Tuesday, July 23, 2013
Commercial Real Estate Tips The Easy Way by Gus Maupin
When it comes time for you to begin owning commercial real estate, you may wonder where to begin, as there are so many things to consider when owning this kind of property. The tips in this article can provide you with what you need to know to better care for your commercial property.
It is getting harder to rent apartments with a new generation of picky renters. A great way to get your apartment rented is by adding furniture. Adding furniture is a great incentive that really adds a personal touch to a home and makes the future tenant feel at home. Providing furniture will ensure that your apartment is rented in reasonable time.
If you buy and sell real estate as a business, avoid having any rental vacanies. Empty properties don't make money, they lose money. If a property is sitting empty for a signficant period of time, sell it. No matter how great an investment it was when full, an empty rental is worthless to you.
When choosing a property, it is important to look at the locality's tax rate. As the closing costs include a prorated property tax, it increases the funds you need to close the deal. The higher the tax rate the more money you need to close escrow and you will pay more taxes over the years.
There is a learning curve that you have to face when you start investing in commercial properties. They are far more expensive than residential properties, and there is a lot to learn. It can take a considerable amount of time to make offers and screen deals.
Don't accept the very first value you are offered. Almost all prices or bids have taken into account the fact that the other party will be interested in negotiation. Even if they have initially said they are not interested in negotiations you should be willing to try. Most likely that was just a strategy suggested by the opposing agent.
If you are going to buy a car you always look at several options first. The same should go for choosing a real estate agent. Do several interviews by phone and then make a short list of 2 or 3 of your favorites. Meet these agents in person to see if you have a good chemistry with them.
It is very important to have a good lawyer look over your commercial real estate contracts. Make sure they know all about real estate and can look over everything you have. This will insure that you will be protected and you will be getting the best deal possible.
Make sure that you conduct a final analysis after you have reviewed all of the potential options for your purchase. Do not hide this information from high level people at your company, as you will want to make the best decision as a team. This will help to increase gratification with your real estate acquisition.
Make sure you know who does emergency maintenance work if you rent commercial property for your business. Ask your landlord who is in charge emergency maintenance requests for the building. Keep the contact numbers handy, and ask them in advance what their response time is. Ask your landlord about emergency procedures to design the best plan possible to face any emergency.
When it comes to a loan for your commercial property, don't put all your eggs in one basket. It is best to get quotes from at least four different lenders and decide from there. You want to get the best rate or deal you can and that is the best way to find it.
The best way to make money on commercial real estate investments is to have partners. Invest a lot of time looking for private lenders or partners to deal with. Having a partner can help provide the credit or money you may need to buy a property. You can compensate your partner by paying a fixed interest rate, a percentage of the property's income, or profit when you go to sale.
Make sure you match the type of property you have with the type of loan. If you have a small loan request, take it to a small bank. If you have a large loan, take it to a larger bank. This way you will be getting the service you need.
You should look for a real estate broker that is ready to spend time on details. Their interest is to get you some property, but your interest is to get a quality building that will satisfy your tenants. Find out how much time they spend on each transaction and if they have satisfied people who have used this firm before.
If you want to rent your apartments or offices at a good price, think about hiring an interior decorator. A good decorator will create a warm environment that makes renters feel at home even if they are renting a rather small and conventional apartment. This could boost the value of your property.
You can do a lot with LinkedIn. Create a good profile for yourself and communicate actively with potential customers and partners. If you are not getting results from your LinkedIn activity, focus on a different kind of audience. You can also create a group yourself where you can keep people updated on your progress and on new opportunities.
As you have seen, owning commercial real estate has many things to take into consideration. There are so many things to do and check for, just to make sure you can keep your property. All it takes is some research and common sense to make sure that you take the best care of your commercial property purchase.
Sunday, July 21, 2013
The great recession hit Detroit harder than perhaps any other major American city
The Art of Structuring a Stabilized
Value Transaction
Engineering Detroit’s comeback –
Speaker Herb Strather
The great
recession hit Detroit
harder than perhaps any other major American city. When Detroit’s major employers took a hit, the
city lost middle class population and the real estate market went into a free
fall. Detroit’s
neighborhood real estate values is now sitting at 10-30% of it previous value.
Now that the economy is getting better and jobs are returning; how do Detroit and other cities
get property values back up?
This is a
catch 22 question. It’s like squatting to leap and getting cooked in the squat.
Appraisers rely on comparable but banks are still dumping properties at 10-30
cents on the dollar and buyer and seller cannot close deals that they have
agreed upon because of the value issues There are very few good comps
that appraiser can rely on.
How can you
get good comps and property values stabilized again? I say by foregoing
appraisers and using temporary seller financing.
For starters,
most comparables in the “D” and many other cities are less than $30,000 which
is the minimum loan amount for FHA and most conventional sources, therefore you
could have trouble getting a mortgage because chances are you will not get a
good appraisal to support the mortgage; furthermore banks do not want to make
mortgages anyway because they have to put up cash reserves for each mortgage.
Smart
sellers and buyers can get together and both share the upside. How you
ask? Come to this special real estate
investor’s network event to get the answers!
Learn how
to structure a stabilized value deal and put the equity put in your pocket –TAX
FREE!
