Can your Landlord stop you? COMMERCIAL real estate

Can your Landlord stop you from opening another business?

 

He sure can. If your lease contains a “radius restriction” or a “non-complete clause”, that Landlord can hold you in default of your current lease if you open up another business too close to your existing one.

 

These clauses, along with several others, appear to be common terms and often overlooked in retail leases today. With the explosion of strip malls and nation-wide companies filling these centers, the Landlord’s realize that if one business is too close to another, it will divide the traffic from his space and his building will appear less popular. Which in turn, decreases the amount of rent he can demand, because he doesn’t have the proven traffic. Therefore, Landlords have installed these radius and non-compete clauses into their leases to maintain the popularity and rental rates at his center. These clauses are especially important to the Landlord if he is getting a percentage of the sales profits from that Tenant as rent.

 

It is extremely important for you to review your lease with a professional for explanations of terms and advice on how to negotiate that lease. The Landlord will generally always have the Lease structured to his/her benefit, but hey, they own the building and are afforded that luxury. Remember, in most cases, the Tenant has the ability to negotiate terms of the lease with the Landlord in order to come to a more bilateral agreement.

 

Posted by:

Neil Dailey

The Baskin Real Estate Specialists

918-258-2600

Getting through the foreclosure process

Could it be that more than 50 percent of all people in foreclosure loose their investment because they can not utilize the mortgage banks phone system? When we are working with a home owner in foreclosure or bankruptcy to sell a piece of property we first begin by evaluating the phone system. If you are delinquent and behind in payments your account number can be flagged for collections. Like most automated systems you are requested to enter in personal information which will usually include your account number and or social security number, this is to route your call to the appropriate ( or sometimes not so appropriate) department. Mortgage companies have two different departments with two specific responsibilities regarding your loan, Loss Mitigations and Credit & Collections. Once you have reached the collections department typically you are not going to get an opportunity to negotiate your situation ending with a favorable out come. However, if you hold out for a live person with out revealing your personal information and request the Loss Mitigations Department, you have a chance to speak with some one who's job is to negotiate with you the terms and arrangements of your loan and explorer a the possibility for grievance or grace period. This should establish an avenue to salvage your loan and avoid a foreclosure or bankruptcy on your credit report.

Amy J. Maples
Baskin Team Real Estate Specialist
918-260-5522 (Cell)
918-259-5804 (Direct)

Was 2005 Good to Your Home

Was 2005 Good to Your Home’s Value?

 

Why are so many Tulsa area homeowners smiling? Perhaps they’ve just seen the latest numbers for area home values.  The Tulsa metropolitan area has benefited from an increase in average home values of 5.5%.  While not the rate of some booming areas of the country, Tulsa’s 2005 rate of increase is 1.7% higher than any year since 2000.  This increase is a very normal rate of appreciation for the United States and is an indication of a healthy market for Tulsa.  The cumulative home appreciation since 2000 has been 13.5%.

 

Does this mean you should cash-out and move to a larger home?  Consider the investment side of the equation.  Waiting to buy a new home because you “have to have more money” for your present home simply means the home you plan to purchase will increase in value as well.  In a circumstance where you plan to “move up” to a larger home, waiting is detrimental.  It stands to reason that profiting from a 10% value increase on the $300,000 home you are planning to purchase ($30,000) is far better than a 10% increase on your present home of $150,000 (or $15,000).  Waiting to purchase a home in this instance costs you $15,000.

 

The best time to downsize, however, is when the real estate market is depreciating so that the biggest loss is on a smaller property.  Smart real estate investors use these cycles to buy and sell to work towards their real estate goals.  Individuals can smartly use the same cycles to gain greater wealth in their real estate holdings. The real trick is knowing which cycle you’re in and how long it will last.

 

Determining your home’s value is not as simple as adding a percentage to what you paid for it.  Wear and tear, style changes and trends in area values will cause tremendous swings in values.  Your primary concern should always be your competition.  What can a home buyer get for the same money you are asking for your home?  This simple question holds the secret to why some homes don’t sell and others fly off the market in a matter of hours.  Pricing is one of the critical phases which calls upon the expertise of your real estate professional.  “Removing the emotion from the decision is very important to determining the right price,” says Jerri Sell-McNair, Listing Partner for the Baskin Real Estate Specialists.  “Children have grown up in your home, family got married there, the wallpaper was a custom design – things home buyers won’t pay more for.  A good real estate professional will size up the competition and help a seller position their home at a price level that makes buyers WANT to buy it without leaving any money on the table.”

 

The statistical information referred to in this article is available by emailing info@darrylbaskin.com or calling 918-258-2600.

Jenks housing glut?

I was recently searching the Jenks, Oklahoma housing market to find that over 57 properties were available in the price range of $300,000-$350,000. While having some difficulty selling a property in this price range, I searched to find out why. There are plenty of homes to choose from. While other areas of the market have what almost seems to be a shortage, there are plenty to purchase in this segment. Great for home buyers who want to negotiate because they have others to choose but not great for home sellers who are looking to capture the interest of home buyers. This is not likely to last long as the spring market tends to bring out buyers and drop the available inventory.