real estate investing: Multi-Unit Builds Have Solid Investment Potential
- 01/17/15 05:06 AM
Multi-family properties offer a form of residual income after expenses that makes constructing them an attractive long-term vehicle for your investment. However, there are many obstacles to overcome before the building can begin. Luckily, the rewards at the end of the journey justify the time and energy required to do it well.Here are some things to consider during the planning stages:What size of building will you be constructing?There are lots of variables to consider when deciding on the size of the building and how many residential units it will contain. The lot size will dictate some of the physical dimensions, while … (0 comments)
real estate investing: The Bad Tenant: How to Handle This Landlords' Scourge
- 01/15/15 10:59 AM
At some point, every residential landlord will have to deal with a bad tenant. A bad tenant has the potential to damage your budget, test your patience, and cause you to review your own best practices. Most bad tenants can be weeded out with a thorough background check during the application process before they become tenants, but sometimes one does slip past the barriers you have set up. The question is: Now what can you do? Here are three important steps that you should follow in dealing with this situation: Once the problem has been identified, meet with the tenant. This enables … (3 comments)
The stock market has become increasingly volatile, and investors have been drawn to multi-tenant properties to produce a stable source of income. Apartment complexes come in a wide variety of sizes and styles, and appeal to investors at all levels of experience. Here are five tips to help investors who are interested in adding real estate to their portfolios find and buy an apartment complex.Select the right location.If you are just starting out in the real estate investment market, consider selecting an apartment building in a neighborhood that already has some amenities in place to attract potential tenants. A … (0 comments)
real estate investing: Property Investing Requires a Cool Head, Cash and Help
- 09/15/14 08:08 AM
While TV shows on buying investment properties make it look easy, becoming a real estate investor can be a trap for the unwary. Here are several things novice investors should be aware of. Pick a Niche: When you're new to real estate investing, you'd be wise to start small and pick a niche where you can develop your investment property owner skills. Get your feet wet on one or more smaller properties before tackling a bigger and more complicated investment. Consider everything from a single family home to building a rental apartment in the basement of your own house (assuming that … (1 comments)
real estate investing: What Factors Make a Great Location Great?
- 07/15/14 10:36 AM
What constitutes a "good location," and why are some areas particularly attractive to buyers and/or investors? Inherent in the concept of a "good location" is the idea of a place where people want to live. This is probably close to shopping, top schools, recreational facilities, cultural amenities, restaurants, and transportation. In addition, it's likely safe and will have well-run public services. But while good locations may be more convenient or more attractive than others, this isn't always the case. They're not always newer (or older) either. Following are some factors that contribute to the value of homes in a particular area. … (1 comments)
However, there are several costs that need to be identified and planned for before your development is ready to start returning a profit. Here are some of the common costs associated with launching your commercial real estate development:
Purchasing the land
Buying or leasing the land for your project is step one in your development process. The actual purchase price is not the only cost to consider during this process, as there will be costs associated with locating the property … (0 comments)
real estate investing: Watch Your Thumbs and Other Rules of Remodeling
- 06/15/14 10:15 AM
Today’s renewed interest in home remodeling has a dark side. Prevent problems with these "rules of thumb." Rule 1: Safety first DIY projects can lead to mistakes and injuries. Remember the oldies but goodies: Wear safety goggles; don’t cut electrical lines before shutting off breakers; hammer carefully... Rule 2: Measure twice and have a Plan B Take careful measurements and cut once. When you’re re-modeling, you need to be prepared to make changes on the fly. So develop a Plan B. For example, adding new appliances or fixtures may necessitate reconfiguring wiring or plumbing - not something you want to find out at the last … (1 comments)
