Commercial Property

What’s Up With Commercial Property?

Check to see the national trends as highlighted within the Commercial Real Estate Quartlery Market Survey. The report is in pdf format for you, or go to this URL and download your own copy-

http://www.realtor.org/research/research/cre_market_survey

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Commercial Property

6 Things to Consider Before You Buy Commercial Property

By I Clark

Choosing to buy commercial property in the UK is a big decision; here are a few helpful tips to make sure that you do not make a costly mistake.

1. Choose Specialized Commercial Estate Agents

Anyone seriously ready to buy commercial real estate in the UK must make sure that a specialist estate agent is chosen. It is inadvisable to go to agents that are one-stop-shops for real estate, selling residential, commercial and even international property. You will get a much better level of service and wealth of experienced from a long established estate agent who specializes solely in offering commercial property to buy.

2. How Many Commercial Property Listings are in Your Part of the UK?

Do your research; find out what the best locations to buy commercial properties are. Often you will find that certain areas will have a high density of commercial real estate for sale, be wary of such pockets lest you find yourself buying a ticket aboard a sinking ship. Although it may cost you more money at times, make it your mission to find an area where companies such as your own have a proven track record of doing well.

3. Always Perform a Thorough Inspection before you Buy Commercial Real Estate

In order to make sure that you do not make a mistake in your commercial real estate deals, you must make sure that you do a thorough inspection of the office for sale or lease. Many people feel that a thorough inspection is not necessary as they are not going to be living there, this could not be further from the truth, as this is a business premises inspection it is just as prudent to thoroughly examine as a residential property.

4. Are you Buying Commercial Property in a Rural or Urban Setting?

The type of development where you are purchasing commercial real estate is very important, for instance if you are in a rural setting then you will be looking for very different features than if you were looking for a ware house for sale in an urban setting. Another thing to consider if you are in a rural setting is the cost, you can expect to pay lot less to be in a less developed area but if you are in a more developed district, especially a retail shop for sale or lease inside the city center you can expect to pay a premium.

5. Will you be buying this Commercial Property to Let Out?

It is also important to consider whether you are to buy commercial property in the UK for your company to actually move into, or whether you are going to rent it out to someone else. If your goal is to own the commercial property to let, then don’t get hung up on want you would like to see when buying commercial real estate, rather find out what the widest possible market is looking for in a commercial property for lease and acquire something that fits that description.

Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who also deals with selling and Buying Commercial Property with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.

To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/commercial-property/.

Article Source: http://EzineArticles.com/?expert=I_Clark
http://EzineArticles.com/?6-Things-to-Consider-Before-You-Buy-Commercial-Property&id=1650815

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Commercial Property

5 Tips For Selecting the Right Commercial Property Agents

By I Clark

1. Look for Realestate Professionals That Invest in Commercial Property Themselves

In the UK as anywhere else in the world, many people are better at giving advice than taking their own, commercial property agents will be no different. So it is important for you to find a letting agent who invests or has invested in commercial property. They will be a fountain of knowledge that will become an invaluable resource in the stickier stages of the process.

2. The Cheapest Realtors Agencies are Not Always the Best Choice

No one likes to pay more than they need to, but sometimes property consultants are very cheap for a reason. You must understand that when it comes to services, like most other things in life, you pay for quality. So when seeking out a commercial estate agency, do not choose the cheapest, choose the real estate consultant that has the lowest price compared to the value that they could offer you as a customer.

3. Always Be Prepared to Pay More for an Experienced Realtor Expert

In the UK, not many people are as familiar with commercial property sales as they are with residential deals. Of course, this stands to reason as many adults have been involved in a residential deal or two by the time they are middle aged simply by virtue of buying their family home, therefore they will know the processes and procedures that go along with this. Less people, however, have been involved in placing a commercial property for sale, so choose a commercial property agency that has vast experience in this field. And by a vast experience, we do not mean vast experience in property in general but commercial property listings in particular.

4. Find Letting Agents That Will Manage the Letting of Your Property as Well as the Acquisition

When you offering commercial property for lease, it pays to have as few headaches as possible, a smart decision would be to select a London commercial estate agent who will manage as well as facilitate the acquisition of the commercial property. Having realestate companies take care of all these things for you, especially in London, is well worth the money, and this frees you up to concentrate on your other business ventures.

5. Ask Perspective Commercial Property Estate Agents for References

If you are having trouble picking between two or three different commercial property agents in the UK, ask each of them for references. This is an acid test; if they are reluctant to give you any references from happy customers then you should be wary of doing business with this commercial estate agent. There is no reason for them not to let you speak to one of their previous customers if they were truly having a great working relationship with them.

Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who has a team of professional Commercial Property Agents with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.

To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/commercial-property/.

Article Source: http://EzineArticles.com/?expert=I_Clark
http://EzineArticles.com/?5-Tips-For-Selecting-the-Right-Commercial-Property-Agents&id=1650809

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Commercial Property

Top 3 Ways to Purchase Commercial Property With None of You Own Money!

By Yolanda Bishop

Commercial real estate investment is an industry of abundance. There is literally an unlimited amount of money available to people who want to borrow it. So much, in fact, that you can literally purchase millions of dollars worth of commercial property without using one dollar of your own money!

Unless you already have millions of dollars at your personal disposal to invest, or are fortunate enough to have come from a family of wealth, borrowing money is the only way to become a commercial real estate investor. It is a great way to purchase commercial property, even if you have your own millions already, because you don’t have to worry about losing your personal money. In fact, that is how many multi-millionaire commercial real estate investors make their money- by not using their own! If you don’t use it, then you never lose it.

One of the reasons you can borrow money to purchase property is because of something called leverage. You simply borrow money against the property, as it is the property that actually holds the value. This will play a major role in our discussion of purchasing property without using any of your own money.

The first way to purchase property with none of your own money is subordination. Many people consider this way of purchasing property as creative financing. In this situation, the current owner actually takes out a second mortgage on the property to cover the difference of what the purchaser (you, the investor) can get loaned from a bank or private lender. If you are lucky enough to have an owner who will sell the property with no money down, and he or she subordinates a second mortgage for the difference you owe, then you just purchased a property with none of your own money!

When using this tool, it is a good idea to have the owner only subordinate for a short amount of time, like one to two years, just until you can take the money generated from the commercial property and pay off the second mortgage, leaving the owner free of the property. At this point, payment for the property can take place because you will have generated cash through the commercial property. The owner will actually wait to get paid his money for the property! It happens all the time, and everyone comes out happy in the end. You purchase your money generating property with none of your own money, and the owner gets paid for the property. This situation may seem backwards at first, but it works rather well, if you find an owner who is very motivated to sell, and he or she understands this way of investing.

You must always be sure that the property can support the debt, as you do not want the owner getting into financial trouble with the second mortgage. Some owners are weary of this type of investing, as some purchasers do not do as they say, and problems occur. You want to be an investor of integrity and have a reputation of making things happen in the way in which you and the seller agreed.

Another way to purchase property with none of your own money is through the owner releasing some acreage that is free and clear which you, in turn, use to borrow enough money to cover a down payment on the entire piece. This strategy works especially well with raw land. You are basically using a piece of the property to purchase the entire property. Owners may not even be aware of this option, so be sure to mention it or address it in a letter of intent, especially when dealing with many acres of land!

A third way to purchase commercial property without using your own money is using partners. There are experienced investors, builders and developers who will find the financing for you, and basically get the deal ready to go, if you are willing to do the work. The agreements can greatly differ, but the partner(s) will basically finance the deal and take a piece of the return that you create through, either turning a distressed property around, or overseeing the development or building of a specific type of property and making it profitable. Partners can offer great experience and insight so that you can learn more about a specific type of property or the actual industry itself.

When it comes to commercial real estate, there are so many options; don’t ever limit yourself! Be creative and find resources. There is a wealth of information and money available to anyone who is willing to take some time and make some contacts. This industry is not one of limitations, but one of abundance.

Tony Seruga, Yolanda Seruga and Yolanda Bishop of [http://www.maverickrei.com] specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

Article Source: http://EzineArticles.com/?expert=Yolanda_Bishop
http://EzineArticles.com/?Top-3-Ways-to-Purchase-Commercial-Property-With-None-of-You-Own-Money!&id=238089

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Commercial Property

Commercial Property As the Ultimate Storehouse of Value – 14 Winning Tips

By Mike Milanez

To help invest in property that most nearly fits your wishes, let’s start by understanding the likenesses and differences, as well as the benefits and disadvantages, of owning a commercial property versus owning a home one. Here are few winning tips to serve as your steering light in an ocean of doubt.

1. Have clauses of every Sale & Purchase Agreement explained to you by a Barrister before execution.

2. Reasons your capital outlay is higher with commercial property are: commercial properties generally cost more and the margin of financing by banks is ten to fifteen percent lower. Rates of commercial property loans are sometimes higher than home property loans and the terms are generally not as flexible.

