Oil Markets Update 11 Oct 2015

Lower costs have brought about oil organizations to strongly cut spending

Prices for West Texas Intermediate crude oil (WTI)

Over the last 18 months, prices for West Texas Intermediate crude oil (WTI) have tumbled from a June 20, 2014 high of $107.26 to an August 24, 2015 low of $38.24. During this same period, prices for Brent crude (Brent) have ranged from a June 19, 2014 peak of $115.06 to an August 24, 2015 low of $42.69. The sharp drop in oil prices is largely attributable to increased supply rather than growing demand

Lower costs have brought about oil organizations to strongly cut spending – OPEC gauges worldwide oil ventures will be sliced by $130 billion this year – and the U.S. Vitality Information Administration (EIA) expects generation will be moderate level in 2016. Expanded proficiency and more noteworthy exertion with respect to oil organizations to penetrate wells in those parts of their oil handle that yield the best measure of raw petroleum will permit oil makers to build generation this year, despite the fact that spending is falling. Note that oil generation decreases after some time, as oil is a draining asset. Over the long haul, the measure of oil created from a given area drops. Lower spending today ought to at last make supply decrease. Less supply ought to result in higher prices.

In the price chart that follows, readers should note that Brent trades at a premium to WTI. This reversal from the historical trend (i.e., WTI used to trade at a premium to Brent) began in late 2010. This change is attributable to meaningful U.S. production growth as well as U.S. law, which generally prohibits U.S. producers from exporting crude outside the U.S. On the other hand, a finished product such as gasoline and jet fuel can be exported. This has benefited the operations of those companies that refine oil.

Oil Market update 11OCT15

On Friday 10/9/15, the House voted to lift the 40-year-old ban on oil exports. This ban was first instituted after the 1970s oil embargo that sent domestic gasoline prices skyrocketing. Many oil companies have been pressing the issue with Congress for more than a year. It is too soon to know whether this vote will lead to a law change, as President Obama has opposed oil exports. The passage may also be more contentious in the Senate.

Over the long haul, permitting export could have a positive effect. It would make oil showcases more worldwide. In addition, fuel prices depend on the price of Brent. The spread in the middle of Brent and WTI would hypothetically limit if WTI could be traded. This could bring about gas prices to fall. Actually, in September 2015, the EIA found that sending out oil could help lower gas prices.

The industry dynamics described above are important factors in DAJK GROUP’s decision to continue to hold investments in oil and gas companies even as prices have fallen.

Our focus is on what we perceive to be well-managed companies with strong balance sheets and efficiently run operations. These companies also pay generous dividends, which we believe to be safe as long as market fundamentals do not deteriorate markedly.

These dividends, in essence, allow investors to be paid to wait. This means their investments provide current income during a period when industry conditions are less than ideal. While such a posture can hamper short-term results, we believe it will serve investors well over the long term.


If you would like to inquire about our Concierge Services, please sign-in our free consultation


Sponsored Ad

Decade of Peace sculpture: “The Sporting Chances for Peace”

This limited edition #1 is no longer available for sale.  However, the remaining of Edition 1799 sculptures is available for pre-order.  Please note we are also seeking for:

  1. Art Collectors/Investors
  2. Sponsors
  3. Long-term Lease

We are processing and engaging with our investor regarding Limited Edition #1.  When it’s finalized in 4Q 2015, the press conference will be announced the owner of this Edition #1.  Our investor has committed to the purchase price of $US 25 million.

[Learn more…]


Partnership

We are proud to be a partner of HEAG Medical Community of Ghana.  [Learn more…]


DAJK GROUP is the place where investors, business owners, and entrepreneurs can research and find useful information, insight, resources, advice, guidance, and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

Growing, Evolving and Pushing Forward!

The relationship of a Commercial Real Estate’s Cap Rate and a Federal Reserve’s 10-Year Treasury Rate

Commercial Real Estate’s Cap Rate is average 436 bps over 20 years reference to Federal Reserve’s 10-Year Treasury Rate.  In fact, its average from 1990 to 2000 is 450 bps and its average from 2002 to 2015 is 425 bps.

