_8885.shtml

How To Transform Any Person Or Group Into High Performance And Create A Work Culture

By: Pierre Du Plessis

This is about the self-propelled performance process (SPPP).

How good is your organisation with getting people to perform exceptionally well?

How many times have you seen people around you trying to change something about a work situation, in an effort to improve something? Something like a system, a process, work flow, a document and so forth. It happens a lot, not so?

How many organisations do you know, who just don’t make progress with growth, profit, morale or performance. Sometimes an organisation can be good, because the efficient machines make up for human deficiencies and failure.

Many organisations have job descriptions in place, but does it make people perform?

Many organisations have performance measurement in place, but does it make people perform to their potential?

Many organisations even have a strategic plan and derivative business plans, but does it make the organisation perform?

Many organisations even have the performance areas and performance criteria for each and every job documented, but does it make people perform?

Some organisations also undertake or outsource to consultants the design of improved organisation structures, the re-design of roles and responsibilities, the design and development of electronic systems, the design of job grading systems and many more things, without achieving the desired improved performance.

You must agree that performance is a very elusive concept for most persons in positions of authority and in the driving seats of most organisations.

What then, is so magical about bringing about performance in the workplace ? and with it a culture of work and work ethics?

What about our school systems? Why have our school systems failed to instigate scholarly performance for so long? Why is it that such a small proportion of children perform well in school? Only a handful come up with exceptional results; in all the grades, in all schools worldwide.

Where then, is the missing link or links? What are the secrets? Are they buried so mystically deep underground that nobody seems to be able to dig it up to the surface of mother earth? Not even the best of human brains; after all the foregoing scientific research and development?

We have heard numerous times of companies, which say they have implemented a system of performance management. The goals and objectives are embodied in the job descriptions and they do performance measurement quarterly, bi-annually or annually. The problem is that employees remain on previous performance levels and nothing occurs to increase their motivation, morale or inspiration to perform better.

We are sure the readers will be able to recite many more examples out of own experience.

Have you noticed that many persons still seem to take recourse to autocratic behavior, although we claim to operate in a democratic society for decades now and in some cases centuries. In other words, many managers still try to get movement by applying a military, dictator style to try and enforce discipline or poor decisions. Others may hide their inabilities behind an aloof attitude of outdated protocol of superiority and make themselves unapproachable.

The big remaining question is therefore: How to get it right, with the correct tactics and how to utilize it for our children also?

We are talking about a process, a systematic work process, with automatic self-control and integrated performance measurement built in, to motivate and inspire all employees, to reach and surpass their strategic and organization goals, on a voluntary basis, regularly.

We had been fortunate to be involved in such a process and experienced the results first-hand.

It is a process, where the desire to perform comes naturally, for everyone involved. In this process all the pieces of the puzzle like strategic planning, business plans, goal-setting, job descriptions, performance measurement, performance areas and performance criteria fall into place, to form a integrated whole that makes sense to all. It is also a process where self-control and initiative by individuals form the foundation for the building blocks of the whole process.

The benefits of this systematic work process are increased enthusiasm, dedication, productivity, performance, profitability and work result satisfaction for both employees and employers alike.

We like to refer to this process as the natural, self-inspired performance process and have appropriately named it ?The self-propelled performance process?. You do not have to pay the normal seminar fees of between $1400.00 and $5000.00 for this information, just join the club and you will get it for free. You can read and learn more about it at our website.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_8889.shtml