Commercial Real Estate – Tips For Investment

May 21, 2009

If you are considering jumping into the world of commercial real estate investment, be prepared to make some tough decisions and spend a long time conducting research. Commercial real estate can be a tough business to get started in, but you can reap big rewards for those who are knowledgeable (or sometimes just the luck). If you’re ready to venture into this new world of investing, here are some things to consider.

1. Commercial real estate will do a quick dollar.

Most properties require a long-term investment before you begin to see the benefits to all. Many people are fooled by residential real estate, where sellers of television programs for the renewal of a home in a few months and sell for a massive profit. Commercial real estate is working on a completely different way. If you’ve seen the success in the past residential domain, proceed with caution before plunging into commercial property.

2. You are in charge of maintenance and building maintenance.

Even if you are renting office space, you are the owner. If it breaks, you have to fix it. That means you’ll pay a bit to ensure the building remains in good condition. There will be a small number of large bills if you do happen to keep the property for many years.

3. Choose the type of commercial property.

Choose a path and stick with it, in the case of apartments, condominiums, offices, or parking. Each type of property should be managed in a different way. Investing in two very different properties, such as retail and apartment buildings, will only cause more stress for you and more opportunities for failure. Choose a type of work and to become an expert in the field before the new places.

4. You need to attract reliable tenants to maintain the benefit of streaming in.

You have to pay tenants afternoon break contracts, and do many other things that could change. It’s all part of the business of commercial real estate. Be prepared to be in the hands and engaged with clients and construction. Your investment will collapse if you do not care.

5. Get help.

Find the commercial success of the owners of real estate and follow suit. Listen to their advice and most importantly, use it. They have the knowledge to help you get your new investment up and running. And why the same mistakes that others have done before over and over again? Can warn about common pitfalls. Remember, if you were an expert on the subject, you would not be seeking advice on the internet.

6. Enlist the services of a financial planner or accountant.

Do not bury yourself in debt or a bad investment. Be sure this is something you can afford and are willing to assume some financial risk, to achieve. There is no guarantee that will make a good investment, but being aware of your finances can help reduce the potential (and clash) of failure.

Safe Way of Property Lettings

March 30, 2009

When it comes to properties, legal documents and agreements shouldn’t be confusing. Yet frequently agreeing on tenancy terms can be a real headache. Let’s try to understand the basic concept of assured shorthold tenancy and discuss the situations when it can be used.

Assured shorthold tenancy or AST is the main form of tenancy for England and Wales. Its main purpose, when it was introduced back in 1997, was to give an equal amount of rights to both the tenant and the landlord. The idea behind the AST is to provide the tenant with at least 6 months of undisturbed living and the landlord with an easy way to recover his property. The Housing Act of 1996 also made it easier for a tenant to chase the landlord for certain repairs necessary to the property.

What is Covered?

Majority of tenancies fall under the AST terms easily. An AST doesn’t cover business lettings, tenancies where the annual rent exceeds £25,000, lets for a low rent or mutual benefit, holiday lettings and agricultural lease.

Although the law doesn’t require that the AST is bound by a written agreement, it is very important to use a recent and professional contract. Usually three copies of tenancy agreement are made; the third copy is held by the lettings agent for further reference.

A professionally drafted AST agreement must include correct names and contact details of both parties, it should clearly indicate the starting and ending date of the contract, the rental price, the amount of deposit and the way it is handled, the main responsibilities, party responsible for repairs and servicing, rules regarding the behaviour, pets, smoking and other important clauses.

After The Assured Shorthold Tenancy

When the fixed term of an assured shorthold tenancy comes to an end, it either terminates or transforms into a periodic tenancy. This is always to be agreed between the landlord and the tenant. If both parties are happy with the arrangements, they usually sign a formal agreement. Normally, this new agreement that follows your expired assured shorthold tenancy is drafted by the landlord and signed by both parties.

Often people decide to settle for a mutual oral agreement. This is not advisable, especially in cases when the amount of rent would be different or there would be some additional requirements. For example, the landlord needs to repair something or the tenant is required to pay any damages. Neither a lawyer nor a property agent is required to assist the signing of the new agreement but you have to make sure the agreement is made in two copies.

Periodic tenancy usually runs on monthly cycles, rolling from month to month without the necessity to renew the agreement constantly. Probably, the next time you contact your landlord will be to give him the notice before leaving. The notice period is usually a month but can be agreed a quarter or any other period of time suitable.

In some cases an assured shorthold tenancy can be prolonged by signing another AST agreement for another 6 or 12 months. Please be aware that the new AST that follows the initial tenancy agreement doesn’t guarantee your stay for the agreed period, as the initial agreement did. Your landlord can give you a notice before the expiry date. That’s why there is usually no point in following one AST with another. A periodic agreement is probably a better way to continue the tenancy.