real estate investing: Homeowners Ramp Up Spending on Remodeling
- 05/03/14 08:10 AM
Remodeling is back in fashion - as many discovered during this spring's Kitchen and Bath Industry Show. Attendance at the Las Vegas show increased to more than 30,000 visitors, a jump of 145 percent over 2012 figures.According to recent U.S. Census Bureau data, American consumers increased spending on their homes by 3.1 percent in 2013, compared to 2012, and spending on remodeling now totals $130 billion. BuildFax, which tracks industry activity, notes that remodeling permits have risen by 5.1 percent over 2012.Homeowners are growing increasingly confident about the future as the equity in their homes increases. Plus, we're finding it easier … (0 comments)
real estate investing: A Neighborhood Can Make or Break Your Income Property
- 03/13/14 07:41 AM
If you're considering investing in a residential income property, as part of your due diligence, you'll be looking closely at the neighborhood. Here are some tips to help you make the right decision about the right neighborhood: Scout around. Wander up and down the streets looking for clues, such as the presence - or absence - of "for-rent" signs. A proliferation may be a sign that you should take your investment money elsewhere. A 3 to 5 percent vacancy rate is usual these days; above or below that may be a warning or an opportunity. A neighborhood with high vacancy … (0 comments)
real estate investing: Make Yours a "go to" Business by Picking the Perfect Location
- 11/07/13 09:02 PM
Property investors need to realize the impact that access to amenities and complementary businesses has on their business.Complementary businesses can be assets when you're looking at the long-term potential of a business location. As well, access to local amenities can make a tremendous difference in attracting clientele. In fact, the ultimate selection of the right location for your business can determine its long-term fate.You will want to locate your business on a property that is close to complementary businesses, so that your customers can make the next stop at your business instead of having to drive across town. This will provide … (0 comments)
real estate investing: Cap Rates Help You Invest in the Right Property
- 10/08/13 11:40 AM
Return on investment is top of mind for every investor, and savvy investors are always seeking the greatest return in the shortest amount of time. Those looking to invest in commercial properties are no different. So, when faced with several alternative investments, one of the best ways of comparing potential properties is by calculating the capitalization (cap) rate of each property. The cap rate will help you narrow the field when seeking the best of several commercial investment options. The cap rate is a number used to compare commercial property investment opportunities to ascertain which represents the best deal, but the number is … (1 comments)
real estate investing: The Real Truth Behind "Reality" Real Estate Shows
- 08/16/13 10:26 AM
As reality programming continues to dominate the television world, real estate shows have proven to be a real hit among viewers. Shows such as Million Dollar Listing, Love It or List It, House Hunters and Property Virgins all depict the experiences of real people looking for real homes.As it turns out, however, those experiences aren't always so real. The process of buying a home - in real life - isn't quite as simple, and the houses aren't as well designed, so television must find a way to exaggerate, sugarcoat and package the story so viewers will want to watch.Take the example … (1 comments)
real estate investing: In The Real Estate Investing Game Start Small/Win Big
- 07/16/13 01:29 PM
Remember when you put a hotel on Boardwalk, even though you couldn't really afford it? And remember losing the game? To be a Monopoly winner, you had to start small: First the property, then the house, then the hotel.Investing in multi-family properties requires a similar strategy: Start by renting out a single family home or duplex and work your way up to larger buildings. This strategy requires a bit of planning and the advice of a good commercial real estate agent, but combined with the five steps below you can build a solid real estate portfolio, and win at the game … (0 comments)
real estate investing: What should I know about becoming a landlord?
- 04/16/13 11:17 AM
Many people dream of becoming a landlord to help pay the mortgage and provide extra income. But there's more to it than simply renting out your basement. These days, savvy tenants are looking for location, location, location ... plus all the bells and whistles, such as in-suite laundry, high-end finishes and upgraded kitchens and baths.
