Tag: Avoid

12 Common Mistakes To Avoid When You Rent Commercial Property

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Building wealth and credit – This is a form of “good debt”. It either makes you money or breaks you even. You can then use the equity for other things. Also if you can find a good deal when you buy investment property you can use the equity from those properties as additional leverage for other loans.

If you want to go from having a great life and saving money, to having a great life that works, you don’t want to be a slave to rental properties. Rental properties are great, but have the capital reserves so that you always feel that rental properties are great.

Always have a lead story from the local market. This will attract the reader’s attention. The lead story should have a photo or image to grab more attention.

Investors normally valuate a house or commercial property based on how much income it will produce. They determine the amount of rent a property will command, divided by the purchase price. This is ROI, or return on investment. If you are buying a home to live in, this is not really relevant to your situation.

Even the best Real Estate Offices have a pecking order and exist on a currency of THIS FOR THAT. If you want decent leads, you are going to have to put in some phone, desk and office time. You’ll be expected to cover for other Agents who are too busy for their own Open Houses. The worst part will be driving around your share of people who just like looking at pretty houses, cannot seem to make up their minds about anything and probably have no intention of buying from you anyway. In short, any Broker worth their salt will try and squeeze as much money, time and effort out of new Agents as they can. The more experienced and successful people know better or go on to be Brokers. You have to learn quickly and focus on the money, not being the most popular person in the office.

Ideally you’re looking for entry level to lower mid-range housing, 15 – 50 years old. It’s OK if the area is a little blighted as long as things are on the upturn. Look for visible signs of redevelopment.

Like other home-based industries, home inspection has its share of frauds and phonies. It’s safe to assume they represent the minority, but it still pays to ask about certification. A professional home inspector will be happy to tell you about his certifications.

One Mistake To Avoid When Starting Out In Property Investment

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Allow kids – Many landlords do allow kids in their properties, but at the same time one would not believe how many don’t. A property owner should be encouraging families to live in their homes, not discouraging them. It is much harder for a family to pack up and leave than a single person. Keep this in mind, as families tend to stay longer than singles.

The reality is challenging situations do happen. Your tenant moves out, the hot water system needs replacing, one of your properties won’t sell and/or interest rates go up. Do you have ready access to cash to help you through difficult times?

My friend Lee was referred to Jane Doe by one of his investor clients; her carpenter had just quit and left her in the middle of an unfinished renovation on two new 1 bedroom basement apartments. She was visibly upset, stressed out and running out of money really quickly, in what she referred to as “an endless money pit”. As mentioned, this was her very first real estate investment; she had no previous experience of renovation projects first hand. To her, this experience was supposed to be easy, fun, and trouble free . after all, she was supposed to make more money for herself than she was making in the stock market and in mutual funds, right?

Now I want to state clearly that while I’m an advocate for anyone taking that first step and commend anyone who wants to improve his or her life through investing in real estate, it should be noted that many of these first timers are also last timers. In my experience, these ultra-enthusiastic investors start off with a bang then crash and burn with their investments, only to never try again. The truth is that these investors, who I’ve dubbed the “Resolution Investors”, really didn’t have a chance because they avoided the proven track record to success in real estate investing.

It’s easy to learn the basics of the real estate property investing. Read magazines or check out websites online. These tools can help you but only if you invest time and effort.

These are all quick and easy ways to increase the value of a property. They require very little upfront investment, allowing you to squeeze the most profit out of every investment. The main thing to remember is that a home needs to look like a home. If people can’t picture themselves and their family living in the home, they aren’t likely to buy it.

One thing that you can do is to check the history of capital growth of the area where you are going to purchase the estate. You have to check if it is steady and there are no significant risks involved. Speaking of location, it is also necessary that you make sure that the estate is very close to all the major establishments and modes of transportation. You should also be certain that it has a tight security and the estate itself is well maintained.

Newbie’s Information: What To Avoid In Real Property Investing

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“Mike, I’m very interested in learning about commercial real estate and would greatly value your guidance in deciding if real estate investing is right for me.

So lets begin there. When a home owner or entity fails to pay their assessed taxes for a given period of time the property taxes do not vanish or go away. The property taxes are accruing all along and incurring additional fees and assessments as time goes by.

One lesson being rich teaches people is that money talks. Savvy property investors know you don’t have to wait until a For Sale sign goes up in order to purchase. If an interested party takes the current owner by surprise, it is often possible to get a good price on a piece of property that isn’t even up for sale. And there aren’t any competitors to drive up the price.

On the other hand – this is what people consider a buyer’s market. The prices of homes are more affordable than than they were a year ago. Interest rates have fallen, and because less people are buying there are more homes to choose from. The concern is that it will take too long for the market to see an up-swing; and that real estate investors will lose money while they wait for the market to head back uphill.

