edited by Jodi Summers
Moving your office? Figuring out how much space your business needs is key finding your new office space. While it may seem cut and dry, determining the necessary space is typically a challenge. Now, there are office space calculators to help the team figure it out and keep office expense at a minimum.
TheSquareFoot set out to make this process easier and more approachable, placing a priority on usability yet still punching enough power to provide accurate size estimation. Once you’ve found what size space you need, they also give you the ability to jump into listings with a preset filter, making it easy to go from not knowing how much space you need to touring buildings in a few clicks.
Start by selecting your number of employees and how much space you’d like them to have. Choices range from Economy (100 sq.ft.), Average (125 sq.ft.) and Spacious (150 sq.ft.). You can then add rooms you’d like included such as private offices, reception areas, conference rooms, kitchens etc. Once you’re done fine-tuning you can search existing listings in most major cities.
How the Small Business Administration can Help You Improve or Start a Small Business
People have great ideas for small business all the time, but most never get past the idea stage, and it’s often due to a lack of funding for major expenses like retail or industrial space. And many don’t realize that they might be able to access funding from the Small Business Administration (SBA), a federal agency that provides all kinds of useful information—as well as loans—for small business and start-ups.
What Help can the SBA Provide for Small Business Owners?
The SBA offers a range of different types of programs for helping small business owners get loans or access venture capital, and can also guarantee bonds for contractors.
SBA guaranteed loan programs are designed to help small business owners get third party loans from participating lenders. The money that a small business owner borrows doesn’t come from the SBA itself, it comes from a conventional lender such as a bank, or sometimes from micro-lender organizations or other community organizations. Many banks participate in the SBA loan program, including The Bank of America, Chase, US Banks, and Wells Fargo, as well as lending institutions like Fundera. The SBA’s role in the loan process is to provide a guarantee that the loan will be repaid; this reduces the risk for the lender, and allows them to offer loans with more favorable terms, and more relaxed qualifying criteria. Note, however, that the SBA won’t guarantee a loan for a borrower who can access conventional financing at a reasonable rate—the loans are intended more for people who would not otherwise be able to access affordable funding.
In a similar fashion, the SBA surety bond program helps contractors by acting as a third party, or surety, to a contract between the contractor and a project owner (the person the contractor is doing work for). Under the terms of an agreement between the contractor and project owner, the contractor is legally bound to provide the work they’re contracted for, but if they are unable to do so, the surety—in this case, the SBA—becomes responsible for getting the work done.
The also known as the Small Business Investment Company (SBIC) is a combination private and public investment partnership designed to help small businesses locate growth capital. The funds are licensed by—but not provided by—the SBA, but the SBA supplements capital raised by investors with its guaranteed loan program. Access to venture capital funds is more limited than access to loan funds, however, and there are more stringent qualifying criteria for businesses that want to access venture capital.
What can You Use SBA Loans For?
The SBA offers several different loan programs; the amount a small business owner can borrow depends on the bank they work with as well as SBA regulations. For example, Chase bank offers loans of up to $5 million, while Bank of America offers loans of up to 3.5 million. In most cases, the business must have been in operation for two or three years, and the owner or owners must have some of their own equity in the business (these are requirements of the lenders, rather than the SBA itself). The SBA has requirements of its own: for example, the business must be a for-profit organization, be an SBA-defined small business, and have a sound business purpose in mind for the funds. However, there are few restrictions on what the business can do with the money: it can be used for both long term and short term purposes, including use as working capital for paying expenses of operation, to buy equipment, fittings and furnishings, or supplies, to buy real estate such as building or land, to renovate a building, or to construct a new one. Purchasing land and buildings can be an especially advantageous way to use SBA loan funds, since it allows a small business owner to access retail or industrial space without having to qualify for a commercial loan, which is typically a more expensive prospect than a residential one. Restrictions on what can be done with the money include using it to pay or refinance other debts, to pay delinquent taxes, or for any purpose not considered a “sound business purpose” according to SBA regulations.
