Why Customer Concentration Impacts a Business Sale Transaction

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Few owners recognize the major impact that customer concentration has on the sale of their business. Customer concentration represents a significant obstacle and will affect the salability, valuation, and deal structure of a business-for-sale transaction. Not only will it create problems in qualifying buyers but it will impact the ability for any prospective purchaser to obtain third party financing to complete the acquisition. Determining if customer concentration is present in an enterprise is a critical element of the succession planning process.

Customer concentration is a situation when one customer represents a significant portion of revenues or when the business has a very small customer base. Based upon the expert one consults, the exact percentage for a concentration to exist varies. In most cases it is recognized when one customer represents more than 10% of sales or when the top five customers comprise greater than 25% of a company’s revenue. In either situation, a huge risk is created from the lack of diversification and steps to mitigate it should be taken years in advance of a planned business exit.

When evaluating a business sale it is important for an owner to recognize that their client base has a significant impact on the enterprise value of the company. A broad and diverse base of customers where there are a large number of clients contributing to the business‘ revenue will achieve a higher transaction value as it reduces the risk that a sizable decrease in earnings will occur if any one customer is lost or a particular industry segment that the business serves encounters economic distress.

In addition to a lower sales price, businesses with customer concentration issues are more difficult to market for sale. For main street business transactions (those with adjusted earnings of less than $2mm) third party financing is used in the majority of cases. Businesses with high levels of customer concentration are very difficult to get financed. Lenders may provide only partial financing, offer sub-optimal terms, or decline the loan altogether. In situations where third party financing is not available, the pool of available buyers is significantly restricted and the terms of a deal could be heavily weighted on a contingent earn-out based on retaining the revenues derived by the largest customers. „Typically we want no customer concentration over a 10% level when considering financing an acquisition. Higher levels are possible with much more explanation and supporting documentation but remain a major concern“ states Steve Mariani, President of Diamond Financial Services.

Lastly, customer concentration will have a direct impact on the deal structure for the business sale transaction. Buyers will strive to bridge the customer concentration risk through a variety of delayed ‚performance based‘ financing methods. For example: Assume both parties agree on a transaction price of $900,000 based upon $300,000 of adjusted earnings (a 3x multiple). If the key account in question represents $75,000 of the $300,000 this would represent $225,000 of the transaction price. A buyer will strive to isolate the $225,000 component to ensure that revenue is maintained post sale. After a period of 12 months, if the customer and income are still in place the seller would receive the funds. If the identified client and corresponding revenue was lost during this period, a pricing adjustment would be made.

In situations where the buyer is unable to obtain transaction financing due to customer concentration issues, the seller might have to accept a „contingent earn-out“ for the revenues derived from the largest customers, or worse, they may also have to finance a major portion of the „non-contingent purchase price“ negotiated with buyers.

Contingent payouts could be structured in a variety of methods:

Earn-Out:

Earmark part of the purchase price with payments made over a period of time contingent upon the retention of specific customers or achieving specific revenue targets.

Escrow:

A percentage of the acquisition price will be held in an escrow account for a specified time.

Seller-Financing:

The seller would be responsible for financing a major portion of the purchase price through a seller note. The seller note could be structured with contingencies for revenues derived from the largest customers.

With any of these deal structuring techniques, the seller cannot be expected to guarantee the revenue in perpetuity and if the transaction price is based upon retaining one or more key customers, the seller may require more active involvement in maintaining the client relationship during the term of the agreement. Obviously, this brings an additional complexity to the transaction.

In most cases, buyers will look to discount the amount they are willing to pay for a business (with high customer concentration) unless they receive assurances that the risk is low. While the obvious strategy to reduce customer concentration risk is to diversify and increase the business customer base, there are a number of situations where customer concentration either does not pose a significant risk or could be mitigated.

Customer Contracts:

Having a contract in place will not eliminate all of the risk of losing a key customer, but it will provide the buyer with security that the revenue and profits will continue after a change in ownership takes place. When customer contracts are involved, the ability to assign or transfer will be important to understand. In many cases, a stock sale vs. asset sale is elected to preserve these contracts.

