CategoryReal Estate

Understand Exactly Why You’ll Want To Lease Commercial Property And Also What The Advantages Are

Those who are prepared to start off their enterprise could have to acquire property they are able to make use of for an office building, for storage space, or for a store. In such cases, they will wish to take into consideration whether they need to pay for property or even explore MN commercial real estate for lease. For lots of brand-new small business owners, it will likely be a much better strategy to go ahead and check into renting the property they will have to have because this will offer several advantages.

One of the biggest benefits of investigating commercial real estate for rent is the reduced start up expense. There are certainly deposits necessary for the property that can fluctuate depending on the type of property as well as the site, yet this will likely be less costly compared to the large downpayment required to acquire a property. It’s additionally far lower in comparison to the cost to be able to construct a new property, thus the new business proprietor doesn’t have to be concerned about having the full cost or even a considerable amount of cash for the property at the exact same time they may be seeking to release the new company.

One more benefit to looking at the JGM Properties commercial real estate that are obtainable for rent will be that the brand-new business proprietor can invariably change their particular mind in a year or perhaps two if their particular organization is successful. If the business expands rapidly, it can be hard in order to sell the previous property, particularly when it was developed particularly for the enterprise. With a rental property, it’s very easy for the brand-new company owner to simply end their particular lease and begin a new one at the brand new property. They are going to be in the position to choose from a large number of available properties, thus they’ll be in the position to discover a brand-new property which will match the needs of their growing enterprise.

In case you will want to search for properties that might be good for your brand-new small business, take a little time to check out the Minnesota commercial real estate that is available for rent today. This might be the ideal solution for your business as well as might provide the opportunity to discover the perfect property right now as well as in the future as your organization expands. Visit the website right now in order to learn more with regards to the properties accessible right now.

Financial Considerations Of Home Ownership

While we often, refer to, home ownership, as a core component, of the American Dream, it’s important, for us, to take a realistic look, at the obligations, and necessities, involved, if this is, to truly be a dream, instead of a potential nightmare! Before embarking on this house – hunting, process, carefully, introspectively, objectively, examine and consider, your personal reasons, persona, what makes you happy/ satisfied, and whether, it’s a good course, for you. After, you’ve determined, what’s best, for you, and know, what you want, it’s essential to clearly consider, and examine, what you might be able to afford. This means, proceeding, in a responsible, well – planned, and considered manner, focused, on preparing for the many contingencies, of home ownership. With that in mind, this article will attempt to briefly consider, review, and discuss, a few steps, which should, both reduce unnecessary stress and hassle, and maximize the potential enjoyment!

1. Reasons for buying that house: Why do you want to buy, any specific house? Does it meet your present needs, and into the future? Or, are you looking, at a shorter – term, and want to live, there, for a shorter – span, and, then, relocate, when needed and necessary? Are you the type of person, who enjoys moving, or would you rather, remain in your present quarters? What are your needs, goals, and priorities, in terms of location, neighborhood, schools, costs, transportation, conveniences, etc? Why, this house?

2. Down – payment: Do you have the necessary funds, to have the down – payment, while avoiding, placing too much stress, on yourself, because of using these funds? Smart homeowners prepare, and make their journey, far less stressful!

3. Needed reserves: The best way, to proceed, is to put together, several reserve funds, in order to ease your way, forward! Once, you’ve purchased your house, most people face monthly fixed expenses, which includes mortgage payments (including principal, taxes, and escrow items, such as insurance, etc), utilities (electric, heat, telephone, television, internet, etc). Realize, owning a house, requires preparation, for affording the costs of regular repairs, including appliances, heating, water, etc. Create a reserve fund, for this specific area. Also, realize, houses require attention, and certain items, have useful lives, and will need replacing, such as roofs (rated from 20 – 40 years), appliances (including washer, dryer, refrigerator, oven/ stove, dishwasher, etc), painting or power – washing, etc. At some point, many realize, their house needs certain upgrades, renovations, etc. The better prepared, the easier this process!


