consigliere

mac or pc? for commercial real estate

So I have been thinking about moving away from windows and going to Mac after good experiences with my wife's macbook. I was 90% sold on mac but I, being in commercial real estate where most programs (and websites) are windows "picky" I needed a little help from my friends.... The email I sent out on CCIM Mailbridge is below along with the replys from other CCIM commercial real estate professionals.

I am now 100% swithching to mac. I am going to get a mac book pro, cinema docking monitor, time capsule and use mobile me to store files on idisk and be able to access the hard drive copy of my mac book pro which will reside on the time capsule and then accessed through mobileme. That is kind of a circular sentence but that is why the system is so cool. Until I can get the time to make the hardware switch, I have upgraded my wife's tiger to leopard and ilife as well so I can become an "expert" with the OS before the big switch.

Thank you fellow CCIM's for the great responses! What an amazing network!

Original Email:

Are any of you using a Mac for your primary computer?

I have been using my wife's macbook by night and my pc by day. I am now convinced that mac is easier, faster, more secure, smarter and overall a better user experience. And with the new MacBook Pro, Leopard OS combined with their mobileme (online account) and time machine (auto real time back up) it is now time to make the switch.

I was wondering what people's experience were with using mac with windows (boot camp or VMware), ms office for mac and other buisness and/or real estate programs that normally are windows based. What about using the CCIM xls forms with mac....good, bad, ugly?

I use google apps for email, docs, calendar etc. salesforce for CRM. MS office (word and excel of course) and MS publisher for brochures etc. blackberry for mobile.

Your thoughts, tips, tricks would be greatly appreciated. I am happy to share all responses. Best, Thomas

CCIM responses:

"Once you go Mac, You Will Never Go Back! " I originally started out with a Apple llc in my early real estate career (1980'S?) but completely changed over to Mac 2 years ago. I am a Certified Microsoft Professional (MCP) and swore by Microsoft since it's beginnings and the fact that our real estate industry was PC driven just made sense, but then 2 years ago when Apple introduced the MacBook with Intel Chip, this was my chance to return to Apple. After all Apple is far superior in multimedia, graphics, photography and so much more then Microsoft and the fact of having to shell out money constantly for Microsoft Upgrades and Virus Programs, etc., and all the security patches and virus definitions just made me totally disillusioned with the PC in general.

Here is what I done:

I bought a 17 inch MacBook Pro Laptop and self-installed a 250 GIG Hardrive because 160 GIG was just not enough at the time and I added more memory and then partitioned the 250 GIG Hardrive for OSX and Windows XP. I originally ran Parallels but changed over to Boot Camp once the bugs were worked out by Apple. There are some downsides to both Parallels and Boot Camp. I then went out and purchased a top end MacPro Desktop with the large Cinema Screen. I run OSX on a 500 GIG Drive and XP on a separate 500 GIG Drive and when I need my Microsoft Dependent Real Estate Programs (Investment Software) I just boot up under XP. I have been consulting to the Real Estate Industry in Office Automation and Technology for 29 years now and have build several companies. I would be happy to talk to you and answer any of your questions regarding MAC. I will never go back to Microsoft again. I also use both a Blackberry and iPhone. I do not miss the Microsoft Blue Screen of Death Either! I am sold 110% on Apple Products and I got use to the spinning beachball on the Mac!

____

We're an all Mac shop with 25 people on Macs. All the software you'll need is either available for the mac natively, an ASP solution like salesforce that runs through an internet connect, or can be run with Parallels. And when you switch to an Iphone and see how it integrates, you'll be blown away.

____

I am a new CCIM candidate, but have been in real estate market research for years. I switched to Mac about 6 years ago and have absolutely no regrets. I was liberating to switch.

There are no problems using Office for Mac programs, such as Word and Excel. Full compatibility with Windows based same (though maybe not with the latest Office version, which is not even compatible with older versions of Windows Office, I understand).

I use Parallels to run Windows on my Mac desktop and Macbook for programs and services that require it. Easy to do and Windows runs very fast on the Mac.

The Safari browser is also much superior to Explorer, although some idiotic websites (such as my board's MLS site) only work with Explorer.

