Commercial Appraisal Costs

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Commercial MAI Appraisals will cost between $2-5,000 depending on the size of the subject property. I am sharing to help investors avoid sticker shock when applying for a commercial or multifamily loans. The majority of commercial lenders, whether institutional or private, will require a lender ordered MAI appraisal as a financing contingency.

Some investors believe that appraisals cost between $5-700. This cost is typical for residential 1-4 unit appraisals and/or non-MAI commercial appraisals. The upfront costs needed to secure purchase financing (or refinancing) for a commercial property are $20-30 for a credit report and $2-5,000 for an appraisal. However, there are some lenders that will waive the appraisal fee for female investors and married couples that are taking financing in the wife's name.

Females in Sport: Equal Access for All

The biggest problem in high school sports is limited access to participation. As evidenced by a report from the National Women’s Law Center, US girls are not given the same opportunities in sports as their male counterparts. Furthermore, heavily minority schools (schools where ten percent or less of the students are white) “not only offer fewer overall athletic opportunities… but also fail to distribute those limited opportunities equitably between boys and girls (The Women’s Sports Foundation).” Being female, disabled, minority, or financially challenged makes it exponentially less likely that an individual has access to sports.

One remedy to this problem is to require publicly funded schools to allocate specific percentages of their athletic budget to those under served groups. For example, a school with an even split between female and male students should be obligated to spend fifty percent of their athletic budget on their female programs. If a school has a handicap population of ten percent then ten percent of their athletic budget should go towards sport opportunities for those students. A school’s spending should mirror their student body.

The biggest problem in intercollegiate sports is commercialization. A solution to correct this problem is requiring an annual disclosure from each university. The report should include information regarding how much money is made on different revenue streams, like player jerseys and video games, to name a few. It has always confused me how the NCAA can say that college players must maintain amateur status to remain eligible in the NCAA. However, the NCAA and the universities are able to make money off the athletes and their celebrity status. Commercialization in sport is such a grey area; the NCAA and schools only have a problem with commercialization when it is not working in their favor. However, if funds are exchanged and called a scholarship then it is allowed.

https://assets.aspeninstitute.org/content/uploads/files/content/docs/education/Project_Play_Underserved_Populations_Roundtable_Research_Brief.PDF

https://www.womenssportsfoundation.org/education/new-national-womens-law-center-report-shows-how-girls-of-color-are-doubly-disadvantaged-in-access-to-school-sports-opportunities/

Future of Sport Media

Over the last decade journalism and reporting have experienced significant changes due to technology. Athlete driven media will continue to grow as evidenced by the numerous athlete driven media companies. The three major sports and sporting events with a lot of social media buzz are World Cup Soccer, the NBA, and the NFL (Berger, 2016). In addition to technological advances, athletes grew frustrated with the lack of control over what was being published by traditional sports media outlets. Athlete driven media allows athletes to connect and interact with fans on a personal level, which has been proven to retain existing fans and expand a sport property’s audience reach (Berger, 2016).

Another development poised to impact the supply and manufacturing of sort media content is virtual reality. Driven by the massive rise in data on mobile networks, integrating virtual reality with athletic competition is on the horizon. A 2018 consumer survey ranked services that consumers expect to go mainstream within three to four years of the launch of 5G. Two areas of consumer interest are “athlete and area view” and “VR cinema”. The most inspiring take away from that report is that people want 5G to offer a sense of the unlimited, including mixed reality, a combination of augmented and virtual reality that can boost everything from analytics to training to the fan experience (Varian, 2017).

TV viewership is on the decline for sport events as the popularity of online and social media trends upward. Organizations, leagues, and players must find new ways to engage with their fan base. To maintain a competitive edge five prerequisites are needed to protect brand and revenue in the modern era. Owners and sport properties must make sure they are first to market with their content. Quality of the product offering must be delivered in high definition and crisp quality that others can’t match. A continuous, reliable service with no ads for disreputable services or products is required. The ability to create engaging and exclusive holistic content such as commentary, highlights, and interviews is imperative. Lastly, the ability to distribute content and archive footage to social channels as soon as the action happens will keep sports in the forefront (Housel, 2017).

Berger, K. “How Players Are Controlling Their Own Media and What It Means for the NBA.” CBSSports.com, CBS Sports, 1 Feb. 2016, www.cbssports.com/nba/news/how-players-are-controlling-their-own-media-and-what-it-means-for-the-nba/. Accessed 19 Sep. 2018.

Hegedus, N. “Is Virtual Reality Live Sports Viewing the Future of Basketball? Some of the Sport’s Superstars Think So! Watch This Video…” Ericsson.com, Ericsson, 23 Apr. 2018, https://www.ericsson.com/thinkingahead/the-networked-society-blog/2018/04/23/virtual-reality-live-sports-viewing-the-future-of-basketball/. Accessed 18 Sep. 2018.