How to Apply for SBA Funding
The SBA offers plenty of guidance for small business owners interested in applying for loans or accessing venture capital, including help with finding local lenders, application checklists and guidelines, and further services at local offices.
by Naomi Shaw
A real estate partnership can be a lucrative venture for many individuals with a limited amount of money to invest. Forming a partnership will increase your working capital, and you’ll be able to buy properties you couldn’t afford on your own.
However, there are some significant risks that can come with forming a partnership. If you choose the wrong person or company to do business with, you could find that your investment quickly becomes a loss.
Before entering into any sort of real estate business partnership, make sure you do your homework on who you’ll be working with.
Knowing Your Partner
Entering into a real estate partnership with another person or company is something you should do only after you understand who you’re working with. While helpful to work with people you know and trust, there are some questions you should ask any person or company before considering a partnership.
● How much money do you have to invest? How is your credit score?
● How many properties do you currently own?
● When do you expect to make a profit from your properties? Do you plan on holding properties for years or do you want a quick turnaround to leverage into other ventures?
● Have you had other real estate partnerships in the past? Do you currently have other real estate partners? Do you have references to any past or current partners?
Understanding Your Partnership Agreement
Before you commit to any type of partnership, it’s essential that you come up with an agreement as to how the partnership is going to work. The most important things you need to discuss when setting up a real estate partnership include:
● What your responsibilities in the partnership are. Usually, one partner will manage properties while another is responsible for finding new properties. Of course, all partnerships differ. Defined roles are important.
● Is the partnership going to be reviewed at certain times? Many partnerships review profits about once per year. After all, not all partnerships are worth maintaining if there’s no growth or profit.
Hire an Attorney
If you form a good partnership, chances are you won’t ever need to consult your attorney. However, you do need to hire a qualified attorney who will help you setup your partnership.
Trying to do it yourself will most likely leave big gaps in your contract, and unless you’re incredibly well versed in business partnerships, those gaps could create potential problems down the road when it becomes time to sell properties, split profits, or dissolve the partnership and its assets.
Hiring an attorney seems costly, but it’s going to cost you a lot less than a business partnership gone wrong.
A real estate partnership is often an excellent way to make more money than you ever could on your own while balancing the work that real estate investing takes. However, partner with the wrong person, and you could end up losing all of the money that you had to invest.
Do your homework and ask questions, and always set up a binding legal agreement that helps both partners understand how they’ll be working together and how they’ll be able to exit the partnership if needed.
Naomi Shaw is a freelance writer in Southern California. Real estate is something she is passionate about and she loves covering the many different facets of it in her writing. She works with Ovlix.com.
from Jodi Summers
As real estate developer Rick Caruso is remaking downtown Pacific Palisades, other developers have been flocking to area neighboring Caruso’s Playa Vista development.
Global presence Google has increased their real estate holdings by purchasing 12 acres in Playa Vista, while developers Clarion Partners and Maguire Investments have made significant office investments in the neighborhood.
Word on the street has it that Google spent nearly $120 million on 12 vacant acres next to a historic hangar where aviator Howard Hughes built his famous “Spruce Goose” airplane. Zoning allows for nearly 900,000 square feet of commercial space on the 520,000+ square feet of land. Google will also lease the Hughes hangar. Built in 1943, that 319,000-square-foot building has recently housed soundstages for movie and television production. This compliments their 41,000-square-foot video production facility for subsidiary YouTube, which is housed in a renovated former Hughes building in Playa Vista.
“This is phenomenal news for the Westside and for the Los Angeles economy,” said City Councilman Mike Bonin, who represents the Playa Vista area. “It really makes and brands Playa Vista as the tech and innovation capital of Los Angeles.”
Also in Playa Vista, DivcoWest and Maguire Investments have formed a joint venture that will own Water’s Edge, a two-building, 260,000-square-foot office property developed by Maguire Investments. The joint venture also plans to develop a third creative office building on the campus. Groundbreaking is expected to be mid-2015.
