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Marabella Commercial Finance Closes 12th Walgreen Permanent Loan Transaction

Carlsbad, CA (PRWEB) April 24, 2007

Marabella Commercial Finance, Inc. who specializes in arranging permanent, construction, bridge and equity financing for Net Lease Properties and Large Anchored Centers has arranged financing for their 12th Walgreen Net Lease Property transaction.

With the huge wave of Baby Boomers reaching retirement age, the demand for pharmaceutical goods is expected to increase dramatically over the next 20 years. Walgreens, one of the market leaders in the retail pharmaceutical segment is developing stores at a rapid pace to meet this demand through their local area developers.

Many of the local area developers are then selling the properties to 1031 Exchange Buyers who are mostly between the age of 40 to 80 years old (Baby Boomers themselves). Many of the buyers of the Walgreen properties like the fact that in most cases the leases are triple net and their Landlord Obligations such as taxes, insurance and maintenance of the building are minimal. Although a buyer/borrower should always have their attorney review the lease terms to verify that the property they are considering is true triple net and does not require Landlord Obligations. This is attractive to active Baby Boomers who are selling high maintenance properties such as apartments that require a significant amount of property maintenance and attention on the part of the Landlord. Active Baby Boomers who are planning on retiring like the fact that they can purchase a Net Lease property which gives them a cash flow to meet their retirement needs and gives them the freedom and security that they desire in their retirement years. The properties also allow the buyers to meet their 1031 exchange requirement even though it acts like a bond in most cases but it is real estate. http://www.marabellafinance.com

Many of these Baby Boomer Exchange Buyers are seeking leverage to gap the difference between what they are paying for Walgreen Properties and what they are putting in to the transaction as a down payment. Since Walgreen has a Shareholders Equity amount of approximately $ 10 Billion there is a variety of loan programs that are available to the Baby Boomers who are seeking the Walgreen 1031 Exchange properties.

For the Walgreen transaction that Marabella Commercial Finance most recently arranged permanent financing the buyer was seeking an 80% loan to value and the loan amount came to approximately $ 3,530,000. The buyer desired cash flow and requested a 10 year interest only loan and the rate was priced at 108 basis point spread over the 10 Year On-The-Run U.S. Treasury Yield. Early on in the transaction the rate was locked at approximately 5.77%. The contract had a very short due diligence period with no financing contingency, Marabella Commercial Finance with the assistance of the buyer / borrower worked seven days per week for the first two weeks of the transaction to insure that a commitment would be delivered within the buyers 29 day due diligence period since deposit monies were at risk. The transaction was closed in approximately 59 days from the time the borrower applied to the direct lender and sent in the Good Faith Deposit Monies to the direct lender. The buyer was very sensitive to loan closing costs due to a past transaction where the direct lender did not disclose costs associated with the loan for that transaction. To ease the borrower / buyers mind Marabella Commercial Finance gave the client three different loan quote alternatives with three different direct lenders and broke down all estimated costs for the transaction for each different loan structure / direct lender giving the client a complete understanding of the total estimated cost for each loan before the client applied with any of the three direct lenders that were introduced to the client by Marabella Commercial Finance, Inc.

For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Christian S. Marabella President of Marabella Commercial Finance or visit http://www.marabellafinance.com.

About Marabella Commercial Finance

Marabella Commercial Finance specializes in arranging permanent, construction, bridge and equity financing for Net Lease Properties and Large Anchored Centers.

Contact:

Christian S. Marabella, President / Originator

Marabella Commercial Finance, Inc.

(760) 479-0800 or 24/7 cell phone (760) 803-6464

http://www.marabellafinance.com

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How to Nail Your First Income Property Transaction
Discover the truth about property transactions!

As a residential agent, you overcome the largest hurdle and are well on your way to closing your first income property deal once you make the decision to sell multifamily property: The desire to sell more than houses is foremost.

In this article, I’ll show you four things you must now do that will help you seize every opportunity, perhaps avoid missed opportunities, and maybe bypass months (perhaps years) of trial and error before you close and subsequently collect your first rental property sales commission. It’s not exhaustive (there are other factors, of course). Nonetheless, if heeded, they are guaranteed to get you started on the right foot.

1. Learn some basic terms and formulas. After numerous years of assisting residential real estate agents frantic for rental property advice, I strongly recommend that you understand just two real-estate-investing-related terms (and/or formulas) in the beginning. Comprehension of other terms and formulas can wait and follow later.

The APOD

An APOD is a report that shows the income, expense, and cash flow of an investment property for the future first year of the property’s operation. It’s an assumption because it’s based upon current property data subject to change; but it does provide a good “snapshot” of property performance during the first year of ownership. APOD is an acronym for Annual Property Operating Data (in case you’re wondering).

Cap Rate

Understanding how cap rate (or capitalization rate) is calculated is likewise paramount to working with rental income property. You will start hearing the term and seeing the return used almost the instant you start working with investment real estate. I’ll forego the textbook definition and cut to the chase: Here’s the calculation (memorize it):

Net Operating Income (NOI) divided by Sale Price = Cap Rate

2. Learn the typical cap rates for you local market. Conduct your own comparative market study.

Dig through your local MLS to determine what capitalization rates income-producing properties are listed and/or sold. This calculation is commonly included in rental property listings and if not, make the calculation yourself (you only need the property’s net operating income and sale price). If the listing doesn’t show the NOI then derive one by computing the gross income less about 45% for vacancy allowance and operating expenses. If gross income data isn’t provided, you can either call the listing agent or simply decide to move on to the next property.

Ask a real estate appraiser. Call around until you find someone who appraises income property and ask about typical cap rates for multifamily and commercial properties in your area. Appraisers are an excellent resource for local market conditions. While you’re at it, be sure to subscribe to their newsletter if they provide one: Sometimes they include surveys and other income property data you will find useful.

Ask a real estate professional. If you know an agent that specializes in multifamily and commercial properties, buy him or her a coffee and start a discussion. If they are truly active with multifamily property and you know them well enough, you should get lots of good information about your area’s rental property activity and capitalization rates.

3. Invest in real estate software. Yes, it sounds like a shameless plug for my real estate investment software, but not so (honest). Having sold income property for nearly twenty years, I can attest that quality cash flow presentations got me listings, sales, and real estate investor customers time and again. Truly, you would be wise to invest in real estate software (some software) that enables you to create real estate analysis and marketing presentations. Consider it a way to develop your real estate investing knowledge and at the same time as a tool to advance your income property business.

4. Let others know you work with rental property. Once you master steps 1-3, call your residential customers and alert your colleagues. You might be surprised how quickly you benefit having them know about your interest and commitment to investment real estate. It regularly prompts existing customers to discuss real estate investing opportunities more openly and colleagues to give you multifamily referrals. It’s not magic, but the steps above will put you ahead of the pack in most offices and therefore the traction to move on the fast track toward your first income property deal.

Here’s to your success.

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