Over the last few years there has heavy activity in the condo market that many commercial real estate lenders are starting to express concern over the future stability. There are many types of commercial properties available to those who work in the commercial real estate industry. Let’s face it – you cannot intelligently buy commercial real estate properties without the help of an expert.
Negotiate the best deal – You can take the help of a competent real estate attorney who can help you negotiate and get the best deal while reviewing commercial real estate loan offer. If you plan to build commercial real estate, an agent can help you determine the best location using data of the local market and a keen knowledge of the economic trends that affect the commercial real estate market. In addition to understanding your own market, you should be reading the newspaper, trade journals, commercial real estate books, attending seminars, and speaking with others in your area who are involved with real estate so that you are constantly increasing your knowledge.
Most people believe that commercial real estate is complicated and you need a special education or know how to succeed in the business. Like anything, once you have obtained the pertinent information and are educated in the area of commercial real estate you will be prepared to buy.
It is true that commercial real estate is a solid, tried and true business that can be instrumental in creating the lifestyle of which you have always dreamed. Buying commercial real estate can get very tricky, if you are not well versed in the real estate business.
Non-recourse is the only way to go in commercial real estate, unless, of course, you have millions of dollars to lose by personally guaranteeing large loans. With commercial real estate you are able to return millions of dollars within a matter of a few years, and use other professionals to make it happen. If you feel commercial real estate is something you are not able to accomplish, I would have to say you are greatly mistaken.
To start, you should understand that a large part of commercial real estate is dealing with the officials and decision makers of the city or county because they are the ones who decide zoning and use for every piece of property within the city's or county's boundaries. Before deciding to seek a commercial real estate mortgage, scout the city or town and get a sense of the market conditions.
Triple-nets,” also known as “NNN” deals, are one of the favorite commercial real estate investment types with investors. For new investors, it is assured that spending the money for a Sarasota commercial real estate property is a guarantee. Whichever commercial property you are looking for, you should consider the different categories of commercial real estate to help you narrow down your search.
In conclusion, with proper planning, your commercial real estate transaction can go smoothly and provide you with a profitable investment.
Commercial Agents
Sunday, January 14, 2007
Tuesday, December 12, 2006
Buying Your First Home
Getting pre-approved for a mortgage loan can make the entire home buying process go smoother. Even with the wealth of home buying information available on the Internet, it's a good idea to have an agent. Many women who get invited to baby showers don’t have children of their own, leaving them with no idea what to buy for the soon-to-be mom.
If your on a tight budget, you don’t have to splurge to get a designer baby bag. Buying points can lower the interest rate of a mortgage loan, but that doesn't automatically make it a good option for every situation. Some home buyers pay points to their lender at closing in order to lower their interest rate over the life of a loan.
If the lender requires that you take out a policy in both their name and yours, then you have no decision to make. Your mortgage lender will require you to take out a title insurance policy in their name. The sellers will be more comfortable with you since a lender has said, in essence, "Yes, this person is worthy of a home loan.
They can likely refer you to a lender who can help pre-qualify you for a loan. Here are some tips to help you balance emotion with logic for a safer home buying experience. Here are some more tips to help you get the most out of your house hunting experience.
As part of the home buying process, you need to take a good, hard look at your credit situation. Home buying brings out all kinds of emotions. Buying a home can stir up a lot of different emotions, and that’s perfectly normal.
How you proceed in light of the seller’s response is up to you and your agent. When you review the inspector’s list with your agent, you’ll have to decide which items (if any) you want the sellers to repair. On the other hand, if you plan to stay in the home (and keep the mortgage) for a long time, paying points could very well save you money.
Once you’ve obtained an approximate monthly payment for various mortgage sizes, you can more accurately figure the price ranges into your budget. Next, run the home price through a mortgage calculator at current interest rates and at a 30-year fixes mortgage. Let's run the numbers for a $200,000 loan for 30 years at a fixed rate.
Your credit score is based on the information in your credit reports, which come from the three aforementioned agencies.
If your on a tight budget, you don’t have to splurge to get a designer baby bag. Buying points can lower the interest rate of a mortgage loan, but that doesn't automatically make it a good option for every situation. Some home buyers pay points to their lender at closing in order to lower their interest rate over the life of a loan.
If the lender requires that you take out a policy in both their name and yours, then you have no decision to make. Your mortgage lender will require you to take out a title insurance policy in their name. The sellers will be more comfortable with you since a lender has said, in essence, "Yes, this person is worthy of a home loan.
