Author Archives: Briella

How To Get Commercial Construction Loan Financing – Even During a Dismal Economic Downturn

Just the other day, I heard a rather prominent commercial real estate mortgage industry insider (who wishes to remain anonymous) utter something like: “Sorry guys, no commercial lenders are making loans for commercial construction financing these days in this dismal economic downturn.” No wonder that industry insider wants to remain anonymous! He ought to because it seems to me that when executives start to parrot what they hear in the news media, they actually cause the doom and gloom that doesn’t really exist @ all before they proclaim it. Anyway, rest assured that you can get commercial construction loan financing – if you know where to look…

Perhaps where he comes from, commercial construction financing is hard to come by, but he was undoubtedly referring to traditional commercial real estate lenders. Now don’t get me wrong, conventional commercial lenders do have a solid rationale for being reluctant to provide construction loan financing: “In a down economy, lots of standing (existing) real estate sits vacant or unsold on the market. So, why the heck should we finance new construction?”

OK, we get their point, but there are still a lot of good solid new construction projects out there that need to be funded, and yours may just be one of them. If so, private commercial construction loan financing is where it’s at. Here’s what it is, why you may need it, and how you can get access to $250,000 to $500 million in the ideal combination of private commercial mortgage loans and up to 100% joint venture equity capital…

Private Commercial Construction Loan Financing Defined

First of all, let’s define what a commercial construction loan actually is. Private commercial construction loans are typically short-term interim recourse commercial loans from non-bank sources (e.g. private investment firms, individual investors, hedge funds, etc) to finance construction costs. In a typical case, the lender would advance construction funds to you as the builder at periodically at set intervals as the work progresses. By “recourse”, we’re referring to loans where the lender may seek to recover money in addition to real property that the borrow pledges as collateral in the event of a loan default.

Why You May Need Private Money To Fund Your Commercial Construction Deals

Perhaps the toughest issue that we as commercial real estate investors and owners face–especially within this challenging economy is locating financing when our credit scores, resumes, and/or financial statements are less than stellar. Private lenders and equity capital financiers can work with you to find or devise the ideal combination of debt & equity to finance your commercial construction project. Plus, these private capital sources have much greater flexibility, can offer you more creative financing options, and they can fund your deals with eye-popping speed and efficiency.

How You Can Access Private Commercial Construction Loans and Equity Capital Financing

Based upon the information that you have just read, if you feel that either private commercial mortgage finance or private equity capital finance sources are appropriate for your new commercial construction real estate ventures, please just keep in mind that you certainly can get access to the most appropriate form of commercial construction loan financing for your business – as long as you know just where to look for it.

Charles Emery is a Commercial Real Estate Finance Consultant with Radiant Properties LLC, a Philadelphia, PA based real estate investment and commercial real estate finance consulting firm. Prior to his entrepreneurial endeavors, Charles worked as a Commercial Credit Analyst at a large Philadelphia area regional bank where he provided Commercial Lenders with financial, business and industry analysis, upon which those Loan Officers based their commercial loan funding decisions. He also performed marketing & sales calls along with new business prospecting as part of his overall commercial lending related work responsibilities.

Commercial Construction Tips – Facts About Construction Projects

Commercial construction is often an arbiter of changing economic conditions. Construction projects mean both an improving economy and a way to improve the economy of a given area. Read on to learn more interesting facts about it.

This type of construction helps public sector agencies as well as private firms. Big new schools in areas where people are moving give students a chance to learn in state of the art facilities. New office buildings bring jobs to the area, and the upward spiral continues. Not only do the buildings benefit the users, but the building process itself gives workers a solid job for several months, and the expenditures from the construction project go directly into the local economy.

The United States is second in the world in terms of this construction, regardless of where the company doing the building is headquartered. As much as 10% of all commercial construction takes place in the US, and New York is the city with the most commercial construction going on – $8.5 billion (that’s billion with a B) in 2013. A lot of the construction was for residential buildings. Following New York were Houston and Dallas. Those two cities spent $10 billion in 2013 on commercial projects.
One of the biggest trends in commercial construction is green building. Experts from the Environmental Protection Agency expect that by 2017 as much as 48% of new building will be done with green building materials. To put that in financial terms, it could mean as much as $145 billion dollars.

By 2018, 84% of residential construction companies plan to have at least some of their construction projects classified as green. To get an idea of just what kind of impact this has on the overall economy, consider that residential projects total as much as 5% of the current gross domestic product of the US. As more and more firms add green building to their plans, it might mean that as much as 18% of GDP will be based around green construction.