Transactions in 2015 are on course to exceed pre-recession peak levels, and most property sectors continue to see inflows of equity and disciplined underwriting by debt providers. With positive economic trends lifting gauges of property performance, commercial real estate remains a favored asset class on a risk-adjusted basis.

10YR Treasury Rate and CRE CAP

Another words, the sophisticate and savvy CRE’s investor are studying and analyzing carefully its Federal Reserve’s 10-Year Treasury Rate in order to make an informed decision on his next acquisition.  It would help reduce his risk significantly.

Fed Reserve 10 Year Treasury Rate from 1990 thru 2015 2

CRE-CAP rate-spread-to-10-year-treasury-large

Commercial property sectors continue to perform well amid this extended period of low interest rates and the Federal Reserve’s decision will not disrupt property performance

  • The Federal Reserve opted Thursday 9/17/15 to maintain its benchmark lending rate at or near zero percent. While acknowledging that the U.S. labor market continues to improve, the central bank also heeded softer conditions in foreign economies in reaching its decision to defer the first hike in the Federal Funds rate in approximately nine years. Fed Chair Janet Yellen and voting members of the policy committee will proceed cautiously, monitoring for contagion risks from other countries that could adversely affect U.S. economic performance.
  • The Fed’s next opportunity to take up the rate hike question comes at its meeting next month, but it may wait until December to act. Until the next meeting, the Fed will scrutinize incoming data on economic momentum, inflation trends, and international volatility. Mortgage spreads widened during the summer in anticipation of a rate increase, and little appreciable effect on spreads is likely to occur in the near term.
  • The central bank’s decision to hold will likely spark a new round of questions about the strength of the U.S. economy in spite of relatively strong underlying fundamentals. Through August, the labor market had added an average of 212,000 jobs per month, an amount less than the pace set in 2014 but sufficient to support a forecast of 2.7 million positions this year. Factors weighing on the U.S. economy, however, include soft exports stemming from the strong U.S. dollar and anemic inflation principally related to low gas prices. Core inflation, which strips out volatile food and energy, rose only 1.8 percent year over year, below the Fed’s target threshold of 2.0 percent.
  • Commercial property sectors continue to perform well amid this extended period of low interest rates and the Federal Reserve’s decision will not disrupt property performance. With job growth generating new commercial space demand that dramatically outpaces construction levels, vacancy in the primary property segments remains on track to decline this year and support additional rent gains. Apartment construction has ramped up, but favorable demographic trends and challenging conditions for first-time homebuyers will continue to sustain extremely low vacancy in the multifamily sector.
  • Low-interest rates, steady performance gains, and competitive yields are supporting investment in a wide array of commercial properties. Transactions in 2015 are on course to exceed pre-recession peak levels, and most property sectors continue to see inflows of equity and disciplined underwriting by debt providers. With positive economic trends lifting gauges of property performance, commercial real estate remains a favored asset class on a risk-adjusted basis.

Learn more of investment in Net lease CRE

Should you have further clarification, please sign-up for our free 30-minutes confidential consultation.


Related blogs:

  1. Big Buyer of Net Lease Report – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. First Key selection of net lease Commercial Real Estate investment…?
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?
  6. How much McDonald invests in net lease commercial real estate?
  7. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!
  8. Case Study: Sale-Leaseback Technique of Wendy’s and McDonald
  9. What is an alternative investment real estate versus vacation home…?
  10. In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot
  11. Net lease or Triple-net Lease is an Alternative Solution for Removing 12 Headaches in Real Estate Rental
  12. Net Lease Case Study: Family Dollar

If you would like to inquire about our Concierge Services, please sign-in our free consultation


Sponsored Ad

Decade of Peace sculpture: “The Sporting Chances for Peace”

This limited edition #1 is no longer available for sale.  However, the remaining of Edition 1799 sculptures is available for pre-order.  Please note we are also seeking for:

  1. Art Collectors/Investors
  2. Sponsors
  3. Long-term Lease

We are processing and engaging with our investor regarding Limited Edition #1.  When it’s finalized in 4Q 2015, the press conference will be announced the owner of this Edition #1.  Our investor has committed to the purchase price of $US 50 million.

