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Commercial Real Estate Sales & Leasing
What is “Commercial Real Estate?” How does it work?
“Commercial Real Estate” is a broad phrase that refers to essentially all real estate that is not owner occupied singlefamily residential property. It includes office, retail, industrial, multi-family residential, development land, land upon which agribusiness or forestry operations are performed, lodging, recreation and many others. Commercial Real Estate Brokers facilitate a wide range of real estate transactions including, but certainly not limited to: sale of property to an owner / user; sales of properties to investors; leasing of offices, retail or industrial spaces; locating and negotiating locations for cellular towers; facilitating options, first rights of refusals or sale /leasebacks; reconciling triple net charges, negotiating mineral leases, or managing any of the various commercial property types. Commercial brokerage also includes sales of businesses with or without real estate, zoning compliance, site analysis, and asset preservation. Obviously, no individual can be expected to be proficient in all of these competencies and the dozens of others that are collectively referred to as “Commercial Real Estate.” Specialization to some degree is mandatory. At Nicholson & Associates, LLC we specialize in sale, leasing and management of retail, office and multi-family properties.
From REALTOR.COM:
How Buying Property With Your IRA Works
First, you need a self-directed IRA fund. As the name implies, all investment decisions using your IRA are made by you, instead of the IRA holder. But while you make all the decisions, you need a custodian to make investments on your behalf.
Custodians are companies “strictly there to manage the transaction, the paperwork and the reporting,” says Denise Winston, financial expert and author of Money Starts Here! Your Practical Guide to Survive and Thrive in Any Economy.
Custodians will also charge fees related to administrative and reporting purposes, and they don’t give direct advice.
“They may have a seminar, a report or some articles to help you be a better investor, but the deal is the liability relies on us, as a consumer,” Winston clarifies.
You also aren’t limited to buying a house with your self-directed IRA. Some investment examples include these property types:
Vacant lots Parking lots
Mobile homes Apartments
Multifamily buildings Small businesses
Boat slips
Avoid Pitfalls
Self-directed IRAs can get tricky, and if you’re not careful, you can wind up in a sticky situation.
For example, don’t expect to live in your property until you retire.
“This is not any kind of personal transaction,” Winston says. “This can’t be a primary, secondary residence or a vacation residence. It strictly has to be a business transaction.”
Neither you nor your immediate family can benefit from the investment before you reach the IRA’s distribution age. If you do, you’ll be slapped with a tax penalty and could have your IRA invalidated.
Everything you use to fund an IRA investment property must come out of your IRA. Likewise, money that comes out of the investment property must be given back to your IRA. So if you buy an apartment and rent it out, that rent money must go back into your IRA—not your wallet.
Similarly, if your investment property requires repairs—like a new water heater—you need to use your IRA to pay for it. If your apartment isn’t rented for months, you’ll still have to use your IRA to pay for the taxes.
“If you don’t have a reserve in there, you have a big problem on your hands,” Winston adds.
How do Leasing Agents and Tenant Reps differ?
The difference between a leasing agent and a tenant rep is to whom they owe a fiduciary duty. A leasing agent represents the owner of the property and is legally bound to work in the best interest of and under the direction of the owner. A tenant rep represents the potential tenant and is legally bound to work in the best interest of and under the direction of the potential tenant. The duties of a real estate broker and the duties and responsibilities owed to the client are defined by state statutes. While a Real Estate Broker is required by law to deal fairly and honestly with all parties, he owes a legal fiduciary duty to the client – the party which the broker represents. Some states, including Arizona, allow a broker to represent both parties but place strict restrictions on what the broker can do or say. Both parties must agree in writing for this arrangement commonly called dual agency. The result is that neither party is really represented in the negotiations. The broker acts as a facilitator only. At Nicholson & Associates, LLC, we represent both owners as leasing agents and tenants as tenant reps. We try not to represent both parties. Frequently, when we represent an owner as a leasing agent, our marketing will attract potential tenants that want us to represent them; we are careful to explain to them that we represent the owner and that the tenant is representing himself. If the tenant desires professional representation after determining that the available space may work for him we will refer him to another competent brokerage. If the space we have available is not suitable for the tenant, we are certainly happy to help him find suitable space in properties that we do not represent. Only then will we commit to being his tenant rep