Just be sure to get as much RAM and hard-drive memory as possible in your new Mac, which is always a good idea no matter what kind of computer. And check out columns by Walt Mossberg in the WallStreet Journal about Macs. They are all probably online.

____

We use an exchange server windows in our office and I have a mac at home.  I swear by the macs and the next computer I have in the office will be a mac.  I use VMware to connect to the exchange server from home and I haven’t had any problems.  I do use the Microsoft office suite in the mac for excel and there appears to be a little difference, but nothing that affects my productivity.  I am very surprised you haven’t switched to an iphone…that should be your next move.

____

Thomas, I too have discovered the ease and security of the Mac.
My biggest problems have been attempting to use my computer during ccim classes.  The excel macros do not transfer to the mac office software, and I am unable to open some of the class cd's content.  I solved most of the problem by purchasing vmware fusion, however i have been unable to install a copy of windows office so I still can't use the excel files.
When I used a blackberry I had all sorts of problems trying to sync my contacts and calendar, but since I have switched to an iphone everything seems to work seamlessly.  I have come to the realization that mac products were all meant to work together so the more you have, the more they work together to make your life easier.
There must be a growing number of converts in the ccim arena because there was a booth a the Fort Worth Technology Expo from a company that specialized in integrating Mac's to PC dominated offices.  I can't remember their name but I will scour my office for their card and send it on if I find it.

____

 I just switched to a macbook myself, and love it for all the reasons you mentioned and more.  My wife is a graphic designer and has had her G5 desktop for about 4 or 5 years now.  I was doing the back and forth between Mac and PC at home and work (respectively) as you mentioned because my office runs a microsoft/PC based terminal server.  Recently though, we've added a web-based set-up through Google, so I made the transition accordingly and picked up a macbook. 

DEFINITELY a great move!

All my systems are now web-based.  I use Google for email, calendar, etc. which syncs with my blackberry.  This combination doesn't have the same synchronicity that my old Treo/PC terminal server had yet, but I'm sure it'll be along soon since there are many, many other users out there like ourselves.  (Mobileme does have that same synchronization if you have an iphone)

I debated using the bookcamp and getting windows, but realized with everything going web-based, I could get around it and save myself a few hundred dollars.  As I mentioned, it's not quite as smooth as my old set up, but I'm quickly adjusting and have found ways around just about everything.  

Good luck with your new machine, and welcome to the world of Macs!

____

I've had both macs and PCs since the 1980s. My office runs on PCs but I use a mac exclusively. I have a 2006 MacBook Pro running OSX 10.5.7. I recently bought a new iMac for the office which is dedicated to making flyers and hosting our commercial database (Filemaker Pro 10). The database runs cross platform - the PCs can access it.

There are a couple of programs I require in my business that only run in Windows (MapInfo, Quickbooks 2008, and my website publishing software), so to accommodate them, I run Parallels on the mac. You will need a copy of Windows to install within Parallels. It has run flawlessly. I know of others who use VM Fusion instead of Parallels and they are also very happy with it. I've had no problems running any Windows software or connecting to peripherals. You can copy/paste and share documents between the environments seamlessly.

MS Office for mac is fully compatible with Office for Windows. No one will ever know which platform the docs were created on. I trade Word and Excel files with others all the time.

I don't use MS Publisher, so I can't comment on that. I use Adobe CS4 for all of our brochure needs (PhotoShop and InDesign, primarily). Once created, all flyers are saved as PDFs, so they can be emailed and shared cross platform.

I'd go with the mac, hands down.

_____

I've used a Mac for several years and have no problems. We do keep a PC in the office just in case, but rarely use the thing. I do use Pages instead of Publisher. Often times the Firefox browser is better to use than the Safari browser - with the REI software, for example. But I'm sure you will not regret your decision - I would never go back to a PC.

_____

We run our company on Mac. All of our brokers use them.

____

I've used a MacBook Pro for a year or so, Thomas. I use Bootcamp, and run my business applications (MS Office, etc.) under Windows XP, Service Pack 2. I wouldn't go back.

I really like the configuration. You won't get the pure Mac speed (especially at boot up and shut down), but you'll be more stable in general. Drawback- if you have files on your Windows HD (i.e. photos, contact info, docs, etc.), you can't get to them from the OSX HD. A memory stick is a good investment.

