Author: Rodney Thompson

From a monetary perspective, investing in real estate is very similar to investing in the stock market. If you plan to profit in your real estate investments, you must have a good idea about the value of the property you purchase. Having this information allows you to make an educated guess about how much profit you can generate from the investment. In fact, you may plan to make profits through appreciation in property values, rental income or a combination of both. Real estate valuation is calculated through two methodologies such as absolute value and relative value. This article provides information on commercial real estate absolute value vs. relative value.
Absolute value is the value of the property itself based on its future cash flow potential. On the other hand, the relative value is the value of the property relative to other comparable properties. As you can imagine, there are several complicated mathematical equations to arrive at this value. The ability to calculate profitability is critical to any transaction, especially in commercial real estate. Get this value wrong and you are headed for disaster though you may think you’re entering a good deal. Even if you do not plan to buy or sell but just to reposition your property, proper valuation is still an essential component of developing an effective strategy to proceed with the deal. Getting this assessment right is important to save you from catastrophe.
Realtors use a simple method to determine whether the absolute value or relative value should be applied to a particular property. In an area where all the homes are quite similar in most attributes and are easily comparable, the relative value applies to the property. On the other hand, if it is difficult to compare the property with other properties in the area and the property is more of a contrast to those around it, the absolute value applies to such property. Where there is a unique setting within a great style of architecture or there is some other outstanding feature that sets the property apart from the rest, the absolute value prevails. It is a property that the buyer must have regardless of the price. In fact, the price may not be a consideration at all. That is where the absolute value applies to property.
The relative value of property is critical to a real estate buyer for comparison shopping. The relative value may often be lower compared to the absolute value of the property. Hence, the relative value is a good indicator of a great purchase. Although real estate valuation calculation seems fairly straightforward, determining the value of an income-generating property is quite complicated. But it is essential to make an informed investment decision when buying real estate.
In conclsuion, you need to have a good idea about the value of property to make the correct investment decision. This is where the absolute value and relative value of property come in handy. The aforementioned article provides informaion on commercial real estate absolute value vs. relative value.

Retaining existing tenants is absolutely an essential for creating and maintaining a healthy stream of revenue for a commercial property owner. This is not easy to achieve especially if you are managing a high volume of tenants. There are many factors that can affect the retention if commercial retail tenants.

When commercial tenants are carefully selected and evaluated, they are more likely to remain for a long time. This is because many commercial retail tenants are looking for a more permanent solution for their business, unlike residential tenants. There are a number of things you can do to ensure you have a higher commercial tenant rate.

 

Always ensure there is an open line of communication and be responsive.

Commercial tenants usually don’t require a lot of attention, but when they do call for a maintenance request or other concerns, they usually expect a response in a timely manner. A faster response will be a good sign and will make the retail tenants feel more comfortable in your property. If there is a slow response, the tenant might consider looking for other options. Being attentive to the needs of the tenants will make them more satisfied and make the more likely to renew their lease.

 

Streamline the process and provide incentive.

Try your best and streamline the processes for tenants where possible. Streamlining tenant process can go a long way in helping you create more tenant satisfaction and increase the likelihood of the commercial retail tenants. Some of the ways you can streamline the processes include offering the tenants the option to make rent payments through an online payment system or having an online portal that will make it easier for them to make maintenance requests.
Another way you can retain tenants is by offering them incentives when they renew their leases. Some of the incentives you can offer include limited time offers, free services, discounts, etc.

 

Have a system in place.

Managing a commercial property is like running a business. In order to have a successful retail property, there must be systems in place. Effective property management calls for smooth and functional, well-kept property and keeping the new and existing tenants satisfied. A property owner can easily deal with maintenance issues, repairs, and tenants if there is a good system in place.

 

Start early.

Monitor all the existing leases that are coming up for rent review or expiry within two years. When the dates start drawing closer, you can start negotiations based on the property decisions that have already been made and the tenant retention plan.

 

Check in with your good tenants.

This will help you ensure that they are happy in occupancy and that they have no pressure for contraction or expansion. If they are, then you need to be working on a way to deal with it before another property owner can offer them another retail tenancy space.

Retaining your commercial retail clients will be easier with the above tips. It all comes down to the way you treat your tenants.