Barriers to Entry or Exit:

Businesses could have intellectual property, product expertise, or patents that create competitive advantages barring competition. Others are located in geographically remote areas where the supply benefits discourage customers from changing the relationship. Lastly, there could be significant capital requirements for manufacturing and tooling or agency approvals (pharmaceutical or government contracting industry) that creates a barrier to entry from potential competitors.

Providing a Variety of Products and/or Services:

Having a broad relationship with a key customer where the relationship is not based solely on one product, one location, and one individual decreases the risk that a singular change will fundamentally impact the future revenue stream and continuity of the account.

Economies of Scale or Synergies:

The acquisition may be pursued by a strategic buyer where they are bringing new products/services to the enterprise, a broader geographic distribution footprint, or economies of scale in production. Any of these elements would assist in reducing the concentration of revenue risk that an identified key client would represent to the future organization.

Summary

Businesses which have high levels of customer concentration are inherently risky and it is important for the owner to appreciate this concern from the perspective of a potential acquirer. Ultimately, the buyer seeks only to retain the customers which have contributed to the success of the business and are factored in the valuation and transaction price. From the position of a buyer a few logical questions and concerns would be:

  1. How does the value of the company change if a customer representing 10% or more of revenue and/or profits is lost in the first year?
  2. How easy would it be for the client representing the customer concentration concern to leave the business?
  3. What unique situations exist within the business to preserve the customer relationship in the years ahead?
  4. What are the logical steps and corresponding costs to mitigate the customer concentration risk?
  5. How do I achieve a win-win transaction? Protecting me, the buyer, against the risk of a near term revenue loss while providing the seller with the proper remuneration for the fair market value of their business?

While the risk may not be able to be totally eliminated, there are a number of situations where customer concentration is more palatable and a proper explanation should be provided to the buyer at the earliest opportunity. Getting out in front of this potential challenge is critical to achieve a win-win deal. When good communication exists, and two fair and reasonable parties are at the table, there are a number of structuring options available, when necessary, to mitigate the risk and negotiate a fair and reasonable transaction price. Obviously, the best approach for a prospective business seller would be to develop and implement plans to reduce any customer concentration elements years in advance of a business exit. Eliminating this type of risk is just sound advice for any small business owner regardless of whether a sale is contemplated.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Michael Fekkes

How To Deal With Water Logging Issues in Your Home

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

You have bought a beautiful house and everything’s working perfectly. But lo, it rains and your house is flooded with water! Yes, waterlogging issues can be an unforeseen problem that can arise after you have moved into your new apartment. Most common during seasonal rains, waterlogging can leave you stranded when you get out of your house. It’s true that most of us are still in the dark when it comes to dealing with this issue. Keep reading to find out some of the most effective techniques that you can use!

Understanding The Issue

Waterlogging in your house can be caused due to many reasons such as storm runoff, sullage, or damaged drain sewers. Apart from the short-term effects like hampering your daily routine, it also causes other serious damages like weakening the foundation of the entire house. When water mixes with other garbage and wastes, this can pose a great threat to your health. So, it is always important to understand these risks and deal strategically with water logging issues.

Effective Precautions And Strategic Troubleshooting

Once you know what the problem is, it becomes easier to take steps to troubleshoot. Some effective solutions to prevent water logging in your home are given below. Depending on the reach of the issue, you can employ any or all of the following solutions.

Solution 1: Rainwater Harvesting To Cope With Flood

It may be impossible to prevent the huge amount of water entering the premises during heavy monsoon rain or flood. But, it is possible to direct the flow of the water and treat the problem of waterlogging judiciously. Rainwater harvesting is the most effective way to cope with the issue of rainwater flooding your house.

Solution 2: Downspout Extensions For Basement Flooding

Installing downspout extensions is an effective solution to keep your basement dry. This helps in redirecting the water flow from the rooftops as well as basements to a safer location, such as a dry well or any other rainwater harvesting system.