This
approach has several benefits, namely:
- It stabilizes market values in the community
- It enables people whose credit is challenged, time to bounce back
- It allows the seller to get a fair price and
- It structures the deal for the buyer to pull out future tax free cash
Now comes
CITIBANK with great financing to allow the above to happen more easily, consider
this:
- 30 year mortgages as low as $10,000 (no points)
- Refinance existing balance after 90 days
- Refinance 75% after 12 months
- Scores as low as 580
Come and learn from an expert who is
succeeding today --- get the low-down on financing real estate and closing profitable
deals in today’s economy.
|
Event
Date:
|
Thursday
Aug 15, 2013
|
|
Event
Start Time:
|
6:00 PM
|
|
Event
End Time:
|
9:00 PM
|
|
Location:
|
Wayne
County Community College Cooper Conference Room 5901 Conner St Detroit, MI, 48213
|
|
Primary
Phone:
|
Mark
Maupin 248-939-6232
|
|
Primary
Email:
|
http://www.MegaEveningEvent.com Real Estate Investing Michigan
http://www.meetup.com/MegaEveningEvent-com Event site Michigan
Making Your Own Website -- Steps made Simple- Live Event Detroit
Step by Step How to Build Your Own Website
Speakers: Chris Wechner and Mark Maupin
4 – 6 pm: How to build a web site on Google:
Speakers: Chris Wechner and Mark Maupin
4 – 6 pm: How to build a web site on Google:
- How to get good ranking
- SEO - how to optimize for the best results
Mark and Chris will provide a step-by-step presentation on how to build a website using the Google Blogger platform. This will be done live in class – bring your lap top to follow along, build a site of your own and learn how to make it effective and visible to search engines.
6-9 pm: Presentation: Using the Internet to Make the Phone Ring
Topics Covered:
- Attracting the right customers
- Converting visitors to buyers
- Why having good Ad Copy is so important on the internet
Event Date:
|
Thursday Aug 8, 2013
|
Event Start Time:
|
4:00 PM
|
Event End Time:
|
9:00 PM
|
Location:
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Wayne County Community College Cooper Conference Room 5901 Conner St Detroit, MI, 48213
|
Primary Phone:
|
Mark Maupin 248-939-6232
|
Primary Email:
|
Making Sales and Commercials for TV, Radio and Internet Radio
Television, Radio and Internet Radio
Marketing
The
Entrepreneurial Institute and Resource
Center has arranged a
special treat. Dave Wes will be sharing
his interesting background in television and internet radio advertising. The
following topics will be discussed:
- What is Internet Radio
- Developing Syndicated Television Shows
- Making Sales and Commercials for TV, Radio and Internet Radio
- Getting started in Television and Internet Radio
Dave Wes
has been in Radio for eight years. He has also been in television for
approximately the last six years. His show; ‘Dave Wes and Friends’,
features a positive spin on things happening in the Detroit metropolitan area. The show
covers politics, small business, health, education, entertainers and
professional athletes.
Dave worked
at the Detroit Mix station (92.3) for five years and co hosted shows with Steve
Harvey, Frankie Darcell, Michael Baisden and Pastor Marvin Winans. He
also had his own show at Detroit
radio station 107.5, and additionally co hosted a show there with Mason.
On
television, Dave started his show on Comcast cable, then proceeded to TV20 and
finally to station WADL. Dave has a production team for both television
and radio.
|
Event
Date:
|
Thursday
Aug 1, 2013
|
|
Event
Start Time:
|
6:00 PM
|
|
Event
End Time:
|
9:00 PM
|
|
Location:
|
Wayne
County Community College Cooper Conference Room 5901 Conner St Detroit, MI, 48213
|
|
Primary
Phone:
|
Mark
Maupin 248-939-6232
|
|
Primary
Email:
|
Saturday, July 20, 2013
Come Learn The Tips That The Real Estate Pros Do Not Want You To Know When It Comes To Selling A House "By Gus Maupin"
There's currently a problem in the real estate market with misinformation. And it's not that some people are out there lying about how the market works. It's just that the market has changed and now buyers are acting differently. In other words, most real estate info you find is outdated. Here are some up-to-date tips on how to sell real estate in today's market.
If you are having difficulty selling your home, think about lowering the price. Try listing it on more websites or have different real estate agencies help you. When people visit your home, make sure it looks clean and safe and that you are presenting the advantages of the house first.
In today's real estate market, updating your home can make all the difference. Updates can be as simple as re-painting walls or replacing fixtures. Update your kitchen cabinets with a coat or paint or replace the carpet in just one room. This will help move you toward a quicker sale.
Few structural features date a house more than popcorn ceilings so removing them would be a good home improvement for people looking to sell their house. The task should take no longer than a weekend and once complete you will have a ceiling that is easier to paint and repair, and a house with an interior that won't turn away potential buyers.
Before listing your home for sale with a Realtor, you want to make sure all pet stains and odors are eradicated. Pet odor is a huge impediment when selling a home. Use a spray bottle with one part hydrogen peroxide (from a drugstore) and three parts water. Spray the affected areas and clean. This gets rid of pet odors and many stains.