Commercial real estate laws are not that easy to wrap your head around. With laws at the federal level, at the state level, and regulations at local levels, getting to understand the regulations that govern commercial real estate can be quite hectic. At the same time, real estate laws encompass everything from insurance law to contract law to property law. As such, there’s no single source where you can find everything that you need to understand real estate laws as a commercial properties investor.

It is, therefore, advisable that you look for professional help when looking to buy or sell commercial properties if you do not want to find yourself on the wrong side of the law – especially if your investment is quite significant. And while it is important to do so, it is advisable that you consider knowing some of these laws to stay informed. Below are five commercial real estate laws that you, as a real estate investor, need to know.

Tennant/Landlord Laws

Tennant/Landlord Laws vary from state to state. However, they are designed to safeguard the rights of the parties involved in any leasing or rental agreement. Common clauses found in these laws often govern:
• Taxation
• Necessary disclosures
• Payment of rental fees
• Duration of tenancy
• Rights of privacy
• Rights to termination of tenancy
• And much more

Real estate laws are crafted using fine legal definitions of relationships that exist between the owner of a commercial property and the entity or individual habituating the space. It is, therefore, important to understand some of these laws to ensure that you do not violate any of the stipulated rights.

Disclosure Laws

Disclosure laws vary from state to state and deal with the location, restrictions and conditions placed on a property. These laws generally exist to ensure that renters understand what they are getting into. For example, property owners are required to disclose if there are any known and unknown toxic substances like lead paint, radioactive materials and asbestos. At the same time, they may be required to disclose other less-shocking information; but this will vary from state to state. As a commercial property owner/investor, it is important that you understand these laws – especially if you opt to use a realtor to handle all your rental transactions.

Land Use and Zoning Laws

State or local legislation will often dictate how land use and zoning regulations are enforced. Apart from determining taxation, these laws also determine how a property can be used. These laws can dictate if a property can be used for retailing operations, and in some cases, the sort of retail operations that can take place.

Contract Law

Rental agreements and leases are legally binding contracts that are drafted by one party or another and accepted by both. As such, contracts must be structured in a particular way and contain rigid verbiage that can stand up to challenges. While a majority of contracts in the US fall under the nation’s Uniform Commercial Code, contracts for the sale of real estate fall under the Common Law of Contracts. The Common Law of Contracts is quite different and requires an acceptance to be the exact representation of the terms stipulated before it can be viewed as a legally recognized acceptance. When changes are made to the initial offer, there is no acceptance since the offer has been altered – as a result, it becomes a rejection and opens up room for a counteroffer.

Insurance Laws

As a commercial real estate investor, it is without a doubt that you want your investment protected/covered, and that is you should consider having insurance on your commercial property. Insurance covers your property in the event an accident occurs. However, most insurance policies only cover your property and not your tenant or a vast majority of their things. As such, they will need to get a policy of their own to ensure that their things on your property are covered and to make sure that they protect themselves against liability lawsuits. Insurance laws vary from state to state and do not possess many overarching federal directives. It is, therefore, essential that you learn more about commercial insurance law to know all there is to know when it comes to insuring your property.

When it comes to commercial real estate law, it is important that you educate yourself on some of the stipulated laws, regulations and codes of contact to ensure that you stay well-informed. Here is a piece of advice, never try to navigate the tricky laws and regulations that govern the buying, selling and leasing of commercial properties on your own – there are just too many variables for a novice to track. Therefore, when it comes to real estate laws, consider hiring a professional to help and guide you through the process.

If you are just getting started in the world of commercial real estate, the entire concept may seem very overwhelming to you. This is probably because many of the terms you hear may not be familiar to you. The best way to get ahead in this arena is to educate yourself, so make sure that you learn all of the following terms before you continue.

Return On Investment (ROI) – This is probably one of the terms you will hear the most frequently. It refers to the amount of benefit you receive from a property you purchased weighed against the amount of money you had to spend. People use this to gauge how well they have invested.

Capitalization (Cap) Rate – This refers to the amount of money your investment will yield each year. It is calculated by dividing your operating income by the amount you paid for the property.

Concessions – When landlords are trying to attract tenants, they will offer concessions as a way to make the deal more attractive. Common concessions include free or discounted rent and lease buyouts. It is usually not necessary to offer these when the real estate market is doing particularly well.

Tenant Improvement Allowance – Sometimes landlords are willing to allow the tenant a certain amount of changes before they move it. This usually correlates with the type of business that is being run. For example, if someone is opening a pizza place, the landlord may agree to pay for some of the decor and equipment needed.