Multi – Family Rental Property: Buying, Selling, Renting

Many of us, consider, whether purchasing a multi – family, rental property, is a good fit, in terms of being, a component of one’s investment strategy, and process. Like anything else, a wise consumer researches, and becomes familiar with the possible, pluses, and minuses, and whether it, is for them. It is important to understand, and evaluate, the best, buying – opportunities, whether it should be sold, or if renting, is the best strategy. Should one purchase a new property, or an existing one? With that in mind, this article will attempt to briefly consider, examine, and review, when, and, if, someone should buy, and whether it is the best time to sell, and/ or, if renting, might be the best strategy and approach.

1. Before you buy: There are many considerations, before you should purchase, a multi – family, rental property. Are you going to live in one of the units, or rent the entire property? If you live there, your mortgage interest rate, will be lower, because it will be considered, an owner – occupied property, but, you also, will receive less revenue from rentals. Those doing so, often, look at this, as a way, to use rental revenues, to significantly, reduce one’s own, housing costs. If you are looking at this, as an investment, then, your mortgage interest rate, will be slightly higher, your down – payment, a little more, and you might have to justify the viability of the purchase, based on rentals. A formula, I suggest, is receiving a 6% return, and a positive cash flow. This means, if the property costs $500,000, you must have a rent – roll of a net of $30,000 per year, after deducting real estate taxes, and owner/ landlord paid utilities, and basic maintenance. Therefore, if taxes were $10,000 and anticipated utilities and basic maintenance were an additional $5,000, then you must collect, at least $45,000 per year, in rents. Do this calculation, based on 10 months rents, in order to prepare for potential vacancies, etc. In addition, calculate the rents, and compare them, to your expenses, and proceed, only if this is a positive cash flow, and the 6% return, is achieved.

2. Selling: Is owning the best idea, for you? Are you prepared for the unanticipated expenses, and will you commit to putting aside, a reserve fund, for maintenance, repairs, and renovations? Is the real estate market, the right one, now, to get the best results, from a sale? Consider competition, the local market, mortgage interest rates, and how much, you feel, you need, from any transaction.

3. Renting: Ensure you do, a quality, legal, enforceable, screening process, and seek the finest tenants. There is no guarantee, but pricing correctly, to ensure, you are not the most expensive, often, creates the best opportunities. You must also, either, have the abilities, to do, lots of the repairs, etc, or have qualified service technicians, to prepare for the possibilities, and obstacles.

Like any investment, one should proceed, in the most prepared way, in order to make the best decisions, possible. It may be for you, or not, so, proceed, with your eyes, wide – open!


Reasons Some Rent, Instead Of Own

Although it is generally, considered, to be the American Dream, owning a home, of their own, is not, for everyone! Although studies indicate, in the longer – run, it is more cost – effective, to be an owner, than renter, there are certain individuals, who, it is often, not for. With that in mind, this article will attempt to briefly, consider, identify, and discuss, some of the items, which might make someone, a less, than stellar, candidate, for home ownership.

1. Down – payment: There might be several reasons, certain individuals, lack the necessary down – payment, needed, to put down, in order to purchase a house. Some lack the necessary discipline, while others might not have the financial necessities, or have experienced major obstacles (economic/ financial, etc), which have made it challenging, to put together the funds. Others are afraid, to proceed, because they lack the self – confidence, etc, which makes them, ready, willing, and able, to handle the stress, etc.

2. Reserves: In addition to having the needed, up – front, funds, there are many other financial obligations. and preparations, needed and necessary! Wise individuals put together, at least 6 to 9 months, equivalence, in case of any interruption in earnings, etc. In addition, there should be separate reserves, for initial changes, or modifications, most new homeowners, perform. Then, money should be put aside, for regular repairs, upgrades, modifications, renovations, and unforeseen issues.

3. How much do you want it?: Are you prepared for home ownership? When you rent, your landlord is responsible for necessary repairs and maintenance, but when you own, you not only have to pay for it, but be responsible for either, performing the task (if you are capable) yourself, or bringing in a professional, to take care of it. This includes: electricians; plumbers; painters; concrete workers/ masons, etc.

4. Confidence: Do you have the necessary degree of self – confidence, to trust yourself, and your abilities, to handle the stresses and tensions, involved, in owning, a home, of your own? If the stresses and tensions, are things, you don’t want to get involved in, and/ or, handle, then, owning a house, may not be, for you.

While I personally, enjoy owning my own home, it is not for everyone. One should seek, to better, know, what makes him happiest, most satisfied, and serves his personal self – interest, etc.


