How to Lease Commercial Real Estate

How to lease commercial real estate can be a confusing issue for most of the entrepreneurs and small business owners. The professional real estate agents often add to this confusion by being diplomatic for their own vested interests. Commercial real estate investments involve a lot of money and an imprudent move can result in a huge loss for the owner. Nowadays most of the new commercial real estate businesses are started by leasing office space, as it provides a cheaper alternative to purchasing a new space. Here are some tips on how to lease commercial real estate.

Develop a Proper Network
Having a proper network of experienced real estate brokers, solicitors, contractors and investors is necessary to find the best deal. It is always good to check out references and arrange meetings with such qualified people, in order to find and execute profitable deals. One can also take the help of local professionals, who in turn can provide useful leads and contacts. It is advisable to read local newspapers and the city newsletters, to understand the various aspects of the real estate market. The knowledge of the current real estate statistics are helpful for the owners to come up with a profitable and feasible lease rent.

Find a Reliable Tenant
It is always important to look out for tenants who have a good reputation in business. In case some damage occurs to the property, the owner has to get it fixed and he/she may have to pay out quite a bit to ensure that it remains in good condition. Tenants that pay late, break contracts, or mishandle the property, can become very problematic at times. Therefore it is advisable for the owner to be a part of the business and get involved with his clients and the building. The investment will undoubtedly collapse if the owner becomes casual about it.

Negotiate for a Profitable Deal
The owner should always keep in mind that the fees money, including the brokerage commission, and the fees charged by accountants, attorneys and engineers, are all negotiable. He should never hesitate to ask for a lower price, as most of the service providers reduce their fees in order to guarantee ongoing future business. As large amounts of money are involved in commercial real estate transactions, the deals can be easily negotiated. The basic concept of a successful negotiation is the knowledge and empathy of each party, with regard to the major issues faced by the other. A balanced perspective is often helpful for a deal, which is good for both the landlord as well as the tenant.

Study the Assignment Clauses in the Lease Agreement
With the increase in number of fraud cases in real estate deals, the owner should careful to read the terms and conditions as stated in the lease agreement. Any doubts should be immediately cleared out with the real estate agent and the tenant.

Annual Increase in the Rent
There is normally a change in the rent of a property, as a fixed rent over longer-term leases is rare. Some landlords opt for an annual increase in the rent, which is based on the percentage increase in the Consumer Price Index (CPI). In some commercial property leases, the increase in the property rent is capped at a fixed percentage annually (say 2% or 3%).

It is good to give oneself some time for the research, in order to avoid a bad investment. There is of course no sure shot way to make a wise investment, but the awareness of market conditions and one’s own finances can help the owner to come up with a profitable lease of his commercial real estate.

Financial Planning Process Steps

Whenever we start a new venture, the first thing that we invariably do is planning. And when it comes to finance and business, needless to say, planning becomes an indispensable activity. So what is financial planning? Financial planning can be termed as a process in which financial needs are assessed first, objectives to achieve monetary goals are set (which include investments) and assets and resources are evaluated and ways to increase them are devised. Why is financial planning important? Of course! This is important! This activity not only allows the person to learn about planning his finances but also helps him understand the importance of cash flows and investments that come handy in the most unexpected situations. How is financial planning done? Yes, this is what this article is all about: the financial planning process steps! Keep reading.

Steps in Financial Planning

Financial planning is an integral part of financial management. This activity requires a lot of study and research, before one goes about drawing a plan and implementing it. Not to miss an important point on this subject, risk assessment is an integral part of any planning. So let’s understand the key financial planning process steps. Below are the key steps to consider in your financial planning process.

Identifying Financial Needs
The primary responsibility in the financial planning is conducting a need analysis. An investor has a number of needs of which he needs to prioritize the important ones and plan accordingly. The important goals which are preset are, education of children, down payment of a house, health requirements, life insurance and retirement. Following these needs are the means to increase the wealth in terms of cash and property. Also a person needs to have concrete answers for the following questionnaire:

• What are your investment goals?
• How much money do you have for investments?
• Do you invest in stocks, bonds and mutual funds?
• Are your financial needs short term or are you headed for long term financial planning?
• What benefits are expected from your investments?

Gathering Financial Data
Now that you have identified the financial needs, the second step should be to consolidate your financial planning worksheet to understand your cash flow, investments and liabilities. This can consume a day to week’s time depending on your needs. Take the help of a financial planner who would help you out with this marathon. The documents needed for this process would include:

• Assets, Liabilities, tax deductions and tax returns
• Balance sheets
• Income and expenditure statements
• Employee benefit plan booklets
• Retirement planning documents
• Wills and trusts
• Insurance policies
• Investment statements
• Brokerage house statements
• Bank statements

Besides, the planner will also require some more data like:

• What is your retirement age?
• What income is anticipated post retirement?
• How would you want your property to be distributed?
• What is the current economy state and where is it headed towards?
• How much inflation can occur in near future?

The planner will also make a risk tolerance assessment of your personal attitude (aggressive, moderate or conservative) towards financial affairs and at the end of the data gathering process, he is bound to get a hang of what is your current financial state and what it will be or can be in near future.