Build Out – This refers to any improvements of additional construction that are done after an initial space has been completed. It includes things like plumbing, flooring and electrical work.

Capital Improvement – Any changes made to a property that extends its life. This refers to things like new elevators and roof replacements.

Deed Restriction – Restrictions within a deed that limit the way that people are allowed to use the property. For instance, there may be a restriction on using the property for sporting establishments.

Holdover Tenant – A tenant who remains on the property, even after the terms of the lease are over.

Joint Tenancy – When a property is owned by more than one party. In the event one of them passes away, the other has the right of survivorship.

Loss Factor – The amount of space on a property that is not usable space due to the presence of walls, elevators and other unmovable structures. This figure usually ranges from a very modest 5% to something on the higher end, like 15-20%.

There are many more terms that are associated with the commercial real estate industry, but these are the ones that are considered the most important. Before you head out there and start dabbling in real estate, make sure that you try to learn all you can. Learning all of the important terms, like the ones listed here, is only a small part of it.

When thinking about Florida, most people imagine its spectacular beaches. Younger ones will definitely mention Disney World. The state, however, has a big number of historic landmarks. The historic points of interest and architectural attractions stand as evidence of the state’s intriguing past.

Needless to say, a number of these landmarks have a much higher historic importance than others. Here are a few of those.

The Homes of Famous Individuals
The houses of many famous individuals have been preserved in the state of Florida. Some of these homes have also been turned into museums, dedicated to the life and work of their popular inhabitants.

Ernest Hemingway’s home is located in Key West. Ernest Hemingway Home and Museum is a picturesque building that served as the writer’s house in the period from 1931 to 1939. Today, it’s the house of six and seven-toed cats – all of them descendants of Hemingway’s favorite feline.

Civil rights leader Mary McLeod Bethune lived in Daytona Beach and the house is another famous Florida landmark. An activist, educator and president of National Association of Colored Women, McLeod Bethune dedicated her life to protecting the rights of African American women.

Fort Mose
Located two miles north of Florida’s St. Augustine, Fort Mose was built in 1738 by Florida’s Spanish governor. The fort was established as a free black settlement and it served as an asylum for slaves that managed to escape the British Colony.

Archaeologists explored the remains of Fort Mose from 1986 to 1988. Their discoveries shed a lot of light on the role that slaves played in the rivalry between England and Spain during the period. Today, the fort is a part of Fort Mose Historic State Park where a museum is also located. Many of the artifacts discovered during the archaeological exploration are on display there.

Castillo de San Marcos
The oldest masonry fort in the states is located in Florida, more precisely, in the city of St. Augustine. It’s also one of the best preserved forts in the country.

Castillo de San Marcos was built in the 1600s. It impresses with the interesting design – a diamond-shaped construction that made the fort easier to defend from enemy attacks. The 14-feet-wide fortress walls are preserved till present day.

Once the fortress is explored, it’s also a good idea to spend some time in St. Augustine. The city has preserved its charm through the years and it’s proud to be called the oldest European settlement in the United States.

Ybor City
Ybor City is a historical district in Tampa. Originally (in the 1880s), Ybor City was an important cigar production center. It was the home of thousands of immigrants from Spain, Cuba and Italy. There were numerous cigar factories that gave the immigrants employment.

Today, Ybor City welcomes visitors with its numerous museums. The most prominent ones include Cigar Museum and Visitor Center, TECO Line Streetcar Museum and Ybor City Museum State Park. The district also holds intriguing annual events like the Fiesta celebration of Latin culture, Festa Italiana (dedicated to Italian cuisine), Tama Cigar Heritage Festival and Tampa Noles Pub Crawl.

These are just some of Florida’s architectural and historic landmarks. The state has a lot more to offer. Historic landmark hotels, cathedrals, plazas, museums and towers are all ready to welcome visitors.

While it is advisable to have commercial real estate contracts written by lawyers; all investors and industry professionals should be well versed in ways sales agreements go or ways to protect their investments and interests.

Well, there are many types of real estate investments of which all of them come with their benefits and limitations. The truth of the matter is that commercial real estate is arguably the most difficult type of investment, and it involves far more factors than the private real estate. If you are looking to invest in a commercial real estate, then there few mistakes you need to avoid.