A friend recently bougth a Mac, and runs the Microsoft Office suite for Mac, so she's totally away from windows. She claims that it's wonderful.

(We both do commercial appraisal work, so there's heavy lifting with regard to data crunching, document handling and so forth.)

____

I am primary Mac user and only have windows as back up for running MLS.

My Fusion VM pulls up all windows software on my Mac for MLS and other apps.

Use Excel 2004 to bring up CCIM xls forms. In few months Apple will introduce the new version of MS excel which will support widgets running CCIM forms.

Only 2004 MS office supports widgets.

Right now I am developing File Maker Pro 10 on Mac to run Commercial listings,transactions, projects, brochures, apple mail,apple ical all synchronized as turn key application.

Once complete I will offer for sale to my CCIM mac buddies.

____

I’m been using a Mac for two years. With office for mac (student edition), I have had no issues whatsoever. Will never go back to PC. I have tried boot camp and parallels to run windows programming. They’re a pain and these days really unnecessary. I never have to use windows anymore. By the way, Iworks is supposed to be better than Office and interfaces with Office (word and excel), but I haven’t used it.

Go for it.

____

I love it but there are challenges. I have been using bootcamp when I have to switch over to a windows program, but it is so inconvenient I rarely do it. I have ended up keeping a windows laptop handy rather than using bootcamp. In particular I’ll use MS Publisher, MS Streets and Trips, and Argus on Windows. Some of the online resources do not work well with Safari and that can be a problem which requires MS Explorer. I may get a parallel program and see if that works with Argus etc.

We have a MS Exchange for email, outlook, etc. and it does NOT like the mac at all. I use Entourage for CRM and it is fine except except for the exchange issues. I would be interested in hearing about Sale Force or any other Mac CRM. When our server dies, we will be getting rid of exchange and moving our mail server to something like google and that should work much better with Mac. I highly recommend the iphone with the apps and GIS system as well. Mac is definitely the way to go

____

Our shop is (almost) totally mac. We have a pc on the network, but I never use it. It does keep us out of CoStar though, as their platform is mac-phobic. We're happy to trade the mac os for CoStar however. Very few other limitations that we have not been able to work around comfortably.

___

I use a Mac Book Pro with no issues. Office for Mac had problems when it first came out, but they have been corrected and work fine now. Good luck with the switch!

___

I've been using a Mac primarily for over 5 years. It's been bumpy at times, but I have always loved it.

____

As a Mac user of less than a year, I will strongly recommend that, if there is an Apple retail store near you, sign up for the one-on-one training deal they offer for $99. It is the best deal out there. Unlimited 1-hour sessions with a Mac expert who will teach you anything you need to learn. Best money I have spent!

___

I have used a macbook pro for two years now, and I love it. Unfortunately the real estate world is not mac friendly. I use VM Fusion with a copy of Windows XP for the items that will only work with internet explorer (MLS and Zipforms online plus quicken and quickbooks). I absolutely love working with Keynote for presentations and Pages for brochures. On a personal note, iPhoto is a terrific program. I keep all my pictures on it, and the slideshows are great for personal and business. If you have not tried mobile me for cloud computing it is a must.

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I have been a "Dell/Windows" user for years and upgrade computers frequently. I have received my share of "errors" with the Windows based system and bought an IMAC for home use and training. Out of habit, I continued to use the Windows side of the IMAC partition to a greater extent than the OSX (Apple) side and learned very little. However, I was impressed that the data files were recognized on the OSX side of the partition.

Last October I ordered a new Dell T7400 ($3k+) to replace my office computer. I have had nothing but trouble with the new Dell, error upon error, and have had their tech department on the line for days at a time attempting to solve many issues. In desperation I finally ordered a MacPro and have dedicated and disciplined myself to learn to operate the Mac.

There is no comparison! The transition to the MAC is practically seamless. There are only a few programs that I cannot use that require a Windows operating system. I will never return to the Microsoft based system again except for deed plotting and a few additional minor software programs requiring Microsoft.

___

I have been using Macs as my only computers (both desktop and laptop) for 20+ years (since before the first Macintosh). They are everything you say they are and more.