Pricing low can work to your advantage during negotiations. A low price will bring many more possible buyers to your doorstep. Multiple prospective buyers means multiple bids. Although your initial price may be low, by the time the dust settles between competing offers you may end up with the amount you really wanted to get for your property.
Some buyers cannot see past wallpaper since removing it can be a very big hassle. If you have wallpaper that has been there for quite some time it may make people second-guess buying your property. You should remove it and pain the walls of the home a neutral color.
When selling your house, it is absolutely necessary to hire an appraiser. The appraiser can tell you the value of your house according to today's market standards. Make sure the appraiser has the proper credentials, experience and state license and certification. Also, avoid a real estate agent recommended appraiser.
Select a real estate agent wisely when you want to sell or buy a home. In order to ensure that your home buying or selling experience is a successful one, the agent you choose to work with should have vast knowledge of real estate. Partnering with a respectable, honest real estate agent facilitates a smoother, less stressful transaction.
Terms:
Pre qualify prospective buyers to confirm that they have the ability to pay. Negotiating the terms of selling a house can be long and drawn out. The most frustrating thing is to go through that entire process and find out the buyer cannot obtain his mortgage. Before you spend the time working with someone, take the time to have them pre qualified.
Pay close attention to the commission terms stated in the listing contract that you sign with your real estate agent. Generally speaking, the agent earns his or commission when the buyer and seller reach an agreement. However, if for some reason you decided not to sell your home after reaching an agreement, your agent may still be entitled to commission. This amount can easily total thousands of dollars, and you are legally obligated to pay it.
If you are trying to sell your home in the off-season, it is important to negotiate your agent's commission. Particularly if your home is already priced well, you may need to cut costs in other areas. Have an up-front discussion with the agent and agree to terms before you list the home.
Don't be afraid to evict. It can be a hard decision for a landlord to evict their tenant, especially if it is someone you have rented to for years and have a personal relationship with. If you have given them ample amount of time to pay, even worked out special arrangements that still aren't panning out, you need to protect your interests. Offer them opportunity for them to leave on their own terms, but if that isn't accepted, then you need to protect your investment.
As you prepare to create a listing contract with your agent, think carefully about both the sale's terms and the selling price itself. You might want to throw in personal property, like appliances, to make the sale more attractive. You may want to also let them know what you will take with you so they do not expect it to be there when they move in. A clearly thought out and constructed contract prevents misunderstandings from arising.
Check your local laws regarding the condition you must leave your home before turning it over to a new owner. If you are the seller, some states require that the house be "broom swept" before switching hands. The terms are usually ambiguous so make sure to review your purchase contract and local by-laws.
Mortgage:
Helping a buyer with financing will help you make the sale. There are many painless ways a seller can assist someone who may not readily qualify for a mortgage; you might offer a lease-to-own option, pay for points to reduce interest rates or even foot the bill for closing costs. This could really shrink the time your home spends on the market.
When trying to figure out what price to sell your home for, look more at the prices that houses similar to yours sold for rather then houses that are currently on the market. When an appraisal is made for the sale of your home, the mortgage company will only approve a mortgage for the amount of the appraisal, even if both the buyer and seller agreed on a higher amount. Appraisers use previous sales as their guide. By doing this up front, you will keep yourself from having issues during the sale process.
Pre qualify prospective buyers to confirm that they have the ability to pay. Negotiating the terms of selling a house can be long and drawn out. The most frustrating thing is to go through that entire process and find out the buyer cannot obtain his mortgage. Before you spend the time working with someone, take the time to have them pre qualified.
When selling your home, it is crucial to keep some information to yourself. If you are moving for your job or can no longer afford your mortgage, you do not want to share this information with buyers because it could lower the overall price of your home. If a buyer senses that there is urgency in your sale, they will try to negotiate more than they would have otherwise. You can be honest about your situation without providing specifics.
When selling your house, you need to be very wary of the buyers that ask you to take back financing. There are so many banks and mortgage companies that can help them out, you should have nothing to do with the financing aspect. You are not a banker, and you shouldn't need to take on that responsibility.
If you have to move soon, and your home has not been sold, you may want to consider renting it out. The money you receive from renting out your home can pay off the mortgage on your older home so that you can have money to pay the mortgage on your newer one.
Do not get into an owner financing deal with anyone. There are several lending companies that will provide the funding for just about anyone at this point. If the buyer wants you to carry the mortgage, you get a pretty good idea that they have terrible credit and you will likely be ripped off.
Knowing how to sell in today's' market is extremely vital to your success. The same things that worked a decade ago just don't work in this day and age. That antiquated advice is as dead as the dinosaurs. Use the current information contained in this article when you want to sell your property.
If you are having difficulty selling your home, think about lowering the price. Try listing it on more websites or have different real estate agencies help you. When people visit your home, make sure it looks clean and safe and that you are presenting the advantages of the house first.
In today's real estate market, updating your home can make all the difference. Updates can be as simple as re-painting walls or replacing fixtures. Update your kitchen cabinets with a coat or paint or replace the carpet in just one room. This will help move you toward a quicker sale.
