The Denver Metro Commercial Association of Realtors (DMCAR) held an event October 29th at Denver's Hyatt Regency hotel for the inauguration and installation of officers. The members welcomed the incoming President, Eric Nesbitt, and the new DMCAR leadership. In addition, the outgoing Directors of DMCAR were recognized and given a thank you for their work.
Nesbitt remarked that as President he would do all he could to build upon the achievements of the association's previous Presidents and will seek to deliver the same level of outstanding service. In the coming year, he plans to place a focus on enhancing member benefits in addition to implementing additional member resources.
Nesbitt is President of The Nesbitt Group, a real estate attorney, real estate broker and Director of KW Commercial. Additionally, he serves on the newly created Commercial Leadership Council, a group of North American commercial brokers selected to guide KW Commercial.
DMCAR, with more than 2,000 members, is one of the largest commercial real estate trade associations in the United States.
At a recent Denver Metro Commercial Association of REALTORS® (DMCAR) Industrial and Land Marketing meeting the speaker was Brandon Rogers of Terrix Financial. Mr. Rogers spoke to the group of commercial real estate brokers about the current state of commercial lending in the Denver market. Terrix represents insurance companies as well as in-state and out-of-state banks for commercial loans. His initial description of the market was summed up in one word: "chaos." Even though the word "chaos" best describes the current market Rogers went on to say that it is not all doom and gloom.
Rogers adds that many lenders are gone and more are just sitting on the sidelines waiting for more normality. A few words to describe commercial loans in this climate: lenders are more conservative, loans are harder to get than 12 to 15 months ago, loans are on a case-by-case basis, lenders are looking more at the property itself, location, visibility, access, etc.
Insurance companies are conservative as always looking for stable properties. Rogers says that money has freed up some in the last 2 weeks for apartments, industrial, and office. Banks are doing 70 to 75% loans.
On the customer side, borrowers are looking to bridge the 24 to 30 month time frame until commercial credit frees up.
"Some lenders are still allowing seller carry back seconds. Some lenders look at the debt coverage ratio of both the first and second and others don't," according to Rogers.
Fees may increase some since there is less competition as lenders withdraw from the market.
"The deals are harder but they are getting done despite what the media says," says Rogers. "There is money still out there."
Throughout history, from ancient Hebrew Proverbs to the modern Donald J. Trump, we have advice from the men and women who have become successful by investing in real estate. As you read the following quotes, you may note, as I did, there is a genuine love and respect for real estate coming from these famous people. Enjoy...
"Don't wait to buy real estate. Buy real estate and wait." -Robert G. Allen
"Why put your money in the stock market when over 95% of the wealth in this country was, and still is, being made with real estate?" -Unknown
"Don't wait to buy land, they aren't making any more of it." -Will Rogers
"It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate." -Donald Trump
"The land is good. Be not hesitant to go, and to enter to possess the land." -Judges 18:9, Old Testament
"The major fortunes in America have been made in land." -John D. Rockefeller
"I made a tremendous amount of money on real estate. I'll take real estate rather than go to Wall Street and get 2.8 percent." -Ivana Trump
"Landlords grow rich in their sleep." -John Stuart Mill
"Ninety percent of all millionaires become so through owning real estate." -Andrew Carnegie
"I bought properties inexpensively and made a lot of money. I began to think it was easy." -Donald Trump
"He is not a full man who does not own a piece of land." -Hebrew Proverb
"God, please just give us one more real estate boom." -Steve Hewson
"Remember, anyone can do it--not everyone will. The only question is: Will you?" -Gary Keller in The Millionaire Real Estate Investor
KW Commercial, Denver, Colorado is pleased to announce that Steve Hewson has been named as a Director in the recently launched KW Commercial division of Keller Williams Realty.
Hewson is also a member of a newly formed KW Commercial Group in the Denver-Boulder Metro area along with experienced commercial realtors, Dennis Quinn and Steve Bimm. The Commercial Group's market specialties include office, industrial, retail, land, investment, and multi-family. Their commercial services provide for brokerage, leasing, residential and commercial development, consulting, property management, and M&A business brokerage.
