How To Market To Construction Industry

The dreadful events like Hurricane Katrina, Hurricane Rita and Tsunami have eaten a large number of buildings and dwellings. Due to this, there are chances of gigantic growth in the construction industry. It is expected that the industry will grow to $1.1 trillion in 2006 and $1.2 trillion in 2007.

Moreover, within this, the growth opportunities are great in the segments like residential, retail, office, hospitals and schools. Builders are looking for people who are responsible, sincere, punctual and trustworthy and can supply them efficient and quality products and services.

Therefore, you area a contractor or material supplier or technology vendor, take advantage of the situation. Make money out of this simply imbalance equation of demand and supply.

How Can You Do This? If you want to reach these builders or other executives operating in the construction industry, you can use traditional methods like trade shows, local sales forces and brochures. Along with these, websites also deliver promising and profitable results.

Some marketers have tried and found customer relationship management a better and advanced technique to reach their customers and provide them customized products.

A well designed and well developed website also raises the chances of getting contract. If the website contains all the product information, price list, delivery mode and useful tips, it is considered as an advantage. Online marketing, thus, can play an important role in getting profitable contracts.

Advertisement, in its traditional way, always proves to be helpful. It can be done both on regional and national levels. Like all other advertisers, you also need to use various advertising strategies like recalling and persuading, but in your own way.

You also need to be different in your approach. If you want your customers to come back, you have to provide some special services like warranty for used products. You can also guarantee a particular price for fixed period. You can win a larger market share by providing cost-effective and time saving products.

Remember, once you get a good contract, you work for it whole-heartedly and sincerely; you can easily create a loyal customer base for your business. Builders demand a good package including availability of materials, on-time delivery and strong pricing commitments. Moreover, you have to offer them to be in their contractors’ list. Your low pricing offers should not make them feel that the quality of product and services is also low.

If you are confused and do not know where to start with, you can take help of marketing advisers and various websites. Their valuable tips can help you customize your marketing programs for the construction industry.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

Business Owners all across the country are joining "The Community of Small Business Owners” to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.

FHA Section 221 Is The Best Apartment - Multifamily Construction Loan Program Available

FHA Section 221 is the best loan program in the marketplace today. Multifamily Developers are often amazed at the benefits this program offers them.

What Is This Program?

FHA Section 221 is a Federal mortgage insured program. It doesn’t mean that the government is funding the loan…they are insuring it against default. Section 221(d) is a section under the Federal National Housing Act. It allows the FHA (Federal Housing Administration) to provide mortgage insurance to HUD approved lenders. This is to assist in the development or substantial rehabilitation of apartment or other types of multifamily rental properties. The loan program allows for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

Who Can Use The FHA Section 221 Apartment Construction Loan Program?

This program is available for both non-profit and for-profit borrowers. Under Section 221(d)(3), non-profit borrowers can receive an insured mortgage up to 100% of the estimated replacement cost of the project. Under Section 221 (d)(4), for-profit borrowers can receive a maximum mortgage of 90% the replacement cost estimate.

Eligible Property Types?

Most people mistakenly believe that this program is only for low income tenants…there are NO income limits. The properties can be market rate, LIHTC (low income housing tax credits), and bond properties. The properties can also be specifically used for senior or handicap tenants.

The property has to have at least 5 units and it can either be detached, semidetached, row, walkup, or elevator style. Non-apartment property types are also eligible for this program. Such as mobile home parks and assisted living facilities. The properties can also have limited commercial/retail space.

What Are The Benefits?

There are so many good benefits of using this program:

• Term/Amortization - It is a 40 Year Amortization/40 Year Term (with no balloon).
• Interest Rate - A low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield. The interest-only construction loan automatically converts to 40-year permanent loan. Both construction and permanent rate are fixed prior to the start of construction.
• Loan To Cost - It is based on total replacement costs (including land) and it is 90% maximum (for-profits) and 100% maximum (non-profits).
• Personal Liability - It is non-recourse for both the construction and permanent loans.
• Equity Requirement - A Developer’s Fee of 10% of cost can be allowed to be used towards equity requirements.
• Debt Coverage Service Ratio - A minimum 1.10 DSCR.
• Loan Amounts - There are no maximum loan amounts and minimum loan amounts vary by lender.
• Occupancy Requirements - There are no occupancy requirements.