There have been only two instances where I have been forced to use an emulation program to run PC programs:

Our MLS system, which has changed providers numerous times over the years, now uses Rapattoni, which I like, but they can’t (or won’t) make it available for Macs, and

2. Yardi property management. This is an excellent program which was originally available in both Mac and PC versions, but the company decided a few years ago to go PC only, due to the relatively small number of Mac users.

For both of these programs I am using an emulation program called “Parallels” which although slow to start up, works quite well once it gets going.

The Microsoft Office programs work just fine on my Mac, including the CCIM xls forms. My whole family are “Mac people” and we are quite happy.

__

I just interviewed with a firm that does brokerage and pm. They swear by macbook.

___

I use only macs... i would never go back to a pc ever... i do on occasion run a needed windows only program on windows xp through parallels on my mac.. the only issues i have run into with the ccim ms excel spreadsheets is that in MS Office 2008 for mac, the macros do not work. so i continue to use ms office 2004 for mac and have no issues.

I just bought a new macbook pro about 3 months ago, and loving it.. this is third mac for me. I had a 1st generation intel macbook 4 years ago, and also have a mac desktop...

The best thing is that i never have to worry about viruses, crashing, etc...

___

I recently switched from a PC to a MacBookPro. Microsoft has a version of Office specifically for the MAC. I also bought Fusion software which allows the loading of Windows in a virtual partition along with any other Windows based programs. You can set it up to be able to toggle between the OS and Windows formats. Once you get use to the protocall, file sharing between formats has posed no problem. One advantage that I have that I don't remember seeing in Salida is an Apple Store. For $98.00 you can go in once a week for a year for a one hour private "One-On-One" tutorial. Most of mine is answering questions since the last lesson. Another program is called Pro-Care. With it, you walk in the store and go to the front of the lin with any problems that you have. OS will support anything HP but not Dell printers. You can load them to support applications in the Windows partition. The best thing is to have a son-in-law who is a real expert and Mobile Me software that allows him to take over my computer and fix whatever is wrong with it, any hour of the day or night, from his home in Montrose, CO.

____

My colleague and I both made the switch last year to mac book pro with VMware - What a difference!

No regrets here.... we have been much more efficient in our work since having switched.

Not to mention that running windows in the VMware environment is amazing; not a single freeze or crash yet in one year!

I took all of my CCIM classes on my mac and never encountered any problems with the spreadsheets or CCIM website.

Also, the MAC Book syncs great with my Treo phone, and the plug N play capabilities with other devices has been impressive.

We use the Pages program for our flyers and website files.

Occasionally the Mail program is a little temperamental regarding the incoming and outgoing ports and the type of internet connection you're on, but for the most part, its very easy to use.

I think you'll be very pleased to make the switch.

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I made the MAC switch about 5 years ago and have been extremely pleased with it. I use MS office on it and have not had any problems with it. I also use Time Machine - works great.

I did have to hold onto a PC for the property mgmt software I use due to it's incompatibility with MAC.

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A client of mine has been using the Mac for coming up on 2 years and he loves it. He is a RE developer and has been able to run everything he wants on his. The Mac version of office even gave him a couple of tricks my PC version did not have.

_____

I use a mac for everything at home and at work.

Entourage for email. And word and excel.

I use reportingbroker.com for marketing.

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Is Cost Segregation right for your property or portfolio?

What is Cost Segregation?

Cost segregation is a tax reporting strategy that provides distinct advantages over the straight-line depreciation method on commercial properties. Property owners can generate cash flow on existing properties by accelerating depreciation expense deductions and deferring federal and state income taxes. In addition, owners can amend past returns and generate income through tax refunds.

NEWS:  CCIM Uses Cost Segregation to Generate $1.7 Million tax refund
When Arvid Albanese, a CCIM and President of the Albanese Group, LLC, in Ft. Lauderdale, FL, learned of the benefits of using cost segregation reporting, he commissioned a study on 900,000 sf of self-storage properties in his company’s inventory.

“I liked the idea of getting capital out of my investments that I could turn around and invest in other areas,” says Albanese.