Few structural features date a house more than popcorn ceilings so removing them would be a good home improvement for people looking to sell their house. The task should take no longer than a weekend and once complete you will have a ceiling that is easier to paint and repair, and a house with an interior that won't turn away potential buyers.
Before listing your home for sale with a Realtor, you want to make sure all pet stains and odors are eradicated. Pet odor is a huge impediment when selling a home. Use a spray bottle with one part hydrogen peroxide (from a drugstore) and three parts water. Spray the affected areas and clean. This gets rid of pet odors and many stains.
Pricing low can work to your advantage during negotiations. A low price will bring many more possible buyers to your doorstep. Multiple prospective buyers means multiple bids. Although your initial price may be low, by the time the dust settles between competing offers you may end up with the amount you really wanted to get for your property.
Some buyers cannot see past wallpaper since removing it can be a very big hassle. If you have wallpaper that has been there for quite some time it may make people second-guess buying your property. You should remove it and pain the walls of the home a neutral color.
When selling your house, it is absolutely necessary to hire an appraiser. The appraiser can tell you the value of your house according to today's market standards. Make sure the appraiser has the proper credentials, experience and state license and certification. Also, avoid a real estate agent recommended appraiser.
Select a real estate agent wisely when you want to sell or buy a home. In order to ensure that your home buying or selling experience is a successful one, the agent you choose to work with should have vast knowledge of real estate. Partnering with a respectable, honest real estate agent facilitates a smoother, less stressful transaction.
Terms:
Pre qualify prospective buyers to confirm that they have the ability to pay. Negotiating the terms of selling a house can be long and drawn out. The most frustrating thing is to go through that entire process and find out the buyer cannot obtain his mortgage. Before you spend the time working with someone, take the time to have them pre qualified.
Pay close attention to the commission terms stated in the listing contract that you sign with your real estate agent. Generally speaking, the agent earns his or commission when the buyer and seller reach an agreement. However, if for some reason you decided not to sell your home after reaching an agreement, your agent may still be entitled to commission. This amount can easily total thousands of dollars, and you are legally obligated to pay it.
If you are trying to sell your home in the off-season, it is important to negotiate your agent's commission. Particularly if your home is already priced well, you may need to cut costs in other areas. Have an up-front discussion with the agent and agree to terms before you list the home.
Don't be afraid to evict. It can be a hard decision for a landlord to evict their tenant, especially if it is someone you have rented to for years and have a personal relationship with. If you have given them ample amount of time to pay, even worked out special arrangements that still aren't panning out, you need to protect your interests. Offer them opportunity for them to leave on their own terms, but if that isn't accepted, then you need to protect your investment.
As you prepare to create a listing contract with your agent, think carefully about both the sale's terms and the selling price itself. You might want to throw in personal property, like appliances, to make the sale more attractive. You may want to also let them know what you will take with you so they do not expect it to be there when they move in. A clearly thought out and constructed contract prevents misunderstandings from arising.
Check your local laws regarding the condition you must leave your home before turning it over to a new owner. If you are the seller, some states require that the house be "broom swept" before switching hands. The terms are usually ambiguous so make sure to review your purchase contract and local by-laws.
Mortgage:
Helping a buyer with financing will help you make the sale. There are many painless ways a seller can assist someone who may not readily qualify for a mortgage; you might offer a lease-to-own option, pay for points to reduce interest rates or even foot the bill for closing costs. This could really shrink the time your home spends on the market.
When trying to figure out what price to sell your home for, look more at the prices that houses similar to yours sold for rather then houses that are currently on the market. When an appraisal is made for the sale of your home, the mortgage company will only approve a mortgage for the amount of the appraisal, even if both the buyer and seller agreed on a higher amount. Appraisers use previous sales as their guide. By doing this up front, you will keep yourself from having issues during the sale process.
Pre qualify prospective buyers to confirm that they have the ability to pay. Negotiating the terms of selling a house can be long and drawn out. The most frustrating thing is to go through that entire process and find out the buyer cannot obtain his mortgage. Before you spend the time working with someone, take the time to have them pre qualified.
When selling your home, it is crucial to keep some information to yourself. If you are moving for your job or can no longer afford your mortgage, you do not want to share this information with buyers because it could lower the overall price of your home. If a buyer senses that there is urgency in your sale, they will try to negotiate more than they would have otherwise. You can be honest about your situation without providing specifics.
When selling your house, you need to be very wary of the buyers that ask you to take back financing. There are so many banks and mortgage companies that can help them out, you should have nothing to do with the financing aspect. You are not a banker, and you shouldn't need to take on that responsibility.
If you have to move soon, and your home has not been sold, you may want to consider renting it out. The money you receive from renting out your home can pay off the mortgage on your older home so that you can have money to pay the mortgage on your newer one.
Do not get into an owner financing deal with anyone. There are several lending companies that will provide the funding for just about anyone at this point. If the buyer wants you to carry the mortgage, you get a pretty good idea that they have terrible credit and you will likely be ripped off.
Knowing how to sell in today's' market is extremely vital to your success. The same things that worked a decade ago just don't work in this day and age. That antiquated advice is as dead as the dinosaurs. Use the current information contained in this article when you want to sell your property.
