Commercial Property And Market Timing Considered
Properly organize the kitchen. Having clean and organized kitchen is one thing that attracts buyers’ prospect. Since you will be removing your kitchen materials and utensils, you must at least have the kitchen taps sparkling so that the buyers will think that the home was properly taken well cared. Also, do not forget to check if the taps are working properly. If there’s a problem, you better replace them with new ones.
By not getting in touch with a professional broker, you miss a lot more than you think. Brokers are useful sources of information. They are in the industry for a long time and can assist you with tips, suggestions and ideas. They also know the market trends better than you.
In addition, less obvious underwriting standards, such as increasing vacancy and management fees have a direct impact on net income. Many lenders are raising these underwriting guideline from 3% to 7%. In areas like Phoenix for example, some underwriters are using market vacancy vs. a the standard 5%, which can seriously effect a transaction if market vacancy are, for example 12%. Keep in mind that this vacancy will be factored on to the deal, even if the subject property is 100% occupied at the time of the refinance.
Study kindergarten – sixth grade enrollment statistics (also available from the school district). Try to go back as far as ten years. You’re looking for growth in elementary school enrollment. Lots of growth equals desirable neighborhood.
OThere are many ways to locate the ideal commercial property. You can check out vacant spaces in commercial areas and then contact the owner to see whether he or she would be interested in negotiating a commercial lease. However, do not take the first property you see. Check around, compare prices and also try and do background checks.
Many books and courses advise you to purchase investment property located within a thirty mile radius of your personal residence. I say that’s still too far. Shoot for twenty miles, preferably fifteen.
These are especial loans for making a beginning in a trade. You are going to start a new business. Therefore, you may not be having any record of taxes or bank statements in the name of your trade. This is where the lenders become over cautious. In the absence of these records, the lenders cannot assess your capability of running a business. Therefore, you are a risk. To counter this, you should make a plan of investing the loan. You should clearly apprise the lender that how you are going to prosper through the loan.
Out of our own interest as an owner advisory firm, please keep calling brokers. We encourage it and we like the calls. It makes our owners happy because it proves that we’re giving them great exposure and will eventually sell their property for the best price.