The study on the Albanese Group’s properties, conducted by a private firm, was completed within 30 days. Based on the results of the study, the Albanese Group amended past tax returns on the properties, and within 120 days had received two checks from the IRS – one for more than $800,000 and another for more than $900,000.   Source:  CCIM Institute email 6/5/09 www.ccim.com

Contact us today for a review of your commercial real estate portfolio.  We can tell you if Cost Segregation is right for you as well as provide other cost saving income generating solutions for shopping centers, retail real estate and other real estate investments.  CM Commercial, Thomas Morgan, CCIM toll free 1.866.539.1777

Defensive Capital - Making your Shopping Center Stronger

"defensive capital” — money spent, however painfully, to prevent a shopping center from falling behind and losing tenants or market share — is one of the biggest buzzwords in shopping center ownership today.  Increasingly, landlords see the imperative of such strategic spending. 

We offer a full line of retail real estate services to improve your shopping center's draw and cash flow.  After a thorough review of your shopping center and retail property operations we make strategic recommendations that will increase income and lower expenses to increase your property's economic and competitive values.

Call CM Commercial Retail Services today  1.866.539.1777

1031 replacement property- try a NNN net leased property

Need a 1031 replacement property for your 1031 Exchange?

Forever leave the day to day management of your office building, apartment building or other gross-leased property behind.  

Invest in a "hands-free" net leased property and spend your time doing what you want rather than dealing with tenant's needs.  Triple net leased properties (NNN) provide long term cashflow without the headaches of management.  Let the property work for you rather than you working for the property and enjoy the benefits of "mail box money".

Contact us to find out more about the benefits of Triple Net Leased Real Estate Investments. 1.866.539.1777

Here are just a few of the reasons why you should buy a NNN property for your 1031 exchange:

• armchair investment- ease of management with tenant maintaining and operating the property
  
• mail box money-  your monthly rent is yours, net to you, no expenses to pay
  
• long term cash flow-  leases usually range from 10 to 25 years
  
• high credit tenant- financially strong tenants usually publicly traded
  
• good appreciation-  regular rent increases provide for increase in future value
  
• non-recourse financing- lenders will loan on credit of tenant and strength of lease, waiving a personal guarantee by you as buyer
  
• easier to sell- when time comes to sell, demand is almost always strong for a NNN leased property, even in down markets
  
• higher residual value- net leased real estate is usually built-to-suit for retailers who have researched the market and location to find the best site to do business

Contact us to find out more about the benefits of Triple Net Leased Real Estate Investments for your 1031 exchange.

About the Author:

Thomas Morgan, CCIM, CIPS is exclusive global real estate advisor to high net worth individuals, families and their ancillary advisors.  Thomas has been called the "go to guy" for ultra-wealthy clients worldwide who want to use real estate to protect and build their wealth.  Thomas advises clients on all aspects of real estate holdings including commercial investments; private residences; investment analysis; and portfolio strategy and optimization through deliberate asset management.  Thomas can be reached directly at 1.866.539.1777 or thomas (atsign) cmcommercial.net.

Great NNN, Retail and Shopping Center, and Investment Real Estate sites

CM Commercial National Real Estate Investment Brokers and Consultants  

 

Shopping Centers, Shopping Malls and Strip Centers For Sale 

 

Retail Property For Sale and Retail Property Consultants

 

Retail Real Estate For Sale and Retail Real Estate Consultants

 

Strip Malls and Strip Centers For Sale 

 

Triple Net 1031 Exchange Properties for sale                     

 

NNN Property and Investments For Sale             

 

Triple Net Leased Properties             

 

NNN Net Leased Property 

 

Colorado Commercial Real Estate (www.coloradomountaincommercial.net)

 

National Real Estate Consultants (www.real-estate-consultants.net)

 

Commercial Real Estate Blog (www.realestateconsigliere.net)

 

Apartment Buildings For Sale (www.apartmentbuildingforsale.net)

 

Mobile

Home

Parks

and Trailer Parks for sale (www.mobilehomeparkforsale.net)

 

Sell My Commercial Property and Sell or List Commercial Real Estate (www.sellmycommercialproperty.net) 

