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Thank you for the opportunity to share general information
relating to the commercial real estate finance industry and
letting you know what's new at Cornerstone Commercial
Mortgage.
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Land Value
Perspective |
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Land value is a hot topic these days.
Why are
buyers paying so much more for land than they were just
yesterday? The answer is rather simple: Demand.
Demand for higher density and/or land use change can
drasticaly affect land value. How is land really
valued? Land value is a function of two things:
the potential income/sales the land can generate and
the costs involved to make this happen.
For
example, a parcel can be purchased with a single story office
building on it, but the highest and best use has changed and
demand justifies building multiple stories of residential
condos. Work backwards to estimate the land residual value.
Simply stated start with the potential net sale proceeds
anticipated from the project less all costs to build (cost
includes developer profit) resulting in the land residual
value or the maximum you should pay for the land.
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More About
Cornerstone |
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Nationwide Real Estate Boom Is Slowing, Forecaster
Says |
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Chicago Tribune (11/01/05) P. B2; Umberger, Mary.
National Association of Realtors chief economist David
Lereah told attendees of the group's annual meeting that the
housing boom has peaked, with a soft landing expected during
the coming year. He warned, however, that some markets could
experience price declines and a few could actually see pricing
bubbles pop during the next couple of years. Lereah believes
the 30-year mortgage rate will hit 6.7 percent by the end of
next year, and he anticipates a drop in residential
appreciation to 5.3 percent in 2006 from 12.4 percent this
year. Additionally, he predicts a 3.5-percent drop in home
resales and a 4.5-percent decline in new-home sales next year.
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More About
Cornerstone |
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Make use of
unused frequent-flier miles |
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About 75% of earned frequent-traveler points go unredeemed
every year. That's because travelers often end up with points
spread across too many brands. Solutions: Convert them
into something you can use. Here are some examples:
Flyertalk.com. The forum called Coupon Connection
(within "FlyerTalk Miles") allows vistors to trade with each
other for airline club passes, upgrades, hotel- spa coupons,
even free-drink coupons.
Points.com. Convert unused miles into free flowers,
long-distance minutes or gift certificates at Crate &
Barrel and 180 other stores.
eBay. You can try to sell miles for cash here, but
airlines will pull the plug on an auction if they spot it.
Corpflyer.com. This mileage broker pays between 1.2
and 1.8 cents per mile. Here's how it works: You make a
reservation with the airline, using the name of one of the
broker's clients, then mail the ticket to the broker. You get
paid the day after the broker receives your ticket
-Adapted from "Free Market in First Class" Matthew
Swibel, Forbes.
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More about
Cornerstone |
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About
Cornerstone |
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Cornerstone Commercial Mortgage specializes in commercial
real estate finance. We act as mortgage consultants, focusing
on providing the appropriate financing solutions for each
client. We work with investors and developers on all product
types from Land loans to permanent loans providing the best
financing option available.
John P. Lloyd,
President
Phone: (702) 385-2658
Cell: (702)
379-3468
Email: john.lloyd@cmlv.net
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