Commercial Real Estate Can Be A Money-Making Opportunity "By Marcus Maupin"
Purchasing commercial real estate is vastly different from purchasing a residential property. The following article will help you understand how the commercial market works.
Mixed-use urban planning is a real estate development strategy that can add considerably to a property's value. A property located in a neighborhood planned for mixed use will have shops, services and public projects located close by. In a mixed-use development many steps are taken to improve the neighborhood's local character and reduce the residents' reliance on cars. A home in such a neighborhood can be valuable - and pleasant to live in!
Keep in mind that commercial real estate takes longer to sell, renovate and purchase. It is still a great way to make a nice profit when buying and selling it, but always keep in mind that it is a longer process than buying and selling residential real estate would be.
Consider whether to manage your rental property on your own, or through a rental agency. On your own may be less expensive, but if there are problems in the future with unpaid rent, damages, or lawsuits, you will be glad to have someone on your side. Not to mention the inconvenience of having to find a plumber at 2am when the pipes freeze. Let someone else deal with the headaches.
Condos and townhomes all each have a Homeowner's Association with special rules imposed by them called Covenants, Conditions and Restrictions (CC&Rs). Always read the CC&Rs. They can restrict or regulate virtually anything they want from the color of your house to parking your car. In most cases, their goal is to promote conformity, but you may find out it is not for you.
Even if you have already purchased a commercial real estate property, it is important to keep in mind that it is a long process. Some commercial property owners grow impatient with the process and want to give up on it. Just remember, everything has to be made official, documents need to be signed and possibly, repairs need to be made.
If you are a first time commercial real estate buyer, you may want to give a newly licensed commercial real estate broker, attorney or lender a try. Pass them over for more experienced people in the field. Working with those already experienced in the field will give you more confidence in purchasing commercial real estate.
One thing to think about when purchasing commercial real estate is why the previous owner is selling it. Sometimes, they are selling it because of a problem with the property itself. For example, it could be prone to insect infestation, or perhaps in a more bizarre scenario be the target of repeat break ins due to a vendetta.
If time is against you in regards to buying commercial property, make sure that you are never forced to make a transaction. Making a bad decision is worse than making no decision at all, as you should only sign on to things that you believe in. This will allow you to get the best bang for your buck.
When entering into commercial real estate, investigate the track record of your broker. You will want to hire someone who not only specializes in your unique interests, but has the results to back it up. Treat this as any hiring process that you ever would go through at a typical job for maximum results.
Sometimes during your negotiations for a piece of land, things may get heated and there may be arguing and disagreement given the amount of money that may be exchanging hands. During this time, make sure that you keep your cool and handle things in a professional manner, to maximize the chance of landing a good deal.
Don't be in such a rush when purchasing an investment property. This will take more time than a home that you buy for personal use. The negotiating, fixing up, and selling process can take awhile but remember, rushing can cost you in the long run. A rushed deal will not turn out as well and therefore, decrease your profit potential.
Hire a trustworthy commercial property broker to find your new location. You will save time and money as he will do most of the groundwork. His unique knowledge of the local market and its participants can prove very useful in negotiating the terms of your new lease agreement. A small up front expense can make a lot of difference on the long run.
You might need to pay a contractor to repair or improve the buildings you have bought. Make sure you are hiring someone who will do the job seriously. Always check a company's credentials, and ask your real estate broker to recommend a contractor if necessary. Agree on a price before they start working.
Once you have bought some buildings, you should carefully establish a plan to get them ready for renting. Have an expert inspect your buildings and determine what needs to be done to meet safety requirements. Create a checklist of everything you have to fix and make sure it matches your budget.
Remember that the way you and your partners present yourself will go a long way in the negotiations. Come prepared with a suit and tie and look as sharp as possible when entering negotiations. This will help you garner respect from the seller for your prospective commercial real estate purchase.
Apartments:
Apartments are usually what people buy for commercial purposes, but think about other types of investments too. You could invest in offices, parks or simply land. You can also buy something and transform it into a different type of building if the location is right. Be creative and original in your projects, but be realistic in your plans.
You should include the money you are going to spend on due diligence into your budget. Once you have your apartments ready, they will have to be inspected to make sure they match certain safety and quality standards. This process can be very costly, especially if your apartments do not pass the inspection the first time.
Weigh all of your property options before choosing what to invest in. Apartments are an easy choice, but there are a lot of people who are already in the apartment market. Look into other types of commercial properties such as office buildings, commercial land, etc. It may be best to step out of your comfort zone and find a unique goal.
Keep in mind that you are buying something to make money out of it, not simply to own it. When looking at apartment buildings, think about how much people would be willing to rent these apartments for. You can also make money by re-selling your property after a few years, but this is not the main goal of commercial real estate.
If you want to rent your apartments or offices at a good price, think about hiring an interior decorator. A good decorator will create a warm environment that makes renters feel at home even if they are renting a rather small and conventional apartment. This could boost the value of your property.
Before you invest in something, you should be an expert on this type of real estate. For instance, if you want to invest in apartments, you should know about legislation, safety requirements and have a good idea of what being a landlord means. If you are thinking about investing in an office building, you should understand what a company needs.