5 Essential Recreational and Sports Amenities Every Housing Society Must Have

Sports and recreation are key elements of a balanced and happy lifestyle. However, the lives of people in metropolitan cities are increasingly being characterized by a strenuous work culture, which combined with the rise of technology-driven electronic gadgets is becoming a barrier to healthy living. While most people want to relax and take care of their health after coming back from the office, they are either too tired or don’t have access to recreational places in their immediate vicinity.

Let us now look at some of the important sports and recreational amenities that should be a part of every housing society:

1. Swimming Pool

Swimming is a rigorous, full-body exercise that can greatly improve our fitness levels. It boosts the weight loss process, aids in muscle toning, improves lung capacity, and helps maintain heart health. After a long and tiring day at work, a pool session can provide a really rejuvenating experience. For this reason, modern residential societies designed by the best housing architects generally include a swimming pool.

2. Indoor Games

At times, people want to stay away from an intense physical workout and just relax. Indoor games such as snooker and billiards, carom boards, bowling, table tennis, indoor skating, etc. help people beat stress and feel refreshed. Moreover, most indoor sports can be played by people of all ages, so including them is beneficial for the health of all residents.

3. Health Clubs & Gymnasium

Nowadays, a gymnasium is a must-have amenity in every housing society. Working out helps us keep our blood pressure in control and get a perfectly toned body. Keeping this in mind, the top residential architects are building housing societies that include high-tech gyms with state-of-the-art equipment and the best trainers.

4. Outdoor Sports

Playing outdoor sports is the most preferred way of staying fit and healthy. Amenities for playing popular sports such as cricket, badminton, volleyball, can be incorporated in most modern housing societies. Besides, a segregated children’s playing area with slides and swings could also be included.

5. Multipurpose Hall

Activities like yoga, meditation, and aerobics, have gained immense popularity and are increasingly becoming a major part of the regular lives of people. In such a scenario, including a multipurpose hall that allows residents to practice these activities can help them relax and promote their well-being.


The 4 Benefits of Fix and Flip Loans

Buying a real estate property, repairing and selling it quickly tends to be a profitable recipe. However, a key component of this recipe to success is access to capital. If one does not have sufficient funds but is interested in rehabbing a property, a hard money lender who offers a fix and flip loans could be a great financing option. These loans are structured in such a way that allow a purchaser to quickly acquire the property and have access to a reserve of funds for construction and renovation costs.

Buying a real estate property, repairing and selling it quickly tends to be a profitable recipe.

Advantages of Fix and Flip Loans

There are many advantages to fix and flip loans and the demand for this source of funding is steadily increasing in the real estate investment industry.

Four key benefits include:

  • Quick Approval: Getting approved for a fix and flip loan is a far quicker process when compared against the traditional banking system. If the borrower has submitted the requested documents, a private lender can approve the loan within a couple of days whereas a traditional financial institution can take at least a month. In addition to the significant longer wait time for bank loan approvals, the borrower will be required to submit numerous documents and clear multiple conditions as part of the process.
  • Any Property: Properties in varying states of the condition can qualify for a fix and flip loans. Whether the property is bank owned, a short sale, a foreclosure, or in a dilapidated state, a borrower is still likely to find a hard money lender willing to fund the deal. Once again, a borrower may not have the option of funding these types of real estate opportunities with a bank. Banks are very risk averse and have strict rules in place as to what type of property they can accept as part of their loan portfolio.
  • Zero Prepayment Penalties: If you take out a loan from an established bank, you may be hit with penalties should you have the opportunity to pay the loan off before the maturation date. This is called a prepayment penalty. Most fix and flip lenders will not subject you to this fee.
  • Repairs Covered: When you buy a property with the intention to flip it, a significant portion of your budget will be spent on construction and renovation costs. A fix and flip lender will usually set up a loan reserve which will cover repair costs of the property in addition to interest. This can alleviate a lot of stress and pressure for builders and developers since they don’t have to worry about spending money out of pocket for repairs or payments.