3. Capital appreciation of commercial properties are relatively higher than home property traditionally. With commercial properties you will most probably be working with companies and corporations whereby management is more ecstatic.

4. The value of a property is sometimes in close relation to the income it generates.

5. Approval level of upward rental revision is far higher with commercial properties.

6. With the properties, there are countless strategies you might support your tenants’ business.

7. Lease your property to firms / companies with successful track records and / or appropriate firms for the vicinity.

8. Long term leases can be anticipated from renters of properties.

9. It’s a norm for renters of properties to ask for a rent-free period for refurbishment to be carried out.

10. Renters of properties generally take better care of your properties.

11. There’s nearly always a budget for reconstruction works for properties put aside by your renter. There is not any prerequisite to furnish your commercial property.

12. Application rates and rates for give up rent and assessment are higher for commercial properties. Service charges can be applied to office lots, retail lots, serviced terraces, commercial shop-lots with facilities as well as some guarded commercial lots.

13. Collection of delinquent rental for properties is simpler in comparison to home properties due to straightforwardness of access.

14. The trend and requirement for intellectual commercial buildings is growing far more fast than smart houses. Unlike home properties, when the alignment of the project is favourable, it is OK to go for commercial properties found at T-junctions.

The excellent news is, you picked up this information and that already differentiates you from the outwardly blind flock of investing sheep. This information is one of the finest methods to start your successful property investment journey.

Mike has been writing articles online for nearly 2 years now. Not only does this author specialize in personal investment, productivity, you can also check out his latest website on ftd flower delivery which reviews on Send Flower Ftd.

Article Source: http://EzineArticles.com/?expert=Mike_Milanez
http://EzineArticles.com/?Commercial-Property-As-the-Ultimate-Storehouse-of-Value—14-Winning-Tips&id=3348615

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Commercial Property

Investing In Commercial Property

By Don Suter

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.

Commercial property investments have also performed well in terms of growth and stability, compared to equities and gilts over recent years.

Commercial property for the personal investor

Few personal investors will have sufficient funds to invest directly in a commercial property, however there are opportunities for indirect investment.

For the small investor, only looking to invest a couple of thousand pounds, the choices are limited to a small number of unit trusts and life funds that invest in property or buying shares in property companies, such as British Land and Slough Estates (though these are often more linked to the equities market, rather than property market performance).

Larger investors have a greater range of options available, with a number of products offering a chance to invest in geared property investments through a limited partnership structure. Often these products will require a minimum investment in the region of £25,000 to £50,000, which is invested in a single property.

A few investors will be able to buy a complete property directly, however the cost of the property is likely to be 10 or 20 times the size of a residential buy-to-let, making direct investment prohibitive to most.

Commercial property risks

In line with all investments, commercial property investment comes with its own risks:

Poor liquidity — Compared to equities and bonds, property has poor liquidity, both in the time spent finding a buyer and making the transaction. This can be further emphasised in poor market conditions when the ability to find a buyer offering the right price will become very difficult.

Poor diversification — The more diverse an investment portfolio, the less susceptible it will be to tough market conditions. Investing in a single property can be a risky challenge.

Market performance — The property market is prone to cycles, as yields grow and decline depending on the level of supply and demand for commercial property. Current rental rates could decline in the future.

Sector performance — A decline in the sector that your property services could affect your investment. For example a period of poor sales performance and market withdrawal in the retail sector could lead to the demand for small store, supermarket, department store and warehouse property to decline sharply.

What to look for when buying commercial property

Location — the location of the property is very important and will be a major factor in determining the value of property and rental income. Easy access to transport networks is an obvious plus factor for most tenants, but consideration should also be given to future developments in the area. For example, the development of a new supermarket, might depreciate the value of small shops.

Type of building — The requirements of tenants can change over time, with implications on the type of building they need. For example the move to open plan office space, could make older buildings with their rigid enclosed spaces redundant. Many companies also look for facilities like air conditioning and the ability to connect computer terminals through under floor wiring.

Tenant quality — Properties whose tenants are reliable, present a low credit risk and hold a long-term lease will hold a premium value.

Market factors — Try to identify which sectors and sub-sectors of the market will perform well in the future. The same can be said for geographic regions, which might receive future government or multi-national investment.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development

Article Source: http://EzineArticles.com/?expert=Don_Suter
http://EzineArticles.com/?Investing-In-Commercial-Property&id=11021

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