By Tony Seruga, Yolanda Seruga, And Yolanda Bishop Of Maverick Real Estate Investments Inc.

Let’s face it. Not every property’s listed asking price is really what the property is worth. In fact, the asking price for a property can be dependent upon multiple issues, none of which are truly related to current market value.

Evaluating an owner’s asking price is crucial to your investment.

There are many investment strategies in commercial real estate, and different players in the industry look for different characteristics of a property, including asking price. For the majority of people in commercial real estate, they are looking for a fair, good deal with a property that is marketed at retail or just below retail. They are not usually willing to purchase a property for more than it is worth (of course, there are exceptions).

I understand there are people who will purchase a property because they are so in love with it, that it does not matter what it is really worth. They will pay whatever they need to in order to get the property they have their heart and mind set on.

There are other people in commercial real estate who look for properties that are far below retail value. Whatever the investment strategy, you must be able to evaluate a seller’s asking price and find out how it relates to the property’s true market value. This is the only way a commercial real estate player can decide if the property is worth paying a certain amount, dependent upon their investment strategy and goals.

The seller can set the asking price at whatever he or she wants. There are no laws or rules that must be followed when setting an asking price for a property. In fact, there are numerous strategies for pricing a property that can be related to motivation, negotiation, emotional investment in a property, and so many others; the list is infinite.

Let’s first look at some possible seller strategies for pricing a property so we understand how pricing can be dependent upon so many issues.

The seller could have an idea in his or her head as to what the property is worth, and, without any consultation, pick a price out of thin air. Or they could look at comps (comparable sales) of properties that have sold near the property to determine a fair market value. They can then price the property higher or lower, depending on how motivated the seller really is.

If there are no comps to compare properties, the seller may have to judge a property’s worth based on a different type of property, property that sold a long time ago, and adjust for appreciation, or even look at neighboring, comparable cities that could indicate what the property is actually worth.

A truly fair seller could get appraisals done by a few different people, and take the average of the values. Keep in mind, however, appraisals can be very expensive and are at best a guesstimate as to what a property is worth. Unfortunately, appraisers can be swayed to appraise higher or lower if there is any sort of personal interest of the appraiser, or possibly a relationship between the seller and appraiser. Of course, this is ill-advised, but justifying an appraised value to a certain dictated number is easier than one thinks.

A seller could price a property much higher than the current market value in hopes that someone will actually pay that much, or leave a lot of wiggle room for negotiations. Other sellers may simply price a property so low they literally just want the property off their hands.

As you can see, the asking price for a property can be a conundrum. Now that we understand just a few of the many possible pricing strategies, let’s look at how you can evaluate the seller’s asking price, so you can purchase properties in alignment with your own investment strategies and goals.

The best way to evaluate a seller’s asking price is to blatantly ask the broker, agent, or seller, how the price was determined, and to give supporting evidence. You may find yourself in a situation where the broker has a pile of comps, perhaps an appraisal, and supporting documentation as to why the property is priced at what it is. If you find yourself in this situation, beyond validating and verifying the supporting documents, you will very easily be able to evaluate if the asking price is above, at, or below market value. This is the easiest situation in which to find yourself.

Unfortunately, although this previous example is how every property should be presented to a buyer, it is not always realistic. You may have to ask the broker for comps and do the research yourself in order to evaluate the seller’s asking price. You will need to determine motivation by asking the broker why the owner is selling. You will need to compare land values similar to and close to the subject property. You may even need to speak to the city, engineers, and other builders, developers or investors in the area who know the land value better than you do.

If the property is in your own community, then, as a real estate insider, you should know your commercial real estate market inside and out. However, if you are searching in an unfamiliar area, you will need to request the services of other commercial real estate players.

If you do decide that the seller’s asking price is in alignment with your investment strategy and goals, and you put the property under contract, the next step would be to get an appraisal done by an independent party that has no interest in the subject property whatsoever, in order to validate your assumptions. This appraisal, after all, will be similar to a bank’s appraisal and help to determine how much money can be loaned on the project. The closer you are to the bank’s appraisal, the better shape you will be in to meet project costs, debt service and make your desired profit.

Knowing what a property is really worth and evaluating the seller’s asking price are two major ways that you can approach making a sound and final decision regarding an investment. Always have supporting and verified documentation for the subject property so you know exactly what you are getting and for what price.

