5 Things You Might Not Know About Miami Heat Minority Owner Raanan Katz

Successful commercial real estate developer Raanan Katz is something of an enigma. Lots of people know of him, but very few – outside of his team of advisors at RK Centers – actually know much about him.

Obviously, that’s largely by design. Raanan Katz has never been one to seek public attention, and he definitely prefers to keep his private life private. Still, in speaking with some of his managers and employees, we were able to take a quick peek “behind the curtain” and find out a little bit about what he’s actually like.

With that in mind, here are five things you might not have known about commercial real estate expert and Miami Heat minority owner Raanan Katz:

1. He played professional basketball himself. Raanan Katz was once a promising prospect from the Israeli professional basketball league, and the last person to be cut from the Boston Celtics. As a player, he was known for being fiercely competitive and having a reliable outside shot. It’s no wonder that he holds on to such a passion for the game today.

2. Raanan Katz takes very calculated business risks. Unlike a lot of his contemporaries, Raanan Katz didn’t build his fortune through wild speculations or stock market fluctuation. In fact, his associates say that, even though he isn’t afraid to take big risks, he likes to limit exposure by doing lots of research. In other words, he never gives his time or money without looking carefully at the possibilities first.

3. He always keeps an eye on the details. You’d think that someone who had earned millions of dollars, and built a highly successful company, would spend their days delegating tasks to underlings. That’s not the case with Raanan Katz, however. Friends and employees say it isn’t unusual to find him inspecting corners of commercial properties himself, which is indicative of his “hands-on” approach to running RK Centers.

4. Raanan Katz has ties to basketball that spread farther than the NBA. Although he is best known for being part of the Miami Heat ownership group, most people don’t realize that Raanan Katz also has lots of ties to the Israeli professional basketball league, and even sponsors a number of scholarships related to the game. This is partly due to strategic partnerships, but mostly because he simply loves to see basketball and watch players and teams develop.

5. He is widely admired by his closest friends and colleagues. While media outlets like to portray Raanan Katz as being distant and inaccessible, those closer to him tell a different story. They say he is friendly, engaging, and very giving once you get to know him, but that he prefers to keep his personal and family life outside of the public eye.

He isn’t likely to open up and start doing lots of interviews anytime soon, but that doesn’t mean there aren’t some things we can learn about him, or more importantly from him. Very few people have ever been so successful, and the more you learn about the man, the easier it is to see why.

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Benefits of Using Industrial Premises

Using industrial premises for your business is a great way to move your company forward. This article explains a few reasons why using these commercial premises is great for business. First of all, there are four elements of marketing which all begin with ‘P’. These are price, product, promotion and place. Place is the key one we’re going to deal with here. The location of your business is essential in determining whether you will be successful or not.

Letting out industrial premises could be a perfect start to this success. Of course there are many other things you need to take into account in terms of the other ‘P’s’ like ensuring your product or service matches the needs of your target market, creating an effective pricing strategy so as to not deter these customers from trying your product or service and using the best methods of promotion which will show off your creativity and all the benefits your product or service can bring. However it is essential to choose suitable industrial premises and business location. A good way to ensure you have an excellent location is to use a company which specialises in letting out property around your local area.

You might want your business to be based in an industrial park where you can get a lot of storage space for producing, manufacturing or wholesaling products on a large scale and direct interaction with customers may not be as essential here. On the other hand you might want the complete opposite and actually try to get as close to the customer as possible by letting out an industrial premises which is located in an area where your target market is likely to walk or drive past on a regular basis.

Being close to the customer ensures they do not have to put in too much effort themselves when trying to find your business. This is more likely to result in a better relationship with the customers and also lead to a higher volume of customers actually purchasing your product or service. When thinking about where to let out a property, try to determine as much as you can about your target market. You may only have customers in a specific area and locating somewhere completely different could be a waste of time and money for you and your business. On the other hand you could locate in a new area and as long as all your other business factors are well prepared then you could end up a with large amount of new customers which means more profit for your business.