Once this public announcement is scheduled, our remaining editions’ price will be raised at a minimum of $US 500,000.

[Learn more…]


Partnership

We are proud to be a partner of HEAG Medical Community of Ghana.  [Learn more…]

HEAG Logo 3B


DAJK GROUP is the place where investors, business owners, and entrepreneurs can research and find useful information, insight, resources, advice, guidance, and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

Growing, Evolving and Pushing Forward!

Net Lease’s Sale leaseback and Built-to-Suit Strategy

Net Lease’s Sale-leaseback and Built-to-Suit Strategy

The growing business who owns real estate can raise an inexpensive working capital and/or debt reduction with Net Lease’s Sale-leaseback and Built-to-Suit Strategy.

DAJK GROUP NNN

Sale-Leaseback Strategy

Sale-leaseback strategy is a form of financing in which a company sells its real estate for cash and simultaneously signs a long-term lease with the buyer. Sale-leaseback transactions provide the lessee company with a source of capital that is an alternative to other financing sources such as corporate borrowing, mortgaging real property or selling shares of common stock.

Net Lease_Sale Leaseback Diagram

A Seller/Tenant is able to convert the value of real estate assets into working capital it can use to:

  • Pay-down debt
  • Fund acquisitions
  • Reinvest in the core competencies of its business

Build-to-Suit Strategy

Through build-to-suit strategy, Investor/Lender (“Investor”) provides a growing company with the funding for the expansion of an existing facility or the construction of a new facility in a different location.  Investor can source, facilitate, arrange, structure and close the build-to-suit transaction.

Net Lease_Built-to-Suit Diagram

The build-to-suit provides innovative financing for:

  • Expanding existing facilities/constructing new facilities
  • Debt reductions
  • Mergers & acquisitions
  • Leveraged/management buyouts
  • Corporate restructuring/exit financing
  • Acquiring addition facilities, technology, and equipment to grow business
  • Transition out of a synthetic lease, mortgage or other binding debt instruments
  • Matching long-term assets with long-term liabilities

Case Study:  WPC’s Key Facts of Net Lease’s Sale-leaseback and Built-to-Suit Strategy

W. P. Carey Inc. announces that it has acquired a portfolio of three truck and bus servicing facilities for approximately $42.9 million. The facilities, two in Germany and one in Austria, were purchased from the developer and are net leased to wholly-owned subsidiaries of MAN SE for a period of 15 years. (PRNewsFoto/W. P. Carey Inc.)
W. P. Carey Inc. announces that it has acquired a portfolio of three truck and bus servicing facilities for approximately $42.9 million. The facilities, two in Germany and one in Austria, were purchased from the developer and are net leased to wholly-owned subsidiaries of MAN SE for a period of 15 years. (PRNewsFoto/W. P. Carey Inc.)
  • Well-established, industry-leading tenant: The MAN Group is one of Europe’s leading producers of commercial vehicles, engines and mechanical engineering equipment. It is a publicly traded company with a market capitalization of approximately $15 billion and is 75% owned by German automotive group Volkswagen AG.
  • Critical, well-located facilities: The three facilities, originally built to tenant specifications, are among the largest service stations operated by the MAN Group and serve as an important sales driver for its 24/7 fleet repair and maintenance servicing operations. Located on arterial routes, the facilities benefit from the high commercial traffic flow that connects several major German and Austrian cities and links Europe’s eastern and western markets.
  • Long-term net leases with built-in rent growth: All three facilities are net leased, with a remaining term of approximately 15 years and CPI-based rent escalations.