Analyzing The Market

One of the biggest mistakes people do when it comes to investing in commercial real estate is failing to analyze the market. NOTE: when investing in commercial real estate, the market is far more important than the property. Well, this might seem a bit backwards, but it is actually the truth. If you have bought a private home in the past, then you have probably experienced the importance of market analysis.

To avoid making a wrong investment, you are advised to analyze the market first before buying a property. Ensure that you exercise a tradition for looking at the market before you invest in commercial property.

Getting Everything In Writing

Too often, sellers and buyers draft their contracts and write them in a way that they are not legally enforceable. It is advisable not to rely on verbal agreements when it comes to any transactions. According to Weissman, whose a real estate lawyer said, “Basically, what our courts do when there is a real estate dispute; they look only at the four corners of the contract.” He continued to say, “No one is going to be asking, ‘Well, what was your verbal discussion?’ If it is not in the contract, it does not count.”

The sellers, buyers and their representatives should avoid using a ‘One-Size-Fits-All’ approach to the contracts and set out to create agreements that reflect the risks they are willing to assume in each transaction.

Lack Of Liquidity

A lack of liquidity is a far-reaching risk to any commercial real estate investor. Well, there are many ways one can invest in a commercial building than buying the building and later leasing it out. When it comes to commercial building, one has to be realistic; if a person overleverages themselves, in the long-run, they may end up losing as well as affecting their financial status. Be realistic and never put all your eggs in one basket.

Ignoring The Tax Ramifications

A successful investor will take a look at taxes. As such, they find ways to reduce taxes, which will give them the power to invest for a maximum reward. To avoid paying much money to taxes; ensure that you have taken a look at it, which will affect your annual returns.

Doing A Wrong Calculation

Another big mistake people tend to do when it comes to commercial real estate investing is; making wrong money calculations. It is important to determine if you are making the right investment move or not. Not only do you have to look at the deposit required, taxes, closing cost, appraisals and title work, but also the cost of repairs, upgrades and replacements. Therefore, it is advisable to calculate the total cost and the amount you expect to receive.

When you want to get into the investment field, real estate is always a good bet. Sure, there are ups and downs, sometimes at historic levels, but at the end of the day, people will always need places to live. The key is to find the right property and make the right investment. As opposed to buying properties to flip, you can build equity in homes and instead rent them out. However, the most important part of this deal, which can make or break your investment experience, is finding the right property manager. This is the difference between sticking with your investment and potentially throwing your heads up in frustration and cutting your losses. With this in mind, follow the tips below in order to find the right property manager for your endeavors.

#1: Find Out What Other Properties They Have Managed And Get References

If you want to know what your property manger an do, it is important to see what they have done. Ask them for examples of properties they have managed and get references and testimonials from those who have used them. This will give you the opportunity to walk your way through the process with the right information.

#2: Hire Property Managers That Own Their Own Rental Properties

If you really want a rental property manager that is invested and passionate, ask about any properties they own. This tells you a lot about whether they are just in it for a quick buck or if they really practice what they preach. If they have their own rental properties, it shows you that they are serious about what they do and let their own money do the talking as well.

#3: Find Out How Many Properties They Regularly Manage

Finally, you need to get an exact figure of how many other properties your manager deals with. This will not only let you get an idea of how much they are used to juggling, but how much they are able to handle. It also gives you an idea of what sort of network or help they will be able to receive in giving you assistance from other professionals, such as handy contractors and HVAC professionals. When property managers have a lot of clients, it also denotes trustworthiness, which is huge in this business.

Between these three tips, you will have a good start with finding the right property manager for your investments. This gives you the peace of mind of being able to simply collect rent and watch the money rake in. Of course, the property manager will take a fair cut, but you will be well taken care of and will have plenty of peace of mind. Your tenants will be happy and the property managers will completely take away the burden of having to appear in court, file paperwork and handle all sorts of logistical issues. Before hiring a property manager, consider these tips and use them to your advantage.

With over $252 billion being invested into commercial properties in America, the growth in this sector seems endless. There is a lot of potential on offer for eager investors hoping to locate a comprehensive method to earn money and solidify their portfolio.

Yet, there is one thing that can hinder progress. This would involve taxes and how they can eat into your profit in a hurry.

This does not have to be the case as long as the right strategies are being employed when it comes to tax. Using these strategies will make your life as an investor that much easier.

