Tag: Commercial

Some Helpful Advice About The Commercial Real Estate Market

No Comments

Rentals are a haphazard way of making money as an Agent. You have to rent a large number of apartments, houses and condominiums to make a decent buck. Even after you do start to see leases signed, the properties that pay your Broker tend to hold back the commission for extended periods of time just in case the tenants bug out of their lease. Most Brokers add two to six weeks on to that hold before they release your money. Whether any of this is legal or not doesn’t seem to matter. It’s just the way things are done. When rental agents finally do get paid, it always seems to be less then expected. That’s because your beloved Broker probably forgot to explain the extra fees charged for office space, phone use, website and email sharing, lead generation and advertising.

There have been times we have suggested a seller just pay the tax! Sometimes depending on your particular situation it may be a better route to just pay the tax. For example: You have a pension and social security and just want a junk of money in a safe CD. The gains tax is 15% of the difference of your basis value less capital improvements. Your gains tax is much less then income tax, but the cash flow decreases to whatever the CD offers.

Promotional tools should include Signage, Flyers, Internet, Newspapers, Social Media, and Database. Mix and match depending on the property and the local area.

The Debt Coverage Ratio is a tool capital sources use to asses if a business can afford the mortgage payments of proposed loan. Typically lenders want to see a ratio of 1:1.20. Meaning the business, would have .20 of net income vs. of proposed mortgage debt. So, if the business had a 1:1.2 they would still have $ .20 left over after all debt and expenses were paid.

Once you know exactly what you want, you need to find an agent who is best suited for the job. For example, if you want to find property for sale in Spain you will want to find an agent who specialises in the particular area you want to purchase it. Real estate agents in Spain can be a big asset as long as you get one that is familiar with the area you need.

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 make a decision to become an agent, talk to licensed agents out in the field. Consider what they say about their earnings, brokers and how friendly or unfriendly the local market is to agents. Many areas simply cannot support the number of Brokers and Agents trying to eke out a living there. In California, for example, it’s said that there are more Real Estate Agents than Lawyers and less than a third of them actually see a profit.

Before You Rent A Commercial Property

No Comments

The Global Income ratio effectively computes all income (both business and personal) vs. all expenses (again, both business and personal) that the entrepreneur has. 50% to 60% has been the norm for years, now more and more lenders are demanding 40%.

The first thing that you have to do is gauge your present financial situation. This means weighing your monthly expenses, income and savings. In addition, try and figure out how much money you will need to lead a good standard of life after retiring. This will allow you see how much you need to save in order to have that standard of living.

Use good photos in the newsletter that are well lit and capture the right message. The best exterior photos of property are usually taken when the sun is low in the sky. That will be first in the morning or late in the day. What you want to have is the sun shining clearly on the front of the building. Avoid using photos with shade distorting the image.

The smell of tobacco is the number one reason why buyers withdraw. Even if the buyer is a chain smoker, he doesn’t want to live in a home that smells like tobacco. He may be a smoker, but he also wants to live in a clean and good smelling home. As a seller, you must take good care of the cleanliness issue of the home if you don’t want your potential buyers to withdraw.

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.

Educate yourself. The only way to know that you are getting the best deal is to learn about the commercial industry and loan process for yourself. Interview a few brokers and talk about the options they may offer for your specific property type. A good broker will educate you on the loan process and provide you with resources for additional information. If the broker is not interested in helping you to learn about the industry, then take that as a hint. Either they don’t want to make the time for you, the client, or they prefer to keep you in the dark about how they are doing (or not doing) their job.

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.

Make sure you have the money if you are going to invest. You will need enough to cover a down payment, closing costs, points and earnest money. When dealing in commercial real estate, it is much nicer if you will not do it all alone. Properties valued highly fall outside the investment range of most individuals, but if you partner up with a few others, a group investment becomes possible. Besides, the more folks there are in your network, the more likely it is you will hear of a deal before it gets listed.

Categories: Property Investing Tags: Tags: , , ,

Commercial Property Is Looking Attractive Again

No Comments

Again there are special schemes offered by banks, which break all the rules, like the one from Citibank, which provides a NRI home loan up to 89%25 of the property value if the loan value is less than or equal to Rs. 50 lakhs.

Boasting of some of the best standards of living in Gurgaon, DLF Plots sector 73 is backed by the high dependability of the DLF Group and its unsurpassed infrastructure. DLF Plots- Sector 73, is conveniently located in the heart of Gurgaon, and is easily accessible from all parts of Delhi NCR.

If you’re running a website business, make sure that you keep the site relatively clean. Ad revenue is always good, but a site inundated with all different types of ads is just a turn-off in every conceivable way. It’s hard to navigate a site where every page has a pop-up ad, a button, a banner, sidebars, and other types of advertisements.

Home remodeling Ellicott City must be properly executed. This should be started in time in order to meet deadlines. The project must be constantly monitored to make sure tasks are executed correctly. With professionals handling the project, you can be assured of the outcomes. These professionals have the skills and experience to produce excellent results.

There is little doubt we are coming to the end of a huge boom market in residential properties. For the last four years, properties have appreciated at unheard of rates. The question, of course, is what happens when the market cools off? Will we simply see a price plateau or an actual drop in prices? While nobody is sure, the clear consensus is property owners should move to preserve equity while they can.