Reference:  NEW YORK, Sept. 9, 2015 /PRNewswire/ — (NYSE: WPC), a real estate investment trust specializing in corporate sale-leaseback and build-to-suit financing, and the acquisition of single-tenant net lease properties, announced today that it has acquired a portfolio of three modern truck and bus servicing facilities for approximately $42.9 million (€38.9 million). The facilities — two in Germany and one in Austria — were purchased from the developer, Wohnungsunternehmen Semmelhaack, and are net leased to wholly-owned subsidiaries of MAN SE (The MAN Group).

[Learn more…]

For further discussion, please sign-up for our free 30-min confidential consultation

Growing, Evolving and Pushing Forward!


Related blogs:

  1. Big Buyer of Net Lease Report – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. First Key selection of net lease Commercial Real Estate investment…?
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?
  6. How much McDonald invests in net lease commercial real estate?
  7. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!
  8. Case Study: Sale-Leaseback Technique of Wendy’s and McDonald
  9. What is an alternative investment real estate versus vacation home…?
  10. In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot
  11. Net lease or Triple-net Lease is an Alternative Solution for Removing 12 Headaches in Real Estate Rental
  12. Net Lease Case Study: Family Dollar

If you would like to inquire about our Concierge Services, please sign-in our free consultation

Concierge Services 5


Sponsored Ad

Shop Amazon Corner – Get the New Kindle Fire HDX Tablet

Kindle Fire HDX

*** TAKE ADDITIONAL 10% OFF for ALL FIRST TIME PURCHASER


DAJK GROUP is the place where investors, business owners, and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

Growing, Evolving and Pushing Forward!

Net Lease Case Study: Checkers Restaurant [**ABS SLB (15)]

**Absolute:  ABS

**Sale leaseback:  SLB

Checkers – Part of Rare Portfolio of 9 [ABS SLB (15)]

Checkers Restaurant

Address:  3150 East Bay Drive | Clearwater, FL 33771

Purchase Price: USD 868,400

Fixed Annual Income:  4.50%

Offer Summary:

Price:
$868,400
Cap Rate:
4.50%
Property Type:
Retail
Building Size:
+/-738 SF
Land Area:
+/-0.42 Acres
Property Use:
Restaurant
Current NOI:
$580,342 (Portfolio)
Lease Term:
NNN
Location:
Clearwater, FL

Location Description

Clearwater, FL is a year round vacation destination, with a strong population of over 110,000 within a 3-mile radius of the subject property. The property is on a desirable hard corner along a dense retail corridor with close proximity to Publix, LA Fitness, Winn-Dixie, Wal-Mart, PTEC Clearwater campus, Southeast College, and The Belcher Soccer Complex. The St. Petersburg-Clearwater International Airport is +/- 4.3 miles away.
Portfolio Locations: AL, FL, GA, and MI.

Highlights

Clearwater, Florida Hard Corner Location | Vacation Destination – Clearwater is a year-round vacation destination, with a strong population of over 110,000 within a 3-mile radius of the subject property. The property is on a desirable hard corner along a dense retail corridor with close proximity to Publix, LA Fitness, Winn-Dixie, Wal-Mart, PTEC Clearwater campus, Southeast College, and The Belcher Soccer Complex. The St. Petersburg-Clearwater International Airport is +/- 4.3 miles away.

Part of Rare Portfolio of 9 Assets with Geographic Diversity – The subject property is part of a portfolio of Checkers’ last corporate-owned stores, offering investors immediate geographic diversity across four states in the portfolio at a discounted total portfolio price. All stores have been in operation for over twenty years and a majority of the stores have been upgraded recently.

Corporate Sale-Leaseback | 15-Year Term – Long-term sale-leaseback opportunity backed by a highly secure restaurant chain. Each lease will include two (2), five (5) year renewal options.

Absolute NNN Lease – No landlord responsibilities.

Strong Rent Escalation – The Checkers leases include 10% rental increases every 5 years, providing a hedge against inflation.

Low Rent-to-Sales Ratio – All locations have a low 6% store rent-to-sales ratio, allowing sufficient operating cushion for each restaurant.

Growing QSR Chain – Checkers opened 35 new locations in 2014 and has plans to continue to grow in 2015 with 80 locations approved.