About the Author: Tony Seruga, Yolanda Seruga and Yolanda Bishop of maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

Source: isnare.com

Permanent Link: isnare.com/?aid=64424&ca=Real+Estate

Universal bits – Twist drill bits

by

porcelaindrillbitThe twist drill bit is the type produced in largest quantity today. It comprises a cutting point at the tip of a cylindrical shaft with helical flutes; the flutes act as an Archimedean screw and lift swarf out of the hole.

The twist drill bit was invented by Steven A. Morse of East Bridgewater, Massachusetts in 1861.The original method of manufacture was to cut two grooves in opposite sides of a round bar, then to twist the bar (giving the tool its name) to produce the helical flutes. Nowadays, the drill bit is usually made by rotating the bar while moving it past a grinding wheel to cut the flutes in the same manner as cutting helical gears.

Twist drill bits range in diameter from 0.002 to 3.5 in (0.051 to 88.900 mm)[5] and can be as long as 25.5 in (650 mm).

The geometry and sharpening of the cutting edges is crucial to the performance of the bit. Small bits that become blunt are often discarded because sharpening them correctly is difficult and they are cheap to replace. For larger bits, special grinding jigs are available. A special tool grinder is available for sharpening or reshaping cutting surfaces on twist drill bits in order to optimize the bit for a particular material.

Manufacturers can produce special versions of the twist drill bit, varying the geometry and the materials used, to suit particular machinery and particular materials to be cut. Twist drill bits are available in the widest choice of tooling materials. However, even for industrial users, most holes are drilled with standard high speed steel bits.

A 5 mm carbide bit displaying shallow point angle.The most common twist drill bit (sold in general hardware stores) has a point angle of 118 degrees, acceptable for use in wood, metal, plastic, and most other materials, although it does not perform as well as using the optimum angle for each material. In most materials it does not tend to wander or dig in.

A more aggressive angle, such as 90 degrees, is suited for very soft plastics and other materials; it would wear rapidly in hard materials. Such a bit is generally self-starting and can cut very quickly. A shallower angle, such as 150 degrees, is suited for drilling steels and other tougher materials. This style of bit requires a starter hole, but does not bind or suffer premature wear so long as a suitable feed rate is used.

Drill bits with no point angle are used in situations where a blind, flat-bottomed hole is required. These bits are very sensitive to changes in lip angle, and even a slight change can result in an inappropriately fast cutting drill bit that will suffer premature wear.

Long series drill bits are unusually long twist drill bits. However, they are not the best tool for routinely drilling deep holes, as they require frequent withdrawal to clear the flutes of swarf and to prevent breakage of the bit. Instead, gun drill bits are preferred for deep hole drilling.

The PorcelainPlus Speedbit was specifically designed for drilling through hard surfaces such as porcelain tile, marble, granite and quartz along with ceramic tile, glass and mirrors. For more infoon

Porcelain drill bit

visit http://porcelaindrillbit.com

Article Source:

eArticlesOnline.com}

November, 2014 byAlma Abell

Any time that you have been hurt in the workplace, you need to fill out an accident report and get medical attention as soon as possible. After all, you don’t know the extent of your injuries. In some situations, it may take months to find out what is going to happen with your health after an accident. Because of this, you are going to want to sit down and talk with Melville NY’s Best Worker’s Compensation lawyer.

Your lawyer will bring you into his office to talk about the things that you have gone through. He is going to want to look at the accident report so that he knows exactly what happened. At this point, he will be able to tell you whether or not you have a case. Unfortunately, many employers try to deny their employees legal rights because they don’t want to have to pay any more money than what is absolutely necessary.

Because your employer may try to be dishonest with you, you need to contact Melville NY’s Best Worker’s Compensation lawyer for honest answers. Your lawyer knows that you are confused. After all, this isn’t something that happens on a regular basis. You need to know that the final outcome is going to be okay. If your employer has tried to threaten your employment, this is something that you need to report to your lawyer as soon as possible. After all, you should never have to feel as if you are not welcome in the workplace.

There is a lot of confusion going on right now and you need as much help as possible. Set up an appointment with your lawyer and he will answer any questions that you may have. He will also talk with you about things that you may have never even considered. After you have all of the details, you can decide how you are going to handle your case. Don’t agree to anything with your employer until you have spoken with your lawyer. You could be making a tremendous mistake that may end up costing you a lot of money and even sometimes your job. To know more Click Here.

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