Posts Tagged ‘Commercial Real Estate’

Real estate has always been known as the safest of investments.

In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.

This is one reason many people choose real estate investment as their full time job.

Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, is often overlooked.

However, commercial real estate presents a great option for investing in real estate.

Commercial real estate includes a large variety of property types.

To a majority of people, commercial real estate is only office buildings or factories or industrial units.

However, that is not all of commercial real estate. There is far more to commercial real estate.

Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.

Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.

So, is commercial real estate really profitable?

Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!!

However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate.

But commercial real estate profits can be huge in fact, often much bigger than you might realize from a residential real estate transaction of the same size.

There are many reasons to delve into commercial real estate investment.

For example you might purchase to resell after a certain appreciation level has occured or to generate a substantial income by leasing the property out to retailers or other business types or both.

In fact, commercial real estate development is treated as a preliminary indicator of the impending growth of the residential real estate market.

Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.

Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.

It would be wise to determine your goals then meet with your banker (or financier) prior to viewing and selecting your commercial real estate.

Also remain open minded and understand that should the right (perfect) opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably.

For example: If you find a commercial real estate property too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (splitting the profits later).

Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.

In a nutshell, commercial real estate presents a huge variety of and tremendous investing opportunities, you just need to recognize them and go for it.

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After spending time learning about the different types of commercial investment property and determining whether you prefer a retail, office or industrial property, you will know what type of investment property you want to purchase. It’s time now for the fun part – actually finding your commercial investment property!
There are a number of places you can look when hunting for a commercial property that will meet all of your criteria.
Internet – The internet is worthwhile as a first point of reference because you can quickly and easily source the availability of commercial property you are looking for, within the price range you are willing to pay and the location you have decided upon. You can narrow down your search with little or no time lost.
Commercial Property Agents – You will also come up with a list of commercial property agents that you can contact. Bear in mind that residential property agents may not be familiar with commercial property, so it’s probably preferable to discuss your needs with a commercial agent to ensure you get sound advice. They can also act as your negotiator to help achieve a realistic price on the property you wish to purchase. The agent’s job is to work for the seller, but all agents know full well – no sale, no commission!
Until you become more experienced in commercial property investment, it may also be a good idea to have a go between (such as a commercial agent) act as your negotiator in purchasing the property.
Newspapers – Another place you might want to look is in the newspapers. A commercial property that’s been advertised privately by the owner is usually worth considering.
Property Owners – Approaching a property owner directly is an option if you feel confident in negotiating the purchase of a commercial property. This option is not for everyone. You will need to be familiar with local commercial real estate and its value to make sure you are paying the right price for the property. If you do decide on this approach, it’s prudent to speak with a solicitor and a property valuer.
Property Seminars – Attending property seminars is a way to connect with people who may be able to put you on to a good property deal or who may be able to help you when the time comes to purchase your commercial investment property. These include commercial property solicitors, finance brokers, etc.
When you think you’ve found the right commercial investment property, be sure to do some thorough investigation that includes a detailed look at the lease agreement and checks on the property itself. You should get professional help here.
Happy hunting and may your next commercial property investment add significant value to your wealth-creation strategy.

Real estate is often known as the safest investment available. Because,real estate investing executed with correct evaluation of the property (and its true value), can result in good earnings. This is one reason how come a few people engage in real estate investing as their regular job. The dialogue of real property are broadly centered toward residential real estate; commercial real estate seems to be not as popular. All the same, commercial real estate also is a good alternative for investing in property.

Commercial real estate includes many various forms of properties. Most folks associate commercial realty with only office buildings, parks or manufacturers/ industrialized units. Even so, that’s not entirely all of commercial real estate. There’s more to commercial real estate. Health care centers, retail structures and storage warehouse are all good examples of commercial real estate. Even residential properties like apartments (or any property that comprises of more than 4 residential dwelling units) are considered commercial real estate. As a matter of fact, such commercial real estate is much sought after.

