Here are some frequently asked questions.  For answers to these questions and more, contact your Lynx Real Estate advisor at 404-477-2044 or email us at info@Lynxre.com.

How do I find a qualified commercial real estate investment professional to guide me through the buying, selling or leasing process?

Call us at 404-477-2044 or email us at info@Lynxre.com and a Lynx Real Estate advisor will give you the help you need now.

Why is leverage so important to my investment decisions?

Commercial Real Estate is one of the few investment opportunities that provide you the benefit of leverage.  With a down payment of, say 25%, you have control over the property and the cash flow.  After the lender is paid this becomes your ROI (Return on Investment).

What are Financial Ratios?  Why are they crucial to my investment decisions?

These ratios are used throughout the commercial real estate industry and provide a way to analyze buying and lending decisions.  Some of the more important ratios are the Cap Rate(Capitalization Rate), the LTV (Loan to Value), the GRM(Gross Rent Multiplier) and the DCR(Debt Coverage Ratio).

Why do I need a cash flow analysis? What is it?

A cash flow analysis is a report showing the current or scheduled income, including rents and other income, vacancy and/or credit loss, and a list of all operating expenses. This information gives you a Net Operating Income figure which is the net income of the property before loan payments or debt service. Loan payments are subtracted from the Net Operating Income to get the cash flow before taxes for each property. These reports may be done on a monthly, quarterly or annual basis. The larger the property the more often these reports need to be completed. Most property management firms will produce these on a monthly or quarterly basis in addition to the annual report that is necessary for preparation of income taxes.

What is a 1031 Exchange?

Also known as a Starker Exchange or a 1031 Tax Deferred Exchange, this IRS code allows investors that meet certain qualifications to sell an investment property and reinvest in another investment property within a certain time period and defer any capital gain income taxes from that transaction. There is more detailed information in our Quick Links page covering the 1031 Exchange.

How frequently is your database updated?

We pride ourselves in offering the most up to date information in the industry and are constantly updating our site with the latest information and resources.  Take a moment and  familiarize yourself with our state of the art search capabilities.

What is the difference between commercial and residential real estate?

Commercial real estate leases and sales are based more on contracts and the negotiating parties are given more negotiating latitude than in a residential real estate sale or lease. The main difference lies in the amount of legal control that exists over residential real estate. For example, there are state laws controlling habitability of residential real estate.

What is zoning?

Zoning is a governmental control over the use of property. Local, state or federal government control such issues as land use, building specifications and environmental impact. For example, local government can require that certain property be used only for industrial purposes.

How are zoning ordinances changed?

An application and fee must be sent to the relevant governmental body asking for a variance. A variance is an exception to the zoning ordinance. Many times the process of receiving a variance requires an administrative hearing, public disclosure and input. A variance is not a change in the ordinance. A variance is merely an exception. Rezoning, or a permanent change in the zoning ordinance can also be attempted.

Are there any federal laws that will impact my commercial real estate decisions?

The Environmental Protection Agency (EPA) administers a number of federal laws that impact commercial real estate. For example, the Clean Water Act and the Endangered Species Act both can have an impact on land use and on development in environmentally sensitive areas.

What are the eminent domain laws and how can they effect me?

State and federal government has the power under the Fifth Amendment to take property for the public use.  Eminent domain is the expression of this power.  The process can include taking land for power lines, parks, virtually any public use and the broad interpretation of this power has been reinforced by recent Supreme Court decisions.

What is an encumbrance?

An encumbrance is a condition of use attached to a parcel of real estate. It can include an easement which is a right to use another persons property to gain access to one’s own property. They are most common when a piece of real estate is completely surrounded by neighboring properties.