Teaming up with a solid lender who understands your property, the local real estate market, and is willing to help you throughout the acquisition, construction and selling process is vital. When choosing a hard money lender, keep the following in mind:

  • The lender must have sufficient experience in the industry. A private lender that has deep roots in the real estate investment market will not only be able to offer you a better deal but will also have numerous contacts that will prove helpful along the way – from recommended settlement companies, to permit expeditors and other preferred vendors. This can prove to be a great asset as speed, quality and efficiency is the name of the game in the fix and flip world. The less time you need to spend vetting companies and contractors is more money in your pocket.
  • Check the history of the lenders to ensure that they are genuine and have a good track record. It may be worth taking a closer look at lenders that tempt borrowers with “teaser rates” or a “no documents” underwriting process. As with most things in life, if it seems too good to be true – it usually is.
  • Finally, you should check out what previous or current customers have to say. Is the lender responsive and knowledgeable? How many loans do they have on the street? Do they have good ratings on Google or the BBB? Just as the lender performs due diligence on their borrowers, the borrowers should, in turn, conduct due diligence on the hard money lender. It’s a partnership and both parties need to be solid and committed to the process in order to ensure success.


4 Daily Habits to Adopt for Success in Real Estate & Life

Good habits are the foundation of wealth. If you watch successful people you will see their day is filled with consistent habits that save time, improve focus and ultimately help accomplish more daily. Successful people get up early, learn daily, make lists & set goals and track their progress.

• Get Up Early.

Make the first two hours of your day the most important. It will not only set the tone for the day but will give you a game plan for everything else that follows. These two hours can be used for activities you enjoy such as exercise, meditation or completion of a project or activity from the previous day. The early morning is free from distraction allowing you to do more of whatever you enjoy.

• 20 Minutes Of Learning Daily.

It is important in any business to know what is going on at all times. Trying to master every aspect of the business may seem intimidating but is less difficult if you spend some time on it daily. Regardless of how busy you may be you can squeeze twenty minutes of learning into your daily routine. You can find this time on an audiobook driving to or from an appointment or on the treadmill as you get some exercise in.

• Make Lists & Set Goals.

Success is often easier if you plan exactly what needs to get done. Before you go to bed you should plan for the next day. Tackle the toughest task first and go from there. Planning your goals not only makes you efficient but gives you a sense of direction and purpose. The most successful people in the world have one thing in common, they all say their goals out loud three times daily. This helps to reinforce their direction and keeps them on track in accomplishing their goals. Try it and see how much closer you get to reaching your goals!

• Track Progress.

If you don’t know what is working, is impossible to gauge the results? At the end of every day you should take some time to evaluate what you did to build on your progress. If you failed to do anything, you need to ask yourself why and then develop a new plan to stay on track.

You ultimately control where you go in Life. Changing habits is never easy but is essential for growth. Start by incorporating these four habits into your daily life and see the difference it makes towards your success.


Echo Park Real Estate: A Look at the Numbers

From LA’s earliest days, people have wanted to live in the storied neighborhoods of NELA. In a densely populated area where residents are always in the process of coming and going, there are always homes for sale in Echo Park at any given time. Since the early 1920’s, the real estate here has been in demand and that is how it is today. Why? Let’s take a closer look and see what the numbers say.

This is an eclectic city located in Central Los Angeles about ten minutes from Downtown. At the center of the city is the renowned Echo Park Lake in Elysian Park, which is the site of special events like the Lotus Festival. It is northwest of Chinatown and Downtown, northeast of Westlake and south east of Silver Lake.

It is split in to four districts.

• Angelino Heights – This area is known for the beautiful Victorian homes that are preserved by the city’s ordinances.

• Elysian Heights – This area is historically known for being the home of famous counter-culture artists, filmmakers, architects and political radicals.

• Historic Filipino town – This section is located in the southwest section.

• Victor Heights – A lovely area scattered with Bungalows and Stucco homes that share breathtaking views of Los Angeles and the Civic Center.

Throughout the four districts, the most common types of homes are Bungalows, Cottages, Victorians and Stuccos. According to the 2000 U.S. Census there were 40,455 people in there. Spread over 2.4 square miles there were approximately 16,868 people per square mile. This makes Echo Park one of the highest density areas in Los Angeles County. The median household income was $37,708, which is low for Los Angeles County. The average household size was 3.0, which is average for the county.

This city has a high Walk Score of 83/100. This means that most errands can be accomplished on foot within the city. This city’s transit score is 62. This city has good transit and provides its residents with many public transportation options. These include the Metro Red and Metro Purple Line, numerous bus routes and ride sharing options from Relay Rides. This city received a bike score of 49 because of the steep hills and minimal bike lanes.