Housel, K. (2017). Virtual reality and the role of sports content. The Entertainment and Sports Lawyer, 33(2), 83.

Varian, E. (2017). BUSINESS BEAT; big growth for VR, not TV; virtual reality, e-sports set to boost entertainment, media revenue, PwC says. Los Angeles Times.

Religion in Sports

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Some religions prohibit sports activities on certain days. For example, individuals practicing the Jewish faith observe Shabbat from a few minutes prior to sunset on Friday evening until the appearance of three stars in the night sky on Saturday evening. The NBA currently has a handful of practicing Jewish athletes, including Omri Casspi, Amar’e Stoudemire, and Jordan Farmar. Depending on how committed to the Jewish religion one is, you could play or practice on the Shabbat if you are more lax, or refrain from competition or traveling for the more strict. Some accommodations that could be offered by management include athletes working out at home, suiting up but sitting out of games or practices, having a private area for prayer or meditation, and allowing athletes to wear religious jewelry or headpieces. The number one issue to consider with religion in sports is scheduling accommodations. Many religions have sacred days of the week and annual religious holidays. Management teams are often tasked with scheduling concerns with regard to reasonably accommodating religious practices.

The First Amendment and Sports

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The First Amendment has impacted sports by giving athletes the right to have personal opinions. However, it has been proven that the First Amendment does not protect athletes from consequences or discrimination because of those opinions. The First Amendment protects you from federal, state, and local government actions, but not private organizations (i.e. sports teams).

Two examples of recent cases involving the First Amendment include:

- Colin Kaepernick and the National Anthem protest

- Michael Sam and his sexual orientation

Colin Kaepernick exercised his First Amendment right by kneeling during the National Anthem. Kaepernick’s goal was to raise awareness and protest the unfair treatment of minorities. Colin has faced severe backlash within the league and ruffled many feathers. He has remained unsigned despite being a second round draft pick and taking the 49ers to the Super Bowl.

Michael Sam has never tried to be a spokesman for gay athletes, but the NFL pushed him into that role. Michael was upfront and honest with his college team, as well as professional scouts. His frankness was met with homophobic comments from NFL athletes and he was dropped from the NFL quicker than he was signed.

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Dickey, J. (2017, September 08). There's No Credible Reason Why Colin Kaepernick Isn't on a Week 1 NFL Roster. Retrieved September 13, 2017, from https://www.si.com/nfl/2017/09/08/colin-kaepernick-week-1-nfl-roster-not-signed

Page, J. (2016, August 23). Opinion: Why Michael Sam Is a Footnote in History, Not a Trailblazer. Retrieved September 13, 2017, from https://www.nbcnews.com/feature/nbc-out/opinion-why-michael-sam-footnote-history-not-trailblazer-n634786

SBA Commercial Real Estate Loans Quick Guide

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For business owners that need capital to purchase or refinance commercial real estate, an SBA 7a Commercial Real Estate loan is a simple solution to help you finance your property. There are four easy steps to secure your loan.

1) Have 2+ years in business as a sole proprietor, partnership, LLC, or corporation

2) Have a 675 credit score

3) Have 2 years of business tax returns

4) Have cash flow to support the loan payments

SBA 7a Commercial Real Estate loan amounts range from $500,000 up to $5,000,000 on a 25 year term. The borrower must occupy at least 51% of the property. Interest rates range between 6.75-7.5%. Loans can fund as fast as 30 days!

Please call us at (408) 909-5893 or email us at hello@bigplayproperties.com to get pre-approved for your SBA loan today.

NNN Profile: Safeway

Safeway, Inc. is an American supermarket chain that offers many in-house private label brands as well as name brands across all product categories. Following the healthy foods trend, the stores have expanded the number of organic fruits and vegetables in the produce section. Other department sections include deli and meat, flowers, bakery, pharmacy, liquor, and many aisles of nonperishable items. Safeway, Inc. is a publicly owned company with a market cap of $8 billion.

Headquartered in Pleasanton, California, with 900 stores internationally, Safeway is a trophy net leased investment because of their B+ credit rating, and parent company Albertsons having the largest market share of supermarkets in the U.S. Albertsons is planning a merger with Rite Aid, which will help both companies increase their purchasing power, lower costs, and increase annual sales to $80 billion for the newly formed food and drug store merger. Primary lease terms are typically 20 year triple net leases with 5-year renewal options. For 2017, cap rates and sales prices averaged 5% and $12,000,000 respectively.

Get Your SBA 7a Loan In 7 Days

For business owners that need working capital for equipment, inventory, or expanding your business, an SBA 7a loan is a simple solution to help you finance your business. There are four easy steps to secure your loan.

