Hello! J I hope you a great Thanksgiving and you didn’t eat too much!

Over the last 3 months, we started to look at the different property types that notes are secured by, different situations and the additional information that would be nice to know for the funding source to initially give you accurate pricing.

Situations & Information Needed – Part 4

Commercial

As you are talking to the note holder you will come across many types of properties and situations. Following are some good questions to ask and answers to get in addition to the information on your mortgage worksheet. We have covered Residential, Mobile Homes with land and Condominiums. This month we will cover some additional questions to ask the note holder when the note is secured by a commercial property.

Commercial Property

1. Type of commercial property? (Office, apartments, store, etc.)

2. Personally or corporately signed for?

3. Is the building vacant?

4. Do they have a triple net lease? (Rent, taxes and insurance.)

5. When was the last previous sale? (when you bought the property)

6. What was the previous sale price? (when you bought the property)

7. What is the gross income? (when possible furnish operating statements)

8. What are the expenses? – Central heat or cooling?

- Separate meters?

9. Describe local competition.

10. What is the experience of the current buyers in this type of business?

11. Describe possible hazards. (Asbestos, toxins, gas tanks, etc.)

12. Age, size and condition of the property?

13. Alternative uses of the property?

14. Present zoning?

15. Describe off-street parking.

16. Describe the properties on each side of the subject and properties across the street.

17. Give information about the market. (Vacancy factors rent levels, etc.)

18. Describe economic conditions of the area.

19. Where applicable, break down the sales price.

- Good will

- Inventories

- Non-compete agreements

- Real estate

Again, what you are trying to do while completing the worksheet is to get the story behind the note. The more information we get up front the more likely the prices we get from the funding sources will not be cut later on down the road during the due diligence process. You will save yourself and the funding source lots of time and wasted effort by just asking a few pointed questions. Next Month we will look at some key questions to ask when the note is secured by a land.

Keep on marketing, it’s going to work! Hope this helps!

Have a wonderful Holiday Season!

Jeff

Armstrong Capital
800-845-3055
fax 818-865-2323
PO BOX 6517
Westlake Village, CA 91359
visit our website at www.armstrongcapital.com

Jeff is also the Editor of the Noteworthy Newsletter, a printed monthly publication. If you are new or experienced in the Cash Flow Industry I encourage you to check out and subscribe to the Noteworthy Newsletter, an indispensable newsletter for Note Brokers, Note Buyers and Real Estate Investors.

Just click here and then click on "Newsletters" at the top of the page.

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Location Date Event (click for info & registration)

Seattle, WA January 19-21, 2007 CCFC Training
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For more great strategies, don't forget to check out Jeff's informative cash flow books for Scripts, Tips, Marketing ideas and more!

For a complete description of all Jeff's books just click HERE today!


Personal Cash Flow Prosperity With Tail Ends: How to Keep a Piece of the action	Every Single Profitable Note Marketing Idea In The World* (Almost)	Scripts & Tips: A Handbook for the Serious Note Broker

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Jeff Armstrong is president of Armstrong Capital and Editor of the NoteWorthy Newsletter, www.noteworthyusa.com. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, and the author of three best selling books. He can be reached by calling 800-845-3055, faxing 818-865-2323, e-mail jeff@armstrongcapital.com, or visit www.armstrongcapital.com and click on "Note Brokers" for questions and information about his Master Broker services, Mentorship program how Armstrong Capital can help you succeed.

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