Choosing The Right Auckland Lawyer For Your Needs

Auckland lawyerThere are numerous occasions in life where we may find ourselves in need of a lawyer. Some events are happy occasions, other events are anything but pleasant. Whether you need a lawyer for a great time in your life, or a challenging one, a significant concern may be choosing the right Auckland lawyer for your personal needs.

Indeed, there are many Auckland city-centre lawyers, but which one will be able to deliver the right service for you? Let’s take a look at a few pointers that should help you to make a good choice for an Auckland lawyer.

Reputation Of The Auckland Lawyer Is Important

In many cases, a lawyer will have a vital role to play in your future. That means this is not the time to take a chance on somebody you are not quite sure on. Investigate the city-centre lawyers in your area and create a short list of all those who have a great reputation.

There are a few ways that you can find out if a particular lawyer has a good reputation. Firstly, check out review sites and forums online. Often you can read about previous customers and even ask them questions.

If you read a few negative remarks about a particular lawyer, don’t let this immediately put you off. Remember, there will always be people in life who simply can’t be pleased. However, if the same negative remarks seem to come up over and over again, it may be time to move on to your next possibility.

A second way to find out whether a lawyer has a good reputation is to ask around. Take the time to mention the name to people in your social circle, work colleagues, and neighbours, you will likely find someone who has information that can be of use to you.

Make The Most Of Your Initial Appointment With Your Local Lawyer

Once you have created a short-list it’s time to set up a few initial appointments. This is your chance to find out everything you need to know about the lawyer, so don’t waste the opportunity! Prepare a list of questions and don’t be afraid to use the list during the appointment. You could include some of the following questions:

– How long have you been working within this field?

– Have you recently dealt with a case that was similar to mine? What was the result?

– Will you be caring for my case or will you be delegating parts of it?

– What forms of communication will you use to keep me updated with the case?

Indeed, by asking the right questions you will quickly be able to narrow your search down to city-centre lawyers who could be a great match for your needs.

Choosing an Auckland lawyer is often a difficult task that may cause stress and worry. However, by creating a short list of lawyers who have great reputations, as well as making the most of the initial appointments, you should be well on your way to making a great choice.

The Main Activities Of Auckland Commercial Lawyers

Commercial lawyers specialise in the area of law that deals with business or corporate law. This is the body of law that applies to the conduct, relations, and rights of businesses and individuals who are engaged in trade, commerce, sales, and merchandising. This area of law is considered to be a part of civil law and deals with both public and private law issues. Anyone engaged in commerce must comply with the rules defined by commercial law. Commercial lawyers Auckland and the rest of New Zealand, help their clients comply with these laws and guidelines as they conduct business with consumers and with each other. Commercial law governs negotiable instruments, the sale of goods and services, agent and principal relationships, leases, contracts of carriage, security interests and more.

Commercial lawyers Auckland business owners will be pleased to hear, also deal with legal issues that may arise before the initiation of a lawsuit. Once the lawsuit is filed, these same issues may be considered litigation. Commercial lawyers typically help their clients enter and negotiate business deals, while litigation lawyers defend the interests of their clients in court when a business deal goes bad. There are several practice areas covered by commercial law.

Some commercial lawyers specialise in banking and finance. These lawyers are usually considered finance lawyers and help ensure their clients are protected against financial risks during a business or financing deal. The lawyers will review and draft any legal documents and make sure all required documentation is prepared. They will also oversee all the steps to ensure proper funding are followed and that the borrower has completed all conditions before funds are disbursed. Banking or financial lawyers will also advise their clients if legal issues arise once funding is in place.

Corporate lawyers help ensure their clients are complying with all applicable laws and regulations while conducting business. These lawyers will review contracts, prepare documents, and oversee business transactions. Some commercial lawyers even serve as project managers to ensure all legal aspects of a project are covered.

Commercial lawyers AucklandAnother area where commercial lawyers frequently practice is dispute resolution. These commercial lawyers advise their clients during disputes with vendors or customers. They ensure their client understands the law regarding their position and recommend dispute resolution strategies. If the disputes result in formal proceedings, the commercial lawyer will be responsible for drafting and finalizing all legal documents and guiding their client through the hearing or trial process.

If a commercial lawyer has extensive experience in dispute resolution, they may serve as mediators or arbitrators. They may also advise other colleagues on how their clients can minimise or avoid future disputes during business deals.

One of the busiest areas of commercial law is contracts. Contracts are the foundation of business and without them, buyers and sellers couldn’t do business with each other. Without a legal contract, there is no guarantee that each side will uphold its part of the bargain.