They can likely refer you to a lender who can help pre-qualify you for a loan. Here are some tips to help you balance emotion with logic for a safer home buying experience. Here are some more tips to help you get the most out of your house hunting experience.
As part of the home buying process, you need to take a good, hard look at your credit situation. Home buying brings out all kinds of emotions. Buying a home can stir up a lot of different emotions, and that’s perfectly normal.
How you proceed in light of the seller’s response is up to you and your agent. When you review the inspector’s list with your agent, you’ll have to decide which items (if any) you want the sellers to repair. On the other hand, if you plan to stay in the home (and keep the mortgage) for a long time, paying points could very well save you money.
Once you’ve obtained an approximate monthly payment for various mortgage sizes, you can more accurately figure the price ranges into your budget. Next, run the home price through a mortgage calculator at current interest rates and at a 30-year fixes mortgage. Let's run the numbers for a $200,000 loan for 30 years at a fixed rate.
Your credit score is based on the information in your credit reports, which come from the three aforementioned agencies.
Monday, October 09, 2006
Purchasing a commercial investment property has become very popular nowadays. Rental income can be a nice supplement to your salary and as the value of the property increases, you may at some point sell it for more. The rental returns may help you save some money to buy your own place. However, with all these potential benefits, your success is not guaranteed. To increase the chances for a successful investment, there are a few steps that you should follow when buying the place.
Where To Buy?
With commercial investment property there is no point in taking an emotional decision when deciding on where to buy the place. As you buy it for profit, the most important rule is to buy in a growth area. Experts regard suburbs as promising areas for a commercial investment property. The best strategy is to inspect as many areas as you can to see what their offer is. The proximity of public facilities, shops and restaurants is also important.
What To Buy?
While houses may be nicer than units, they are also more expensive and more difficult to maintain. If you purchase an appartment, the owners share their expenses when something goes wrong. A room with a view is a great extra, but you shouldn't spend too much just to have a beautiful view. If your commercial investment property is too expensive, you will also need a high rent to recoup your expenses and you may have difficulty in finding tenants. If the property is currently rented, it gives you a chance to gather some information on the rental history of the place. This way you can estimate your revenue more accurately.
Getting A Loan
Some lenders may have higher interest rates and require a higher down-payment for a commercial investment property loan than for a home loan. This is because they feel the risk is higher. However, if you shop around a bit more, you may get lucky and be able to get a home loan for your commercial investment property.
Renting The Place
When you estimate your rental revenue, bare in mind that there might be some short periods when you won't have any tenants (e.g. during repairs or when tenants move out and you have to find new ones). You also have to figure out how long you want to keep your commercial investment property. In time, the rental income may exceed the mortgage repayments and you will become positively-geared.
If you choose to manage the property yourself, you can save the property management fee. However, it can be a very time-consuming and stressful activity, especially if you have tenants complaining about every little thing. Contracting a property manager may get you rid of all this hassle, but it will also cost you some money.
Where To Buy?
With commercial investment property there is no point in taking an emotional decision when deciding on where to buy the place. As you buy it for profit, the most important rule is to buy in a growth area. Experts regard suburbs as promising areas for a commercial investment property. The best strategy is to inspect as many areas as you can to see what their offer is. The proximity of public facilities, shops and restaurants is also important.
What To Buy?
While houses may be nicer than units, they are also more expensive and more difficult to maintain. If you purchase an appartment, the owners share their expenses when something goes wrong. A room with a view is a great extra, but you shouldn't spend too much just to have a beautiful view. If your commercial investment property is too expensive, you will also need a high rent to recoup your expenses and you may have difficulty in finding tenants. If the property is currently rented, it gives you a chance to gather some information on the rental history of the place. This way you can estimate your revenue more accurately.
Getting A Loan
Some lenders may have higher interest rates and require a higher down-payment for a commercial investment property loan than for a home loan. This is because they feel the risk is higher. However, if you shop around a bit more, you may get lucky and be able to get a home loan for your commercial investment property.
Renting The Place
When you estimate your rental revenue, bare in mind that there might be some short periods when you won't have any tenants (e.g. during repairs or when tenants move out and you have to find new ones). You also have to figure out how long you want to keep your commercial investment property. In time, the rental income may exceed the mortgage repayments and you will become positively-geared.
If you choose to manage the property yourself, you can save the property management fee. However, it can be a very time-consuming and stressful activity, especially if you have tenants complaining about every little thing. Contracting a property manager may get you rid of all this hassle, but it will also cost you some money.
Subscribe to:
Posts (Atom)