Real Estate and Commercial Property

The blog info about Real Estate, Commercial Property, Mortgage Refinance, Buy and sell a home, Investment Property,

Real Estate

Evaluating Real Estate Investment Before Buying a Property

Real Estate investment before buying a property reviews evaluation of the market price, the contents of the configured property, the location of the property.

investing-in-real-estateReally great, you finally made the decision to become a real estate investor to buy a property or you are a real estate agent. And finally decided that you need to service property investment. Whatever your goal, this is credited to you to understand how real estate investing can benefit you.

Now you actually face to face with your first investment property. You need to evaluate whether it is profitable enough for you to pursue a purchase or just a waste of time and energy to further consider the property as an investment. Here are some suggestions to help you get started before you made an offer to buy the property anymore.

 Evaluation of the market price. Review or other marketing data you are presented with a cap rate close attention to the property. Cap rate (or capitalization rate) is one of the results of the most commonly used by appraisers, tax assessors, legal, and real estate professionals to evaluate the price of rental properties and is a good way to make a quick determination of whether property prices appear to sell or not.

If you are working with a professional real estate agent than can show it to you and most likely be able to tell you how the property compared to the local market. There’s more you will consider later, but for now you just want to quickly find out if you really want to pursue the purchase, so look to the cap rate. Here’s the formula in case you’re not familiar with it: Net Operating Income divided by Sales Price equal to the capitalization rate.

Evaluate the contents of the configured property. You want to know what the contents of the unit properties (i.e, number of bedrooms, dining room, kitchen forms, and a bathroom with how much)? Is there an open parking lot, and if so, whether covered (with carports) or not covered. The garage is provided for each unit of property, and if so, whether there is enough parking for an additional tenant parking? How about storage space, whether to offer extra storage unit complex for tenants? You want to know whether the investment has the potential to lure tenants and if so think, whether it gives space to maintain or increase revenue?

Evaluate the location of the property before buy. You should know, if the complex is located in a good rental area with high residential rental market and is capable of supporting low refund rate. Toured the region by making notes. Does it have such easy access, close to shopping, public transportation lines, offices, and schools? Look for signs of rent, if you do not see them (and you probably will not) then write down the phone number of property management companies and ask them if there is a vacancy on them. The point is: Do you feel okay with where you are going to invest in a property located?

 Observe the overall condition of the property. Driving to the property and make note of the condition of the roof, walls, plumbing, doors and windows, parking areas, and grounds. Do not be afraid. If you see something that might cause you to offer less than the demand price the seller, let it be known. If the reason you’re sensible and you have the seller is willing to listen. The last thing you want to do is to invest your hard-earned money into the pit pockets.

I Found an Apartment for My Sister and Ended Up Renting a Place for Me Too

My sister moved back home suddenly. She had a health scare living up north, and she wanted to be home for her treatments and therapy. However, I knew there was no way she was going to be able to enjoy living back at the house with mom and dad. My sister and I feel like we are adopted even though we are their biological kids. Mom and dad are noisy and always busy with friends and entertaining. I looked for apartments for rent in Hattiesburg MS to find a place for my sister. My place was like a closet compared to her old apartment. She wanted one bedroom and one bath now, and I found her the perfect place with a lake view.

I liked the place so much that I leased an apartment there that also has one bedroom and one bath. Neither of us is big on entertaining. (more…)

I Knew at a Very Young Age What I Wanted to Be when I Grew Up

I knew pretty early on that I wanted to sell homes for a living. Both of my parents are agents, and they have done really well for themselves career-wise. I also knew that it is something that you can get into without having to spend four years in college to get a degree. My ultimate goal was to do well enough that I could begin to sell Denver luxury real estate because that can bring about some really great money.

I heard mom and dad talk a lot about legal things when it comes to selling homes. When I was very young, it didn’t interest me and I had no idea what they were talking about most of the time. But overtime, I paid more attention and could understand more and more of what they were talking about. When I was around 13 years old, I began tagging along when either one of my parents went to show houses. (more…)

How to Increase the Value of Rental Property

Multi-Commercial-RealEstateWhen you have a double or a large apartment complex, as a real estate investor and property, one of the most important aspects of this investment is the resale value. In addition to the periodic cash flows generated by the lease, collect your cash flow when you sell the property is paramount for a good rate of return. Needless to say, therefore, that property investors depend on their properties increase in value.
In this case, shows pride of ownership can be one of the easiest ways to increase the value of the property investor. Something in the world of real estate investing, or as the proverb goes, “a picture is worth a thousand words.”

