Posts Tagged ‘commercial real estate’

People like to invest in real estate as the return on the investment is usually high and if adequate precaution is taken, guaranteed to be highly profitable business. When investors take the time to enroll in real estate investing education classes they are sure to learn how to deal with problems better, learn innovative techniques to make profits and know about the various areas of real estate investing where the returns are high such as tax certificates and using notes to buy property etc.

Advantages of Real Estate Investing Education:
The institutes that offer education in real estate investing help students who enroll learn what techniques to use to improve in their chosen area of real estate investing. These schools teach the students to recognize what they desire to achieve, help them plan and set goals, teach them what procedures to use in order to achieve their goals. These schools would teach the students to ensure all the deals they make are reviewed by experienced staff, who will point out the mistakes made and guide them as to what would have been the best strategy in the given situation. These courses are usually short term lasting for 3 to 6 months.

The student investor on successful completion of the course will have the confidence to meet any challenges that may come his way. The schools will also help the students get to know reliable bankers, attorneys, lenders, builders, etc. who will help the student investor build his investing career successfully.

Specialized Schools:
There are specialized schools for different sectors of real estate such as schools for commercial real estate investing, making it possible for investors to attend and improve their skills in specific areas of real estate. The commercial real estate education institutes teach students how to make accurate financial, market and investment analysis etc. where by even experienced investors may learn the latest techniques.

Real Estate Investing Education Online:
Some real estate investing educational institutes offer e-learning courses that make it even easier to learn. With simple examples, they teach the most complex subject matters such as tax sheltering, internal rate of return etc. in such a way that investors understand and implement the techniques taught.

It is useful to attend these classes yet experience is the best teacher ever. You gain a clear idea of how to start real estate investing as well as what strategies to use to achieve end results that you desire, if you opt for an education in real estate investing.

Getting an education in real estate investing will teach the investor what mistakes not to make as well as what steps he has to take to ensure successful investing. Setting target goals and learning how to plan carefully, studying the local market etc. will help an investor succeed as real estate investing educational institutes teach them, getting an education in real estate investing is recommended.
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Author: Alexander Gordon
Article Source: EzineArticles.com
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Commercial real estate investments, as the names suggests, is investing in commercial real estate like apartments, mobile home parks, shopping centers, hotels, and other commercial income property. In this type of investment the potential and real returns increase, when the investor takes higher degrees of risk.

Commercial real estate investments require a large amount of patience, thorough planning, and determination. Entering into commercial real estate investment without a proper strategy can be suicidal. The success in this field is directly linked to the status of your personal finance. The type of commercial property you are planning to invest should be decided earlier. It is better to invest in a commercial property of which you have some basic knowledge. Next is the amount of money you plan to invest. Finally, you should decide on a proper location for your investment. National level investment opportunities in commercial real estate are rare; opportunities are mostly found in the local level. Keen observance of local real estate investment opportunities is a must for success.

Once you have zeroed in one a particular property for investment, value the property using traditional as well as modern methods. Look at the condition of the property, think on the lines like, will it be part of any future expansion? Next is to see whether it will satisfy your return requirements. Finally, see how the property will affect your borrowing powers. There is software available in the market which can be used to predict the end results using current market values. You can also discuss the matter in real estate investment clubs.

Triple-nets,” also known as “NNN” deals, are one of the favorite commercial real estate investment types with investors. This type of investment has no management responsibilities and if leased to a good tenant for long period, it can ensure steady cash flow. The advantage with this is that the tenant pays real estate taxes, maintenance and insurance. There are several other types of investment available in commercial real estate.¡The opportunities in commercial real estate investments are many so are the pitfalls, before deciding to invest, make sure that your fundamentals in this field are strong.

Real Estate Investments provides detailed information on Real Estate Investments, Real Estate Investment Trusts, Real Estate Investment Loans, Real Estate Investment Financing and more. Real Estate Investments is affiliated with Buying Investment Properties.

Author: Richard Romando
Article Source: EzineArticles.com
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Are you somewhat confused by all the terms that real estate agents throw around like nothing?

Well don’t worry, I can assure you that you are in good company.

Lets get a few of the basics out of the way and then we can move on to some of the specifics.

One of the first things you have to understand is that there are several components to the overall rental rate that you ultimately end up paying. There is the rent that you pay the Landlord for the use of their space, but also as a commercial Tenant you will also pay for the following items; the maintenance of the overall building, the property taxes, building insurance and management of the property. (I know, I know, it doesn’t seem fair to be paying for the management and maintenance of someone else’s property, but that’s the real world, so get used to it!)

There are basically two types of rents that you will be quoted when searching for commercial space.

They are Gross rents and Net rents. They are two separate ends of the spectrum of what is included in the rent. Gross rent is an all in rent. A true Gross rent includes all of the above mentioned expenses (Property taxes, insurance, maintenance, management, utilities etc. etc.) and any other expense that might be particular to a specific property.

Net rent is a type of rent that includes nothing extra. Net rent is simply the amount that you are paying the Landlord for the right to use their space for a specified period of time. In a single tenanted property the Tenant simply pays for all additional expenses themselves. In multi tenanted properties such as office buildings or multi tenant retail malls the Net rent is commonly accompanied by Additional rent (Also called CAM/Tax which stands for Common Area and Maintenance plus Property Taxes).