1) Have 2+ years in business as a sole proprietor, partnership, LLC, or corporation

2) Have a 650 credit score

3) Have 2 years of personal and business tax returns

4) Have cash flow to support the loan payments

SBA 7a Working Capital and Debt Refinance loan amounts range from $30,000 up to $350,000 on a 10 year term, with no prepayment penalty. Interest rates range between 8-9%. Loans can fund as fast as 7 days!

Please call us at (408) 909-5893 or email us at hello@bigplayproperties.com to get pre-approved for your SBA loan today.

How To Find The Best Location To Open Your Restaurant

Restaurants are one of the most popular users of net leased real estate. In this video, we focus on the operator aspect of restaurants and how to make it easier for you to find a suitable location for your concept. The two obstacles that restaurants face when opening are zoning and tenant improvements. The simplest way to overcome these obstacles is to find a second generation restaurant space.

A second generation restaurant space is a unit within a commercial property, or a freestanding property, that was previously operated as a restaurant and is now available for a new tenant. What this means is that; 1) Your business permit to operate another restaurant will more than likely be approved by the City, which saves you tons of time, and: 2) There are existing restaurant tenant improvements like hoods, counters, seating, and restrooms already in place that you can utilize which saves you tons of money.

In the Atlanta market, I have located a handful of second generation restaurants that could be a perfect fit for a new or existing restaurant concept. If you are a franchisee that needs another prime location or a newer operator that would like to take advantage of existing buildouts, then it is necessary that you secure one of these locations immediately. We will assist you from farm to table to make sure your concept is up and running for the New Year. Please contact us for more information on restaurant leasing.

NNN Profile: 24 Hour Fitness

24 Hour Fitness is an American fitness club chain that has the highest number of members for all gyms worldwide. 24 offers a wide range of performance, nutritional, and fitness apparel products for both men and women. Gym equipment includes free weights and cardio machines, with premier locations having a pool, raquetball, and basketball courts. 24 Hour Fitness is a privately owned company with a market capitalization of $2 billion.

Headquartered in San Ramon, California, with 430 gyms across the United States, 24 Hour Fitness is a promising net leased investment because of their B2 credit rating, good liquidity profile, and sizeable cash flow, which will allow the company to fund new club openings without increasing debt. Primary lease terms are typically 15 year triple net leases with 5-year renewal options. For 2017, cap rates and sales prices averaged 6.50% and $12,000,000 respectively.

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SBA Loans Explained – A 101 for Small Business Owners

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It’s been a stellar year for SBA lending, which is good news for small businesses.

In FY 2014, the SBA’s flagship loan program, the 7(a) Loan Programachieved another lending record. By the end of the fiscal year (Sept. 30), SBA had approved 52,044 7(a) loans for nearly $20 billion, an increase of 12 percent in the number of loans and 7.4 percent in dollar amount over the previous year.

If you have struggled to get financing in the past or are thinking of venturing into small business loan territory for the first time, you may be wondering what SBA’s loan programs are all about.

By way of introduction to SBA’s loan programs – what they are, who can benefit, and how to apply – here’s a brief 101.

What is an SBA loan?

First, let’s dispel a myth – SBA doesn’t make direct loans to entrepreneurs to start or grow a business. Instead, it provides a guarantee to banks and lenders for the money they lend to small businesses owners. This guarantee protects the lenders interests by promising to pay a portion of the loan back if the business owner defaults on the loan. So when a business applies for an SBA loan, it is actually applying for a commercial loan through a bank or authorized SBA lender, structured according to SBA requirements with an SBA guarantee.

Essentially, SBA loans alleviate the risk associated with lending money to business owners and entrepreneurs who may not qualify for traditional loans – thus opening up lending opportunities to thousands of entrepreneurs, start-ups, growing businesses, minorities and veterans. Read more about SBA’s role in the process.

What types of loans are available?

There are several types of loans that business can take advantage of, each developed to suit the needs of your business. The 7(a) loan program, for example, can be used for a number of purposes including working capital, revolving funds, equipment purchases, refinance existing debt and more. This short videoprovides the low-down on 7(a) and is worth a look.

SBA also offers export-assistance loans (which grew by 3.7 percent this year) as well as financing for seasonal working capital (CAPLine) or major fixed-assets such as equipment of real estate (CDC/504 loans).

In addition, SBA can help business owners in need of financing to help with disaster recovery.Disaster loans – available to homeowners, renters, businesses of all sizes and private, nonprofit organizations – can be used to repair or replace items that have been damaged or destroyed in a declared disaster including, real estate, personal property, machinery and equipment and inventory and business assets.