Industrial premises vary greatly so it’s important for you to determine exactly what you need first. Some properties will be as small as 500 square feet with others reaching 5000 square feet. There’s no point spending too much money on a larger commercial property if you’re not even going to use the space provided. On the other hand you don’t want to have to cram everything into a space which is too small to manage everything you have going on in your business. Make sure you do your research first!

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How to Lease a Commercial Property – Your Questions Answered

Ever wondered how to lease a commercial property? Well, the time may come when you find yourself in a position to do so. You may have bought or acquired a property that is commercial, or is zoned commercially. Elapsing commercial property can be a huge money maker for you, especially if you lease a property in an area that is already designated as a commercial zone. People will pay a lot of money for location and convenience, as well as the license to trade out of certain buildings. You can most definitely use this to your advantage. However, before you go ahead and rent your property out, there are a few rules that you need to understand and follow. There is a specific process to leasing a commercial property.

The rules of the game

When your tenant signs a lease agreement, you need to make it understood that they are committing to paying rent and other expenses on the building. They also need to understand the length of time that they are bound to the lease for and how that will affect their ability to move or change. Any lease agreement that you give a potential tenant needs to be legally binding and also needs to have been drawn up by a lawyer just to make sure that neither party is liable in the event of something going wrong.

If you are looking to rent out your property for commercial purposes, you need to make sure that it is zoned correctly as well. You cannot operate a commercial property in a non-commercial zone. Once you have gotten all the necessary permits, you can then start to look for and secure tenants for your building. Part of the beauty of leasing commercial properties is that you can make your tenants stay in your building for a long time. Commercial lease agreements work on the basis of the fact that the tenant has to stay in the building for the period of the lease. They may not leave and must keep paying rent until the lease term is up. This means that you have a guaranteed source of income as the lessor.

Curious as to whether the tenant pays rates and taxes or can later the premises? The tenant does pay rates and taxes themselves, so these are no longer your concern. The tenant must also obtain permission from you to alter the building, and all alterations must be overseen by them.

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Protect Yourself: What Every Apartment Investor Must Know BEFORE You Buy

The beauty of apartments is that it is the one type of real estate investment that is easy to scale and build your real estate business, even part-time. HOWEVER, the bigger upside needs to be tempered with the potential for a bigger losses as well. Make sure that you have looked deeply into each element listed below:

Sub-Market knowledge: Location, Location, Location
The ONE thing that you can’t change about an apartment building, no matter the condition of the building or the great price, is the LOCATION. Make sure that you thoroughly understand the visibility of the property to potential tenants, and that the path of progress is moving toward you, not away from you. You can make improvements to the units, rebrand and market the heck out of it, but the location doesn’t work, your efforts will be a losing battle.

Property Inspection
Make sure that you have done a thorough inspection. When we go to a multifamily property during the due diligence period, we have a whole crew swarming the property, from the building trades for the physical assets to our administrative team pouring over the leases. You do NOT want to find out after purchase that there are drainage issues… AND this can be an opportunity to revisit the purchase price for a possible “re-trade” or reduction.

Make sure that the assumptions that you are working off of are as accurate as possible. When were the taxes assessed? Make sure that you have taken into account any possible tax increases do you are not surprised.

Exit Plan
We always encourage our clients to buy an apartment building with several different scenarios penciled out. Is it possible to refinance and take the proceeds to use in another property? Is your plan to buy and hold? Make sure that you are not cemented into one plan or another, because even we can’t see into the future!

These four areas are places where multifamily investors can get seriously hurt without the right guidance. Make sure that you carefully investigate all of the above items as well as have a step by step system to follow for all of your due diligence items. Involve credible professionals during the entire process so that you know that there are not any painful mistakes being made. Having a system when it comes to all aspects of due diligence can be the difference between a great deal and a dog. Make sure that you protect yourself!

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