So, is commercial real estate really profitable? Well, if it were not Lucrative I wouldn’t of have been writing about commercial real estate at all. So, commercial real estate is productive for sure. The only matter with commercial real property is that acknowledging the opportunity is a little difficult as equated to residential real estate. But commercial real property profits can be real huge (in fact, much bigger than you would anticipate by residential real estate of the same proportion). You could take up commercial real estate for either reselling after appreciation or for letting out to, say retailers.

The commercial real estate development is as a matter of fact handled as the 1st sign for emergence of residential real estate. Once you acknowledge of the possibility of significant commercial growth in the area (either due to tax breaks or whatever), you had better begin assessing the potential for appreciation in the prices of commercial real estate and then go for it promptly (equally soon as you find a good deal). And you must really work towards getting a good deal.

If you find that commercial real estate, e.g. land, is available in large chunks which are too costly for you to purchase, you could look at forming a small investor group (with your friends) and purchase it collectively (and split the profits later). In some cases e.g. when a retail boom is expected in a region, you may determine it profitable to purchase a property that you can change into a warehouse for the intent of renting to small businesses.

So commercial real estate exhibits a whole plethora of investing chances, you just need to seize it.

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A ‘real estate investor’, who can be also called as ‘real estate developer’ is a business person who buys and sells properties like land and houses. He is the person between the seller and the buyer. In countries like United Kingdom, a real estate developer is also called a ‘real estate broker’. A real estate investor meets many financial and business choices everyday, like capital gains, tax credits and interest rates. For this he needs to have a deep knowledge on real estate investing, he should also be capable of understanding things and a hard worker. A real estate investor gets his knowledge only through years of experience in real estate investing; he also needs to have deep interest and dedicated. He should to be patient while dealing with his clients and ready to wake up at 2:00AM to speak over the phone!

A real estate investors or brokers frequently have sales people, who are also called as ‘agents’, who help and assist real estate investors in the process of selling properties and even carries out other legal activities, refers legal documents and supervise things. To work as a real estate investor, the investor needs a license as the money is been exchanged between parties and the broker needs to be in presence as the agents work. Real estate investors without license will not be allowed to work unless the property buyer is working with his real estate developer. In this case, there is no necessity of any paperwork. Initially you need to be accredited as a real estate investor to obtain a license which is followed by a mandatory ninety hour course and you have to pass the real estate law exam.

A real estate investor generally targets either residential real estate or the commercial real estate. But there are investors who can handle both. If you need to survive with commercial real estate investing, then you need to have gain lot of experience and knowledge through residential real estate investing. But in many cases the experience which you obtain in residential real estate won’t be enough! Investors dealing with commercial real estates must have enough capital and they need to learn more things as they handle rich business people who will be quite analytical and expect better things from you. Compared to residential, commercial real estate investing is known to be more rewarding and challenging.

If you’re a real estate agent that does not sell multifamily or other investment real estate at least some portion of the time, then you’re missing out on a great opportunity to build your real estate business.

Moreover, I believe that any real estate agent can sell multifamily property just by learning a few basics, whether they’re a novice to real estate investing or not.

Hey, when I started in real estate, I made the jump from residential real estate to income property sales almost immediately. Just six months into my real estate career I sold a shopping center and made a $24,000 commission…and I knew less about real estate investing then what you’re about to discover in this article.

But I digress.

The point is that you don’t have to become a commercial real estate specialist to sell rental property. Yes, commercial expertise is necessary to service some properties, e.g., leasing, but ordinary real estate agents can typically handle multifamily property transactions quite successfully, and generally do when they want to. That’s how I did it, and so can you.

Moreover, don’t sell yourself short. If you’re a real estate agent, then you are certainly in a great position to work with income property sellers and buyers. Remember what we learned about real estate, that it’s a “contact sport”. Think about it. Investors walk and call in to real estate offices, are previous customers, relatives, friends, and neighbors. In truth, we’re surrounded by potential real estate investment customers.

Finally, strike the thought that any effort you make to sell rental property won’t be worth it. The untold secret about investment property, what others would not want you to discover, is that real estate investors typically purchase more than one property over time. Moreover, unlike home buyers (who purchase one house), real estate investors are known to purchase multiple properties plus, are often willing to sell for the “right price” because there’s no emotional attachment like with a home.