According to Zillow, the average home value in Echo Park is $795,100. This value has increased 14.4% since last year and Zillow estimates it will continue to rise 4.3% to $829,000 over the next year. The average price of homes that are currently listed is $742,450. The median list price per square foot is $618, which is higher than the Los Angeles average of $451. The average rental price is $2,967 a month. Zillow has given the Market Health a score of 8.2/10, which is very healthy in comparison to other markets across the country. This is based on a series of metrics including how fast the homes are selling compared to the past rate. Echo Park’s prime location and thrilling culture will be sure to keep the housing market rolling for many years to come.


4 Ways To Wholesale Real Estate

Want to invest in real estate with no financial risk and no money or credit? Wholesaling houses is a popular choice. I personally think wholesaling can be a challenging way to get started, but the fact that you can get started in real estate investing without any barrier of entry makes wholesaling an attractive option. If you can get good at this side of the business, you will be success with anything you want to do. The reason I say that is finding deals is what makes a wholesaler successful. If you can get good at finding deals, you have unlimited potential.

Once you find a deal, you need to understand how to sell it to make your profit. Here are four ways you can structure your wholesale properties.

Contract Assignment: This is the easiest, but comes with some risks if not done correctly. It is also somewhat restrictive as bank owned properties will prevent this. This works well when you negotiate your deals directly with the seller. The way this works is you will get a house under contract and then you will assign your rights in the contract to another buyer for a fee. That new buyer will take on the rights and responsibilities in the contract and will close in your place. It is best to get your fee paid up front, but it is very common to get your fee when your buyer buys the house. Here are a few things to keep in mind when assigning contracts.

Be sure that you always disclose to your seller that you are or may assign the agreement to another buyer for a fee. I suggest you actually put this in the contract. Sellers should be OK with this if you are transparent that you are an investor who buys houses for a profit before you start to negotiate.

I would get money from your money that is at least enough to cover any earnest money you put up with your seller. That way if your buyer defaults on the agreement you at least cover your costs. Always try to get the entire fee paid when you assign the contract.

I like this way the best because it is easy to do on your end, it is easy for the buyer and the buyer’s lender, and it is the cheapest way to go.

Double Close: This just means that you actually buy the house and then resell it. There are several ways to do this, but the most common is to buy and sell in the same day or within a day. Typically, you will need to bring in financing to get your closing done with the seller, which is why this is my least preferred method to wholesale. Also, because you have two closings you will have two sets of closing costs, so it is the most expensive way too. With that said, some wholesalers prefer this method because they do not have to disclose to the seller their intent to resell and they can both keep their deal with the seller and their deal with their buyer private. It is believed by some that this is a good way to protect your profits. The information will all become public record at some point, but that is well after the closing.

This is the method you will use by default if you do not do your contract on the front end correctly, so we do see double closing frequently.

Flip the Entity: This has become the most common way to wholesale in my market. Most, if not all, the successful wholesalers will use this strategy. Especially when wholesaling foreclosures where contract assignments are forbidden.

The way this works is the wholesaler will set up a separate entity, like an LLC or a Trust, and put that entity as the buyer of the house to be wholesaled. They will then sell the entity itself for a fee. The benefit with using this strategy is that actual contract on the house does not change. Since the buyer of the house is the entity, there are no issues with any regulation or assignment restrictions. The downside is it could be more work because of the extra step to set up the entity, and there could be additional fees to register the entity with the state. The risk for the buyer is whenever you buy a company you are buying all of it. So, if the entity was used in another transaction and owes money to anyone, the new buyer could be on the hook. Knowing this, the best way to do this transaction is with a brand-new entity used for this one purpose.

Relationship Close: I don’t know if there is an actual name for this method. In fact, it is rarely seen. What I mean by relationship close is that you have such a strong relationship with a buyer that you write offers in the buyer’s name. For this to work, you should be a licensed agent and preview houses for your buyer. You would need to understand their criteria and only offer on houses they will want to buy. I have a client that works this way. He has an agent write his offers and the agent/wholesaler gets paid a commission with each successful closing. They do 2 to 3 deals a month with this strategy. My client just signs contracts without looking at them at this point and trusts what the wholesaler is putting together solid offers. There is always an inspection clause protecting the buyer and the agent, but more than 9 out of 10 houses that go under contract close. That is because the agent/wholesaler knows the business and knows what this buyer will buy.