Guest Blogger: Current status of the Commercial Mortgage Market

Although the current status of the commercial mortgage market leaves a lot to be desired, we are optimistic things will improve during 2009.  The Wall Street conduit lenders have not re-entered the market, and will likely remain on the sidelines for the entire year.  Banks and Life Companies will be the main sources for short and long term debt, with many borrowers taking on mezzanine debt or outside equity in order to structure a deal.  While many Banks remain out of the market, there are still many that will offer good short-term (1-5 years) financing options to strong borrowers.  Life Companies continue to offer longer term fixed rate debt, although at very conservative loan-to-values.  This is something we anticipate to “loosen up” however, as alternative investments to commercial mortgages become less attractive to these institutions.  Short term rates seem to be holding in the 5-7% range, while longer term rates have settled in the 6.5-7.5% range.  There don’t seem to be many forces that will raise rates in the short-term, so as lending criteria becomes slightly more aggressive we should see a good time to borrow this Spring and Summer.  One thing will remain constant this year, and that is a flight to quality in terns of properties and borrowers.     

Guest Commercial Loan Post by:

 

Mark Jeffries

Vice President

Q10 | Essex Financial Group

8400 E. Prentice Avenue, STE 910

Greenwood Village, CO 80111

Direct: 303-843-4023

Protect your cash: Commercial Investment Real Estate Remains Stable

In light of this week's financial sector meltdown, a long time client and friend said to me "You know Thomas, I have seven figures cash in Bank of

America

today.  With what's happening with the other financial giants and BofA saving Merrill Lynch, it really makes me nervous to have that much cash in one bank or any number of banks.  I have decided to take a good portion of it, 60-70%, and put it into more income producing commercial real estate.  There are good deals out there to be had."  I agreed completely.  We are now actively looking for shopping centers with in-place income at 8%+ of purchase price.

Yesterday, another client said he was pulling his hair out while watching MSNBC to see if his $500,000 invested with Morgan Stanley was going to go up in smoke.  He then expressed his confidence in his income producing commercial real estate as compared to the stock market.

Contrary to the news of faltering banks and the stock market diving, commercial investment real estate fundamentals in most markets throughout the U.S remain stable and will continue to do so in the current interest rate environment. Apartment Buildings and Trailer Parks are a hot commodity among investors these days due to the turmoil in the housing market; vacancy rates are dropping and rents are trending upward.  Demand for office and retail properties is down but risk can be mitigated through lower leverage, buying on actual income numbers rather than proforma and through value-add or lease-up incentives.

There are good deals to be found in all US markets from as low as $1MM to $100MM+ across all commercial income property types.  Most everything our clients buy is relatively hands-off for them as owners by nature of a property manager or lease structure such as a triple net lease. These hands-off investments provide stable steady cashflow, appreciation and good residual value.  Many clients are purchasing properties in different geographic areas from themselves and their other properties to diversify risk. Many times the subject property is 3, 7 or even 10 states away from where they reside due to the low to no management needed.

The following table overviews conservative achievable yields in today's market:

To preserve your cash from stock market declines or failing banks, consider a stable long term investment such as commercial income property today.  As your professional commercial investment advisor, I analyze your personal investment situation in terms of yield v. risk to select the right property in the right market to achieve your goals.  Call or email me right now to add or diversify your investment portfolio. We do deals nationwide.

Be well out there,

Thomas

About the Author:

Thomas Morgan, CCIM, CIPS is exclusive global real estate advisor to high net worth individuals, families and their ancillary advisors.  Thomas has been called the "go to guy" for ultra-wealthy clients worldwide who want to use real estate to protect and build their wealth.  Thomas advises clients on all aspects of real estate holdings including commercial investments; private residences; investment analysis; and portfolio strategy and optimization through deliberate asset management.  Thomas can be reached directly at 1.866.539.1777 or thomas@cmcommercial.net

Who is your tenant? S&P Tenant Credit Ratings

When purchasing a single tenant net leased investment, tenant quality and the financial ability of the tenant to perform is of utmost importance.  In essence you are buying the income stream and the bundle of rights subject to the leasehold, so how do you know you will get you monthly rent check for 10, 12, 15 or 20 years?  One way is to have the "market" rate the risk for you.  Here is the  S & P breakdown of credit ratings, to help you assess your risk:

Long-Term Issue Credit Ratings
Issue credit ratings are based, in varying degrees, on the following considerations:

Likelihood of payment—capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation;
Nature of and provisions of the obligation;
Protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.
Issue ratings are an assessment of default risk, but may incorporate an assessment of relative seniority or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect the lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.)
 