Solution 3: Dry Well For Cheap Water Logging Solution

If you are looking for an economical way for solving water logging issues, nothing works better than a dry well. Standing water can be directed to the dry well using downspout extensions. The dry well is usually filled with stones, gravels, and pebbles so that water does not seep back into your lawn.

Solution 4: Installing A Sump Pump

Foreseeing the issue of waterlogging, you can install a sump pump that can pump out the standing water from your basement. This is a simple solution that can help you tackle waterlogging issues effectively.

Solution 5: Rain Gardens For Rain Runoff

Rain gardens are an ideal solution for apartments, schools, and other residential premises where run-off rainwater poses a major issue. Creating rain gardens in well-drained/sandy soils can be perfect for capturing storm water.

Solution 6: French Drains For Plain Surfaces

When you cannot judge the slope of your lawn to construct a dry well, a French drain, also known as the weeping tile is an effective alternative. A French drain is nothing but a trench filled with sand and gravel. It has pipes that drain the stagnant water and direct it away from the area.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Abishek Kumar

Affiliate Marketing Tips and Keywords For Selling Fitness and Exercise Equipment

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

As an affiliate marketer your main job is to presell the products that you are promoting on your website. When you are preselling exercise and fitness equipment, knowing the reasons why people buy them allows you do a better job at preselling.

Below are some of the reasons that people want to buy exercise and fitness equipment. These reasons can also be why people would buy equipment for someone else.

To lose weight and tone their muscles

To become healthier and feel better

To build a lot of muscle

To make their body to look more attractive

To slow down the aging process

To help in the recovery from an illness or injury

To please their family members or other people in their lives

To fit into their clothes

To be more successful in their career or get a new job

To follow an order from a doctor

To get health insurance or life insurance

To be able to exercise in the privacy of their home

To prepare for an upcoming event such as a wedding or high school reunion

To make a one-time purchase instead of buying a gym membership

There are many types of exercise products that affiliate marketers can promote. It is a good idea to choose a niche to specialize in.

Below is a list of some of the products that you can promote.

stationary bikes

spin machines

Pilates machines

free weights

rowing machines

gliders

treadmills

weight machines

trampolines

ski machines

ellipticals

resistance bands

multi equipment machines

jump ropes

stair climbers

balance balls

sports training equipment

ab machines

You can also feature products related to exercise equipment on your website. Some related products are:

Exercise clothes

Videos and DVDs on exercise programs

Health and fitness magazine subscriptions

Diet plans

Books about healthy cooking and eating, diet plans, exercise plans

Extra equipment or attachments to the products

On your affiliate website you should have words or phrases that will help sell the exercise equipment. Sometimes just one word will resonate with a person and persuade them to buy.

The following are positive words and phrases related to exercise.

lose weight

feel healthy

look better

stop aging

build muscle

increase stamina and endurance

no embarrassment

improve confidence

get in shape

live longer

increase energy

feel thin/sexy/younger/more attractive

look thin/sexy/younger/more attractive

tone up

fit into old clothes

keep the weight off

enjoy the beach

lose fat

eat more

wear a swim suit

Using images and graphics on your website will also help sell the exercise equipment. Visitors to your site will project themselves in the pictures and this will help persuade them to buy.

Some imagery ideas are:

Before and after pictures of people getting into shape

People smiling and enjoying exercise equipment

People at home using the equipment while watching TV or being near their young children

If you are planning to drive traffic to your website by using pay-per-click advertising you will need good keywords for your ad campaigns.

Here are some keywords and phrases related to exercise equipment.

fitness equipment

exercise bike

home fitness

gym equipment

gym machines

home gym

exercise equipment

fitness machines

weight lifting equipment

used exercise equipment

exercise machine

exercise

abdominal equipment

fitness exercise equipment

home exercise equipment

weight equipment

exercise program

exercise bike equipment

sports equipment

fitness exercise

Informative articles are something you should have on your affiliate website. These not only help sell the equipment but will help the search engine optimization of your site. Articles will keep visitors on your website for longer and will improve the overall quality of your site.

