An executive and real estate investor with more than 35 years of experience, Louis Paolino founded Paolino Development in 2008 to serve clients in the commercial and residential sectors. Working with properties in luxurious locations such as Miami and The Hamptons, Louis Paolino is an expert in high-end property development. Commercial real estate properties are those owned exclusively for business activity. In general, the value of a commercial property is determined by how much money it earns for the owner. A real estate developer commonly uses a cap rate to create a figure for the value of a commercial property. To calculate a cap rate, divide the net operating income of the business occupying the real estate by the asking price. Net operating income is determined by subtracting the annual expenses of property ownership from the rental received. Many professionals consider a cap rate between 4 and 10 percent to be an indication of a good investment.
For over 35 years, Louis Paolino has served as an executive and board member in various public and private companies. In this capacity, Louis Paolino knows the advantages of private companies going public.There are many advantages of going public besides the injection of fresh capital through an initial public offering. One of them is liquidity. When a company’s shares are traded on the stock exchange, they become more liquid. This means shareholders such as early investors and founders can sell their stock easily, realizing a return on their investment. Alternatively, these shareholders can use their stock, now freely marketable securities, as collateral to acquire financing from lenders. The benefits of liquidity go beyond executive shareholders. Management and employees can receive compensation through incentives like stock options, allowing them to own marketable securities. Because the price of shares listed on the stock exchange is determined by the market every day, people who possess stock options are able to calculate their value whenever they wish. The company expands its payment options while employees diversify their wealth portfolios. In addition, employees become more invested in the company and its operations, since their wealth is directly tied to the company’s fortunes.