The requirements for a KW Commercial Director include a recognized level of experience and volume of closed transactions, client and customer references, and a commitment to a high level of commercial real estate education.
As a Director at KW Commercial, Hewson will bring a new focus to developing and marketing the commercial division's capabilities in the Colorado marketplace. In addition, he will be involved in training and educating other real estate agents. "I look forward as a Director to working with this newly formed commercial division within Keller Williams Realty", commented Hewson. "It provides an opportunity to bring a vast set of resources, training and an extensive agent network to assist our clients."
Metro Denver's commercial real estate market continues to be a bright star among large U.S. cities. National and international investors have Denver on their radar screen for investment. Commercial transaction volume is down from the prior year but Denver continues to be a strong market. Absorption continues to be positive, lease rates steady to up, and vacancy rates for industrial, retail and office remain low.
The subprime meltdown of residential real estate has spilled over into commercial financing. Even though commercial properties have an extremely low national foreclosure rate, lenders have increased their down payment requirements and tightened underwriting criteria. Commercial loans are still available to higher quality borrowers. However, the borrowers who need higher leveraged transactions are finding it difficult to finance the transactions. Commercial mortgage brokers are working harder than ever to match up borrowers and lenders.
While most Denver area sub-markets are doing well, the Denver-Boulder I-36 corridor is the one attracting most of the attention. With the announcement of the coming ConocoPhillips move bringing 7,000 jobs to the area, commercial real estate is hot in this sub-market.
Fort Collins Real Estate merges with Keller Williams (September 2008). Fort Collins Real Estate is joining forces with Keller Williams of Northern Colorado to create the region's only full-service residential and commercial company under a single roof, according to Keller Williams Operating Principal JoAnn Johnston. The merger represents a ground-floor opportunity to launch Keller Williams International's new commercial division in Northern Colorado, said Mike Jensen, who has owned Fort Collins Real Estate since 2003. Fort Collins Real Estate specialized in commercial, investment and residential real estate. Keller Williams of Northern Colorado has offices in Fort Collins, Loveland and Greeley, focusing primarily on residential sales. Fort Collins Real Estate's 25 brokers and agents will join KW's force of 192.
In this financial climate, investors need to re-think their allocation of assets between cash, stock, bonds and real estate. We recommend revisiting the 6 advantages of investing in income properties:
Leverage. Investors receive two benefits from using leverage (OPM-Other People's Money). First, the investors have a high percentage rate of return on the invested capital. Second, the investors can grow their real estate investments and wealth to much higher levels with the use of leverage.
Cash Flow. After the payment of expenses, debt reduction and taxes, investors have cash flow to re-invest in the property, buy the next investment, or distribute to the investor(s).
Appreciation. Through the use of leverage, inflation, and the laws of supply and demand investors achieve higher returns and growth than stocks, bonds or cash.
Tax Benefits. When investors dispose of the property they pay a lower capital gains rate than the taxes paid on ordinary income. Investors can defer taxes through the use of 1031 exchanges. Along with deductions for all of the property's expenses, the tax laws let investors deduct depreciation from income to reduce their tax bill.
Reduction in Principal. The income payments that investors receive are used to pay off the investor's mortgage by monthly principal payments, i.e. principal reductions.
Value Creation. Investment properties will increase in value through property improvements that allow for rent increases, thus increasing the value of the property.
"Don't wait to buy real estate...Buy real estate and wait." Robert Allen
"Our goal is to expand our platform and make Keller Williams Realty the real estate company of choice in both the residential and commercial worlds by providing our associates the technology, marketing tools, and resources to succeed in the commercial business," said Mark Willis, CEO of Keller Williams Realty. "We want to create synergy and referrals between the residential and commercial sides of our Keller Williams offices, increasing the income and production potential of all our agents."
Buddy Norman, a veteran of commercial real estate has joined Keller Williams as president of the new division. Norman has more than 18 years of experience in the commercial real estate industry, including leadership within international firms, such as The Staubach Company and Burnham Real Estate, which was acquired by Cushman & Wakefield. He has led the development of new business divisions and trained commercial agents all over the U.S. including Dallas, Atlanta, Washington D.C. and San Diego. A consistent top producer, Norman has averaged approximately 400,000 square feet per year of commercial leasing and sales transactions over the last 10 years."