“The timing was perfect,” praised Robert F. Maguire III, chairman and CEO of Maguire Investments. “Our timing is really exceptional because the buildings currently underway are essentially rehabs, so we will be the first new building in the market….We can’t move fast enough. Once completed it will be one of the most exciting creative campuses in the country.”
Speaking of facelifts, Clarion Partners has completed redevelopment and rebranding of its office property at 12130 and 12180 Millennium Drive in Playa Vista. Not to be outdone, Clarion boasts that the six-story, 301,642-square-foot property will be the first major creative office redevelopment property in Los Angeles. Formerly named Latitude 34, the new building has already signed a 49,000-square-foot lease with Group M advertising company.
Expect new office development on the Westside beyond Playa Vista be limited to a handful of small properties, as the average vacancy falls to 13.8%. Class A rents for top-tier space is up 9% to $44.73 per square foot annually.
Last year Microsoft Corp. opened a roughly 20,000-square-foot space in Playa Vista, relocating 130 employees from downtown L.A. Facebook Inc. has operations nearby. The neighborhood boasts the headquarters of online advertising platform Rubicon Project, consumer electronics and accessories maker Belkin International and ICANN, the nonprofit organization that is responsible for assigning Internet domains.
The Lincoln Property Co. (which sold the land to Google) is the largest commercial developer in Playa Vista, with five office buildings – including the new West Coast headquarters for movie specialist IMAX Corp.
Lincoln is also building the Runway, a $260-million retail, housing and office project that will become the commercial heart of Playa Vista when it opens early next year. Other developers are in the process of building an additional 2,600 housing units.
As the Silicon Beach reputation continues to grow, Playa Vista has become an innovation incubator. At first, the neighborhood’s appeal was because of its location near major freeways, the Westside, the beach and Los Angeles International Airport. But, Playa Vista has come into its one as a vibrant creative community, home to USC’s Institute for Creative Technologies, as well as TMZ, Warner Bros, Sony PlayStation and Verizon. Yahoo is rumored to be leasing office space there soon.
For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – email@example.com or 310.392.1211, and let us move forward together.
CALIFORNIA’S REAL ESTATE BILLIONAIRES – DONALD STERLING IS INTO APARTMENT BUILDINGS HE WAS INTO THE CLIPPERSDecember 20, 2014 on 10:24 pm | In Fascinating Information, Funny...Money, Statistics, Uncategorized | 1 Comment
Net Worth: $1.9 Billion
Source Of Wealth: real estate, Self Made
Residence: Beverly Hills, CA
Citizenship: United States
Marital Status: Married
Education: Doctor of Jurisprudence, Southwestern Law School; Bachelor of Arts / Science, California State Los Angeles
Donald Sterling on Forbes Lists:
- #931 Billionaires
- #328 in United States
- #792 in 2013
- #296 Forbes 400
In August 2014, Sterling was forced to seller the basketball team he owned to former Microsoft CEO Steve Ballmer for $2 billion. You remember, Sterling gained notoriety due to racist remarks he made in 2014 in relation to the L.A. Clippers, the evolution of struggling San Diego-based NBA team he bought in 1981 for $12.5 million.
Donald Sterling was born Donald Tokowitz on April 26, 1934, in Chicago, Illinois. His family moved to the Boyle Heights area of Los Angeles when he was two years old. Starting in 1961, Sterling began to make his career as a divorce and personal injury attorney building an independent practice when Jews had few opportunities at prestigious law firms.
Sterling got started in real estate when he purchased a 26-unit apartment building in Beverly Hills. He then purchased Lesser Towers, a pair of large apartment buildings in Westwood and renamed them the Sterling Towers (now the Sterling International Towers).
Sterling amassed his fortune over several decades, buying apartment buildings primarily in Los Angeles; he also owns properties in Orange County, San Diego and Las Vegas.
In 2009, Sterling paid $2.7 million to settle a lawsuit that alleged housing discrimination against African Americans and Hispanics; Sterling and his wife denied any wrongdoing.
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