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Project Analysis
May 26, 2018|Building a Real Estate Business

Project Analysis

Most real estate builders face many of the same issues. Rising interest rates, labor costs, and materials. So when a new contractor thinks about expanding his position, he has to weigh all of his options carefully in order to bring the most profitable return for himself and his investors. This can many times be a very daunting task, and causes many companies to not take advantage of certain key financial situations. So what is the best way for them to avoid this mistake? Well the key thing for them to do is a very careful cost analysis of the entire project. That will give them an overview of how well the venture will go and what they can look forward to as far as profit. The first place I would start with is the material cost and labor. They are the core of any building project.

building materials

You can begin with the market costs of the needed materials and any near foreseeable rise in such costs. Such events as inclement weather in other countries can create a shortage in necessary building supplies. But if none of those conditions exist, your costs should remain stable. Next would be try to take advantage of any savings from the supply companies you use already. If you have an account with them, see if there is an availability of account credit, and let them know you have a big upcoming project to see if they can help lower your costs. Many times small supply companies may be going through a bit of a deficit, and if they see an influx of capital coming from your direction, they may be willing to work with you in a way that will be mutually beneficial. If you are used to dealing with big box retailers in the past, search for smaller companies and let them know you were looking for a new partner.

labor

If they see you as a large influx of capital, they may incorporate long-term savings into all your future projects. Bigger is not always better. The next would be labor costs. Skilled construction labor can be very expensive, you want to make sure you’re getting the best quality service for the best price. While most companies only go with union shops, it may be in your best interest to look outside of those means. Labor organizations are not the only source of skilled labor. Contact your local hardware stores, and see if any of their people also do construction work on the side. That could be a great source of skilled and knowledgeable labor at a reduced cost. Once you lineup all these variables ahead of time, you can see the future cost of your projects, and will help you make a more educated decision on which projects you will move forward with.

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Starting a Real Estate Business
February 11, 2018|Building a Real Estate Business

Starting a Real Estate Business

Land is only a locally situated wander which can be at first began even with a little measure of capital. The rudiments of this business can be created by giving some genuine weight on the featured focuses examined here. You can begin simply remembering the base necessities which it requests and continue towards developing your own land realm. This is the main business which can even influence a customary individual to be able to fully prosper over time.

real estate office

Beginning

These are the straightforward advances that you can follow –  keeping in mind the end goal to begin your land business.

• Be a landowner yourself

There are numerous individuals who want to buy little lodging properties that incorporate family living arrangements, duplexes, triplexes and other comparable resources typically on lease. Be that as it may, this is the most common type of real estate investment, and helps many people to achieve their goals.

• Turning over the properties

This is awesome approach to acquire some speedy benefit as a speculator. You can turn over the ownership of a land property after it has risen in value to another investor or owner and make a sizeable profit. Many go in and improve the property as well which assists in driving up the value.

• Rehabbing the ownership of the property

It is constantly astute to buy underneath the market cost keeping in mind the end goal to secure the property which could be exchanged at a legitimate cost later when the estimation of the property accomplishes its greatest height.

budgeting real estate costs

Building the business

The most imperative piece of the puzzle is properly managing the day to day aspects of your new business. There are many costs and variables that have to always be kept in mind. There are salaries, insurance, office space and fixed cost supplies that will have to be factored into your profit.

While you make a land strategy for success, you have to guarantee the accompanying things:

• The course of action ought to incorporate separate techniques on the powerful approaches to procure benefits, to alter with the market ups and down and confront the huge market rivalry.

• You ought not pass up a major opportunity for any of the related costs or dynamic business development.

• Your arrangement ought to keep up its prime spotlight on the distinctive business practices that are extremely vital to get to the normal income target.

Summation: The essential methodology while in transit to build up your own particular land business is said in this article.

If you keep all of these things in mind, you may develop into quite the real estate tycoon.

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Inspect Commercial Real Estate
November 1, 2017|Blog

Inspect Commercial Real Estate


As the previous post alluded to, commercial property shoppers can get lured into a hasty deal without doing proper homework first. One of the first things potential buyers look at is the price tag. Their head start to swim with possibilities and profit margins, and they become blinded to the proper step work which must be done before purchasing any new piece of real estate. Many times commercial real estate can look pretty on the outside, but have hidden issues which must be properly checked before signing anything.