Established Chain with High Average Sales – Checkers is the nation’s largest chain of double drive-thru restaurants with over 800 locations. In Nation’s Restaurant News’ Top 100 census, the company is ranked No. 89 in U.S. sales. The average corporate Checkers reported +/- $1 million in net sales.

[Learn more…]

For further discussion, please sign-up for our free 30-min confidential consultation

Growing, Evolving and Pushing Forward!


Related blogs:

  1. Big Buyer of Net Lease Report – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. First Key selection of net lease Commercial Real Estate investment…?
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?
  6. How much McDonald invests in net lease commercial real estate?
  7. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!
  8. Case Study: Sale-Leaseback Technique of Wendy’s and McDonald
  9. What is an alternative investment real estate versus vacation home…?
  10. In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot
  11. Net lease or Triple-net Lease is an Alternative Solution for Removing 12 Headaches in Real Estate Rental
  12. Net Lease Case Study: Family Dollar

If you would like to inquire about our Concierge Services, please sign-in our free consultation


Sponsored Ad

Shop Amazon Corner – Get the New Kindle Fire HDX Tablet

Kindle Fire HDX

*** TAKE ADDITIONAL 10% OFF for ALL FIRST TIME PURCHASER


DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

Growing, Evolving and Pushing Forward!

Net Lease Investor’s Options and/or Alternatives

DAJK GROUP NNN

 

Net lease investor’s objective is:

1) his target CAP rate;

2) with high or with the lowest net lease management fee.

 

There is a San Diego-based Net Lease Management.

http://netleasedmanagement.com/

“Net Leased Management is a cost-effective administrative and management support solution for net-leased property owners. For a small monthly fee, Net Leased Management provides accounting services, monthly financial reporting, lease administration, property-tax compliance and insurance compliance; handles any landlord obligations; and conducts site visits as needed. We also provide access to a master insurance policy for investors to capitalize on bulk pricing and increased limits.”

 

[Full article…]

 

Please note a Higher CAP rate is higher the risk and more involvement with property management.

 

Is there any alternative without paying fee or paying the lowest to net lease management?

 

Yes, I highly recommend all our clients/investor to select only a true triple net lease or an absolute NNN lease.

The more fees investor is paying for a third party; his return of investment would be reduced proportionally as well.

In fact, different net lease investor has different investment objectives.  My task is providing all options both pros and cons and both advantages and disadvantages.

Strategically, when the net lease investor combines with his high taxable income with his net lease investment, it would be a greater benefit for him in a long-term investment.

This strategy would accomplish reducing taxable liability: converting his short term to long term gain which in turn will be taxed at the lowest tax bracket, his fixed income from lease revenue is a passive income to an investor.  [Learn more…]

I would inform all my clients about these options and they need to decide how they would like to proceed.

[Learn more…]

 

Growing, Evolving and Pushing Forward!

 

Related articles:

  1. Big Buyer of Net Lease Report – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. First Key selection of net lease Commercial Real Estate investment…?
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?
  6. How much McDonald invests in net lease commercial real estate?
  7. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!
  8. Case Study: Sale-Leaseback Technique of Wendy’s and McDonald
  9. What is an alternative investment real estate versus vacation home…?
  10. In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot
  11. Net lease or Triple-net Lease is an Alternative Solution for Removing 12 Headaches in Real Estate Rental
  12. Net Lease Case Study: Family Dollar

 

If you would like to inquire about our Concierge Services, please sign-in our free consultation


Sponsored Ad

Shop Amazon Corner – Get the New Kindle Fire HDX Tablet

Kindle Fire HDX

*** TAKE ADDITIONAL 10% OFF for ALL FIRST TIME PURCHASER


DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

Growing, Evolving and Pushing Forward!

Embrace the June 2015 Call to Action (You Could Win $US 50 Amazon Gift Card!)

$50 Contest


Shop Amazon Corner – Get the New Kindle Fire HDX Tablet

Kindle Fire HDX


We are halfway through 2015!  Can you believe it?