Big commercial office buildings are going green, too. LEED certification is becoming the main standard, and builders are up to 41% green as of 2012. Just how rapidly is this growing? Consider that only 2% of commercial construction, non-residential, projects were green in 2005. It’s no surprise that states like Hawaii and California are leading the way in LEED projects.

It’s not just the US that is interested in green construction, though. LEED certifications around the world are becoming more common. A study released earlier this year showed that as many as 69,000 LEED projects are going on globally in 150 different countries.

This construction is as important to the global economy as it has ever been, and the increases in such projects over the last few years signal a positive change after the worldwide recession of 2008-09 and the soft recovery that followed. With even more green projects being planned than ever before, commercial construction projects will also be kinder to the planet, meaning everyone will benefit for years to come.

Three Positions in Commercial Construction

The builder you would hire to build your home and the builder you hire to construct your office building are two very different positions. The first deals only with the building codes and regulations required for residential building. And the builder you would hire to construct your office building is experienced in the processes of commercial construction. As the name would suggest, commercial construction deals with construction of commercial buildings like office buildings, shopping malls, sports arenas, restaurants, hotels, etc. Listed below are a few essential positions in commercial construction.

Commercial Real Estate Agent
A commercial real estate agent is responsible for commercial properties. In many cases, owners of commercial real estate will hire a commercial real estate agent to lease the property or land on their behalf. And in other cases, it can work the other way around with a tenant using the agent to help them find a property or land to lease so they can begin construction of a commercial building.

Commercial General Contractor
General contractors coordinate and supervise the construction of the commercial building. The general contractor is in charge of the hiring of subcontractors who will take on the different parts of the construction process, like framing, plumbing, foundation, electrical, etc. The general contractor works directly with the owner or developer during the construction process to ensure that everything is done as directed.

Commercial Subcontractor
A subcontractor is the contractor in charge of a specific division of the commercial construction process. The subcontractor works directly under the general contractor and is responsible for coordinating the schedule and labor of his or her particular area of expertise.

Decline in Commercial Construction Industry Endangering Specialty Contractors

The last few years have been anything but kind to the commercial construction industry, especially the Specialty Contractors they employ. Specialty Contractors are being forced to re-evaluate and modify everyday operations to adjust to the volatile economic market that is threatening their demand.

Opportunities are few and far between these days, and every opportunity, big or small must be considered. For the majority of commercial construction companies, their futures appear murky, at best. Businesses that have been opened decades long are most concerned of the looming future of the employment of Specialty Workers.

Through desperate efforts to stay in business, contractors are forced to take uncharacteristic jobs and must now scramble to stay competitive and profitable. Plenty of contractors have to cut their staff in half, or more, to merely survive. Even worse, several sectors of commercial industries are still in the midst of a downward spiral. A commercial construction stand still is often the best case scenario for some struggling businesses.

Timelines, deadlines, and budgets are all shrinking. Stress is more palpable, the workload is more demanding, and the competition more fierce than ever. Like all industries, success is measured by supply and demand. Right now there is just no demand for specialty contractors in commercial construction.

For example, Las Vegas and its commercial construction commitments in the last few years have been severely affected by the commercial construction drought. At one point they were building as far as the eye could see, littering the strip with hotels, shops, restaurants, casinos.

With the huge lack of demand and vulnerable economy, the projects have only created thousands of square feet of vacant space. Commercial vacancies which include office space, retail space, etc., are all experiencing record highs. Las Vegas’ surplus of commercial space is so large that some predict the next project won’t take place for another decade.

Credit issues are another factor endangering specialty contractors. The criteria necessary for approval for large credit lines has become much more stringent and has proven to be a huge obstacle. Less credit approvals contribute to the decline in commercial construction and payment for work is significantly more challenging to collect. Combine the lack of demand with a volatile economy, and then compound that with the mounting credit issues. Most will be confronted with the grim reality of the challenges the industry will face to recover for years to come.

Many specialty contractors are coping by trying to be more aggressive and pursuing every possible lead or bid. Now their goals are just trying to maintain a workload to keep employees busy.

If anything positive emerged from the declining commercial construction industry, it yielded plenty of experienced, qualified specialty contractors enthusiastic to work. The few that are afforded the luxury should take advantage of each opportunity and maximize efforts by creating a strong sustainable team for success.

The decline in commercial construction is seriously endangering specialty contractors and their livelihood. With each project that launches, it is more vital than ever to hire valuable, productive, and efficient specialty contractors. This is not going to be an easy recovery and the current state of the industry is not indicative of a rapid growth or rebuilding period. The goal at hand should be how to survive the next few years to make it to the other side of this commercial construction recession. Adaptability is key, and may be the determining factor that keeps business doors open. Those who are willing to sacrifice and adapt will survive.