Commercial office building

Many times the seller will acquire their own appraisal which can leave out many defects that the building may actually have. Many real estate sellers have their own appraisal people who may color the description and leave out important data. It is imperative that you have your own appraisal and inspection done before moving to the bargaining table. Just like a residential piece of property, there could be things wrong that are difficult to see through a casual walk through. But the same care must be applied to commercial real estate as well.

The structure is the first place you want to start. Many buildings were built with a foundation only specified for a certain number of stories. As years went on they added additional levels without further strengthening the base. So it must be well documented how many floors of a building the structure can hold, and to make sure they have not crossed that limit. Some owners don’t operate with the most scrupulous motives, and you can’t take it for granted that everything is on the up and up.

Ventilation is another important factor. Just like with the structure, new additions are constantly added without the proper ventilation to support the size of the building. Air flow is very important to the health of the tenants as well as the structure itself. If moisture that accumulates in the building can’t dry properly because of decreased airflow, it could cause mold in the walls which could rarely be seen. But in turn affects the health of the office workers and can lead to legal liability. While a walk-through will only give you the surface schematics of your structure, you must do your due diligence to acquire the blueprints and have them properly inspected by a competent HVAC contractor. The owners of S&S Heating and Air do a number of industrial inspections before they work on any building. Once when they were completing a heating repair in Radnor, PA , they found wings with fewer vetilation ducts than the rest of the building.  Anyone in the field knows that these matters cannot be overlooked.

commercial ventilation

Even though I’m listing safety as last, it is probably the most important factor. Fires are not common in office and industrial buildings, but it is still a serious matter that new owners must face. As mentioned before, when new buildings are built they are usually up to code with the structure originally set. But as time goes on, and they expand and grow, it must be made sure that the new additions follow the same guidelines. For example, are exits easily accessible from all parts of the building? There’ve been many cases where the main staircase was in one part of the building, but nowhere near the new wings or additions. That poses a potential threat if the tenants need to get out in a hurry. Not having the proper fire escape procedures set in place can also cause huge legal issue if someone gets injured. And it’s not just fire, if there is any medical emergency in the facility, is there a way for people to get in and out quickly and safely?

Once again these are some of the things that new potential buyers often overlook, but are crucial things that must be considered when investing in a new piece of commercial property. A little homework can save you tens of thousands of dollars in lost revenue, as well as legal implications.

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Purpose of Your Real Estate Investment
October 30, 2017|Commercial Real Estate

Purpose of Your Real Estate Investment

What is the purpose of your business real estate purchase? Is it to divide up large buildings into small offices and rent them out? Or is it to lease space for companies that need warehousing? These are just two of the many questions you must ask yourself when contemplating a business real estate investment. While a piece of property may look good on paper, in the end it might not be what you are looking for.

commercial office building

The first thing you must look at is the location of your building. If it is in a metropolitan area, then the obvious choice would be to create office space. With the rise of startup firms, there is a constant and ongoing need for small affordable office space. Combine that with productive common areas such as board rooms, presentation spaces, and kitchen areas, and you have the formula for a successful leasing operation. The key is to keep the segregated areas small so that you can utilize the most space, to keep the cost low. This is a wise investment choice because most companies take care of their own space and equipment thereby limiting any damage or liability to the structure.

If your building is in a suburban area you can use the same idea as above, but possibly think of medical units. Doctors love to be close to housing developments where the majority of their patients dwell. They know that being close by is an asset to the growth of their practice. People love the idea of being able to go down the street and visit a local doctor or dentist. If you’re going to go this route you must realize that the design structure of the building will be much different than traditional office space. Many such spaces use a lot of tile and harder surfaces because it is easier to keep them disinfected. Probably only the offices themselves will have carpeting. Also the structure of the flooring needs to be sound to be able to support the weight of medical machinery. X-ray machines, MRIs, and CAT scan equipment can be very heavy, so you want to make sure your building can hold up to the extra added weight.

warehouse building

If your building is in a more remote area, you may want to think more in the lines of storage. Your mortgage and property taxes will be lower so the need for multiple tenants is less. Also people that work every day aren’t going to want to travel as far to get to work. So these areas may be better utilized for storing equipment, supplies, and other materials that will only be accessed a couple of times per month. The utility costs will be lower as there won’t be people there every day. The only higher expenditure will be for security. Having people’s valuables in a far out location will require hiring security and having cameras to safeguard their things.