Commercial lawyers who specialise in contracts ensure their client’s needs and requirements are represented in any contract negotiation. These lawyers oversee all phases of contract negotiation, keeping in mind the best interests of their client.

Commercial lawyers serve their clients in many capacities. They help with business deals, negotiations, and dispute resolution. Their goal is to protect their client’s interests at all times.

Commercial lawyers Auckland

Options Available To Finding Commercial Real Estate Finance

In recent years developers have found it challenging to access funding in order to commercial real estate finance projects. This is generally due to the reluctance of banking corporations to lend money for refurbishments and new constructions. Banks have become very cautious about lending to developers especially those with little or no experience.

It can always help if the project is properly detailed and even permissions obtained before any lender is approached. This will mean that the developer will need to use their own finances for this, but lenders are always more comfortable with lending to people who show initiative and eagerness in using their own funds. In fact, any proposal that shows that the developer will put up a fair percentage of the required finance for the project has better chances of being accepted. Proposals that show that the amount of the debt as not exceeding 75 to 80 percent of the value of the project after development have the best chances of attracting finance at fairly decent terms.

Property development financeOnce you are sure you have a winning property, you need to make some calculations. This means working out the initial costs of buying the property, including purchase price, deposits and any associated professional fees. Then you need to look at the actual development costs but be realistic. Most people vastly under-estimate the costs. Next remember to include day-to-day running costs whether these are for the ongoing use of the property or until you come to sell it. And finally, assess the potential resale value.

A senior debt loan

Before seeking out property development finance you must determine what form of property finance you will be undertaking. A senior debt loan is recommended for residential and commercial projects as it covers between 60% and up to 80% of the property development loan value. This can be arranged against the gross development value with additional security and all interest payments may be deferred if necessary.

100% property development finance

In some cases you may be able to negotiate bridging rate finance options without any need for profit sharing. One example of this includes situations where you already own the land; another instance is when you have a good relationship with the expert lending partner.

The developer must ensure that these documents are prepared well in advance, properly reviewed and deal with any possible objections. Getting help from commercial finance brokers can help to create the necessary documentation, as they are people who will be well versed with what financiers and lenders ask for.

Once you have completed renovation, you have to consider the day to day costs of running the property. Chances are you are not going to immediately sell the property, so you will need to factor in the cost to maintain it. Some of these monthly costs include utilities, insurance, mortgage, administration costs etc. If you are intending to lease the property, how long do you think it will take to find a suitable tenant?

Alternatively, you can pre-sell the lease so you know that you will have a guaranteed income stream soon after the property development project is completed. You may have to accept a slightly lower rent but this can be a small price to pay compared to an empty property and no rental income.

Finally, look for commercial real estate financiers. These brokers will also have contacts with plenty of other private and secondary finding sources. Take a look on this site for some thoughts.

If you think you will not be able to afford to develop a property on your own or if you think your mortgage amount will not be enough, consider partnering with several people. A group of four people can apply for mortgage.

One of the biggest is Global Pacific Ltd who in fact provides Auckland commercial real estate finance all around New Zealand.


The Types Of Commercial Lenders Loans And Properties

Considering there are all different types of commercial properties, you can imagine there are different commercial lender types as well. The following is an explanation of some of the different kinds.

Acquisition Loans

Acquisition loans are when a person is trying to purchase or “acquire” property. Another type of acquisition loan is an acquisition and development loan. These loans are also for acquiring property, but the purpose of purchase is for development of the property. This type of loan generally follows a process called voucher control when it comes to disbursement.

Asset Based Loans

A person gets an asset based loan for a variety of different reasons, as the funds can be used for anything at all. This loan involves collateral being used to secure the loan.

Bridge Loan

The bridge loan works in respect to its name, providing a bridge until financing can be implemented permanently. As you can imagine, these loans are great for being able to quickly pull the trigger on a commercial acquisition or perhaps a new business venture. Foreclosures and construction are two other reasons these loans are given. Remember, these bridge loans only bridge the gap until traditional financing can be approved.

Construction Loans

Construction has been mentioned in regards to commercial lenders, but there are various types of these construction loans. First, these loans are of course given for either a new development or a remodel. Generally speaking, when it comes to these loans, assets and improvements on the land serve as collateral for the loan. Disbursement is done by allotment as money is needed to continue the construction project.

Debt Consolidation Loans

This is exactly what it sounds like, as debts are consolidated into one payment each month. This is typically a lower overall monthly amount, making it easier on the establishment to pay up. The interest rate is often going to be lower on these loans, and they are often considered when debts are overwhelming.

Development Loans

These loans were touched on earlier, but they are in their own group as well. Commercial lenders provide loans for new development projects and for improvements that need to be made to a property.