How to Speed Up Commercial Construction

After an unfortunate slumping period in new commercial construction projects, we are happy to report that new development projects are in full recovery mode. This trend has been pointed out through a series of leading indicators including deliveries of new building supplies throughout 2014.Another indication of a growth spurt in the commercial construction industry is found in the Architecture Billings Index (ABI) which comes out on a monthly basis. In the ABI there was a sharp three point jump in May of 2014, as compared with the previous month. Thus, the need to speed up the process of commercial construction has become even more crucial.

“In commercial and residential construction, cost-effectiveness, speed and safety count and functionality dominate over prestige.” This is an excellent and pertinent quote. While factors like cost-effectiveness and speed definitely do count in the world of commercial construction; SAFETY CAN NEVER BE SACRIFICED!! Safety is the number one concern in all commercial (and residential) building projects. In this article we will look at how to speed up the commercial construction process WITHOUT sacrificing safety.

The often complex world of commercial construction is ever-increasing in demand. The range of projects vary from office complexes to shopping malls to factories to luxury hotels. Technically; although there ARE differences, commercial construction projects can also be housing developments or apartment complexes. Typically budgets are tight and the time-frames within which a commercial project can be completed are fairly narrow. Therefore speed definitely counts. An excellent construction company CAN deliver primo results under such conditions. The finished product is often visually gorgeous and is completed within the necessary time-frame and safety IS NOT SACRIFICED!! It pays to hire a reputable company for such a project.

“New Formwork and Scaffolding Supplier on the UAE Market Innovation made in Germany now at home in Dubai.” MEVA Formwork Systems is based in Germany and now boasts that it is the most prolific supplier of Scaffolding (& Formwork) equipment in the Middle Eastern countries. This equipment is essential to the process of speeding up commercial construction projects because it allows workers to complete projects without the use of cranes. In fact; most frequently, the cranes cannot even be used for these types of projects because they are too large to fit in the allotted space. What was once an inaccessible area for these construction workers, the same workers are now able to complete their projects with the use of this MEVA equipment. They can personally assure that all processes of their specific project are completed with SAFETY in mind. Not only for the safety of the building’s future tenants; but also the safety of the workers who are assigned to that specific project. These are of huge benefit to the industry.

Much more information about MEVA (and possibly products by similar competing companies) is available on the Internet. Just go to your favorite search engine and type in the heading name. Not only is there more information specifically about MEVA, there is info and news about other techniques used to speed up commercial construction projects without sacrificing anybody’s safety.

Efficiency of Construction Chemicals

In case of street development or waterproofing, development substance gives remarkable help. These development chemicals fill in as the firm establishment for the development destinations, when utilized for specific essentials. Do you know what is development concoction and how effective they are? Distinctive sorts of chemicals are used in the development; subsequently, they are called as development chemicals. These chemicals for the most part used as the added substance substances in every one of the phases of development. Whether it is street development, stone work surfaces, use of these are critical when utilized successfully. These chemicals can build the properties of cement in durable or hard edges confirm.

Concoction producers and providers in Mumbai use numerous chemicals and plans to enrich your solid structure some extraordinary properties. For this undertaking, you can utilize certain things, for example, cements, substance bolster, waterproofing mixes, grouts to give some examples. Get some answers concerning various utilizations of development synthetic and use them effectively. Chemicals are profoundly touchy in nature; subsequently, they should be used with safeguards.

These development chemicals are typically used for a collection of spots, for example, they can be used for the structures and also for the infrastructural tasks, for example, streets. These chemicals are utilized as a part of framework undertakings, for growing new and additionally repairing existing ones, these chemicals are exceptionally profitable.

Chemicals are utilized as a part of compressions to infer particular reason that is to proffer basic steadiness. A portion of the broadly utilized development chemicals are solid admixture, waterproofing, surface treatment, solid curing compound, grouting compound, Floor Hardener, extraordinarily silicone sealant, and solid admixtures. These segments can fortify the structures and protect them from every climate condition, Ground shifts and different sorts of ecological perils. These development chemicals are the crucial component of brilliant development chemicals.

Synthetic producers and providers in Mumbai offer a broad scope of top notch substance materials that Comprise Concrete Curing Compound, Tile Adhesive Plaster, Grouting CompoundPsychology Articles, Floor Hardener to give some examples.