In other words, when you get the opportunity to work with one investor on one transaction, you potentially are setting the stage for multiple transactions.

Okay, now let’s go down the list.

1) Make the Decision

Foremost, decide to make some portion of your real estate business investment business. You don’t have to throw your residential business under a train. If you want to keep selling houses, great, just don’t get started with rental property half-heartedly. If you need an incentive, bear in mind that investment properties can easily generate multi-million dollar transactions equal to three or four residential transactions; therefore, a golden opportunity to bolster your annual earnings in this troubled housing market.

2) Learn the Basics

Unlike residential property, where amenities like kitchen size and school district are important to buyers, other than how they impact rents, amenities generally mean little to those who buy investment property. Real estate investing is about the numbers.

As such, investors are less impressed by an agent’s style and panache than they are with the agent’s ability to discuss investment property and provide timely numbers and reports. It’s not about Armani and Mercedes. Listen. When an investor asks, “What’s the property’s cap rate?” and you have the answer, that’s all you need to start making the right kind of favorable impression that will keep the investor from dumping you for your competition.

At the very least know how to compute capitalization rate and gross rent multiplier and be able to create an APOD. There are numerous websites devoted to real estate investment definitions and formulas where you can learn what you need easily, including my website.

3) Tool Up

Investing a few dollars for quality real estate investment software that enables you to create cash flow, rates of return, and profitability presentations is one of the best tools you can procure for real estate investing, bar none. Here’s why.

Foremost, it makes a statement to investors that you work with rental income property. Presenting quality reports with concise financial data suggests to investors that you’re serious about investment property, can assist in a sound buying decision, and might genuinely care about how the investor spends his or her money. It’s about winning investor confidence.

Secondly, it tells your colleagues that you work with rental income property. This benefits your business because it gives you income property credibility and in turn can lead to additional referral business.

Thirdly, you can learn about rental income property. Almost by default, the formulas, returns, and reports generated in real estate investment software tend to rub off. It’s as a customer of mine remarked, that my software contains everything about real estate investing it took him 15 years to learn. You get the idea.

4) Prepare

You’re making a crucial mistake if you wait until you’re confronted by an investor to learn the terms or buy the software. Urgency is always an issue when investors make the decision to buy or sell investment property, and if they see you pause or scramble for answers, they’re not going to have qualms about calling someone else. Winning or losing a sale often rests solely on the perception a customer develops within seconds during the first encounter. Don’t blow it.

5) Promote

Finally, let people know that you work with multifamily property. Foremost, call your residential customers and ask whether they’ve considered investing in real estate. Remember, investors are homeowners. Tell your relatives and friends. Obviously, the more people that know you’re prepared and equipped to do a real estate analysis and run rates of return for them, the better. I’m preaching to the choir, here, of course, but I can’t emphasize enough the impact your preparation for investment real estate will have on others.

Here’s to your success

The field of commercial real estate has been experiencing an increase in the demand of people looking for an affordable place in which to do business. Since not everyone is able to afford to invest in commercial real estate, they are looking at their options in leasing. A landlord will need commercial real estate landlord representation to assist in dealing with prospective tenants as well as effectively placing the real estate on the market.

Leasing a commercial real estate property requires a lot of research and planning to be accomplished, as well as a lot of leg work in interviewing prospective clients and tenants. Commercial real estate is quite different from a residential real estate. It entails more requirements to consider, as well as selecting the right business for your property. Having quality real estate landlord representation will definitely help in screening those businesses and tenants for your real estate.

With a real estate landlord representative, the marketing of your commercial real estate property will be much easier than if the landlord took on this challenge themselves. A professional representative will assist you in planning your marketing strategy to ensure that your real estate gets the widest exposure, featuring its good points and characteristics. They will also help in the formulation of your marketing plan as well as assist in preparing the things you will need to post your real estate in print media and in websites. A good commercial real estate representative should also have a database of potential clients that the landlord would not have access to. Because of this wide coverage, you will be able to find tenants not only locally but in neighboring regions and even on a national level. A wider range of prospects means a better deal for your real estate.