A third benefit of rental property investing is that it is not very liquid. Now some people see this as a flaw. However, this can be looked at from a different perspective. When stock prices fall rapidly investors are often spooked into selling assets. This is easy to do and stock investors will sell at lowest prices rather than having a long term strategy. If you have a property that is providing positive cash flow, you are not usually tempted to sell if some prices fall. You usually wait it out. Unless you are going through a divorce, you can usually sell your property on your terms.

List all the things you feel are not working in your life and prioritise them. Which one of those would you like to change first? Recognise that you can literally give your mind a different command and look for the evidence of the changes. That is the key. It will help you to prove to yourself that the changes are real. And you will find them, but you must look for them.

These are the kinds of investment horror stories that make me sick to my stomach and cringe. I fail to understand how someone with no experience swimming will so willingly jump into a pond filled with crocodiles. It’s a story of broken dreams: this woman has sunk all her savings into this project, dreaming of the day her fat goose will start laying golden eggs.

Commercial Deal Breakers And How To Avoid Them

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Make sure your Purchase Contract states that the Seller will provide you with all Vendor Contracts. Make sure you also have a solid “Pro-Rations” Clause as well. A Pro-Rations Clause will ensure that the Seller only gets that fraction of the signing bonus equal to their fraction of their time in ownership.

That is what retail is all about. Juggling customer relations, employee issues, multiple tasks and thoughts (some of them great…but always forgotten) at the same time. Wow, aren’t retailers great! You bet they are, but it’s all this multi-tasking that hinders our potential greatness. Because of this we sometimes loose our focus and enthusiasm. That’s when, during good times or bad, we lose profit. So, in this first part of the article, let’s get refocused together and take an introspective look at our possible “low hanging fruit” or profit making potential.

Nothing could be more disruptive to your move into your new commercial property than to see it disrupted by a major road renovation or highway expansion in front of the building. So do some homework to make sure that access to your commercial property is in no danger of being slowed or stopped by building projects or other city improvements. Further, find out what is going on with the building. If the roof is in for repair or the plumbing is going to get overhauled, do you really want your new lease to lock you into that nuisance. So while talking to the landlord, also talk to some people behind the scenes who are “in the know” about your new commercial property location.

Time-shares are for hard-boiled people with great smiles. Most States allow several days for people who purchase Time Shares to change their minds, and many do. Beyond that kind of frustration, there are hassles with being paid. Like the rental biz, pay hassles, expenses deductions and commission disputes are common. Let’s face it. If you want to make the really big money in Real Estate, you are going to have to sell traditional properties.

Check out the properties that were purchased about 4 or more years ago. History shows that they will be in the next group of properties to come on the market for sale.

Listing a property can be a complex thing. Importantly it should be accurate and professional. Understand the market and the property type to make every listing a positive experience.

Create a brand for your real estate office and put your personality into the page. Remember that your personal brand and your office brand has be the same each time you send out a newsletter. Continuity is critical when it comes to building your brand.

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12 Common Mistakes To Avoid When You Rent Commercial Property

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What’s Out There. Interest rates, terms and the costs of closing on a home mortgage all play a role in helping you to obtain a loan. The more affordable these are, the more likely you are to obtain the home loan you want. Comparing several companies can help you to get the lowest costing loan specific to your needs.

Trying to find the right way to invest in today’s real estate market is not easy. The real question is whether you want to turn the property over and sell it, or if you want to rent it out for a long time. That decision could influence what type of property you should buy. If you are looking to sell with in a time frame, you should buy a home. You can rent it out for a few years while the market value increases and then sell it for a nice profit. That’s the smart way to do it, and the longer you wait the more value the property would have in a potential sale. On the other hand there is a different approach when you are looking to purchase a commercial property.

Before you contact an estate agent it is a good idea to know exactly what you want. For example, if you know you want to buy a property in Spain it would be helpful to know as much as you can about your needs. This includes whether or not you want a property to rent in Spain, something to buy, or if you need to sell.

Insurance companies often appraise homes based on what it would cost to build a similar home today. This determines the replacement value. Often, the cost of replacement is more expensive than the cost of purchasing an existing home. After all, the cost of entirely new building products is high.

An advantage of secured business loans is its low cost. On the back of collateral, you can borrow the money at low rate of interest. What is more, the rate will be usually low even if your credit history has blemished tags like late payments, payment defaults, arrears and CCJs. The rate can be fixed or flexible.

The build of your fence is another key factor. Fencing projects can involve all sorts of fences. An aluminum ornamental fence is a traditional way to go. A more durable vinyl fence can also be used. You might even consider a chain link fence or a steel fence. These are all good options that can work for different properties.

By not studying the neighborhood thoroughly, you put yourself and your family at risk. Not only the surroundings and nearby means of transport, you also have to know the neighbors. A lot depends on the kind of people who live around you.