October 5, 2020

Real Estate Budgeting in the COVID era

It’s fall and that means…. budgeting for 2021! Wait, don’t go. Budgeting serves several purposes. First, it creates a way to hold management accountable for financial goals and to track progress. Second, it identifies capital needs and sources. Third, it shines a light on financial statements to determine if amounts included are reasonable. Are any amounts significantly higher or lower than expected and if so, why? […]
July 7, 2020

What Families Can Do To Protect Their Real Estate Portfolios

While the economy is opening back up, here are some items families with real estate holdings should be considering as we move forward: Cash is King.  You’ve likely heard this a lot lately, but it’s true.  Now is the time to preserve cash, monitor expenses, and only spend money on matters that can’t be deferred. Also, don’t wing it; prepare a rolling 12-month cash forecast and update […]
February 2, 2017

Lease Accounting Update

Financial Executives magazine wrote an article that I thought did an excellent job of outlining the pending changes for lease accounting.  These changes are coming from the joint project between the Financial Accounting Standard Board (FASB) and the International Accounting Standards Board (IASB).  The article focuses on how the proposed new standards are expected to affect lessees.  Currently, under GAAP, all leases are presumed to be […]
February 2, 2017

What Borrowers Want From Their Bankers

Two separate conversations encouraged me to write this post.  One was a chat with a client commenting on his great banker and the other was with a banker who jokingly said, “What is it you borrowers want?” Yes, low rates, low fees, flexibility, etc., are great, but in my opinion what borrowers really want (or should I say need) is an ally they can call on […]
February 2, 2017

Pigs Get Fat, Hogs Get Slaughtered

A home-builder client and I were discussing a large plat he is working on.  It’s in the dirt-work phase, so he has not yet committed to building homes.  When I asked what his plans were he said, “In this market, I’m a seller.”  He will most likely sell the finished plat to another home-builder when complete.  He went on to say, “I could probably get more for […]
February 2, 2017

Good times, good tenants?

It may be a slow recovery, but we are certainly in the growth mode. With that comes an increase in leasing.  Coming off a difficult economy means the review of your prospective tenant’s credit is even more important.  Here are some key items to consider: Can they pay the rent? Look at the whole company, not just their financial statement How long have they been in […]