What Are The Downsides To This Program?

 

 

 

• Loan Processing Time - With HUD approved MAP (Multifamily Accelerated Processing) lenders, the process can take 3 to 6 months. Non-MAP lenders can take 6 to 9 months.
• General Contractor Requirements (GC) - GC’s must conform with prevailing wage standards under the Davis-Bacon Act and have a project completion bond.
• Prepayment Penalties - The prepayment terms are negotiable but they are usually a 5 year lock-out period then a declining prepay schedule after (5%, 4%, 3%, etc…).

As you can see the benefits of this program significantly outweigh the negatives. Developers can take advantage of this attractive financing and allow them to do larger projects.

Visit http://www.all-about-commercial-mortgages.com to learn more about commercial properties and financing of commercial properties. Educate yourself before buying that commercial property!

Patti Porter is a Commercial Mortgage Broker specializing in income producing properties and Commercial Finance Training.

Construction Jobs in Florida

Working in the construction industry can be very rewarding. It can also be difficult. Let us give you a hand and you’ll be earning the big bucks in no time. Construction Jobs in Florida are available and getting to work can be easier than you think. Your quality employment is just right around the corner.

Whether you are new to construction or an old pro, getting a construction job in Florida does take some effort. You’ll want to be sure and have a good construction resume available when you apply for jobs. This will ensure that you can get a position promptly, by proving to your future employers that you are focused and ready to give it your all.

Once you give it a try, you might consider a construction career. Those individuals who choose careers in the construction field can be very successful. With the abundance of construction jobs in Florida, you could have a fabulous career ahead of you. Your dream life on the beach in Florida could be a reality in no time.

With your experience with resumes, and your time spent in the construction industry, you just might be interested in starting a construction company of your own. Construction companies in Florida can be very profitable. Those with experience in the field can do very well for themselves with a company of their own. Before you know it, you’ll be creating even more construction jobs in Florida for other hard workers just like yourself!

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Tips For Starting Construction Services In Chicago

Demand for residential and commercial real estate in Chicago is rapidly rising. Therefore, it is the ideal time to use the market demand to advantage. If you are planning to start construction services in the city, this is the right time for you. You need to, however, have the necessary certification, business plan, and all the required municipal approvals to get started. Adherence to the rules is very important; otherwise, you will have to bear heavy penalties. There are several ways in which you can get funding for your business start-up. Some of the government-supported funding programs are as follows:

Capital Access Program (CAP):

This program is designed for giving financial aid to businesses or non-profit organizations that are unable to obtain capital from other sources. Funds obtained through such a program can be used to finance a company’s working capital requirements, purchase or construction of a real estate property (not the company’s headquarters), and getting equipment on lease or purchase.

Enterprise Zone Program (EZP):

This program encourages local business communities in economically backward areas to enter into partnerships with Chicago. The objective of the program is development of the economy by way of expansion of the job market in economically backward states. To participate in this program, local communities or those in the state need to choose a particular company to make it their Enterprise Project. The government accepts the applications by such communities every quarter. The approved projects can apply for sales in the state and use tax refunds on all the qualified expenditures.

Business Development Corporation (BDC):

This program encourages businessmen earning low or moderate income to participate in the state’s economy by giving them funds for business expansion. Only those business people who are not eligible for conventional credit methods can apply for this program. Funds obtained from SBDC can constitute 50% of the entire project cost, and the funding amount cannot exceed $50,000. The remaining portion of the project is funded though private equity or contributions from the participating lender.

Make a Complete Business Plan:

A business plan is very important to keep you going fulfilling the targets and competing with peers. Such a business plan will serve as a blueprint for your growth in the future. Such a plan will be extremely beneficial if you intend to expand. It will enable you to seek potential investors; the investors will readily invest in your business if your business plan is strong enough to boost their investment decision. Such people are constantly looking out for growth potential in businesses, so if your business has this in it, you are bound to attract these investors.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

Business Owners all across the country are joining "The Community of Small Business Owners” to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.