Here are some ideas for articles relating to exercise:

How a person used the equipment to quickly lose a lot of weight.

How a person got in shape and it helped them get a date.

How a person improved their overall health and fitness

How easy it is to set up or use the exercise equipment.

Building a list of subscribers will enable you to establish a long-term relationship with your visitors. In order to get them to sign up for your mailing list or newsletter you can offer them a free information product related to exercise.

Ideas for free information products related to exercise are:

A list of good and nutritious foods to eat.

A list of exercises they could do anywhere.

How to make time in the day for a quick workout.

Exercise equipment reviews and recommendations.

Diet plan reviews and recommendations.

Since exercise equipment is usually a high ticket item there is the potential to make a lot of money in affiliate commissions. Finding exercise equipment to promote is not difficult. You can check on the official website of the equipment maker and see if they have an affiliate program. You can also search on the affiliate networks to see if they represent exercise equipment. Choose a program that offers a variety of creative linking opportunities. Most programs offer free datafeeds of the merchant’s product catalog. Using datafeeds on your website, along with informative articles will allow you to create an authority website that will rank well in the search engines.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Adam Z. Sterling

Flipping Real Estate or Flipping Paper?

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Flipping real estate properties is not for everybody but it is the fastest way to make a buck in the real estate business. Most everybody has heard of someone buying a „run down“ house for a good price well below market value, fixing it up and selling it at a fair market price. Flipping a „fixer-upper“ is definitely one way to turn a reasonably quick profit. I know some people who do it this way but they are more into the contractor and renovation business than they are of the investor mindset.

Some of these „fixer-upper“ properties are in need of extensive repair and will involve electrical work, carpentry work, etc. If the investor gets involved and does some or all of this work then there could be enough profit there but if the investor farms out the required labour, profits could get eaten up quickly. For these types of flipping real estate investments, the purchase price needs to be at a huge discount and normally would be found somewhere in the foreclosure stage.

For the person that is in the mindset of investing rather than being in the renovation business then flipping real estate will only involve flipping the paper contract of the property without even taking possession of it. You can flip by entering an agreement to buy a property then sell the contract to another investor before close of escrow.

Using this technique won’t even require you to put your name on the title. Profits will generally be less than the fixer-upper investor but involves much less work and the whole process is much quicker. A fixer-upper investor would not be happy in making a profit of a few thousand dollars for a few months work on renovations but an investor that can just flip a contract for a few hours or days work would be.

Avoid disclosure of your profits to the new buyer by using a double closing.

After making a sweet deal and flipping a contract involving a juicy profit you may not want all these details to be revealed to your buyer. The solution is a double closing, transferring the property to you initially and then reselling immediately at the same lawyer’s office just an hour later to your buyer.

There is a drawback here and that is a double set of closing costs so you would have to weigh it out to see if it’s worth it to your particular situation or not. Further, you can use a title insurance company for the actual closings. For the issuance of the title insurance policy, the title insurance company will prepare the closing documents and close the transaction usually without an addition charge.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Johnny Ferreira

How to Sell an Unprofitable Business

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

We’ve all been there! You worked your tail off for years, you put your heart and soul and everything else you had into building a business but it just didn’t work out. Sure the company makes money, and you’re able to meet payroll most of the time, but as far as being profitable… well that’s another matter.

And you finally made the decision, it’s time to get out.

So how exactly do you sell an unprofitable business? Believe it or not, even a company that doesn’t make a profit, still has value and is worth money to the right people. In this article I’m going to discuss several ways to sell an unprofitable business that you may not have thought about.

In my mind there are basically for potential ways to sell a company that is losing money.

The first way to sell an unprofitable business is to look for a large publicly traded company. I’m talking about companies who’s stock trades on the New York Stock Exchange or the NASDAQ. Look for a company that closely mirrors the industry that you are in or one that has a specific need for what your company offers. These companies often have large sums of money at their disposal, as well as stock in their own company to use as incentives. Just because your company is not profitable, doesn’t mean it would be unprofitable for them. Often economies of scale allow large companies to turn a profit when a small company would not.