Construction Loans and Commercial Mortgages

Business development financing and business land advances are displaying various new difficulties for business borrowers. Subsequently, private company proprietors ought to foresee that they are probably going to experience some new however for the most part avoidable issues when they are looking for working capital subsidizing and business contracts.

There have dependably been intricate issues for entrepreneurs to evade when looking for business advances. By most records, these troubles are presently anticipated that would increase since we have all the earmarks of being entering a period which will be described by significantly more instabilities in the economy. Earlier principles for business home loans are probably going to change all of a sudden and with minimal progress ahead of time by banks if the current money related turmoil proceeds.

This article will assess why business development advances have gotten to be harder to get and will talk about conceivable business back subsidizing arrangements. It is significantly more likely that borrowers should look past their neighborhood business financing help in view of current monetary vulnerabilities in mix with less capital accessible for business contracts all in all and development financing specifically. In numerous regions of the United States, essentially all business development subsidizing sources are viably inert as of now in tending to new advance solicitations.

Indeed, even before business back subsidizing alternatives turned out to be more constrained as of late, development advances were by and large thought to be more hazardous than other business financing by generally banks. For a business moneylender, the most huge hazard variables for business development financing generally incorporate the accompanying: (1) a business property can’t deliver incomes which will be utilized to reimburse a credit until the property is finished and possessed; (2) a significant hazard element is the likelihood for temporary worker liens; and (3) numerous business development ventures set aside more opportunity to finish than initially anticipated as well as surpass starting cost gauges. Because of far reaching business misfortunes in the development business, the danger of temporary worker liens is a noteworthy sympathy toward business loan specialists. In any occasion, current wrongdoings in credit installments for business development financing are running great above typical.

Development financing for homebuilders has dependably been seen independently by loan specialists on the grounds that the possible proprietors of single-family homes are people as opposed to organizations. From a business loaning viewpoint, it is likely that the present challenges seen in private development are in a roundabout way affecting the accessibility of development subsidizing for business properties in light of the fact that the potential for temporary worker liens caused amid private ventures can rapidly lessen the money related solidness of contractual workers required in both private and business development ventures. This is a further motivation behind why loan specialists are progressively concentrating on the danger of contractual worker liens as a method of reasoning for giving less development financing.

Choosing a Commercial Construction Company

If you are planning on building or adapting a property for commercial use, then the chances are that you are expecting the project to be quite expensive, and so it is essential that you are pleased with the results once the project is finished. Once you have got architectural designs which you are happy with, and once you have obtained all the necessary planning permissions, it is very important that you choose a commercial construction company that you are happy with, to carry out the work that is required. Many architects will actually be associated with a commercial construction company, or have a few favoured commercial construction companies which they will be able to recommend to you, but if that is not the case, then here are a few tips to help you choose a commercial construction company to help you to complete your project to a satisfactory level.

Shop around to find the best quotes for the work you need doing, but be wary of any quotes which seem a little too good to be true – in the world of building work, anything that seems too good to be true, probably is! When you take into account the cost of sourcing all of the building materials and paying the construction workers a fair wage, the only way to achieve some of the ridiculously low quotes on offer is to cut corners. It is often the case that you will either end up with a substandard piece of work once it is completed, or you will be stuck with lots of hidden surcharges at the end of the construction process. If you are still tempted by a very low quote, try to find any reviews of the company’s work to see whether anyone else has had good or bad experiences with the company. Take careful note of reviews which mention whether the construction company delivered their work on time and on budget.

Once you have got a short list of potential construction companies, begin to discuss your project with them in more depth, and then ask them further questions about the initial quote which they offered to you. Make sure that you ask about any additional costs which you could potential incur. It is not uncommon for large scale building costs to go over budget by 10 per cent, but any more than this is cause for alarm. It may be worthwhile to ask to see the construction company’s previous portfolio of work and to read any testimonials they may have from their previous clients.

It is also important to check whether the owner of the construction company and the foreman of the building crew have adequate knowledge about the local rules and regulations for building commercial properties in the area. It is not unusual for builders to have to deviate slightly from the approved designs, but if builders are forced to make small alterations, it is up to them to ensure that these alterations adhere to all local building rules and regulations.

Tips on How to Save on Commercial Construction Costs

Reusing the right items whether you are constructing a new office building or doing a retrofit can save you on commercial construction costs. We are all aware that construction expenses have skyrocketed the past few years and almost all contractors are looking for ways to save. This is the reason why most owners would rather go with redoing their existing office than constructing anew. The good news is you can save a lot of money if you know how to make use of whatever materials or equipments you have.