AAA
An obligation rated 'AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.
 

AA
An obligation rated 'AA' differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.
 

A
An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.
 

BBB
An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.
 

BB, B, CCC, CC, and C
Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.
 

BB
An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.
 

B
An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.
 

CCC
An obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.
 

CC
An obligation rated 'CC' is currently highly vulnerable to nonpayment.
 

C
A subordinated debt or preferred stock obligation rated 'C' is currently highly vulnerable to nonpayment. The 'C' rating may be used to cover a situation where a bankruptcy petition has been filed or similar action taken, but payments on this obligation are being continued. A 'C' also will be assigned to a preferred stock issue in arrears on dividends or sinking fund payments, but that is currently paying.
 

D
An obligation rated 'D' is in payment default. The 'D' rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.
 

Plus (+) or minus (-)
The ratings from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
 

NR
This indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that Standard & Poor's does not rate a particular obligation as a matter of policy.
 

2008 FIBArk Hooligan Race

as promised.  exercise bike propulsion.  more photos to come.  Video here:  I am at timer 4:30 of 4:54 seconds.

Guest Blogger: 5 Things to Keep in Mind When Purchasing and Financing Your Single-Tenant NNN Property

Guest Post written by Colin L. Paterson, Commercial Mortgage Banker, BMC Capital, LP

5 Things to Keep in Mind When Purchasing and Financing Your Single-Tenant NNN Property:

Single-Tenant NNN Properties can be a great investment for investors seeking minimum management and optimum cash flow of their investment real estate. However, it is important that investors understand their risk when buying and financing a NNN property. While their are many variables to consider, there are 5 things that are of utmost importance to consider before purchasing and financing a Single-Tenant NNN Property:

1) Know your tenant and understand their financials. Since your property's value is directly related to the lease income, it is paramount that the tenant paying the lease income is financially viable. An investor should conduct a thorough analysis of the last two years and YTD balance sheet and P&L statements to make sure that the tenant has enough cash flow to cover it's fixed charges (rent and interest payments), and is not overburdened with debt.

2) Make sure the rent/sf is in line with market rents. Just b/c a NNN property has a high cap rate, does not necessarily mean it's a good deal, if the tenant is paying a much higher rent/sf than the market. Consider what another tenant would pay to lease the subject property if the existing tenant were to leave. Your real estate broker should be able to give you market rent comps.

3) "Location, location, location". This famous maxim holds true whether you're buying a single family house or commercial real estate. Thus, it is vital you understand the location, demographics, traffic counts, traffic generators, and what will drive supply and demand in the future. Note: a general rule of thumb for most lenders financing NNN properties is that they require the 5 mile population to be 50,000 or greater.

4) Length of the lease term: It is important to understand the lease term length and what your outstanding loan balance will be at the end the lease term. Most lenders who lend on NNN properties, require at least 15 years remaining on the lease in order give a 25 year amortization, if the LTV is 50% or greater.

5) Keep a reserve account. This is line with another famous maxim in real estate investing: "Prepare for the worst, hope for the best". Yes, even though you're buying a NNN property, it is essential that you are financially prepared if the tenant were to leave. The reserve account should be kept for 1) replacement reserves, in the event you as the landlord are required to make a capital improvements; 2)Tenant Improvements and Leasing Commissions (TILC), in the event the tenant were to leave and you have to find another tenant to move in. Yes, even though you're buying a NNN property, it is essential that you are financially prepared if the tenant were to leave and stop paying rent. Note: a general rule of thumb most lenders require is for the borrower to have a least 6 months of mortgage payments available in liquid assets to be used if the tenant were to leave.

While there are other variables to consider, keeping the above 5 things in mind before purchasing and financing your NNN property, will greatly increase your likelihood of investment success. Happy investing!

Guest Posted by Colin L. Paterson
Commercial Mortgage Banker
BMC Capital, LP
Colin can be reached at 916-646-6334 or : cpaterson(atsign)bmccapital.com    or  www.bmccapital.com