If you are looking to become a real estate investor and purchase a property to rent, be sure to consider all your costs, including closing costs, fees, property taxes, utilities, and more. Most important, you need an investor savvy real estate agent familiar with the rental … (1 comments)
real estate investing: How to Invest in Vacant Land and Win Big
- 01/19/13 11:38 AM
Many commercial property investors dream of buying a plot of vacant land and turning it into a thriving commercial enterprise.It's hard to beat the satisfaction and sense of achievement you feel when you pass a building or shopping plaza and can say to yourself and others, "I built that!"Land development is also a way to take a small amount of money and turn it into a large return on your investment. However, not everything in land development is sunshine and roses.As in any investment, there are pros and cons.The best way to develop a vacant property is by changing its allowed … (3 comments)
real estate investing: Save Dollars and Time NOT Managing Your Properties
- 01/17/13 08:46 AM
Once you have even a small portfolio of properties, you're going to discover that managing your properties' day-to-day needs has become a full-time job.If you think you can save money by managing your properties yourself, you're not alone.Many investors have spent hours searching for a handyman to fix a leaky sink or collecting rent, but the truth is, every hour spent managing is time much better spent finding new deals.The solution: Hire a professional property management team. It will save you money in the long run.When hiring a property management company, reputation is everything. You'll want to check all their references … (0 comments)
real estate investing: Due Diligence Is Critical in Commercial Real Estate Transactions
- 11/19/12 07:25 PM
Financial due diligence is the process of verifying all statements of fact (or "finding where the bodies are buried") for a property you are considering purchasing. Proper due diligence for commercial real estate is not a simple matter and normally takes a significant amount of time to complete. One of the most crucial aspects of due diligence is determining the financial health of the property. This indicates whether the building is currently showing a profit, and if not, what actions you can take to make it profitable. Income and expense statements Statements of income and expenses are by far the most … (1 comments)
real estate investing: Is This Property a Good Buy? Here's How You Can Decide
- 11/17/12 12:15 AM
Thinking of investing in apartment buildings? The following hypothetical scenario illustrates some of the key concepts and considerations: The owner of a 20-unit apartment building is selling for $550,000. Overall space is 22,160 sq/ft. It's well maintained, in a good location, 100% occupied and professionally managed. Service contracts on the property are fair. Yearly operating expenses total $57,170. Units rent for $525/month. Tenants pay their own utilities except water and trash removal. Income: Gross income $525 x 20 units x 12 months = $126,000/year Vacancy rate (estimated) $126,000 x 10 percent = $12,600/year Effective gross income $126,000 minus $12,600 = $113,400/year … (2 comments)
real estate investing: Investors With Vision Need to Be Practical as Well
- 10/12/12 01:24 PM
Great investors have a vision that allows them to see value in something where others see none. Investor visionaries, can picture a former factory as a condo complex or a former school as a profitable office space. For investors who possess vision, there are profits to be made. Here are three practical considerations to put in place before your vision can become a reality. Zoning. If current municipal zoning regulations don't allow for the changes you require, you may be facing an uphill battle to get the zoning changed. For example, industrial zoning usually does not allow for residential units. … (1 comments)
real estate investing: Pros and Cons of Investing in Seasonal Properties
- 06/19/12 11:19 AM
For many investors - even first-timers - purchasing seasonal properties can be lucrative. But while it may seem like a good thing to earn the bulk of your income over a short period of time, there are factors you need to take into account to ensure the investment is viable. Property Types: There are several types of seasonal properties, each with its own investment potential. The common theme is the seasonal nature, which implies that the bulk of your income is earned over a few months. Unfortunately you also will incur year-round expenses such as insurance, property taxes and maintenance. If … (2 comments)
Multi-family properties offer a form of residual income after expenses that makes constructing them an attractive long-term vehicle for your investment. However, there are many obstacles to overcome before the building can begin. Luckily, the rewards at the end of the journey justify the time and energy required to do it well.Here are some things to consider during the planning stages:What size of building will you be constructing?There are lots of variables to consider when deciding on the size of the building and how many residential units it will contain. The lot size will dictate some of the physical dimensions, while … (0 comments)
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