Refinancing Loans

This type of loan is given by a commercial lender on a property when a person finds out they get can better loan terms than they currently have on their commercial loan. Typically, this is often realised when interest rates have been lowered. These are popular loans for small businesses as they try to be competitive out there in their niche when starting out.

With all these types of commercial lenders and loans given, you might be thinking about various types of commercial properties. There are of course apartment complexes, office buildings, theatres, hospital and medical facilities, convenience and grocery stores, tracts of land, dealerships, churches, malls and shopping centres and much more.

If you’re needing a commercial loan, then you fit into one of those above categories. Look at all the different categories for types of properties, and match the loan type according to your business needs.

Are you acquiring property, or do you already have property? Are you renovating the property? Most of the loans are self-explanatory, with a few of them really getting specific. This makes it easier to match yourself with a commercial lender.

Perhaps you’re wanting to refinance a property that you already have financed. If interest rates are lower, or you’re curious to see if you can get better terms and conditions, inquire with a commercial lender.

Or, maybe it’s a bridge loan that you need so that you can take advantage of a business deal that is likely to get away before you’re able to secure traditional financing. Then you can get whatever loan you need to begin after the bridge loan. Whatever your business loan needs are, there is an Auckland corporate finance company for you.

Auckland corporate finance company

Obtaining Development Finance for Real Estate Development in Auckland

The development of commercial property will always require a fair bit of time and funding, starting from acquiring the land, planning the project, getting building approvals, carrying out the construction, and finding either buyers or tenants. While all the steps required to be taken are achievable for a person with the right experience, it is the funding that can quite often turn out to be a stumbling block. Here are some tips on obtaining Auckland property development finance.

NZ property development finance

NZ property development finance

Development finance is difficult to get, because lenders are averse to taking risks on property. This is especially so with regard to the major high street banks. After all they have their own stakeholder’s interests at heart. If you plan to take development finance for acquiring derelict or rundown property, lenders will be even more sceptical, as such properties are not insurable and this increases the risk for them. If properties have been lying vacant for a long time, it is probably because the location or other things about the property that is a disincentive for tenants. Asking lenders to risk their money on property that cannot be sure of any returns is extremely difficult.

Property development for new projects is however another matter and can receive finance, although this will be in stages. This will start with the initial purchase of land, building the required structure and final completion. Even in such cases, lenders need to be convinced of the viability of a project and the chances of recovering their loaned amounts, through sale of units in the property or long-term leasing. This is why lenders who arrange for development finance will insist on a proper business plan of the entire project, with details on how income will be generated, and repayments will be scheduled. Finance is given in stages, and a complete reasoning has to be given to the lender, of the costs incurred at each stage, so that they arrange for the necessary finance. It makes sense for the developer to take into consideration delays in receiving finance, due to the requirements for verification by the lender. The developer then on his part can arrange to negotiate for staggered payments to suppliers, so that they come due when the necessary finance is received. Final payments may be negotiated to be paid a few weeks after completion, so that all the processes with the financier are completed, and their final tranche of development finance received by the developer.

Development finance is best obtained through the services of a commercial finance broker such as Auckland’s Global Pacific Finance. These are people who are well versed in all the required documentation for any application, and also have extensive contacts among lenders and other institutions that do offer development finance. The broker will also be of help in preparing the necessary business plan that will demonstrate the viability of a project, taking into consideration all risk factors while computing the return on investment. Remember that lenders have a lot of expertise on tap that will question every aspect of the business plan, and having an experienced broker by your side, will help you to anticipate queries and answer them. If you have been in the commercial property development business for some time, a proper presentation of your previous work, verified with fully audited accounts, can help to convince the lender of the professionalism you bring to the project, which in turn lessens the risk for them.

property development finance broker

Property development finance broker

Gather as much information about property development finance, and find projects similar to the one you are planning. You can call them and ask them for information about their sources of finance. Make forecasts that are sensible and not overly optimistic, taking market conditions and economic conditions into consideration. A well-made, realistic business plan, which convinces lenders can even help you to negotiate better terms.

In the last couple of years the commercial real estate market has taken off after the slow-down of the GFC. As a result Auckland property development finance is now easier to find with more lenders coming into the market. Many of these do not advertise that they are commercial lenders so you need to use the services of an intermediary like a finance broker but you must still have a good business plan to present to the lenders and brokers. For some ideas on obtaining property development finance, visit this website.

Commercial Mortgage Brokers – What Do They Do?