REITs

This is a fantastic strategy to consider when it comes to real estate. Using a trust to ensure the income coming in is taxed less heavily can be an exceptionally fruitful measure to take.

It is still dependent upon what type of trust is being invested into, though. Yet the returns are going to be greater at the end of the day when using an REIT compared to when personal purchases are being made.

It reduces the risk and enables the investor to divide their funds equally in other sectors as desired. It is important to note this down along with the tax benefits being provided.

Charitable Contributions

This is a neat way of reducing your taxed income in the long-run. The purpose of donating money to a charity is two-fold. One, it helps the charity and a good cause which, is never a bad thing, plus it enables you to save money at the end of the year.

This is a true win-win situation.

Make charitable contributions as an investor to help save money in the short and long-term. It is a truly magnificent and easy way to save money while being able to recoup it without having to deal with exorbent taxes.

It is a no-brainer for those who are investing heavily into the commercial sector.

Invest In States With No Property Tax

Want to save on taxes?

why not begin with states that don’t have property tax? This is a wonderful step to take and will yield results as long as you have funds to put into the investment.

There are seven states at the moment which provide this type of value.

These states would include South Dakota, Washington, Texas, Florida, Nevada, Alaska, and Wyoming. Look to find investment options in these regions and watch as the earnings rise in the long-term. It is definitely one of the best strategies to consider in this regard.

These are all key tax strategies to ponder over for commercial investors in this day and age. It is certainly impossible to get out from under all taxes, but being able to optimize your processes is never a bad thing, and should be done by one and all. It will help save a lot of money and is going to ensure your investments are reaping rewards in the long-term. It is important not to ignore this for those who want appropriate results.

South Florida’s home market has been surprisingly resilient in coming out of the downturn. However, despite the high number of foreclosure, there is an increase in the number of buyers. The good news is that the market has rebounded nicely. From 2011 to 2013, building prices moved up rapidly; but from 2014 until recent, the prices are rising at a moderate pace.

The action is not all in for purchase housing; there are reports that rent rates are getting steamer too. In Miami for example, according to a study by The Integra Realty Resources; the lease rates increased by 6% in the first 9 months of 2014; with an average of $2.50 per square foot or $2,054 per months, this were leasing average for a one-bedroom houses. Additionally, a conventional one bedroom apartment were leasing at an average of $1.86 per square foot or $1,605 per month according to the same research.

Well, the truth of the matter is that such rental hikes might not be sustainable though contractors are busy building apartments throughout South Florida. According to Miami Downtown Development Authority report, it showed that about 2,300 new apartment units are set to be completed in the next two years. The number of these new apartments will double the inventory of professionally managed buildings.

2015 Building Trends In South Florida

2015 proved to be the pivotal year for South Florida during the existing preconstruction housing boom. The moment South Florida entered its 5th year of the real estate cycle; the year brought about some trends, which influenced the longevity of the current buildings around the area. The more foreign currencies continue to weaken against the dollar; it slows down the global economy. As such, the South Florida’s Preconstruction advised building developers to take financial safety measurements so that they could reduce risks as well as improve the chances of failing and guaranty success.

Competition for buyers in South Florida market was at least 415 per new building with more than 49,000 available units. These findings reportedly encouraged some of the most prominent developers the upper hand to come up with attractive building designs.

One of the leading notable strategies for commercial real estate that were implemented in the year 2015 included a hefty 50% pre-sale consumer security in some of the most active building markets. The broker’s commissions were reported to reach up to 10%. In addition, the spigot of building construction financing from traditional banks and private lenders appeared to be flowing and open in South Florida based on the type of loans that were reported in the last year.

2016 Building Expected Trends In South Florida

The truth of the matter is that South Florida is the most popular MSA in the state, with approximately 6 million residents. This is somehow surprising, with the number of reported percentage of foreclosures. However, due to all the trends experienced in 2015, it has been reported that there will be an increase in building costs as well as a rise in renting rates. In addition, the population is expected to rise from the recorded number recorded back in 2015.

The factors that will affect all the above trends are:

• Expected Tourism Growth
• Industrial Demand
• An Increase In Business Opportunities

Buying commercial real estate can be a significant undertaking. Real estate can be quite expensive, and you will most likely need to apply for a loan to be able to cover the cost of the property. What catches out a lot of people is the application process. Applying for a commercial real estate loan is a little different than applying for a private loan for a home or even a buy-to-let property.

