Archive for the ‘Commercial Property’ Category

PostHeaderIcon Commercial Property for Sale and Where to Get Info on Them Online

images (9)Commercial Property is unmistakably the property many look for these days and if you are also looking for such property, you can get useful info on the property easily online now. If you are looking for such info, you would simply need to find a certain website providing such info and on the site, aside from finding info on the property, you can also find tips for getting the property.

The Info on the Property You Can Get Online

There is varying useful info on property you can get online today and the info include, for starter, info on some mortgage term glossaries, property news, as well real-estate related news. Also included in the info is info on foreclosure timeline, home removal services available today, and more. There is varying info on property you can conveniently get and read online these days.

Various Tips Related to the Property You Can Read Online

Aside from info, tips for getting commercial properties are also amongst the various things you can find and read on the site and the tips, of course, can vary. The tips can include tips for finding the best agents, tips for avoiding mistakes in investing on the property, and more tips. You can conveniently find and read useful Commercial Property tips online today.

PostHeaderIcon Commercial Property Investment Mistakes and How to Avoid Them

wpYou’ve probably heard about the commercial real estate bubble, here’s the ugly truth that lenders and other insiders don’t want you to know. Despite all the hype, not every commercial property is in trouble. The key for you as an investor is to avoid certain pitfalls and learn from other investor’s mistakes.

Before the economic and credit boom that has led into the recent downturn, conventional lenders capped loan amounts at 65 percent of the value of the property. This means that your $10 million commercial property would qualify for a maximum loan of $6.5 million. The current problems with commercial property investments started when hedge funds and private equity lenders began offering much higher loan to value ratios, meaning they would lend against your investment property with as much as 80 percent of the value of the real estate.

Mistakes Made by Commercial Investors

Some investors decided to refinance their $10 million commercial property for $8 million and get $1.5 million out tax-free! What seemed like a great deal at the time has come back to ruin the typical commercial property investment. The problem was that these loans needed to be refinanced after five years. Owners who pulled money out of their investments like this began down a path that has led to the troubles we are seeing now. Read the rest of this entry »

PostHeaderIcon Investing In Commercial Property

Why commercial property?

Compared to residential property investments, commercial property offers some key advantages:

Long-term secure cashflow — Commercial lets normally have long lease contracts, with periods of 10 years and more not being uncommon. In addition to this, commercial property tenants are less likely to default on payments and even if the tenant goes into liquidation, the liquidator may continue paying the rent in order to stop the lease being forfeited.

Maintenance — Commercial tenants are generally liable for the maintenance and upkeep of the property, contrasting with residential leasing, where the onus tends to be on the landlord.

Income yield — Commercial property tends to deliver a relatively high income yield throughout the rental period. In comparison residential property investors rely on the capital value of the house increasing to generate a good return. This is fine during periods of rising property prices, but less beneficial during property slumps. Read the rest of this entry »

PostHeaderIcon How to Quickly Determine the Value of Commercial Property for Sale

The value of a commercial property for sale is determined by using some simple formulas that are based upon the amount of net operating income that the property produces each year. So when you are looking at a commercial property for sale, one of the first things that you’ll want to ask the broker for is the profit and loss statement.

Some brokers who have listed a commercial property for sale may refer to this profit and loss statement as an IPOD, or income property operating data sheet. Once you get the IPOD, or profit and loss statement, you can then compare the information provided by the broker or seller to your other sources to help determine what the real numbers are. The challenge when looking at any commercial property for sale is that the broker and/or owner will often tend to exaggerate the amount of income that the commercial property for sale produces while also trying to minimize the amount of operating expenses that are reported.

How to Determine the Value of a Property for Sale

The reason for this is simple. The value of any commercial real estate is based on the amount of net operating income the property creates each year. In fact, each additional dollar of annual income increases the value of the property by roughly ten dollars, depending on where the property is located, and how old it is. Note that this extra net income can come from either getting additional revenue in rents, or from reducing expenses by managing the property more efficiently. Read the rest of this entry »

PostHeaderIcon Investing In Commercial Property

images (6)Why commercial property? When compared with home property investments, commercial property providesa few key benefits:

Long-term safe cash flow — Commercial allows ordinarily have long lease agreements, along with periods of 10 years and more not being unusual. In addition to this, commercial property tenants tend to be not as likely to default on repayments as well as if the tenant goes into liquidation, the liquidator might continue having to pay the lease in order to stop the rent being given up.

Maintenance — Commercial tenantsare usually responsible for the maintenance and maintenance of the property, contrasting along with residential renting, where the burden is commonly on the landlord.

Earnings deliver — Commercial property has a tendency toprovide a relatively high income deliver throughout the rental time period. In comparison residential property traders depend on the capital value of the house increasing to generate a good come back. This is fine during periods of increasing property prices, but less beneficial during property slumps.

Commercial property investments also have performed well in terms of growth as well as balance, when compared with equities and gilts overthe past few years.

Commercial property with regard to the personal buyer

Couple of personal investors will have sufficient money in order to invest directly in a commercial property, nevertheless you will find opportunities for in direct investment. Read the rest of this entry »