So this gives you an idea of some of the things you must consider when buying a piece of commercial property. Many first-time buyers get trapped in the sale price without investigating the practical uses of their new building. I have seen such buyers find fantastic prices way off the beaten path, and then have a hard time renting out space that they deemed for offices. Such costly mistakes could cause you to have to invest in reconstruction, and to re-purpose the use of your building. Lots of things to think about, but a little foresight can be worth its weight in gold.

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How to Find the Right Commercial Real Estate Agent
September 4, 2017|Commercial Real Estate

How to Find the Right Commercial Real Estate Agent

How to Find the Right Commercial Real Estate Agent

While finding a commercial property for rent, lease or buying, it is important that you have all the paperwork in order. A real estate agent is well equipped with skills and expertise in getting you the best property at the right price. That said, an agent must be able to sort out any issues or disputes that may arise in future too. So it is recommended that you know how to find the right commercial real estate agent.

Experience and reputation matters:

Always rely on a real estate agent who has years of experience specifically in dealing with commercial properties. It is not really difficult to learn about an agent’s reputation these days. Check the portfolio and try to search for some user reviews on the internet. With experience comes a great deal of knowledge and skills using which the agent can get you guaranteed property based on your precise requirements.  Here is some help in finding a commercial real estate agent.

Legal Knowledge:

There is a great amount of legal paperwork that is involved while leasing or buying a property. So make sure the agent you are dealing with is licensed and registered as a commercial real estate agent. Such agents are more likely to be aware of all the legal aspects while signing a property deal. A good agent will not read all the terms and agreements of the deal but explain them to you too. This will help you get a better understanding of how to deal with any disputes should they arise in the future.

Partner for life:

A good commercial real estate agent will be with you even after you have signed the deal. So the agent should be easily reachable as and when you feel the need. There would be certain doubts about the property or some kind of complaints you might come up with. Hence it is essential that the agent offers you that kind of support as long as you own or lease that property. That said, the agent should be flexible in helping you sell the property you bought should you choose to sell it in future. In case of the end of lease period, the agent must help you to extend the lease or end the contract as per your requirement too.

Giving you the options:

Once you set your expectation about a property in front of the agent, he/she must be able to give you more options to help you make the best choice. So a good agent will keep more options, instead of stressing on any specific property. The agent must not be biased towards the seller and instead, try to meet the buyer’s needs.

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Common Real Estate Investing Mistakes
September 1, 2017|Real Estate Investing

Common Real Estate Investing Mistakes

Common Real Estate Investing Mistakes

Sound real estate investment is always a better investment over other risky options for your hard earned money. Once the market starts to bounce back, investing in real property also becomes a more alluring idea. But this is not as easy as you thought, you need to look into many aspects of selecting a good investment deal. Just like in any other field, investors tend to make mistakes while choosing a good property. Following are the Common Real Estate Investing Mistakes you can make:

Planning as you go:

Lack of a plan is the most common and the biggest mistake committed by the real estate investors these days. Investors dive into buying a property without even understanding the reason for buying it. And then they stuck up with that property until they get a good buyer for that. Instead of falling in love with the property and thus buying it without a plan, an investor should chalk out a plan and then strategies the match of the property accordingly.

Skipping homework

For a fruitful investment, you should have some knowledge about the real estate market and also need to research the property you have selected. Don’t be overconfident about your decision instead take your time in finalizing the deal. You must be investing to secure your financial position for future which demands educating yourself about the field and the deal.

Ducking due diligence:

Investors hop into the deal as soon as they like it. Timing is the most important factor while deciding to invest in real estate. Before you even think finalizing it, you need to have your financing pre-approved. This will give you a proper sense of know what you can afford to buy.

Thinking you’ll “get rich quick.”

All the misconceptions have been fueled by these alluring phrases advertised by fooling real estate agents. You should never plan the investment by thinking to get the profit in short span of time. Real estate is profitable mostly if the thought of as a long term investment, while few get lucky with short term profit also.

Paying too much:

The biggest reason for not making a profit in real estate investment is paying extra or too much for a property not worth that. The profit gets cut at that particular moment when investors pay a higher rate for that property without analyzing the rate in the market properly.

Lowering the volume

The investor usually takes a quick buying decision by looking at the very first option. But this should not be the case to crack a profitable deal. They should look as many options as possible and then take the final decision; it’s always better to explore more than sticking to one or two.

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