It seems like just yesterday we were excitedly welcoming in a brand new year—nervous to get planning on your financial, net lease investment and business development goals we’d resolved to accomplish over the following 365 days.

Want More?

Are you confidently marching toward your financial, net lease investment and business development goal—or could you use a little motivation to resume the hard work?

If you’re in the latter, don’t stress.

We’re all human, and it’s totally normal to deviate off track every once in a while. The key to success, however, is learning how to refocus your efforts and racing toward your goals.

Which brings us to our June call to action: Have you ever revive a New Year’s resolution you’d given up on halfway through the year? If so, how did you go about refocusing to accomplish it by December 2015?

Maybe you favorite photo of those fabulous ocean in a prominent place as a reminder.

Or perhaps you copy of a check $US 100,000 written to yourself

Or you join a business mastermind program, a net lease investment or investment seminar with other competitive friends – to earn a spot at the top of the weekly leaderboard.

Whatever it is, we want to hear about it in the comments below—and you’ll be entered for a chance to win $50 Amazon Gift Card! Please make sure to sign-in using your email address when you comment—it won’t be visible to other users—so we can notify you if you win.

Please sign-in and comment below

Open only to who are at least 21 years old as of the date of entry.  Contest running from June 6, 2015, through June 30, 2015. We will select the most compelling entry as the winner, and his or her story may be published on our website.

Please share with your friends and colleagues!

Please sign-in here

Amazon 9

DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.  Information shown is for illustrative purposes only and is not intended as investment, legal or tax planning advice. Please consult a financial adviser, attorney or tax specialist for advice specific to your financial situation.  DAJK GROUP and any third parties listed, linked to, discussed, identified or otherwise appearing herein are separate and unaffiliated and are not responsible for each other’s products, services or policies.

In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot

HK Mosquito Apt

Buyers in Hong Kong are snapping up “Mosquito Apartments”—180-square-foot flats in luxury high-rises. These tiny dwellings are selling for more than $500,000 in some areas – Source WSJ

Video-WSJ

Full article WSJ


Shop Amazon Corner – Get the New Kindle Fire HDX Tablet

Kindle Fire HDX


Would you spend for “mosquito apartment” or invest in net lease CRE?

What is the monthly net income with the same amount for net lease commercial real estate investment can be collected?

  • Investment capital amount:  $US 2,872/SQFT or $US 516,960
  • Net lease’s capitalization rate (“CAP”) = 5% or $US 25,848 (annually)
  • Term:  minimum is 5+ years

Therefore, your NNN CRE-USA investment will generate $US 2,154 per month.  Please note this is your passive income which will be taxed at lower than your earn income.

Learn more, please visit DAJK Group.

Related articles

  1. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  2. First Key selection of net lease Commercial Real Estate investment…?
  3. Net Leased Commercial Real Estate (NNN CRE): Step #2
  4. How much McDonald invests in net lease commercial real estate?
  5. BIG BUYER of NET LEASE REPORT – March 2015
  6. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!

More resources at Amazon Corner

AMAZON CORNER aStore 3

For further discussion, please sign-in for our free consultation

Free Consultation (2)

 

5 Vital Aspects You Must Know for Success in Small Business

Biz 5 Vital things

5 vital aspects you must know for success in small business

  1. Track your return on investment (“ROI”).
  2. Monitor cash flow statement frequently
  3. Leverage with talent human resource
  4. Leverage social media
  5. Develop and have an emergency plan in place

First-time small business owners must master these 5 indispensable aspects because they are vital business factors for every business owners.

Track your return on investment (“ROI”)

Business owner must keep track on:

  • How much you invest?
  • What you invest your money on?
  • What you get in return for every dollar you invest?

This ROI tracking would help the business owner easier to decide where to invest and allocate your money in the future during your annual budget analysis review.

Monitor cash flow statement frequently

Diligently and thoroughly monitor cash flow statement.  Business owner should only spend from the revenue you derive from the sale of your products or services.