Your real estate landlord representative will help you project the maximum net income that you can get on the operation of your commercial real estate. This means that they will help you choose the business tenant that will provide you a risk free rental as well as the highest rental price offer. You may also be included in the community meetings of real estate brokers as well as receive updates from your agent. They can also present to you a marketing goal plan that you can follow to achieve maximum utilization of your property.

Another job that a commercial real estate property representative will gladly do for you is to set the qualifications for potential tenants. This is to ensure that the tenants that you will be getting are serious ones with the ability to follow through with a leasing contract on your property and are not a waste of time and energy. They will also help in conducting interviews on those potential clients to screen out those that may be too high of a risk, and find those tenants that offer the highest potential of staying in the space.

Real estate properties are great investment opportunities especially if they are maximized and used properly. To ensure that you are getting what you deserve for your real estate property, then get real estate landlord representation. A good representative will gladly help you through the ups and downs of commercial real estate market and will help protect your investment for you.

Commercial real estate partnerships can be the best way for beginning investors or those who know little about commercial real estate to make money in the market today. At this point in time commercial real estate is the only way to make quick money since the bottom has pretty much fallen out of the residential real estate market.

When seeking commercial real estate partnerships, you want to find out as much about the partnership as possible. While some people choose to invest with friends, others find fellow investors in all sorts of places, including the internet. There are also real estate investment agencies that match people with the types of investment that they want, similar to mutual funds.

It is probably best, when seeking commercial real estate partnerships to find a group that you know and trust and who are investing in local property. This way you can not only get to know the other investors, but you also have some control over the real estate investment that you are making.

If you have money to invest in the real estate market but are unsure about sinking it all into one investment or not familiar with the commercial real estate market, the best way to go about such an investment is through commercial real estate partnerships. These can be an ideal way to not only make money in the real estate market, but also learn about the business.

Commercial real estate has many different facets. It can range from large shopping centers to industrial parks to hotels. Commercial real estate is usually more of a safe bet than residential real estate investing, although the stakes are higher. You normally only get fifty percent of the price of the property in financing, unlike the residential market, where you can get ninety five percent of the financing. You have to have a little bit more money to invest in the commercial real estate market, but it is generally a very secure option and a way to get a steady income from rentals.

Speak to your investment counselor about reliable commercial real estate partnerships in your area. He or she may be able to direct you to a reliable group or give you some other options when speaking of investing in commercial real estate. Investment groups can be found just about anywhere, even among your neighbors. The best part about joining one of the commercial real estate partnerships is that you do not have to take all of the risk with the real estate investment.

For those with only a little bit of money in which to invest or who are not well versed with the commercial real estate market, it makes more sense to seek out commercial real estate partnerships.

In every real estate transaction there are a wide variety of legal issues that must be taken care of. Contracts should always be reviewed by an attorney who understands the nuances of real estate law. But there are also state specific State laws to contend with. A Seattle real estate lawyer deals with a large number of State legal issues related to acquiring, financing, developing, managing, constructing, leasing and selling residential and commercial property of all kinds. A Seattle real estate attorney will fully inform you of your options, advise you of any consequences, and protect your legal interests.

Below are some reasons you should consider retaining a Seattle attorney (Seattle Law Firm) for your real estate transaction:

? Real estate closings bring all interested parties together. They involve the execution and delivery of all necessary documents at the same time as the payment of the purchase price and the settlement costs of the deal. While this may seem like a simple process, handling a real estate closing is a complicated matter and requires a thorough knowledge of the law. This is why sellers and purchasers need to hire a reputable Seattle real estate attorney to orchestrate the transaction.

? Seattle real estate lawyers deal with tax implications for those buying and selling property.

? An experienced Seattle real estate lawyer can help you keep your property out of probate court by setting up a living trust for you to pass your property directly to your intended heirs.

? Real estate attorneys can protect you from costly mistakes, errors in the documents, errors in the figures and other problems that could lead to litigation or other expensive legal action.