The next way to sell an unprofitable businesses is to look for entrepreneurs. People who like to buy and run companies often have a higher risk tolerance. Look for an entrepreneur with experience in your specific market or industry. Why would an entrepreneur buy your money-losing business? Because many times it is cheaper to buy an existing business that is to start one from scratch. And as an entrepreneur, they may have ideas that you’ve never thought of to turn the business around… that’s what they do.

The next way to sell an unprofitable business is to consider the company’s current management. Sure, you were the owner, but have you been running things on a day-to-day basis? There’s a good chance that you had a management team in place, and those managers may want to buy the company from you. Current management can always find venture capital for seed money if necessary.

The fourth and last way to sell an unprofitable business is to look for foreign companies. Many times foreign companies are just looking to get in the front door in a particular US market. They just want a toehold in America, and you can give them one! There may be additional hurdles for this technique if your company is a technology company, in which case the US government may need to sign off on your sale to a foreign company. But if your company doesn’t deal in technology or another strategic industry, selling to a foreign company may be just the thing.

So there you have it four ways to sell an unprofitable business! Whichever way you choose, the next step is to quietly send out test balloons, that is, send out feelers to whichever group you’ve decided to approach. Look at it from the potential buyers point of view, and be ready to show them exactly why your company makes sense from their point of view and you will be just fine.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Jason Markum

I Need a Sample Expired Listing Letter

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

„I need a sample expired listing letter to send out. I am new and want to make sure that I send out the right letter to the homeowners. Thank you.“ wrote a real estate agent from California recently.

It took me more than two years to perfect my expired listing letter I sent to the expireds with my resume. Writing, testing, rewriting, testing, editing… I kept looking for that perfect letter that would make finally my phone ring with „Please, come list our house!“ But it never happened. Why? Here is the problem…

When a listing expires, the sellers receive twenty… thirty… even fifty expired listing letters within the first three days! That is one BIG stack of letters. It makes no difference how strong, well written, and powerful your letter is, it will get lost in the pile of others. That’s the bad news. Does it mean you should not use mail to communicate with the expired listings? Of course not.

The answer is not in just ONE letter. One expired listing letter will never get it done. If you really want to list expireds consistently, you must use several contacts using multiple real estate marketing methods. Here is an example…

Some home sellers prefer letters. They open every one and read it carefully. With these folks, a set of well written letters can make the biggest difference. Other expired listings respond better to your post cards. They prefer short, snappy messages, and they like the interesting visuals.

Others sellers review your resume page by page. They may even call a reference or two. Some will closely read your web site. Some will read emails you send them. Some only like to talk with you on the phone, and ignore any mailings. And some prefer to do business the old fashioned way and meet you in person. It just depends…

And then there is another group of home owners that you need to approach using a mix of all the real estate marketing tools you have at your disposal. Since you don’t know what will work with whom, you have to do it all, do it well, and do it consistently (the Expired Plus system comes with an entire set of great expired listing letters and marketing).

How long should you keep the mail going? Until you (or anther real estate agent) list the house. It was common for me to list homes that had expired six… eight… even twelve months prior.

Most real estate agents quit after just a few mailings. If you stay persistent, keep mailing them well written expired listing letters, postcards, and updates – anything that’s interesting, it will pay of handsomely.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Borino Slivka

Tips For Buying Used Furniture on Craigslist

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Are you a new homeowner who wants to outfit your home with affordable furniture? If so, you should visit Craigslist.org. Craigslist is a popular online classified website where items are bought, sold, and traded. There are many items listed for sale, including affordably priced furniture.

If you want to use the popular classified website to find and buy used furniture, perform a search. Once on the main page, select your state and the nearest city. To perform a search, look for the search box on the left hand side of the page. You can search for a particular piece of furniture, like a couch. To search other local areas too, download a free Craigslist search tool, to search multiple cities at once.

You now know how to find and buy used furniture on the Craigslist website, but how can you ensure you get a good deal? By asking important questions. What should you inquire about?