Small business must learn how to control and ensure you have sufficient cash to cover operating expenses for at least 90 days.  You have to anticipate and manage the time-lag between completing a project and receive payment.

For your small business, the cash flow statement may be the most important financial statement you organize. It traces the flow of funds (or working capital) into and out of your business during an accounting period.

For a small business, a cash flow statement should probably be prepared as frequently as possible. This means either monthly or quarterly. An annual statement is a must for any business.

In short, a cash flow statement can be used to assess the timing, amount and predictability of future cash flows and it can be used as the basis for budgeting. You can use a cash flow statement to answer the questions, “Where did the money come from?” “Where did it go?”.

Leverage with talent human resource

Small business must know what you look for and what to shun when recruit a new talent human resource.  Please note your human resource is also a key area of ROI.  Hiring an unfit employee can be a catastrophic impact on a small business.  You must follow all required steps and take time to make your recruitment decision.

In other hand, business owner needs to make genuine attempt to correct the unfit employee within a set period of time.  If he can not show any improvement or progress, you need to let him go swiftly and gracefully.

Leverage social media

such as Facebook, Linkedin, Google+, Pinterest and other popular sites.  Social media is where your prospective clients and customers often hangout.  Business owner’s profile must be crafted relevant to your audience and willing to participate in online discussions in your industry related chats.

Emergency Plan in place

Business owner should be prepared for a natural disaster which could either completely discontinue or disrupt your business operation.  Your emergency plan should be include at the very least an alternate lines of communications with clients in order to preserve the integrity of your service.  In addition, you also maintain, upgrade and updated IT equipment.

More effectively, you need to identify your critical business functions— what resources and personnel will you need to restore or reproduce these functions during a recovery? Assign disaster response duties to your employees.  In addition, business owner needs to identify critical suppliers—Identify suppliers, providers, shippers, resources, and other businesses you typically interact with and need to keep your business operating. Develop professional relationships with backup vendors, in case your normal vendor isn’t available due to the emergency.

In short, the more you plan in advance for potential disaster, the quicker you recover and keep your valued and core client intact.

In conclusion, your chance for building a successful small business requires 1) Track your return on investment, 2) Monitor cash flow statement frequently, 3) Leverage with talent human resource, 4) Leverage social media and 5) Develop and have an emergency plan in place.

Resources at Amazon Corner:

  1. The Small Business Bible: Everything You Need to Know to Succeed in Your Small Business
  2. The Big Book of Small Business: You Don’t Have to Run Your Business by the Seat of Your Pants
  3. The Small Business Owner’s Manual: Everything You Need to Know to Start Up and Run Your Business
  4. How to Succeed as a Small Business Owner … and Still Have a Life
  5. The Wall Street Journal Complete Small Business Guidebook

Related Articles


Please contact us for free consultation

Free Consultattion (2)

7 Points to Consider When Seeking Business Financing

Business Finance

Preparation is key to many things in life. Business financing is no different. In order to properly prepare and position yourself for the journey, make sure you are very familiar with the following 7 steps that may determine your ability to get the financing you seek.

DEFINITION of ‘Financing’ the act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals.