Take pride in the appearance of the property and the rental income show respect for the property of your own. Buyers suspect that if you care for the show from the side of the road, you may also be concerned about things not visible from the roadside. The result is that the people who interest in property (a potential tenant or buyer) would like to see more, and whenever you can get someone to do more than just drive by your property, can translate into extra cash for you.

Here are some simple suggestions how you can quickly and easily show ownership that may interest potential customers and ultimately add value to your property.

  1. Landscaping: A well-maintained lawn and shrubs, or maybe spread some bark dust can make a world of difference to the curb appeal.
  2. Home hygiene: Regularly take out the trash – discarded cigarette butts in the dirt or the flowers or the parking area screaming mess. Pressure washing the exterior walls, windows, sidewalks, decks, and parking areas can turn a drab property into a fresh life that seems to hint at the new tenants and buyers.
  3. Fixing what’s broken: No loud screams ignore the broken things. Repair broken gates and fences, guardrails, and gutters, and when the repair, be sure doing it properly and use quality materials.
  4. Painting: Freshly painted front door and touch up paint for nicks and stains on the exterior walls give an overall impression of quality throughout.

Common sense should tell you that it does little good to use great curb appeal to attract customers only to lose them with drab unit. Of course, in the real estate investment property you should also show pride of ownership.
With buyers in particular, when it appears that the property you have too many repairs needed will usually offer better terms with low or no bids at all, and you also lose the consumer or buyer.

5 Preparation Before Invest in Commercial Real Estate

Success invest in commercial real estate depends on the economy of a country and the level at which people create businesses. If people take a conservative attitude on something, there is a very limited chance that the unit will be rented commercial real estate. But what most investors do not know is that commercial real estate offers more profit from the housing or property. Under the guidance of the following tips, they will be able to fully maximize the benefits of buying and re-selling commercial real estate.

First, you have to be serious about commercial real estate investment. Aside from providing income potential, gain more commercial properties also guarantee you a cheaper per-unit price of the deal. So might as well jump into it at a handsome profit. Moreover, there is little difference in managing an apartment with 10 units to 50 units.

Second, always requires your time. Research, projects, and re-evaluate your decision before you actually put them on the table. Made a mistake in the purchase, renovation and sale of commercial real estate can have big consequences. So always be careful and do not rush anything. And on a related note, do not think of these activities as a means of getting quick cash but as a way to secure your retirement. This will prevent you from making bad judgment when it comes to drawing a contract or selling an apartment unit.

Third, expand your knowledge. Because you know that the apartments and condos are more likely to be sold than any other commercial enterprise, does not mean you have to stick to them only when making investment decisions. Easily changed trend. And, office buildings, malls, shops, homes, and industrial centers will be crowded request. Now, given that the typical customer for these assets are large companies, you are bound to get a great result for diversification.

Fourth, learn more about the real estate industry. There are a variety ways to go about real estate investment, whether in residential or commercial. And you have to apply different formulas for each one so you know whether or not a particular property securing the business will be profitable or not. With commercial real estate, you have to introduce yourself intimately with net operating income and cap rate. Then, you have to make an offer depending on what your estimates indicate. Note that what may be good to change depending on market conditions and economic environment in the play.

Finally, look for good financial advice. Financial institutions work and how they apply against a different value system. If you are a beginner, you will most likely be confused about how to proceed with the loan application. It is important to highlight that there is a significant difference between getting a funding commercial real estate and housing loans. So, you should consult with financial experts about what your best option when it comes to supporting your best plan.

What To Ask A Real Estate Mentor

When you are looking for a real estate mentor, there are a few questions you must not forget to ask before subscribing to his service. These questions will allow you to determine if you really will get the value of your every dollar. He must at least answer yes to one of these questions for you to consider him your new master.

First question: Do you know how to flip houses? Flipping houses is back! In fact it never left. Of the many methods of investing in real estate, this is considered the easiest and quickest. To make money in this business, you must be able to sell contracts to buy houses. What you need to do is to look for properties that may be placed under contract.

Nowadays, fixer upper homes, or those that are in need of repair are very much in demand. Other real estate investors are looking for these properties because they will use them in other profitable investing methods. In a way, you serve as the supplier of investment properties to other entrepreneurs. If your real estate mentor can teach you this and you take action, you are bound for some huge fortune.

Second question: Do you know how to rehab houses? Apart from flipping houses, rehabbing houses is the other unconventional buy and sell method you must learn. If you’re mentor says Yes, I know how to do that, go learn about it. This is basically purchasing a cheap property in need of repair, probably from a wholesaler, and then making the necessary improvements so it can be sold for top dollar. If you are inclined to odd jobs and handyman assignments, you can make profits in this business. You make money by giving dying properties a new lease in life, somewhat a like superhero for houses.