Ask to see pictures. Many sellers on Craigslist.org post pictures of the products they sell, but not all do. If a picture isn’t posted, ask to see one. In fact, you can ask to see multiple pictures from different angels. The buyer can email these pictures to you. Emailing pictures saves you both time and gas money. You don’t waste a trip to view an old and dirty couch.

Ask about storage. Furniture owners sell their old furniture. It likely hasn’t been used in months or even years. Before buying a couch or recliner, ask where it was stored. Was it stored inside or outside? You don’t want furniture that has been outside and exposed to the elements, at least not without a large discount.

Ask about payment. Most furniture listings on Craigslist just say how much they want for the item. They rarely give you more information, but you need it. Does the seller want cash or a check? Will there be an immediate exchange? If paying by check, does the seller want to wait until the check clears before delivering your purchase? These are all questions you should have answers to before agreeing to buy furniture through the classified website.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Richard Gecker

How to Prospect For New Commercial Real Estate Listings

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

PROSPECTING FOR COMMERCIAL REAL ESTATE LISTINGS

Commercial Retail and Industrial Listings

Any Real Estate Agent or Broker who wishes to have a successful career in commercial and industrial real estate must regularly obtain marketable listings. Listings are the agents „stock on the shelf“ and your income now and in the future depends on the quality as well as the quantity of the listings that you obtain. The more listings that you have the more buyers and tenants you will attract. This makes the deals all that more easy for you. More listings mean that you dominate your market and lessen the impact of your competition.

In the commercial and industrial property, listings commonly may include:

  • Land that is suitable for commercial, industrial or retail development
  • Commercial, industrial and retail buildings that are for lease
  • Businesses that occupy premises from which they serve and supply their markets
  • Commercial, industrial and retail buildings that are for sale to owner occupiers or investors both large and small

Developing a Client Base

The secret of success in commercial and industrial real estate is to have your own client base. Those clients who work comfortably with you and who respond positively to your advice in relation to their real estate requirements are the clients you need to develop. As it is the clients who pay your fees, and not the tenants or buyers, they are very important people in your business life and it is essential that you represent yourself strongly to them at all times. As these people and organisations readjust their property portfolios to meet their emerging real estate requirements, they will continue to provide you with listings. In addition, if they are satisfied clients they will refer you to other business leaders, friends and family, and so provide you with more business.

Knowing the Real Estate Market

To provide effective advice to prospective clients it is essential that you know the market – commercial, industrial or retail – that you are involved in and that you have detailed knowledge of the geographical area in which you operate. To do this effectively you will need to:

  • Canvass your territory constantly according to a plan and become well known to businesses and people in the area
  • Know every property that is for sale or lease in your territory
  • Maintain a list of property transactions that occur and have occurred in the last 3 years
  • Keep an eye out for private transactions by property owners
  • Involve the management of your office and other team members with what you are doing
  • In addition, you should understand the factors that motivate companies in your area to move to other space, and you should be aware of the forces that encourage investors to buy and sell in your area or precinct.

WHAT MAKES A SUCCESSFUL AGENT OR BROKER?

So what makes a successful agent or broker from the client’s perspective, and someone that the client wants to do business with and through? It is an interesting question to ask from a clients perspective, but history shows that the factors which stand out as being of prime importance to clients are the agent’s knowledge of the market and the quality of the advice given. The negotiating skills of the agent and the ability to act quickly are also important and rank highly. Adherence to client instruction, property marketing skills and confidentiality were seen to be of slightly lesser importance.

It is clear from this analysis that the factors which are going to have a vital influence on the successful listing of a client’s property are knowledge of the market and the quality of advice. Owners are looking for agents and brokers who know the marketplace and have readily available records information about companies and investors that are looking to make immediate decisions on properties they require, own, or occupy. Your clients want an agent who will immediately bring a listed property to the attention of such people.

So, at the point of listing, being able to communicate effectively with the owner about the commercial and industrial market place and the prospects that are available on your database could certainly lead to a successful relationship and hopefully an ongoing one.