The Additional rent covers the expenses mentioned above. The Additional rent is usually an estimated amount based on the previous years operating expenses. The total expenses for the property are added up and then divided by the rentable square footage of the building. The expenses are then allocated to each tenant proportionally to the amount of space that they have of the building. So if a building has 10,000 Sq Ft of rentable space, and a tenant has 1,000 Sq Ft retail store, then they would pay 10% of the total expenses. The Additional rent is quoted on a per Sq Ft basis as well.

In different parts of the country the rents may be quoted differently. In Winnipeg the rents quoted are usually quoted as a price per square foot per year. In other parts of the country they may be quoted as price per square foot per month. When in doubt, ask.

About the Author:

Harry Logan is a Commercial Realtor with RE/MAX executives realty in Winnipeg, Manitoba, Canada. Harry represents Buyer’s & Seller’s and Landlord’s & Tenant’s in all aspects of Commercial Real Estate including the Leasing and Sales of Retail Shopping Centers, Apartment Blocks, Investment & Income Producing Property, Industrial & Warehouse Space, Office Leasing and the Sale of Businesses.

He can be reached at 204-667-SOLD (7653) or through his website at http://www.WinnipegCommercial.com

This is not intended to be Legal or Tax advice. Please discuss these ideas with a competent advisor.

Author: Harry Logan
Article Source: EzineArticles.com
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Most commercial real estate investors want to know how to profit the most from their investments. If you’re interested in educating yourself on techniques for getting the best ROI (Return On Investment) for your commercial real estate investments, this article will help.

Compared to residential property investment, commercial real estate investment is very complex, though it can also be far more profitable. It can take a lot of work to achieve long-term success in this field. Since many people are impatient, and unwilling to learn how to achieve a profit, few really succeed on a grand scale.

Many new commercial real estate investors start out with a lot of enthusiasm. However, after a few months, they get discouraged when large profits don’t appear. That’s because you can’t get rich without putting time and effort into your investment plan.

Remember that even if someone else is lucky enough to achieve instant success, you probably won’t be that lucky. Have a good plan, and be willing to put in the effort necessary to achieve your goal – and start with reasonable goals. Too many people want to make millions, and are disappointed when they don’t.

Remember that there is a wide variety of commercial property out there. Commercial real estate includes retail stores, medical centers, malls, and hotels as well as industrial and business property. Don’t feel like you have to invest in a particular type of property because it’s the most common investment among people you know.

Instead, choose your investment by selecting areas where you already have expertise. This will allow you to make a good investment, while expending minimal energy, effort and time, lowering risk and increasing profit. It’s a waste of time and energy to become an expert in many different areas, just so you can manage your properties. Just select commercial real estate that fits into areas where you’re already an expert, and you’ll be surprised by how much easier things are.

Make sure you put your investment criteria in writing when choosing commercial real estate. This will help you know immediately if potential investments will work for you, helping you save time. Writing down what you’re looking for also helps you find better deals, since you’ll be able to skip all the properties that don’t fit. Over time, take a look at how your written criteria have changed, to see where you’re going as a commercial real estate investor.

To minimize risk, and increase your chances of a good return, there are a few rules that may help. Avoid investments you don’t understand, and look for investments in areas you’re already familiar with, to save time and effort. Don’t put a lot of capital at risk at one time, either. Look closely at your security in any deal to see what level of risk you’re taking on.

Remember to look for commercial real estate that offers a safe risk, but is also large enough to offer a profit worth your time. Every deal will require certain time and money expenditures, including due diligence, which mean that it should be worth the effort you put into it.

Commercial real estate investing can be a great opportunity, if you pay attention and choose the right investment for a good return. After all, commercial properties offer higher rental yields than residential properties, and offer a better monthly cash flow than a residential investment in the same area. Investing in commercial real estate can be a lucrative endeavor.

Just remember not to expect too much, and to analyze your potential property carefully, to make sure that it’s in line with the sort of investment you want to make. Pay attention to the risks you’re taking and the rewards you’ll be getting in order to maximize your ROI. Selecting the right investment can be key to making sure that you do well.

Commercial real estate is an excellent choice for anyone interested in real estate investment. Offering potential profits that are much higher than those available in residential investments, the right commercial investment could give you a great ROI, if you make and follow a well thought out plan.

James Janel is the Executive Director of the National Association of Commercial Real Estate Property Scouts. He is a Professional Property Scout, as well as an experienced commercial real estate investor. To find out more about property scouting and real estate investing, or to request our free report, Prospecting for Profits: Turning Dirt into Cash, go to http://www.NACREPS.org .

Author: James Janel
Article Source: EzineArticles.com
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The recent economic recession has been swift and severe, leaving even the most seasoned investor questioning their ability to make wise decisions. Investments that used to be considered safe and conservative have proven otherwise. However, like most things in life, often times there are rare opportunities to profit if you know where to look.