To be a commercial mortgage broker you have to be trained and highly experienced in the field of retail, commercial and industrial real estate. The goal of a broker it to enable their clients to buy different properties with the help of commercial mortgages that the broker arranges from v a variety of lending sources. Their clients can include organisations, banks, businesses, governments, business owners or property investors. For more information regarding commercial mortgage brokers, read the following:

Commercial mortgage for office

Commercial mortgage for office – image Supertrooper

In general, brokers have strong business relations with a variety of banks and other lenders. As the relationships develop, the broker will be able to arrange bigger loans and have bigger negotiating power. This means that are able to offer their clients better deals than a borrower might get from a bank for example. Commercial mortgage brokers are highly experienced and know the inside-out of the real estate market, thus providing a high class service to all their clients.

It is important that brokers are dedicated to their job since it can take a while to become established in the market. They also need to be good salespeople, because they get paid by a commission when the loan is completed. So if they do not do a good job they do not get paid.

Another important characteristic is that they should be comfortable using computers as their work involves using a computer for a large part of their day, to check online databases, records, spreadsheets and emails.

Its not easy becoming a commercial mortgage broker. Some firms prefer to employ people that have a formal education from a college or university that offers certificates or degree in commercial real estate or finance. Other financiers though prefer their candidates to have strong people skills or to have an emphasis on their selling abilities.

Besides learning this business, it is also important to have the right attitude that will help you succeed. For example, in Auckland, commercial mortgage brokers are keen to have the chance of working for well respected finance companies such as Global Pacific, where they have the chance of earning as they learn.

To be a great commercial broker, it is important to know and understand hundreds of financial products offered by a multitude of lenders, banks and other financial companies, as there are a wide variety of businesses that offer loans. After learning about the variety of services offered, a commercial broker may specialise in a certain field of the commercial real estate market, so they can more effectively market specific financial products to their potential clients and finding the solution that best fits their requirements.

Another important characteristic of a great commercial broker is communication. This is important because a broker must know how to explain to his clients, in simple terms, the complicated legal and technical terms, so that they do not feel confused or understand their commitments. A broker must also discuss with his client and explain to him all the financial laws, loan terms and any other important aspects related to the mortgage loan.

Commercial mortgage financing

Commercial mortgage financing
– image mapichai

For a client to obtain the perfect commercial mortgage loan, his broker must thoroughly check his credit history and compile a set of documents. Going through this process will be able help the broker realise what loan fits the client best. Once they have determined the client’s eligibility, the next step the broker must fill in an application file and send it to the lender.

Once the lender has made their decision, it is the broker’s job to notify the client of the result. In case the answer is positive, the broker will work with the borrower’s lawyer to expedite the loaned and enable the transfer of ownership of the property to their client.

In short, a commercial mortgage broker is the connection between financial institutions and potential real estate clients. Although it is a challenging job, it is also rewarding and engaging.

If you click this website, you will be able to see a range of details related to commercial mortgage brokers in Auckland.

Video on commercial mortgages in NZ

Mezzanine Finance For NZ Explained

Mezzanine finance is a method of business financing in New Zealand which combines some parts of debt financing as well as equity investment. This combination provides a temporary, relatively affordable option against the two most common alternative methods of business financing, namely private equity funding or bank debt.

In short there are two main categories of financing a business – there is “equity investment” and the other is “debt”. Mezzanine finance is a sort of combination of the two which can provide an affordable alternative method of financing projects which do have some element of financial risk involved.

“Debt finance” is pretty self-explanatory really. A bank or other financial institution puts forward an amount of money which must be repaid with interest. This is sometimes over an agreed period of time with a pre-determined amount of money to be repaid each month or quarter, alternatively it could be in the form of an overdraft agreement. The interest which the bank makes is how they make their money on the deal. The bank will know at the outset exactly how much money they will be repaid and what their profits will be.

Explanation of mezzanine finance

“Equity investors” however, make their profits as a direct result of the growth of the business or fruition of the project. They invest only in a business which they deem to have the potential to grow, often in return for some dividend appropriate to the number of shares they hold. The real return, however, is only realized once the business has grown and the shares can be sold for a relatively large profit.

These “equity investors” – aka “business angels” or “venture capitalists” are constantly on the look-out therefore for potentially risky strategies when they believe that the project will be a financial success. These equity investors see the substantial returns available as a risk worth taking against the business. Banks do not have this philosophy and are therefore much more cautious – they like to know that any lending will be repaid with interest within a given time-frame.

The problem which many business owners and entrepreneurs find with business angels and venture capitalists is that they like to take a chunk of their business as a share-holding. In these situations capital can cost anything up to around 30% of their business. This is a significant amount of your business to hand over to someone else plus it reduces your options later. For example, you may want to bring in a new partner or buy another business. If you have given away 305 of the control of your company, the decisions are more difficult to reach and you have less to play with n terms of striking a deal. So in the long term for the business owner may not be acceptable to them.