There are various apartments that one can find in the real estate market of Calgary. These apartments have the finest of amenities and these are located in the prime location. The price of these apartments varies according to their location and the amenities that they have. Investing on these apartments is also considered as the healthy way to get proper and quick returns from the market. Calgary is a place where thousands of tourists and businessmen and students visit every year for various purposes. They search for various apartments to stay. They even look for rented apartments. Investing in the apartments in Calgary will fetch you proper return.

The Circuit Breaker cap was passed into law in 2006 and became effective statewide for owner occupied residential property (homesteads) for property taxes payable in 2008. The current Circuit Breaker caps homestead property tax at 2%25 of gross assessed value. The goal of the Circuit Breaker is to provide predictability in tax bills by ensuring that Hoosiers don’t pay more than a fixed percent of their property value in taxes.

Laws are also in place in many states that protect renter’s deposits from being misused by their prospective landlord. In many cases landlords must join and abide by the laws brought about by the Tenancy Deposit Scheme. If the monies are misused or laws are broken, the tenant is then allowed to sue the landlord for a certain amount.

What Commercial Real Estate Investors Should Know About Cap Rate

No Comments

What are your current mortgage terms? Are you refinancing because you want a lower rate? Longer amortization? Want to pull cash out? Or do you have a ballooning loan? What are your long term goals?

When buying a commercial property there are some different rules that apply than when you are buying a home. Renting it out may be easier, but finding tenants who stay there isn’t always a promise because its not only based on if they are good tenants, its based on if they can have a successful business. With a commercial building you are going to either hold on to the property for a very long time, or sell it as soon as the market rebounds. This is because many buildings are available at a cheap price right now, and finding a seller is tougher when prices go up.

It is advisable to learn all you can about how to buy commercial real estate, and the specific types of investing ventures you might pursue before getting started. It is very important that you have to plan ahead of time.

Before you make a decision to become an agent, talk to licensed agents out in the field. Consider what they say about their earnings, brokers and how friendly or unfriendly the local market is to agents. Many areas simply cannot support the number of Brokers and Agents trying to eke out a living there. In California, for example, it’s said that there are more Real Estate Agents than Lawyers and less than a third of them actually see a profit.

As you are flipping houses, hone your skills so you will be ready to buy rental and commercial properties. Hone your skills for buying, negotiating, selling and managing so that you can immediately start generating cash flow.

Yes, you are decided to invest, so you want to do is purchase that property. Is that really what you have to do first? What you have to do, is not to just jump in and invest in Sarasota real estate. Indeed, you believe what you want to do. You want to invest in Sarasota real estate to earn more. But are you sure what you are entering into? Do you know how to invest? Do you know how it works? What type of investing you can do, and can do properly? Do you have enough knowledge about the real estate world?

You are the business owner and your business’ cash flow should cover the mortgage expense. Remember you are buying the property and planning to operate the business out of this location for the next 5 to 10 years. Even though your property value may not increase in the short term, think of the long term. When you decided to retire or sell your business you will have so much more to offer in the Sale. For example you can sell the business with the property which would increase the sales price. You could also sell the business and lease the property back to the buyer. Or you can even sell the business and the property to two different buyers.

Of course, it goes without saying that proper care should be taken when planning your retirement. It is not something that can be done in a jiffy. You have take everything into account, like long term financial plans, expenses in the future, healthcare, accommodation, taxes and so on. Basically retirement planning involves taking into consideration everything you will need when you grow old and are no longer working.

Buying Commercial Property – Using Options

No Comments

Loan to values, as in the difference between what a property is worth vs. what is owed, is another key ratio to reduce risk for banks. The normal high side for the typical owner occupied property, such as office, industrial or retail, is 75%/80% on a refinance. This is being dropped pretty much across the board to a max of 70%. Special purpose properties, such as, restaurants, automotive, hotels, daycares, etc are taking the brunt of it, as many lenders will not lend beyond 60% loan to value. Many lender have simple stopped lending on these properties all together.

The Global Income ratio effectively computes all income (both business and personal) vs. all expenses (again, both business and personal) that the entrepreneur has. 50% to 60% has been the norm for years, now more and more lenders are demanding 40%.

It is advisable to learn all you can about how to buy commercial real estate, and the specific types of investing ventures you might pursue before getting started. It is very important that you have to plan ahead of time.

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.

You will soon be on your way to small business success with free grant money to fund your dreams. Don’t give up. Keep filling out applications until you get the money you need to turn your business dreams into a reality.

When buying a commercial property there are some different rules that apply than when you are buying a home. Renting it out may be easier, but finding tenants who stay there isn’t always a promise because its not only based on if they are good tenants, its based on if they can have a successful business. With a commercial building you are going to either hold on to the property for a very long time, or sell it as soon as the market rebounds. This is because many buildings are available at a cheap price right now, and finding a seller is tougher when prices go up.

Educate yourself. The only way to know that you are getting the best deal is to learn about the commercial industry and loan process for yourself. Interview a few brokers and talk about the options they may offer for your specific property type. A good broker will educate you on the loan process and provide you with resources for additional information. If the broker is not interested in helping you to learn about the industry, then take that as a hint. Either they don’t want to make the time for you, the client, or they prefer to keep you in the dark about how they are doing (or not doing) their job.