? A real estate lawyer represents all parties involved in real estate transactions, for both residential and commercial properties.

? A real estate attorney also represents and assists business entities in a variety of commercial real estate issues.

? A Seattle attorney can help you with issues including real estate investment opportunities, real estate construction and development, landlord/tenant matters, zoning, financing or refinancing, and mortgages and foreclosures.

There are non-legal services that claim they can do all the legal work you need. If you’re tempted to save a few bucks this way, remember that lawyers belong to a regulated profession with standards they must meet and insurance to cover damages if they make an error or omission. You don’t necessarily have the same standards or recourse dealing with other advisors. And this isn’t the time to “do-it-yourself”. Although many legal forms used in real estate are similar, binder or purchase and sale agreement forms do vary from state to state. So if you intend to engage in a real estate transaction, retaining a Seattle real estate attorney, or Seattle law firm, will insure that all facets of your real estate transaction will be reviewed based on Washington state laws. Furthermore, some title insurance companies and mortgage lenders require you to use an attorney to ensure that, among other things, the title is good, there are no liens against the property, and that the deal will close as anticipated.

A Seattle real estate attorney’s role can be as broad as you want. And while it is not typical in a real estate transaction, you can ask your Seattle attorney to describe his or her work and fees in writing before you proceed. Whether you are a sophisticated businessperson with significant real estate experience, or a first-time homeowner, you can count on a qualified Seattle attorney experienced in real estate law to protect your interests during your real estate transaction. Do not close a real estate transaction unprepared!

Real Estate Commercial Loans

What is a Real Estate Commercial Loan?

A real estate commercial loan is a form of mortgage loan used to buy, renovate, or refinance commercial buildings or land zoned for commercial or mixed use.

How Do I Get a Commercial Loan For Real Estate?

You may want to be pre-qualified by a commercial mortgage broker who can find you the best terms and rates for your commercial real estate loan. Conduct a search for “real estate commercial loans”, “real estate commercial loan”, “commercial loan real estate” and you are sure to find and endless number of possibilities to choose from.

What Can I Use a Real Estate Commercial Loans For?

Real estate commercial loans can be used for purchasing land and making necessary improvements includuing grading, utilities, parking lots, and landscaping. These loans can also be used for the purchase, construction, or renovation of commercial buildings or land.

What Terms and Interest Rates and Fees Can I Expect From a Real Estate Commercial Loan?

Interest rates on commercial real estate loans are based on an increment above the current market rate for five-year and 10-year U.S. Treasury bonds. Maturities can be 10, 15, 20, or 30 years. Many commercial real estate loans require a bollon payment after 10 years. You may want to consider refinancing at that time or get a loan that does not require a balloon payment. Fees on commercial mortgage loans usually total approximately three 3% of the borrowed amount.

What Are the Qualifications For a Commercial Loan For Real Estate?

To qualify for a commercial real estate loan, you must have enough liquid assets to pay a down payment and closing costs. Down payments on a commercial real estate purchase can go as low as 3%. There is no down payment requirement for a commercial loan refinance.

Are There Loan Limits For a Real Estate Commercial Loan?

Loan limits on commercial real estate loans differ from lender to lender. They start as low as $50,000 and can go as high as $50-$100 million.

Where Can I Find a Real Estate Commercial Lender?

It’s relatively easy to find commercial lenders and commercial mortgage brokers online.       A good place to start looking for a commercial real estate lender is online. Do a search for: “real estate commercial lending”, “real estate commercial lenders”, “real estate commercial bank”

Are There Any Government Programs to Help Me Get a Real Estate Commercial Loan?

The U.S. Small Business Administration (SBA) works with lenders and non-profit corporations to provide commercial loans to small businesses through the CDC/504 Program.The CDC/504 Program provides small businesses with long-term, fixed-rate commercial loans for major assets, such as land and buildings. A Certified Development Company (CDC) is a nonprofit corporation set up to assist in the economic development of a particular communities. Each CDC covers a specific geographic area.