Developing the Financial Plan
Here starts the actual work of your financial planner who has to devise effective means of developing a fool proof financial planning process. Steps to develop the financial plan start with the following:

• Documenting your plan to fulfill protection, health and retirement. Also wealth creation and preservation requirements are included.
• Explaining to you about the pros and cons of every rationale included in the plan (keeping in mind the risk appetite of the investor: you).
• Understanding the tax laws and the financial operative framework of the system.

Presenting the Financial Plan
Once the financial plan is well documented, your financial planner will proofread it and present it to you. In the first round of presentation, you have to study the documentation thoroughly, with your spouse. Take your time, and if you have doubts, jot them down in a list and pass them on to your planner. He will give you clear answers for all the doubts raised and then once you have agreed, the planner will make an implementation checklist. So the next mode of the financial planning is implementing the well documented financial plan into action.

Implementing the Financial Plan
This is a pivotal phase of the financial planning process steps. And also this period takes longer time (approx. 4-6 months) than the previous stages of the financial planning. During this phase, intricate details like tax planning, retirement planning, insurance concerns and estate/property planning are discussed thoroughly. To get a clearance on certain issues, attorneys may be involved for guiding and helping out with certain queries. Quite possible, that at the end of the implementation, your financial plan may have more than 20 recommendations (of which some may be major and strategic). So, it depends on you and your planner as to how you want these recommendations to be incorporated. But yes, your financial plan is now ready!

Monitoring the Financial Plan
Once the plan is on roll, it does not mean that the financial planner is required no more. He has to be retained to provide you with periodic updates on portfolio reviews, insurance updates, investment options, tax planning sessions and changing market conditions. Besides, you need to keep your ears open to the planner’s alerts on risks that can possibly crop up due to fluctuating economical conditions.

Hope this article on financial planning process steps was informative! So now, you might have understood the importance of financial planning and also you must have understood personal financial planning process steps! One could say, if the planning is complete, your job is halfway done! So, prepare your financial plans meticulously and reap the financial benefits. After all, every penny invested is every penny earned!

How to Break Up With Your Girlfriend in a Painless Way

Every relationship comes with its share of ups and downs. However, when a relationship hits a downward spiral for a long time, it can only reach a dead end. A break up is not an overnight decision. Signs of a crumbling relationship are seen way long before the split actually happens. Although both the partners realize the problem, they shun away from recognizing it. This leads to mounting disputes which remain unsolved for a long time, causing the rift between the two to widen. Unresolved differences creates misunderstandings between partners, stretching the fabric of love, faith and trust till it hangs on the weakest thread. Despite the ongoing problems, couples find it difficult to break away and move on with their lives. After all, a break up is an emotionally draining process. So, how to make a break up as painless as possible? Let’s find out…

Making Break Ups Painless

Recognize Problems
A relationship that’s not working smoothly comes to an abrupt end. It is always a relationship which is reeling under pressures of misunderstandings that nears the end. If being together is causing constant unhappiness, fights, stress and depression, there is no point to hang in there. After you’ve made efforts to salvage the relationship, it is time to recognize the root cause of all the problems and act on them immediately. First, accept the problems, analyze your mistakes, introspect to know where your partner went wrong and then point them out to your partner. After this, if the relationship continues to deteriorate, it is time to reason out the breakup, but first, in your mind.

Distance Yourself
If you are clear in your mind that you do not want to be with your partner anymore, start distancing yourself. Make small changes, by allowing yourself and your partner some time away from each other. This way, your partner will also get an idea and the emotional dependency on each other will also reduce. Pursue your hobbies and interests, hang out more with your friends, spend more time with your family and give yourself some time out from the relationship. A painless break up is a result of deliberate effort of moving away from each other. Unless and until, you don’t initiate the distance, the comfort zone of being together despite the issues will never be lost and both of you will be stuck in a limbo.

Give Hints
Instead of dropping a bomb shell, give your partner hints about the break up since the time you’ve decided to part ways. Initiating talks about relationships that fall apart or giving examples of couples who’ve got divorced, will help your partner to understand the resemblance and pattern of a breaking relationship and the relationship both of you share. A sudden news of break up can devastate your partner and make it stressful for everyone around you.

True Reasons
Before you tell your partner, you need to think for yourself, the reasons for breaking up. When a relationship hits a rough patch, we begin to see the negative aspects of our partners and start recognizing traits that cause incompatibility. Thus, make a list of reasons and weigh them out in your head, before you tell your partner anything about the reason. You need to be extremely honest with yourself, while reasoning it out. Break up on the basis of a lie or without giving your partner the real reasons, will never give either one of you a justified closure.

Once you’ve tried salvaging your bond, recognized the problems, distanced yourself emotionally and physically and have reasoned the reasons for breaking up in your mind, it is time to deliver the final talk. Fix a meeting with your partner and make sure both of you have ample of time to talk, as the news is going to stir emotions no matter how much you want the otherwise to happen. Be polite and explain to your partner the reasons why you are breaking up and allow your partner to speak her mind. This way, both of you will get a complete closure and moving on will be a lot easier.