When looking for a commercial real estate investment, don't automatically select apartments. Not that there is anything bad about apartments. However, there are also industrial buildings, office buildings, mobile home parks, raw land and many other commercial properties. Find the type of property that meets your needs and personal investment goals.
When trying to find your niche in the commercial real estate field, it is important to consider all the types of properties you could potentially invest in; apartments, office buildings, trailer parks, etc. Some property types may be better suited than others to help you achieve your business goals.
Urban and suburban investors in commercial real estate think only about what is visible to them on their daily travels, such as apartments, office buildings and retail buildings. What don't you see everyday? Industrial properties are out of sight usually, but still need owners and tenants, as do mobile home parks, undeveloped pieces of land and even houses of worship occasionally. Explore local niches that are a little uncommon or out of sight for markets with little to no competition.
To make sure you get the most out of a commercial real estate investment, don't only consider apartments. There are a wide variety of commercial properties to invest in, from office buildings to trailer parks, and it's best to consider lots of options so that you can get the best deal available.
As you can see, there are a lot of things to consider when shopping for commercial real estate. Keep this advice in mind so that you may get better deals when searching for the location of your business.
Mixed-use urban planning is a real estate development strategy that can add considerably to a property's value. A property located in a neighborhood planned for mixed use will have shops, services and public projects located close by. In a mixed-use development many steps are taken to improve the neighborhood's local character and reduce the residents' reliance on cars. A home in such a neighborhood can be valuable - and pleasant to live in!
Keep in mind that commercial real estate takes longer to sell, renovate and purchase. It is still a great way to make a nice profit when buying and selling it, but always keep in mind that it is a longer process than buying and selling residential real estate would be.
Consider whether to manage your rental property on your own, or through a rental agency. On your own may be less expensive, but if there are problems in the future with unpaid rent, damages, or lawsuits, you will be glad to have someone on your side. Not to mention the inconvenience of having to find a plumber at 2am when the pipes freeze. Let someone else deal with the headaches.
Condos and townhomes all each have a Homeowner's Association with special rules imposed by them called Covenants, Conditions and Restrictions (CC&Rs). Always read the CC&Rs. They can restrict or regulate virtually anything they want from the color of your house to parking your car. In most cases, their goal is to promote conformity, but you may find out it is not for you.
Even if you have already purchased a commercial real estate property, it is important to keep in mind that it is a long process. Some commercial property owners grow impatient with the process and want to give up on it. Just remember, everything has to be made official, documents need to be signed and possibly, repairs need to be made.
If you are a first time commercial real estate buyer, you may want to give a newly licensed commercial real estate broker, attorney or lender a try. Pass them over for more experienced people in the field. Working with those already experienced in the field will give you more confidence in purchasing commercial real estate.
One thing to think about when purchasing commercial real estate is why the previous owner is selling it. Sometimes, they are selling it because of a problem with the property itself. For example, it could be prone to insect infestation, or perhaps in a more bizarre scenario be the target of repeat break ins due to a vendetta.
If time is against you in regards to buying commercial property, make sure that you are never forced to make a transaction. Making a bad decision is worse than making no decision at all, as you should only sign on to things that you believe in. This will allow you to get the best bang for your buck.
When entering into commercial real estate, investigate the track record of your broker. You will want to hire someone who not only specializes in your unique interests, but has the results to back it up. Treat this as any hiring process that you ever would go through at a typical job for maximum results.
Sometimes during your negotiations for a piece of land, things may get heated and there may be arguing and disagreement given the amount of money that may be exchanging hands. During this time, make sure that you keep your cool and handle things in a professional manner, to maximize the chance of landing a good deal.
Don't be in such a rush when purchasing an investment property. This will take more time than a home that you buy for personal use. The negotiating, fixing up, and selling process can take awhile but remember, rushing can cost you in the long run. A rushed deal will not turn out as well and therefore, decrease your profit potential.
Hire a trustworthy commercial property broker to find your new location. You will save time and money as he will do most of the groundwork. His unique knowledge of the local market and its participants can prove very useful in negotiating the terms of your new lease agreement. A small up front expense can make a lot of difference on the long run.
You might need to pay a contractor to repair or improve the buildings you have bought. Make sure you are hiring someone who will do the job seriously. Always check a company's credentials, and ask your real estate broker to recommend a contractor if necessary. Agree on a price before they start working.
Once you have bought some buildings, you should carefully establish a plan to get them ready for renting. Have an expert inspect your buildings and determine what needs to be done to meet safety requirements. Create a checklist of everything you have to fix and make sure it matches your budget.
Remember that the way you and your partners present yourself will go a long way in the negotiations. Come prepared with a suit and tie and look as sharp as possible when entering negotiations. This will help you garner respect from the seller for your prospective commercial real estate purchase.
Apartments:
Apartments are usually what people buy for commercial purposes, but think about other types of investments too. You could invest in offices, parks or simply land. You can also buy something and transform it into a different type of building if the location is right. Be creative and original in your projects, but be realistic in your plans.
You should include the money you are going to spend on due diligence into your budget. Once you have your apartments ready, they will have to be inspected to make sure they match certain safety and quality standards. This process can be very costly, especially if your apartments do not pass the inspection the first time.