One of these opportunities may be in real estate. This does not mean you go out and purchase any property that may be available regardless of how good of a deal it may appear to be on the surface. Unless you have unlimited funds available this would concentrate your investments into too few properties.

The better choice is to spread your investment dollars through a real estate development investment company. This allows you spread your investment over a larger number of properties similar to buying a mutual fund to spread your risk of individual stocks. Below are several reasons why this strategy makes good financial sense.

Slow And Steady

The stock market in general can see wild fluctuations on a daily basis. Real estate on the other hand tends to have a more gradual trend either up or down. If you look at past performance and investments conducted through a development company, you’ll see this type of investment tends to be more stable. If you compare the volatility of these investments to bonds you’ll find the standard deviation is 40% lower for real estate. This helps to give you the assurance that real estate can help to provide reliable steady gains without catastrophic losses. Conventional wisdom tells us that large losses are very difficult to recover and therefore you’re better off with a real estate development investment firm.

Take Taxes Into Consideration

Taxes should always be a consideration when you make investment decisions. Investments with an investment firm may offer significant tax advantages over your conventional stock market investment. The IRS has provisions for you to reduce your capital gains when you invest in commercial real estate. These provisions allow real estate development investment companies to go beyond typical upgrades to their properties and increase the value of your investment through depreciation. These companies can create tax-deductable expenses that enable sheltering future income from being taxed. Similar to investing through an IRA account, this tax advantage will increase your investment return.

Liquidity

The ability to gain access to your investment dollars should be a major consideration when you explore investment options. If you invested in individual properties, your holding period likely would be many years just to recoup the fixed costs associated with the purchase. In the 1990′s your typical holding period may have been as long as 10 years, but this is no longer the case.

It is no longer necessary to commit investment dollars for long periods of time when you invest through a commercial development company. They give the individual investor the power to withdraw funds if necessary. Of course you may experience substantial growth by allowing your funds to compound with the leverage and tax advantages.

Diversification Is The Key

As a general rule of thumb, so far as investments go, something is usually on the rise. This is true even within subsections of an investment class. Real estate tends to be in a class by itself and not directly correlated to the stock and bond markets. An investment in commercial real estate can act as a compliment to your diversification program to help insulate you from wild market fluctuations. Since real estate as an asset class tends to move in long general trends you won’t have to worry about the daily market jumps up and down or becoming involved in the bubbles that so often accompany stock market exuberance.

Unstable Times Such As These

As with any investment, past performance is no guarantee to future returns but a historical look at this performance can provide a window of what to expect. Over the past 60 years, commercial real estate has shown a slow and steady upward trend in value. For decades double digit yields have been the norm. The recent downturn in the economy may be just the best opportunity to take advantage of this historical trend.

Chris Harmen is an author for MPD Development, a leading premier real estate development company. MPD Development Corp has an unparalleled ability to identify and capitalize on real estate opportunities for private investors.

Author: Chris A. Harmen
Article Source: EzineArticles.com
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Have you ever wondered if there was one resource for people interested in real estate investing, like the Guide To Real Estate Investing book? There are several of them, although none have exactly that title. I’ve read many of them, and I will give you my recommendations in this article.

When you’re looking for a comprehensive guide like the Guide To Real Estate Investing book, you need to understand that there is not one single book that will be all things to all people. Different investors will be looking for different information, depending on the type of investing they’re interested in. If you’re interested in residential income property, the Guide To Real Estate Investing book you choose will be different than if your interest is in commercial real estate or apartment complexes.

In other words, there isn’t one, definitive resource known as the Guide To Real Estate Investing book.

My experience and expertise are in residential real estate, such as single family homes and duplexes. Therefore, this discussion will focus on the Guide To Real Estate Investing book for that type of investment real estate.

Two of the best books I have read on residential income property, both of which could be seriously considered as the Guide To Real Estate Investing book, are Steve Cook’s “Wholesaling For Quick Cash” and “The No-Nonsense Real Estate Investor’s Kit: How You Can Double Your Income By Investing in Real Estate on a Part-Time Basis” by Thomas Lucier.

These books offer two different approaches to real estate investing, both of which are excellent. Steve Cook’s “Wholesaling For Quick Cash” is really a full-fledged real estate investing course, giving you a complete strategic plan for breaking into the world of real estate wholesaling. It qualifies for consideration as the Guide To Real Estate Investing book because it’s a self-contained investing philosophy and plan.

Lucier’s book, “The No-Nonsense Guide” is a book that gives you a complete, basic run-down of the important considerations when considering beginning real estate investing, as well as some complex and effective advanced strategies. This one is a sure-fire candidate for the Guide To Real Estate Investing book.

Of course, there are plenty of other excellent candidates for the Guide To Real Estate Investing book- these two are simply my favorites. If you have found a resource you think warrants consideration for the Guide To Real Estate Investing book, why not email me and let me know?

For now, check out my website, where I have tons more resources for investors, and some of the best articles and stories on real estate investing you’ll find anywhere! Hope you enjoyed this little article on the Guide To Real Estate Investing book.

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Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. 2007 by Tom Dunn. Website: http://www.dealfiles.com e-mail: tom@dealfiles.com

Author: Tom Dunn
Article Source: EzineArticles.com
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