Waad Nadhir is a Michigan businessman with decades of experience. He is the Co-Founder and President of BOSC Realty Advisors, and in 2016, he accepted the 2016 Business of the Year Award from the Brea Chamber of Commerce on behalf of his company.
The 2016 Business of the Year Award recognized the significant community involvement and business leadership of BOSC Realty Advisors and Mr. Waad Nadhir.
Brea chamber of Commerce presented the award to BOSC Realty Advisors on December fifth, 2016. Soon after, in February of 2017, it received commendation from the Brea City Council.
BOSC was initially formed to develop a single property – known as Topinka’s Plaza. Since 1989, it has developed properties across the United States and is behind three retail concepts. Two of the three were huge successes.
Shopping centers, office buildings, medical office buildings and single tenant buildings for companies including CarChoice Automotive Superstores (now AutoNation USA) and Blockbuster Video are among BOSC’s list of successful property development and management projects.
Mr. Waad Nadhir oversees all asset and property management for three retail centers and three medical office buildings. He also oversees leasing, financing and taxes.
Waad Nadhir has been in the real estate business since 1989 and is an expert when it comes to real estate financing.
There are two big differences between commercial and residential financing of properties.
Lenders look at residential properties as personal residences. To qualify for a residential property loan, you need to show your creditworthiness first.
Lenders view commercial properties differently. They know that a commercial property is a place of business, which is why they are first interested in the ability of a commercial property to generate income. Your primary goal when seeking to finance for a commercial property is to show that it will bring more income than it will take in expenses and mortgage payments. Your personal qualifications come second. This means that in certain situations you may have less than ideal credit history, but your income-generating property may allow you to get a loan.
Another difference between commercial and residential real estate has to do with the down payment amount. Commercial properties typically require a down payment of at least twenty percent of the purchase price. Zero-down loans and mortgages are almost unheard-of in the commercial real estate industry. In addition to this, because the loans for commercial real estate are usually much bigger than the residential loans and the risks are higher, the rules are much stricter.
When analyzing the income from a commercial real estate property, lenders look at debt coverage ratio and loan-to-value ratio.
Debt coverage ratio is the ratio of net operating income from the property to the debt payments. Fundamentally, this ratio shows whether the property is bringing enough money to cover the debts for which it serves as collateral. The loan-to-value ratio compares the appraisal value of the property to the loan amount. A typical loan-to-value ratio incorporates the income strength of the property and the financial health of the buyer. While experienced real estate investors like Waad Nadhir may be able to make a deal because of their reputation, newbie investors need to pay very careful attention to the numbers.
Waad Nadhir is a commercial real estate developer who has been successful throughout his lengthy career in the field. He is currently serving as the President and Co-Founder of BOSC Realty Advisors, and he is also a consultant for a Steadfast Companies, which is property management and development company. Here is a short guide to success in commercial real estate development.
Understand that location is the most important factor in your decision to lease or own commercial real estate. You need to pick a place that you know will have a decent amount of foot traffic, that is in an up and coming community, and is surrounded by businesses that will be conducive to your purpose. The location can ruin a good business, and it can make an average business successful.
Don’t be afraid to hold off on developing a property until it become financially optimal to do so. This is a common practice amongst professionals in the industry because some land can be worth more when developed at a later time. This is especially true if you’ve invested in land in an area you know will be on the rise in the near future.
Commercial real estate needs to be continuously improved in order to be lucrative. Customer wants and needs change all the time, and you have to update your property in order to serve these changes in interest. All things change over time, and this includes the property you rent, control, or own.
Waad Nadhir understands what it takes to be successful as a developer of commercial real estate for his company, BOSC Realty Advisors.