Weigh all of your property options before choosing what to invest in. Apartments are an easy choice, but there are a lot of people who are already in the apartment market. Look into other types of commercial properties such as office buildings, commercial land, etc. It may be best to step out of your comfort zone and find a unique goal.
Keep in mind that you are buying something to make money out of it, not simply to own it. When looking at apartment buildings, think about how much people would be willing to rent these apartments for. You can also make money by re-selling your property after a few years, but this is not the main goal of commercial real estate.
If you want to rent your apartments or offices at a good price, think about hiring an interior decorator. A good decorator will create a warm environment that makes renters feel at home even if they are renting a rather small and conventional apartment. This could boost the value of your property.
Before you invest in something, you should be an expert on this type of real estate. For instance, if you want to invest in apartments, you should know about legislation, safety requirements and have a good idea of what being a landlord means. If you are thinking about investing in an office building, you should understand what a company needs.
When looking for a commercial real estate investment, don't automatically select apartments. Not that there is anything bad about apartments. However, there are also industrial buildings, office buildings, mobile home parks, raw land and many other commercial properties. Find the type of property that meets your needs and personal investment goals.
When trying to find your niche in the commercial real estate field, it is important to consider all the types of properties you could potentially invest in; apartments, office buildings, trailer parks, etc. Some property types may be better suited than others to help you achieve your business goals.
Urban and suburban investors in commercial real estate think only about what is visible to them on their daily travels, such as apartments, office buildings and retail buildings. What don't you see everyday? Industrial properties are out of sight usually, but still need owners and tenants, as do mobile home parks, undeveloped pieces of land and even houses of worship occasionally. Explore local niches that are a little uncommon or out of sight for markets with little to no competition.
To make sure you get the most out of a commercial real estate investment, don't only consider apartments. There are a wide variety of commercial properties to invest in, from office buildings to trailer parks, and it's best to consider lots of options so that you can get the best deal available.
As you can see, there are a lot of things to consider when shopping for commercial real estate. Keep this advice in mind so that you may get better deals when searching for the location of your business.
Your Essential "how-To' Guide To Property Buying by Mark Maupin
There is good news if you are looking to buy a new home! This article has many good tips to help make the experience as smooth as possible. Using the experience of others can be a great advantage, and the tips in this article are just what you need to get the job done without the usual stress.
Credit
One of the most important factors in buying real estate concerns your credit. It is in your best interest to investigate any issues that may be on your credit profile before entering into a real estate purchase. This will avoid any unknown issues that may be lurking in your credit history and save you negative surprises when it comes time to get approved.
When you want to buy a home and you have the credit, the job and the necessary funds, usually there are no good reasons to postpone the purchase. In some cases for example, when you are new to the area, your job is not secure enough or you are getting married in the near future, you might consider putting off the purchase.
When looking for financing, don't be afraid to shop around. Different lenders may offer you different interest rates, or have other perks for specific buyers. Local credit unions especially may be able to offer you better rates than a national bank, if you already live or work in the area.
Never be afraid to negotiate a better price. With the weak housing market, perhaps the seller will be eager enough to reduce the sales price in order to sell. Those with great credit can pretty much call the shots these days. Although interest rates are at historic lows, few borrowers qualify and buyers are so scarce that they can often name their price.
Renting an apartment becomes much easier with decent credit since most apartment managers have access to credit scores. Plus, multiple credit checks will eventually damage your score so only apply to one apartment at a time. Once you have your apartment, pay your rent on time so that it does not become a debt on your credit report.
Cash
Your debt, credit history, the type of mortgage you choose and the current interest rates will all play an important role when you go to apply for a mortgage. These will all determine, along with your income and cash on hand, the amount of money that a lender will give you to purchase a home.
When deciding on a home to buy, pay attention to the foundation and other structural components of the home. These things cost a lot of money to repair, so unless you are willing to invest time and a considerable amount of cash into the property, move on and look at other homes.
If you are looking at buying a home and fixing it up to make some quick cash, you should first invest in some literature on the process and different books about how you can increase the value of your home. This will help you make the most out of your investment.
Don't purchase a home with a garage unless you really need the garage. Homes with garages can cost thousands of dollars more than homes without them, and adding on a garage at a later date will save you upwards of 80% to scale. Besides, you can get auto tents for a few hundred dollars and really save some serious cash.
Having all your ducks in a row before you begin the house hunt, can save you time and headaches later on. Make sure that you have been pre-approved with a lender and know how much you can spend. Also make sure that you have cash available for an earnest money, inspections and other fees related to the property you may wish to make an offer on.
When you're figuring out how much you can afford to spend on a house, be sure to factor in the cost of any potential maintenance or repairs that may need to be done. There will inevitably be things that need to be fixed, and if you haven't budgeted for these, you could find yourself short on cash.
Terms
In the event that you are unable to obtain traditional financing for your real estate loan, you may want to consider a private money, or hard money loan. These loans have high interest rates and are generally for short terms, but they can give you the capital you need for your purchase until traditional financing can be achieved.
Make sure you shop around when getting financing you buy a home. You don't want to jump on the first offer when there may be a better one right around the corner. Also make sure you have all the terms of the loan in writing. Some lenders will try to sneak in hidden fees.