So what’s the alternative?

Mezzanine Finance

The basic idea of mezzanine finance is that investors provide money on a similar basis to the traditional bank loan type scenario yet enjoy additional benefits as and when the business starts to grow and profits increase. Mezzanine investors are generally more comfortable to invest in businesses and strategies with an amount of risk involved (unlike the banks) yet do not tie down large chunks of the business shares (like business angels).

The Advantages of Mezzanine Finance

It is a cheaper form of raising the capital needed to help a business to grow than using private equity – the costs involved usually peak around 20% – 25% rather than over 30% as the previously mentioned forms of finance.

Mezzanine financeThis type of funding is generally less rigid than the traditional bank loan which does require regular repayments – whether they are monthly or quarterly which can be a substantial drain on the cash resources of the company. The majority of mezzanine loans are paid back annually with the bulk of the funds repaid towards the end of the agreed term when hopefully the business has grown substantially enough to furnish the payments. Unfortunately any company which has not managed to reach its projected potential may find these large pay-outs to be a substantial blow close to the end of the agreed term.

Mezzanine finance is really only utilised for much bigger action plans which need a substantial sum of investment. The majority of this type of loan is in the millions rather than the thousands or the hundreds. This can put this type of funding out of reach of many SMEs although as this type of financing grows some smaller loans may become available.

Any entrepreneur who is unable or unwilling to hand over large shares of their business to equity investors yet are unable to secure lending from a traditional bank or financial institution may find this type of mezzanine finance a very effective, affordable and convenient method of financing their business or strategy.

For Auckland businesses looking for capital inputs without giving away large portions of their company may like to consider Global Pacific Finance Ltd for mezzanine finance New Zealand companies can take advantage of.

They have a highly experienced team of financiers who have contacts with many different lenders. This means they can negotiate funding to suit your particular needs whether it is for a business acquisition, an expansion strategy or for investing in a property development. Their people have worked with clients and funding sources in many different industries so contact them to see how they can help you.

Small Business Equipment Financing Options and Their Pitfalls

Gone are the days when investors or business development bank loan and financiers were a necessity for business equipment financing. The dreams of financing your small business can be a reality if you have enough credit to open several revolving credit card accounts or better yet, if you own a home.

Shying away from credit cards is not necessary; all you need to do is to open the credit cards under the business name for the cards to be a viable source of business financing. The IRD accepts deductions of the interest made in the credit cards.

David Newton, a professor of entrepreneurial finance at the Westmont College, Santa Barbara CA says that financing a small business using credit cards can be done via:-

  • Acquisition of assets as in buying supplies and equipment
  • Using cash at hand as start-up capital

The professor does however deem credit cards as a high risk, high cost small business financing option. Once the business is at its break-even point, it is important to immediately replace credit cards with lower risk financing options such as the banks or other equipment financing options such as leasing. At such a point, the business is in a position to meet is overhead expenses and still cover is cost of goods sold.

A home equity loan is more on the safer side of business financing. Banks look at the Market Value of the property and can offer loans for a percentage of the home’s nett value. That means they will deduct any existing mortgages from the value first and then consider a further loan on the difference. However, you must be aware that your home is given as security against the loan and if the repayments and service costs are not met, then your home is at risk.

Borrowing moneyThe IRD will accept deductions of all the interest in the credit card while allowing some limits on the amount of home equity loan based on the probable deductions. The limits set on the eligible amounts for interest deductions will depend on the prevailing tax regulations. You definitely should talk to your accountant before making any decisions about loans secured on your home.

Valuation fees, legal fees, or mortgage document costs are just some of the downsides associated with home equity small business loans. This is according to statistics shown by that also show the loans need a single but large repayment to effectively settle them and other have high monthly payments.

Another option for funding equipment purchases is to look at a lease. This is perhaps the most common form of business equipment financing in New Zealand. The asset is never owned by the user company and so the tax regulations vary considerably. But one advantage is that at the end of the lease term, the old plant is returned to the leasing company and then you can lease a newer model.

Whichever option picked, the most important thing is to be sure of how the repayments will be met. These can even push some people to take another loan that cover the money need to settle the bloated home equity loan payments.

Equipment financeFor information on business equipment finance it pays to talk to experts in the industry. They will be able to describe some of the common financing deals and might also have access to different financing packages. If you approach a bank or lease company they will only be able to sell you their finance packages. But if you contact a commercial finance broker like Global Pacific Financing, they have numerous options for NZ business equipment funding.