An AST is an easy and fair way to direct the relationship between the landlord and the tenant. Make sure you use only the most recent legal documents to avoid unwanted hassle.

Realtors in This New Market

February 23, 2009

As most people have now figured out, the housing market has changed dramatically and so had lending procedures. Because of all the changes in the market with Short Sale, Bank Owned homes and home being sold in as is condition this is no time to choose just any realtor. These days, realtors need to be seasoned or experienced and very well trained to keep up with the changing rules.

Whether you are buying or selling, it is a critical time to choose the right realtor. In the past, people have hired just about anyone that simply had a license like a friend or relative regardless of their experience. Not that it was ever a good idea to choose just any realtor but in this changing market you better pick carefully.

If you are wanting to sell your home or if you are in a situation where you need to sell your home with a short sale your realtor better understand the process and be an experienced short sale realtor. True, that most realtors have never been faced with short sales in past years but if a realtor is experienced they would at least have dealt with several in the past year and a half. Always ask if they have dealt with short sales and know the procedure as there is much to this process. Initial paperwork and disclosures are important and timing is everything as well as pricing the home to get an offer, a strong enough offer prior to the bank foreclosing on your home. Why is this so important? If you are behind on your payments already maybe several months before your lender will probably not stop the foreclosure process until you actually have an offer into the bank awaiting a decision from them.

You cannot afford to waste time with a realtor learning this process while the clock ticks on the risk of your home becoming foreclosed. Be sure and contact a seasoned agent as soon as you are in danger of missing your very first payment.   If you have lost your job or income has been slashed and you know that there is no way of making ends meet start making these decisions on if you can sell your home out right or if you need to apply for a short sale. Unfortunately, many people wait too long and then end up having their home foreclosed. Why is a short sale better? It will be less of a hit on your credit than a traditional foreclosure. It will show as a paid foreclosure and may only damage your credit for a few years rather than seven to ten years on a traditional foreclosure.

During the short sale process you can stay in your home for several months and while waiting for either an offer or while the offer you have is being negotiated. During this time it would be wise to save some money for a deposit on a rental or other moving expenses when you will have to vacate the property.

This is a difficult time for many homeowners but hopefully you can at least hire the right realtor to gently give you the best advice and walk you through the process and be sure that everything is done in a timely manner. Work with someone that cares about you and your situation and not just the paycheck. This is not easy for so many people and unfortunately many realtors can be harsh and looking only for the paycheck. There are many good realtors out there, be sure you hire the right one.

Nancy Niblett is a highly successful Real Estate Agent specializing in the Chandler area. She credits her success to hard work, integrity and honesty. Clients continue to refer her over and over again. Nancy is one of the most successful award-winning agents and currently with West USA Revelation. She was awarded the Silver Top Producing individual agent in 2004, Double Gold individual in 2005 and the annual Spirit and Integrity award in 2005 and 2006. Her most cherished moment was bestowed on her in 2006, the Regional “Culture” award, which is the highest attainable honor given.

In 2006 and 2007 she received the Silver Top Producing Individual Award and the Association of Realtors Presidential Multi-Million Dollar Producer Club Award for the past 7 years straight.

For several years she has been part of the Agent Leadership Council. She has served as the Chairperson for the KW Cares Charity Organization and has raised thousands of dollars for Hurricane Katrina victims as well as for Make-a-Wish Foundation and other charities.

Best Mortgage Loan Rates

February 4, 2009

Buying a home usually means taking a loan or mortgage. As a person who is in control of your finances that you need to compare all the options and costs involved in obtaining a mortgage. You could save thousands of dollars just by comparison shopping and smart business negotiations.

The first step is to itemize all costs. The following is information from several lenders, savings institutions, banks, mortgage companies and credit unions. If necessary, hire a mortgage agent to complete all details for you. Already working in the field you have in your hand a great deal of information about loans, terms and fees. It is important that you have a contractual agreement with the broker.

To find the best rate should pick up a compilation of current mortgage interest rates. Make sure to list the lowest and highest rates. Control of fixed rates and adjustable rates and the market trend forecast. Find out about the annual percentage rate, points, or fees payable to a lender or a broker that is currently applied, the loan origination or subscription fees, broker fees, transaction settlement and closing costs. Once the facts and figures, to negotiate with the lender for the best rate. “

On any given day, several borrowers with similar profiles for different types of loan officer. Therefore, ask the officer to write down all components of your loan. Once this request for exemptions and reductions. Make sure you have competitive bids from more than one institution. Once they reach an agreement in writing to request blocking the corridor. Undertakes to pay the fee required for closing the loan.

The gold key to get the best rate Åre shop, compare and negotiate hard and intelligently.

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February 4, 2009

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