If you are looking for smaller loan amounts (under $50,000), consider the Microloan program or the SBA Express program. A subset of the 7(a) loan program, SBA Express is designed for businesses with financing needs up to $350,000. The proceeds can be used to finance a variety of business activities and no collateral is required for loans up to $25,000.

It’s also worth knowing that fees on all SBA loans are currently extremely favorable to veterans and are currently set at zero for loans under $150,000.

Which loan is right for me?   

Still not sure if there’s a loan for your particular need? Check out this loans wizard from BusinessUSA.gov. In a few steps it will point you to the right kind of financing.

Is my business eligible for a loan?

While each loan has its own specific qualification criteria (here’s the deal on 7(a) eligibility), talk to your bank or lender about your needs and business profile. Another resource is your local SBA District Office.

Take note, in addition to meeting SBA requirements, lenders will also take into consideration credit factorssuch as your business cash flow, equity investment, collateral, etc.

How do I apply for an SBA loan?

While each SBA loan program has its own eligibility criteria and application process (which you’ll work through with your lender), there is some advance preparation that you’ll need to undertake.  From personal and business financial statements to old tax returns, this loan application checklist details what you’ll need to prepare in advance of your loan application. This online course also explains how to prepare a loan package.

Credit: SBA.gov by Caron_Beesley, Contributor

Private Money Real Estate Financing

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Private money lenders offer short to mid-term non-recourse loans for investment real estate. Often called hard money loans, private loans are a way for real estate borrowers to obtain financing on properties that traditional banking institutions have too strict of loan qualification requirements to meet or often deny.

Private money can be used to purchase and re-finance investment real estate including:

  • Sports, Entertainment, Religious, and Mixed-Use properties
  • Retail properties
  • Office properties
  • 5+ Unit Multifamily Apartment properties
  • 1-4 Unit Non-Owner Occupied Single Family Residential properties

Private money loans are made based on the appraised value of the subject property. This means that borrowers with subpar credit or bankruptcies may still be able to qualify for these types of loans. The subject property's debt service coverage ratio and cash flow will be considered when determining the loan-to-value ratio, interest rate, and term.

Private money loans typically take 10-15 business days to fund, which allows for a quick closing. To qualify for a private money loan, you will need a down payment of 20% to 30% of the purchase price, a letter of explanation of how the funds will be used with an exit strategy, and a 1003 loan application. Private money lenders will need to review a recent credit report for their files, although the funding decision is heavily based on the equity of the property and the borrower's ability to repay the interest over the term.

Simplified Real Estate Referrals

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Residential real estate agents are often connected with investors that need commercial real estate services. Referrals are a quick and easy way to generate passive income in the fast paced career of a real estate professional. At Big Play Properties, we offer licensed agents nationwide a 25% referral fee for introducing commercial buyers and sellers to our brokerage. Most net leased transactions are between $1-5 million, compared to residential transactions that are typically under $650,000. In addition to our world class brokerage services, we offer financing to help simplify your client's transaction.

Our specialty is single tenant net leased real estate, which is ideal for investors that need to place capital in long-term, low-risk investments. Many net leased investors are business, apartment, or office building owners that are seeking a passive income stream with little to no management responsibilities. We frequently assist franchise owners with securing real estate to expand or relocate their concept.

Our blog has up-to-date commercial property profiles for a variety of nationally known tenants. Please feel free to see if a property meets your client's investment criteria. To refer a client for buying, selling, or financing commercial real estate please e-mail us through our Contact Us page.

Commercial Property Profile: Ulta

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Ulta Beauty, Inc. is an American chain of beauty stores. Ulta offers a wide range of drug store to luxury brand cosmetics, skincare, fragrances, and haircare products for both men and women. Each store is also equipped with a full service salon. Ulta is publicly traded on the NASDAQ Exchange as ULTA, with a market capitalization of $14 billion.

Headquartered in Bolingbrook, Illinois, with 975 stores across the United States, Ulta is a promising net leased investment because of their high customer retention rate and Class A retail locations. Primary lease terms are typically 10-15 year triple net leases with 5-year renewal options. For 2017, cap rates and sales prices averaged 6.25% and $4,250,000 respectively.

Commercial Property Profile: BJ's

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BJ's Restaurants, Inc. is an American chain of restaurants, home of the world famous Pizookie dessert. With select restaurant locations operating full process microbreweries, some of their brews have been awarded gold and silver medals at various competitions throughout the world. BJ's is publicly traded on the NASDAQ as BJRI, with a market capitalization of $1.1 billion.

BJ's is headquartered in Southern California, and currently has 197 restaurants across the United States. BJ's is a strong net leased investment because of their family friendly environment and centralized locations. Primary lease terms are typically 20-year triple net ground leases with 5-year renewal options. For 2017, cap rates and sales prices averaged 5.25% and $5,000,000.

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