Dropshipping 101 - Don't Be Misled When Selecting a Dropship Warehouse

Choosing a dropship warehouse is a vital decision when starting up an online business in order to avoid having to personally stock and ship your inventory. It is also an essential component when it comes to managing your overhead costs. A dropship warehouse is not only imperative to costs but can potentially be a long term asset to your business.

However, the internet is full of false information, spam, and misleading advertisements. As with any other start-up venture, you must take the time to do your research before selecting a dropship warehouse. One of the best ways to ensure that your selected dropshipper is legitimate is to use your favorite search engine to see what you can find out. Search the name of the warehouse, alongside the word 'scam', to see if there is any online chatter about how the wholesaler runs their business. Check with the Better Business Bureau (BBB), as well, to see if they have any information on the validity of the company. If the dropshipper offers a guarantee and reliable testimonials from previous customers, it is a bit more likely that they are for real.

Be wary of businesses that market themselves as wholesalers but are really just setting themselves up as the middle man. How the 'fake' warehouses work is that they begin by establishing contact with a couple of dropshippers they will utilize on your behalf. Another warning sign, like many online scams, is that there are often significant fees associated with their services. Why pay someone to deal with the wholesaler when you could easily perform this task yourself and save the cost?

A legitimate company, like Salehoo, may charge an access fee but they will have an established reputation in the industry, will be able to provide customer testimonials, will be established with the Better Business Bureau, will have an available and easy to contact customer support department, and will typically have guarantees for their services.

A false company will try to woo you with offers that appear too good to be true, such as a complete website customized for you that will sell whatever you have to offer from designer handbags to electronics.

Do your research and cut out the middle man! Take the time to really build an enticing and appealing niche website for what you want to sell and differentiate the good dropship warehouse companies from the mediocre. The time you spend up front will more than pay for itself when you avoid the fees, hassles, and disappointments of working with companies who are more interested in your money than in how successful your business becomes.

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Warehouse Loan Modifications - What You Can Do When Rental Income is Low

When the rental income provided by your warehouses has dropped so low that you are having trouble coming up with the mortgage payments, then it may be time for warehouse loan modifications. Banks and lenders are often agreeable to a prudent loan workout if you are able to present you case in a convincing manner. Adequate preparation and getting the services of an expert in such negotiations can enhance your chances of getting your lender to lower the interest rate or even extend the term.

And even if you are currently able to make the monthly payments, there is also the balloon payment required at the end of term. With the financial crisis, the resulting tightness in money supply and the high demand for refinancing by holders of CMBS mortgages are expected to make it extremely difficult to locate a refinance lender when the time comes. Warehouse loan modifications can also help in this kind of situation.

Lastly, if the negotiations for warehouse loan modifications fail, a commercial short sale may provide the solution, particularly if you have decided to move on to another type of business. In this kind of transaction, the lender agrees to receive the proceeds of the sale as full payment for the balance. This kind of deal is particularly helpful for situations where the value of the property has declined substantially such that it is lower than the balance. Getting the bank to agree is quite difficult yet it is possible, especially when it is demonstrated that it is the only sensible option left to avoid foreclosure.

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