"There's such a wide spectrum of commercial real estate experience within Keller Williams Realty," said Norman. "We intend to build a strong commercial division paralleling the success and growth of the Keller Williams residential division."
Buyers, sellers and investors of real estate are asking us and themselves this week, "What should I do during the financial turmoil we are hearing this week? Here are a few of our thoughts.
Study the markets, interest rates, financing, economic forecasts, inflation, recession and more. Read, listen and ask real estate professionals for their opinions about the local market so that you are prepared to make the right decisions. Surround yourself with reliable experts.
Now is NOT the time to be making emotional decisions. Now is the time to make well-thought out financial decisions.
Our advice is to continue with what you are already doing. There is not a reason to just freeze. If you are a buyer or investor searching for a residential or commercial property, you can continue your search. Even if you decide not to purchase at this time, at least you have been learning about the real estate that is on the market so you become the expert when the time is right for you. In this market, you might find the ideal property that represents an excellent value proposition and that perfectly meets your needs. If you are able to purchase at a deep discount to market prices, you will limit your downside risk. You're not committed to a financial transaction until you sign a contract.
If you are a seller, you can keep the property on the market. If you take it off of the market you may miss the ideal buyer. Qualified buyers can still find financing despite what you may be reading or hearing. Yes, the financing is only available to qualified buyers, but that's the way it should have been all along. If you are selling you will need to be realistic about the price you are asking. When pricing your property in a rising market, you want to price ahead of the market. Pricing in a declining market also requires you to price ahead of the market, only on the downside. This way you are keeping ahead of the sellers who represent your competition.
Announcement from Keller Williams International: "Our goal is to expand our platform and make Keller Williams Realty the real estate company of choice in both the residential and commercial worlds by providing our associates the technology, marketing tools, and resources to succeed in the commercial business," said Mark Willis, CEO of Keller Williams Realty.
"We want to create synergy and referrals between the residential and commercial sides of our Keller Williams offices, increasing the income and production potential of all our agents."
Buddy Norman, a veteran of commercial real estate has joined Keller Williams as president of the new division. Norman has more than 18 years of experience in the commercial real estate industry, including leadership within international firms, such as The Staubach Company and Burnham Real Estate, which was acquired by Cushman & Wakefield. He has led the development of new business divisions and trained commercial agents all over the U.S. including Dallas, Atlanta, Washington D.C. and San Diego. A consistent top producer, Norman has averaged approximately 400,000 square feet per year of commercial leasing and sales transactions over the last 10 years.
"There's such a wide spectrum of commercial real estate experience within Keller Williams Realty," said Norman. "We intend to build a strong commercial division paralleling the success and growth of the Keller Williams residential division."
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
The Denver Metro Commercial Association of Realtors (DMCAR) held an event October 29th at Denver's Hyatt Regency hotel for the inauguration and installation of officers. The members welcomed the incoming President, Eric Nesbitt, and the new DMCAR leadership. In addition, the outgoing Directors of DMCAR were recognized and given a thank you for their work.
coming year, he plans to place a focus on enhancing member benefits in addition to implementing additional member resources.
Metro Denver's commercial real estate market continues to be a bright star among large U.S. cities. National and international investors have Denver on their radar screen for investment. Commercial transaction volume is down from the prior year but Denver continues to be a strong market. Absorption continues to be positive, lease rates steady to up, and vacancy rates for industrial, retail and office remain low.
In this financial climate, investors need to re-think their allocation of assets between cash, stock, bonds and real estate. We recommend revisiting the 6 advantages of investing in income properties:
Buyers, sellers and investors of real estate are asking us and themselves this week, "What should I do during the financial turmoil we are hearing this week? Here are a few of our thoughts.
Announcement from Keller Williams International: "Our goal is to expand our platform and make Keller Williams Realty the real estate company of choice in both the residential and commercial worlds by providing our associates the technology, marketing tools, and resources to succeed in the commercial business," said Mark Willis, CEO of Keller Williams Realty. 
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