  1. Personal credit score. Everything in today’s headlines is about credit and if it’s still available to the small business owner. This affects start-ups (less than 2 years in business) as well as experienced companies. Be familiar with the information stored about you on all three reporting bureaus, TransUnion, Equifax and Experian. Understand the FICO range, 300-850, and know your score. Strong credit is generally considered 720 and above. Many leasing companies will consider applications with minimum scores of 650. Make sure you know what your credit history says about you before applying.
  2. Collateral. Collateral is widely required for many financial products, unless you are specifically seeking an unsecured financial solution. Collateral becomes even more important if your credit is not strong. Lenders are generally credit or collateral based; you must be strong in one area of the other. The $125,000 equipment you are looking to lease may not even qualify as stand-alone collateral for the lease or loan; additional collateral may be required, such as real estate or additional equipment already in your ownership.
  3. Ability to repay debt. It’s great that you’ve determined how much you need, but how will you pay the debt? Businesses often take months before they generate enough revenue to completely cover debts. Lenders know this. They’ll want to analyze your current revolving debt amount from your credit history, your business bank statements, personal financial statements, as well as your most recent profit and loss statements. You should review this information prior to making application to ensure you can make the necessary payments.
  4. Proof of ownership. Be prepared to disclose 100% ownership of your business, although you may only need to provide financial information on anyone who owns 20% or more of the business. IRS documents are normally used to verify business ownership.
  5. Planned use of equipment or cash. It’s simply not good enough to say you want the equipment or that you need the cash for your business. You must be able to show the equipment is essential to your business or how the additional capital will help you purchase inventory to grow your business or consolidate your debt. Be prepared with detailed equipment listings from the vendor, including product specifications, intended location of use and delivery dates.
  6. Understand the terminology. Personal injection is not a self-induced vaccine shot. It often refers to the down payment or investment amount the business owners bring to the financial transaction. To fully understand your lease payment alternatives, you must know the difference between FMV and $1 out option. Do you know the difference between interest rates and a money factor or how to calculate your loan to value (LTV) ratio? Most terms can be easily researched on the Internet, but if you unsure of how a term affects your transaction stop and ask the financial professional you’re working with to explain each unknown term to you.
  7. Finally, remember it is just business, nothing personal. No one will ever be as passionate about your company or business idea as you. If your financial broker or lender doesn’t get the same emotional feeling about your products and services as you do, it’s because they’re not supposed to. Lenders are primarily interested in evaluating transactions as risk factors against the likelihood of them getting fully paid on their investment. A good financial partner may even need to remind you of this to better prepare you for submission of your credit application.

Resources at Amazon Corner

  1. Business Finance
  2. Corporate Finance for Dummies
  3. Entrepreneurial Finance, Third Edition
  4. Finance Basics
  5. Focus on Personal Finance
  6. Multinational Business Finance

Articles


Our free consultation is available, please sign-in

Free Consultation (2)

Fair Market Rents – Section 8 Tenants – Update May 2015 – ALL States

HOME HUD

Fair Market Rents are established by HUD each year for the Section 8 Program. For more information about the annual calculation of Fair Market Rents, visit the HUD’s Office of Policy Development and Research.

HOME Rent Limit data are available from FY 1998 to the present.

Per 24 CFR Part 92.252, HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of:

  1. The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or
  2. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions.

In rental projects with five or more HOME-assisted rental units, twenty (20) percent of the HOME-assisted units must be occupied by very low-income families and meet one of following rent requirements:

  1. The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a).
  2. The rent does not exceed 30 percent of the family’s adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family’s adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program.

The FMRs for unit sizes larger than 4 bedroom are calculated by adding 15 percent to the 4 bedroom FMR for each extra bedroom. For example, the FMR for a 5 bedroom unit is 1.15 times the 4 bedroom FMR, and the FMR for a 6 bedroom unit is 1.30 times the 4 bedroom FMR, and so on…

  • 5 BR = 1.15 x 4 BR FMR
  • 6 BR = 1.30 x 4 BR FMR
  • 7 BR = 1.45 x 4 BR FMR
  • 8 BR = 1.60 x 4 BR FMR
  • 9 BR = 1.75 x 4 BR FMR
  • 10 BR = 1.90 x 4 BR FMR
  • 11 BR = 2.05 x 4 BR FMR
  • 12 BR = 2.20 x 4 BR FMR

These HOME rent limits are effective June 1, 2015, and are applicable to new HOME leases and lease renewals after that date.

Attached is an update for state of California.  For other states, please sign-in and request for a copy for your state.

HOME_Rent Limits_State_CA_2015

Resources at Amazon Corner:

  1. Real Estate Investment
  2. Real Estate Finance for Residential and Commercial
  3. Buying Real Estate Without Cash or Credit
  4. Buying First Home: Tips, First Home Owners Grant & First Mortgage Guide, Home Buying Process

For further question, please sign-in for our free consultation.