PROSPECTING FOR LISTINGS

Where do you find new listings and how do you go about converting them? This list may help. As you get to know your clients and the geographical area of the market in which you operate, opportunities for obtaining listings will present themselves. For example:

  • Real Estate Transactions. The successful conclusion of any real estate transaction in your region implies that both buyer and seller may be looking for other options. Avail yourself of these opportunities.
  • Liquidation. A failed business is a prime target for agency activity.
  • Vacant Buildings. Be conscious of any buildings that become vacant or derelict as these represent business opportunities.
  • Intermediaries. Maintain close association with the intermediaries of the real estate business. Intermediaries include such people as financiers, bankers, insurers, builders, architects, engineers, lawyers and accountants. Their clients will at times require the services of real estate agents and a recommendation from these people is invaluable. You, in turn, can introduce your clients to such intermediaries and sound business relationships which benefit both parties are established and maintained in this way.
  • Newspaper Articles. Articles that are prepared by you or in which you are quoted, bring your name or your firm’s name to the attention of the public.
  • Direct Mailing. The regular mailing of letters that canvass for properties, when sent to a suitable group of possible investors or property owners, frequently result in listings.
  • Private Advertisements. These can indicate properties that are on the market and the owners may be encouraged to employ your services if initial advertisements have not been successful.
  • Developers/Builders
  • Neighbours in immediate area
  • Property Managements (Rent Roll)
  • Entrepreneurial Activity
  • Previous Vendors & Purchasers

Identifying Ownership

When you discover a property that you feel could provide a business or listing opportunity, it is necessary to identify the owner. The following avenues can often provide this information.

  • Your own office (In each agency there is substantial information from previous transactions and property ownership which can be consulted).
  • Local Government Records
  • Land Title Information
  • Electoral Rolls
  • The Telephone Directory (including the Yellow Pages in the case of businesses)

Further to this there are many other sources of information to be used when identifying owners. These are:

  • Property ownership lists
  • Historic Lands Sales Records
  • Use other agents signboards as a reason to talk to adjacent owners in the locale
  • Commercial property is transacted to a cycle of investment and history shows that it is about every 5 years. Look at the old sales records in your area for the next cycle of potential sales.
  • Tenants will usually tell you the property owner if you ask
  • Directory boards in buildings are a great source of leasing intelligence
  • Business Telephone Lists and CEO contact names
  • Stock Exchange Information and updates
  • Company Searches for large businesses in your area
  • Newspaper Stories & Articles
  • Be willing to dare and try something new

To undertake this process you must be diligent and thorough in your activities so that you do not leave any ’stone unturned‘. Nothing is more frustrating that another agent’s sale or lease signboard appearing in your territory that you just covered last week.

The above information may seem logical; however it is commonly overlooked or not acted upon in most cases, given that many salespeople do not have the personal and sustained discipline needed for the task. The best commercial real estate agents and brokers use this model as their source of listing opportunity.

In closing we should say that this prospecting process does require a good database program to record and channel your ongoing findings. The value of a good database program is high in list of tools of a professional agent or broker working on commercial real estate. Good hunting!

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by John Highman

8 Tips for Home Kitchen Remodel

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

Many homeowners take advantage of kitchen remodeling to increase their home’s value and buyer pool.

Kitchen remodels often sell a home quicker and at a higher price thanks to kitchen updates.

Homeowners looking to sell their home anytime soon, may want to first update their kitchen. It is generally a 100% return remodeling project, helping increase the interested home buyer pool and usually compete better in a tight housing market. Kitchen remodeling projects don’t have to cost mega investment dollars. With wise planning, homeowners can gain a return of $2-3 on every $1 invested. That means remodeling a kitchen can actually earn money. Not all home remodeling investments carry the same high return; however, kitchen remodels are one of the best places to start.

Flipping the TV quickly shows the many options for today’s trendy cooking shows. Homeowners are enamored with the idea of being culinary masters like never before. Where budgets and location allow for high-ended kitchen investments, upgrading to a professional-style kitchens may capitalize on the cooking craze. Small to medium kitchen investments are almost certainly paying off. Expensive kitchen remodels can also gain higher numbers of potential buyers and attractive returns when the homes sell – if the right home designer and updates were made and marketed well.