You must understand well the terms used in mortgage loans before purchasing a home. To keep confusion to a minimum, you should have a solid grasp of how the term of your loan will affect the amount you pay each month and its impact on the amount of interest you will ultimately pay.
While it may be okay to skip the fine print when you buy a toaster or curling iron, it is by no means acceptable to do so when buying a house. The terms of your contract and loan, if applicable, will be complex and full of unfamiliar industry jargon. There is no shame, however, in asking help from a third party who can more clearly explain the terms.
There are many important things you need to do before purchasing real estate, but one of the most important is to actually research the market. You will hear terms like "buyer's" and "seller's" markets. Make sure you understand when it's the most beneficial time for you to buy real estate.
Potential buyers should get prequalified for a home loan before beginning the actual search for a new home. This will ensure that the buyer gets the best loan terms possible. Many times realtors have a time limit in their purchase agreement which does not allow the potential buyer a lot of time to shop around for the best interest rates.
These common sense strategies can give you the advantage of years of experience that others have had to learn the hard way. It is not as difficult as you may think to buy that new home when you apply the advice in this article. You will be well on your way to a new home.
Credit
One of the most important factors in buying real estate concerns your credit. It is in your best interest to investigate any issues that may be on your credit profile before entering into a real estate purchase. This will avoid any unknown issues that may be lurking in your credit history and save you negative surprises when it comes time to get approved.
When you want to buy a home and you have the credit, the job and the necessary funds, usually there are no good reasons to postpone the purchase. In some cases for example, when you are new to the area, your job is not secure enough or you are getting married in the near future, you might consider putting off the purchase.
When looking for financing, don't be afraid to shop around. Different lenders may offer you different interest rates, or have other perks for specific buyers. Local credit unions especially may be able to offer you better rates than a national bank, if you already live or work in the area.
Never be afraid to negotiate a better price. With the weak housing market, perhaps the seller will be eager enough to reduce the sales price in order to sell. Those with great credit can pretty much call the shots these days. Although interest rates are at historic lows, few borrowers qualify and buyers are so scarce that they can often name their price.
Renting an apartment becomes much easier with decent credit since most apartment managers have access to credit scores. Plus, multiple credit checks will eventually damage your score so only apply to one apartment at a time. Once you have your apartment, pay your rent on time so that it does not become a debt on your credit report.
Cash
Your debt, credit history, the type of mortgage you choose and the current interest rates will all play an important role when you go to apply for a mortgage. These will all determine, along with your income and cash on hand, the amount of money that a lender will give you to purchase a home.
When deciding on a home to buy, pay attention to the foundation and other structural components of the home. These things cost a lot of money to repair, so unless you are willing to invest time and a considerable amount of cash into the property, move on and look at other homes.
If you are looking at buying a home and fixing it up to make some quick cash, you should first invest in some literature on the process and different books about how you can increase the value of your home. This will help you make the most out of your investment.
Don't purchase a home with a garage unless you really need the garage. Homes with garages can cost thousands of dollars more than homes without them, and adding on a garage at a later date will save you upwards of 80% to scale. Besides, you can get auto tents for a few hundred dollars and really save some serious cash.
Having all your ducks in a row before you begin the house hunt, can save you time and headaches later on. Make sure that you have been pre-approved with a lender and know how much you can spend. Also make sure that you have cash available for an earnest money, inspections and other fees related to the property you may wish to make an offer on.
When you're figuring out how much you can afford to spend on a house, be sure to factor in the cost of any potential maintenance or repairs that may need to be done. There will inevitably be things that need to be fixed, and if you haven't budgeted for these, you could find yourself short on cash.
Terms
In the event that you are unable to obtain traditional financing for your real estate loan, you may want to consider a private money, or hard money loan. These loans have high interest rates and are generally for short terms, but they can give you the capital you need for your purchase until traditional financing can be achieved.
Make sure you shop around when getting financing you buy a home. You don't want to jump on the first offer when there may be a better one right around the corner. Also make sure you have all the terms of the loan in writing. Some lenders will try to sneak in hidden fees.
You must understand well the terms used in mortgage loans before purchasing a home. To keep confusion to a minimum, you should have a solid grasp of how the term of your loan will affect the amount you pay each month and its impact on the amount of interest you will ultimately pay.
While it may be okay to skip the fine print when you buy a toaster or curling iron, it is by no means acceptable to do so when buying a house. The terms of your contract and loan, if applicable, will be complex and full of unfamiliar industry jargon. There is no shame, however, in asking help from a third party who can more clearly explain the terms.
There are many important things you need to do before purchasing real estate, but one of the most important is to actually research the market. You will hear terms like "buyer's" and "seller's" markets. Make sure you understand when it's the most beneficial time for you to buy real estate.
Potential buyers should get prequalified for a home loan before beginning the actual search for a new home. This will ensure that the buyer gets the best loan terms possible. Many times realtors have a time limit in their purchase agreement which does not allow the potential buyer a lot of time to shop around for the best interest rates.
These common sense strategies can give you the advantage of years of experience that others have had to learn the hard way. It is not as difficult as you may think to buy that new home when you apply the advice in this article. You will be well on your way to a new home.
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