There are many business entities out there that do a lot of remodeling or revamping of their existing chain of stores. While working on their construction retrofit, they would come across items that are not useful to them anymore. What they do is to donate a large amount of these materials from their renovation to charities and write off their donations when filing for their income taxes with the IRS. This, in itself, can already save them on their commercial construction costs. Those items that are in good condition can still be used in their new commercial building.

Those items that were donated to charities like the Habitat for Humanity which is an international non-profit organization that construct affordable housing to people in need, can be sold at a lower price. Sometimes these donated items are being used by the organization itself when they are working on a construction project. Either way, anyone taking advantage of these materials will certainly save a lot on their commercial construction costs.

Here are some of the materials that you may reuse:

Existing work stations in the office, as well as, the filing cabinets, desks and chairs. You can also check if the HVAC units are still in good condition. For a minimum amount, you can get it checked to confirm their condition. You can also make use of existing electrical system and panel. Most likely, you just have to rework or keep it in top condition. Unless, of course, there are power component changes that you need to rewire and set it up all over again.

The building or office bathrooms can also be reused. You just need to check out the plumbing system to be sure that it is still in good working condition. If you are renovating a store like a restaurant or any business that has a “back of the house” area, you can certainly save on commercial construction cost by making use of existing shelves or re-grouting the existing tiles. After all, what is important is to make the “front of the house” appealing to bring in more customers. Reusing the “back of the house” area is where most contractors save in construction costs. You can also make use of existing lighting fixtures. Cleaning it up or painting it in different color palette that will complement your new construction design will help you save a lot.

There are so many other materials you can reuse for your construction. So before you even decide to throw away some old items, check if these are things you can recycle or reuse so it can save you on your commercial construction cost. Be sure to use a building contractor with expert knowledge in current building codes. If you ever decide to sell your building, or your restaurant within a building, you’ll need to get a commercial building inspector to evaluate the construction and deem it safe for future usage. So, save money on the materials, but don’t try to cut corners with the building construction itself.

What to Look For in a Commercial Construction Contractor

The overall outcome of any build structure relies on a single, very important decision – choosing the right commercial construction contractor. A poorly selected commercial construction contractor is likely to build a poor quality commercial building that will end up costing more than what was budgeted for and may not be what was originally intended. Therefore, there are a number of important attributes individuals should look for in any prospective commercial construction contractor.

A good commercial construction contractor must always present them self and operate their construction business in a business-like demeanor. A good contractor will respect the schedule of the business owner and always show up on time and ready to do whatever needs to be done that day. They will be competent, organized and able to deal directly with any questions or concerns the business owner may have. They will create a sense of confidence because they will not break any promises. Individuals should look at how a contractor deals with them before they sign the contract. It will say a lot about how that individual expects to be treated throughout the duration of the project.

Communication is a key attribute in any commercial construction contractor. Construction is considered a “people business.” A good contractor is also a good listener and communicator. They will translate the ideas of the individual and their goals into a very workable plan and then provide insight on what can be expected. They will create a strong base for a good working relationship and build positive rapport. If an individual does not feel as though they are communicating with a contractor effectively during the interview process, chances are it will continue through the project.

Commercial construction is a complex task. The contractor needs to demonstrate the experience and skills needed to get the job done. They need to have years of experience before they can manage a large project. There are different kinds of projects and it is important to find a contractor that has the experience in that type of commercial construction work. If they do, ask them to deliver proof in the form of referrals and recommendations.

A good, well established commercial construction contractor will have a professional reputation. This can be determined through the use of references. Ask the contractor to provide references. Have them include not only references for themselves, but any other businesses they may work with, including material suppliers. It is important to know that all companies involved have a professional reputation.

Lastly, look into the business practices of the commercial construction contractor. Ask for a certificate of insurance to ensure they have necessary coverage, including liability insurance and workers’ compensation coverage. Call the insurance company to ensure the coverage has not lapsed. Also check out their licenses and call the state licensing board to see if the license has ever been suspended or if there are any claims against the commercial construction contractor. Make certain they are able to get all necessary building permits and follow all zoning laws.

Our Company was established after recognizing the need for excellence in the construction field. We are dedicated to customer satisfaction and hold ourselves to a high standard of quality services. From preliminaries to completion; our team encompasses, financial assistance, zoning, designing, permitting, and construction, all your construction needs under one roof. We offer all construction services, ranging anywhere from a complete turnkey project to a simple renovation. We have completed many projects such as retail spaces, general offices, warehouse spaces, restaurants, and build-outs.