Homeowners can create a completely new look with an up-dated kitchen remodel, transforming the room from closed off to vibrant, mulch-functional, and inviting:

* Add a custom island. A granite and quartz counter-tops is a favorites of home chefs. Create proper working space and surfaces that are attractive, durable and popular.

* Install a back-splash using natural stone

* Adding fun storage extends your kitchen and makes it so much more useable

* Use a fun new painting technique on your cupboard. New paint says „fresh and clean“ in an instant, and is one of the most cost effective improvements. Hiring a pro can make all the difference cutting in edges and gaining „wear and tear“ length of life. For selling faster, consider a neutral color such as light tan – think of coffee with cream.

* Change up your cupboards. Add a glass front to showcase favorite dishes. Try attaching a thin veneer to the cabinet’s surface, replacing the doors, and add new hardware for a finished and fashioned look.

* Install a new kitchen sink with a stylish faucet head. Sleek stainless resists scratches and is easy to maintain.

* Updated kitchen appliances to later models with energy saving features

* Hardwood or Laminate Flooring

The length of time a homeowner should plan for the project to take will be determined by:

1) the extent of the project

2) having the right materials ordered and on hand on time

3) your remodelers availability – it is good to schedule your project with the flexibility of fitting into your contractor’s calendar.

A kitchen remodel should reflect the home’s style. Be sure to enlist a professional home designer when attempting to go „modern“ in a traditional or historic home. Homeowners can successfully add to the home’s value when there is an excellent flow, are comfortable, functional, and maximize the available space in a stylish manner.

Using a home designer, whether you pay them just for their design expertise or to do the complete job, the money will be well-spent and homeowners save money in the end.

Today, the kitchen may be used for many facets of home life. Such as: a family gathering spot, meal-planning area, computer base for projects, and entertainment center-stage while hosting friends and family.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Jeannie Hill

Phone Call Rules For Women – When to Call Him

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

It’s difficult to anticipate how intricate the dating maze really is until you are in the middle of it. Single women all wish it was as easy as simply meeting a great guy, connecting with him and that leading to a fulfilling relationship. Unfortunately, it’s rarely that easy. Women are often faced with the prospect of men who just can’t communicate the way the woman wishes they could. If you approach the dating dilemma from a strictly feminine point of view you are going to be disappointed. You need to see things the way a man does and this includes phone calls. There are some basic phone call rules that women should live by.

Number one on the list of phone call rules for women is to remember that men don’t view the telephone the same way women do. Men don’t automatically pick up their cell to call the woman they are dating just because. Women love communicating with a man they are interested in, some men are the same way about the women they want to pursue, but most aren’t. It’s rare to find a man who will find long or frequent calls appealing. Don’t get discouraged if a day or two passes and you don’t hear from the man in your life.

Another of the phone call rules for women focuses on the issue of men who stop calling. If you’ve been dating a guy for awhile and he suddenly stops calling, you might jump to the hasty conclusion that he’s spending his time with another woman. That’s certainly a possibility, but it’s highly unlikely. There’s a typical explanation in a situation like this. Men sometimes decide to test the women they are with. One way to do this is to break off contact for a bit just to see how she’ll react. If a woman starts to panic and goes on a mission to hunt the man down, he knows he can relax because she’s obviously crazy about him. On the other hand, if a woman acts as though she doesn’t even notice his absence in her life, he’s going to wonder what is going on. If the man is interested in you, and you don’t call him, he will call you. Wait it out and see.

You also need to remember the phone call rules for when he leaves you voicemail. If he does happen to call and you aren’t available, don’t be too hasty to return his call if he was simply touching base. If he called to firm up some plans for that evening, give him a quick call back. Some women think they need to dial his number the moment they hear his voicemail, but give it a few minutes. It certainly doesn’t hurt for him to be the one waiting for the phone to ring.

Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Gillian Reynolds