Value-added resources to help you make the deal

As real estate brokers, we're all aware that Long Island is a competitive marketplace these days. How to differentiate yourself and become the exclusive broker or at least the broker who makes the deal? Add value for the customer. Don't just find a suitable building for your purchaser or suitable purchaser for your seller's building. Enable the deal by bringing financing, utility abatement, tax abatements, zoning assistance, and other valuable resources to the table. Two of the best kept secrets about financing the deal are the SBA 504 and the New Market Loans to help small businesses and not for profits buy buildings. The biggest problem these entities face today in terms of capital acquisitions is lack of cash for the deal. These programs significantly lower the cash required from the purchaser. Under the 504 or New Market program, the buyer injects just 10% of the total project cost-including building (or condo/coop), renovations and soft costs. A bank or other lender lends 50% in first mortgage position. The 504 or New Market program lends 40% in second mortgage position. These loans are self-amortizing, low fixed rate for 20-25 years. Participation in the programs saves your buyer money on mortgage tax and sales tax and may entitle it to special abatement programs from Keyspan and others. Bringing in the interest rate subsidy from NYS's Linked Deposit Program can lower the overall cost to your buyer. In addition to financing for the building purchase, you can offer long term low interest working capital loans to the purchaser or seller under various economic development programs. The L.I. Targeted Industry Loan Fund provides long term, low fixed rate subordinate loans to software developers, high end electronics companies, pharmaceutical or bio medical companies, fisheries related and defense dependent manufacturers. The Town of Hempstead Small Business Fund can provide needed affordable working capital for the parties' expansion needs. NYS offers subsidies of consultants brought in to help a purchaser organize the layout of its new building. In appropriate cases (chiefly construction deals), you may be able to assist borrowers with relief from real estate taxes under IDA straight lease backs. Another valuable resource for both seller and buyer is the Long Island Government Contracting Program-free counseling to help businesses obtain and perform on government and other contracts. Remember- all businesses are always looking to expand their business. If you can bring them more customers, of course you'll get to broker the deal. The list goes on and on. As a real estate broker in today's competitive market, it behooves you to be aware of the current programs available to help your sellers and your purchasers- programs which will make you a hero- help make the deal affordable for the purchaser-help accomplish the seller's objective- and get you repeat business! For information on small business resources and incentives to help get you clients and help your clients successfully complete real estate transactions- contact the Long Island Development Corp. at [email protected]. Broker confidentiality protected! Roslyn Goldmacher is a licensed real estate broker in N.Y. as well as president/CEO and founder of the Long Island Development Corp. & The Greater N.Y. Development Co.