I would stay away from this method, especially if you are just starting out. A lot can go wrong. I wanted to mention it because it is one of the 4 ways that I see people wholesale. If you are just getting started I would focus on contract assignments and then flipping the entity.


Three Ways to Increase Property Values

Real estate investors live and die by their ability to add value. With no added value, there are no profits. This is true with any business, but what makes real estate such a great business and a great investment, is the number of ways you can add value and cash in on big profits. Here are three ways you can add value to your properties.

Upgrades and Repairs: OK, this is the obvious one and is the reason fix and flippers can make money. Some repairs add a lot more value than it costs to do. The more creative you are with the improvements, the more value you can add. For example, I have a client that adds square footage to every house he buys. He really likes the inner city properties because they are the hardest to add square footage. You either need to finish an unfinished basement, or add a second story. There is not typically enough land on the lot to add an addition by increasing the foot print of the property. This client does a lot of basement finishes and “pop tops,” but where he has made the most money is the basement that is only 5 or 6 feet deep. He will go in and dig out the basement to a full 8 or 9 foot height and then finish it. Something most investors would not think of, so he is able to get the deal most other investors pass on. I have also seen some investors find houses that don’t really fit into a neighborhood and they make them fit. This could be limited bedrooms or bathrooms or funky floor plans. All of that can be changed. Obviously many cosmetic fixes like kitchens and bathrooms add a lot of value too. There is a lot more to it than this, but the idea is to buy a property at its true ‘as is’ value, (don’t over pay), and then add value with the repairs and upgrades.

Owner Finance: I love this one because it is so easy to add value with very little to no work. You will need to wait to cash in on your profits, but it is a way to increase a sell price significantly. You can also use this strategy to defer tax gains over a few years, instead of taking a big hit all in one year. When you have a property for sale there are a limited number of buyers for the house, although right now that pool of buyers seems pretty big. If you can increase the pool of buyers, the demand for that one house increases, which forces the price to go up. Someone that cannot qualify for an ordinary loan, limiting the supply of houses to choose from for that buyer, will likely buy your property. That also increases the price. You are adding value by giving them the chance to own a home that they normally would not be able to own. For this value, you should be compensated with a higher price and a decent interest rate on the profits, while you wait for the buyer to refinance and pay you off in full.

Shared Units: This is one area of real estate that I have not dabbled in, but it is extremely inviting. The idea here is to sell your property to multiple buyers. You are seeing this a lot in resort towns. It is always a vacation or second home. Have you ever been to a time share presentation? They are pretty enticing aren’t they? About 13 years ago my ex wife and I were in Florida and got sucked into a time share sales pitch. We decided to go because they offered us free tickets to Disney. We sat there for about an hour and a half and then the hard sale came. They were very good at selling the “idea” of the time share and had my ex wife sold. She asked me to move forward with the deal, but I could not bring myself to do it. I told her that I was not comfortable with an emotional purchase and that we needed time to think it through. “Can I please have our Disney tickets?” was my response. As we rode back to the hotel that afternoon, I started thinking about the math. Each unit can be sold to 52 different people because your purchase only gets you 1 week a year. Add that to the annual maintenance fees and the numbers are staggering. I know people who have flipped time shares successfully, because you can get them for free or near free on Craigslist, but it is not an investment I was interested in. With that said, I have considered doing a half or quarter share on a house in a ski town in Colorado. In this scenario, you are sharing a house with 1 to 3 other people so there is a ton more flexibility. You can use or rent out your weeks and you can be guaranteed valuable high demand weeks every year. It is a way to get a second home without the full expense. From the seller’s point of view, it is a way to get more for the house. ½ a share of a house is going to cost the buyer more than ½ of the fair market value. I have seen business plans from investors that would buy a house and quarter share it out. The idea was that after they improved the property and sold ¾ of the house to 3 different buyers, they would own the last ¼ free and clear. Obviously this strategy will work best in areas where people want second homes. The downside is if there are any improvements or major issues. I can see there being disagreements, so this is something you would want, as a buyer, to work out with all the other owners in writing before you buy.