Third question: Do you know how to do short sales? If your real estate mentor doesn’t do flipping or rehabbing houses, then he must know short sales. This business is also known as pre-foreclosure investing because it deals with houses that are in line to be foreclosed by banks. What you do is you negotiate for a lower amount than the mortgage owed, give the occupant some money, and prevent the owner from being foreclosed upon. A lot of home owners are in this situation and they need help right now.

If the teacher answers yes to any of these questions, you’re in front of the right mentor. Master any one of these three methods of investing and you can make huge money, even in today economic conditions. Go and learn more about them at REI, where you can also find mentors who will answer these questions.

The Real Estate Agent Working for You

You’ve probably seen your fair share of signs on front lawns where the properties are being sold by the owner privately. While you might think that this is the cheaper way to go, you may actually find yourself losing more money in the end.

Here are just a few of the reasons why having a real estate agent working for you is the best way to go.

 Negotiating Skills
Real estate agents have plenty of experience and skill when it comes to the negotiating table. They are able to easily remove themselves emotionally from the deal, and are therefore much more comfortable and calm about wheeling and dealing within a fair range of price offers in order to get the best deal possible for their clients.

 Knowledge of Market Conditions
Agents are able to find out pertinent information about the market, and can disclose this info to their clients. This will help oversee and guide the buying or selling process. There are a number of factors that will affect how a real estate transaction will proceed, such as average sales prices, ratios of list-to-sold prices, price per square foot of average homes in the area, and so forth. They can also help you find local real estate for sale that matches your specific criteria.

 Price Guidance
Agents are able to help sellers come up with an effective listing price for their homes that will get them the most money possible for what the home is realistically worth to buyers. Agents will find out all there is to know about homes that have recently sold in the neighborhood, and can therefore come up with a price that matches the current market. Pricing too high will scare buyers off, and pricing too low will leave money on the table.

Forget about selling or buying a home on your own – your best bet is to work with an experienced real estate agent.

Management of Real Estate Investment Performance

No matter what type of real estate business you have grown? Residential, business, commercial or industrial? Successful business model focuses on real estate performance metrics, which helps to streamline financial and operations processes. Monitoring the factors that affect the business, especially improving the ability to improve the performance of the entire portfolio.

Appropriate performance measures may include calculating the rate of return, the quality of space and the comparison to the market, the unresolved transactions, monthly feedback to the staff, the accuracy and completeness of property records, property quality assessment, client survey on the performance of staff and occupancy patterns.

Occupancy levels can be increased in conditions of supply of the right amount of space at the right time? That’s what prospective customers usually wait. Meet their expectations is the key to customer retention and consequently higher levels of performance.

In addition to other information, the assignment can be seen by real estate, changes in rental rates, land rents, operating instructions and receivables information. If a company has actual data derived from the accounts payable and receivable for rent and occupancy patterns to manage a range of cost-effective.

Building value-oriented property management companies and services hoping for portfolio optimization and services relevant tried to measure strategic orientation, structure, processes, skills and performance, including the costs and resources with specific benchmarks.

Benchmarking is a continuous learning process aimed at creating profits through the identification of the problem, be it profit or potential cost reduction, and finding an appropriate solution. The latter may be the result of a thorough analysis of the company’s own experience in comparison to others. ” Points of comparison may be the nature of information standardization, uniform performance measurement , identification of performance gaps, and more.

To find the best solution to the future development of a benchmarking system known as the “Balanced Score Card” is used to measure and monitor business performance. Designed as an early warning system that is based on the assumption that wages – that future factors that affect the value of contributing to the optimization of the assessment of future progress. Benchmarks provided by the control system increases the information necessary to further promote your business and enable the company to assess the ability of future property.

 Balanced Score Card objective may include a variety of strategies. For example, a customer orientation is to achieve customer satisfaction. Concerns about the financial outlook and the financial management of real estate assets , as well as management and risk minimization. Internal process involves standardization and organization tool for estimating efficiency. Growth forecasts related to the effectiveness of management.

In other words , companies can implement an effective tool for measuring the performance of the real estate portfolio of control. Assessment of relevant risk information and use and is currently ranked investment firm caused by him. Identification of risk areas is a prerequisite for building an effective and real estate management services .

Is the performance measurement tools are worth investing in? Actually, the question is whether the property you want to measure and control the performance of real estate? I am sure you will find tools to measure performance must be for the industry.

Real Estate and Commercial Property © 2016 Frontier Theme