Most banks will offer commercial real estate loans, and there are a number of private lenders that will do so too. The first thing you need to consider is the amount of money you want to borrow. For small amounts, look to your current bank or a suitable private lender. For large investments, you will need a bigger bank to stump up the funds.

What Lenders Look For

When a lender assesses your application for a loan, they will want to know that you have a sound business plan and that you understand the type of property that you are buying. If it is a commercial entity – such as a limited company – that is taking out the loan, they will look at the credit history of the company. If you are taking the loan out yourself (which is a massive risk, and something that you should not do without seeking expert financial advice), then your credit rating will be looked at – however, your credit score is only a tiny, tiny part of what they will base their assessment on. Unless you are an undischarged bankrupt (and therefore not allowed to borrow large sums of money) your credit score is not going to be ‘the one thing’ that will get the property loan application turned down.

More likely, they will be concerned about things like the business plan, insurance, and your experience with operating the property. If you are buying a large block of flats to let out, do you have tenants? If you are buying land to turn into a car park, have you ever managed such a project before? If you are buying a hotel, what state is it in, and what is your plan to bring in guests?

They will want to see a cash flow forecast, a business plan, and your credentials, and they will sanity check those. Buying property to run a five star hotel in a deprived area does not make sense. Building a car park next to an existing, struggling one would not be sound either. You need to be able to show that you have thought all this through.

Your personal net worth, and your overall credit score, will help you to net a smaller property deal – if your score is below 660 you might struggle to get credit with a smaller lender. If you have foreclosures or bankruptcies within the last few years, you should wait a while to apply. For bigger deals, it is best to seek advice before putting in an application, because there are many other factors that you should consider.

When you want to get into the investment field, real estate is always a good bet. Sure, there are ups and downs, sometimes at historic levels, but at the end of the day, people will always need places to live. The key is to find the right property and make the right investment. As opposed to buying properties to flip, you can build equity in homes and instead rent them out. However, the most important part of this deal, which can make or break your investment experience, is finding the right property manager. This is the difference between sticking with your investment and potentially throwing your heads up in frustration and cutting your losses. With this in mind, follow the tips below in order to find the right property manager for your endeavors.

#1: Find Out What Other Properties They Have Managed And Get References

If you want to know what your property manger an do, it is important to see what they have done. Ask them for examples of properties they have managed and get references and testimonials from those who have used them. This will give you the opportunity to walk your way through the process with the right information.

#2: Hire Property Managers That Own Their Own Rental Properties

If you really want a rental property manager that is invested and passionate, ask about any properties they own. This tells you a lot about whether they are just in it for a quick buck or if they really practice what they preach. If they have their own rental properties, it shows you that they are serious about what they do and let their own money do the talking as well.

#3: Find Out How Many Properties They Regularly Manage

Finally, you need to get an exact figure of how many other properties your manager deals with. This will not only let you get an idea of how much they are used to juggling, but how much they are able to handle. It also gives you an idea of what sort of network or help they will be able to receive in giving you assistance from other professionals, such as handy contractors and HVAC professionals. When property managers have a lot of clients, it also denotes trustworthiness, which is huge in this business.

Between these three tips, you will have a good start with finding the right property manager for your investments. This gives you the peace of mind of being able to simply collect rent and watch the money rake in. Of course, the property manager will take a fair cut, but you will be well taken care of and will have plenty of peace of mind. Your tenants will be happy and the property managers will completely take away the burden of having to appear in court, file paperwork and handle all sorts of logistical issues. Before hiring a property manager, consider these tips and use them to your advantage.

You can read more about Resort Development Courts Multigenerational Travelers

Investing into real estate is profitable, but only when it is done right. There are far too many examples of investors who lost everything because they didn’t do their due diligence.

With new house sales being at 18.1% and general house sales soaring around 50%, there is a lot of movement in the market. However, this is only important for those who are willing to put in the hard work to investigate the area they are investing in first.

There is no value in investing blindly as that is a risk not worth taking in this day and age. Let’s see what tips one should be focusing in on as an investor when aiming to find a great property.

Assess Reported Crimes

Studies show, crimes have a dramatic impact on the value of a property and should never be undermined when determining a property’s potential. Remember, the property is only going to have value if people want to live there in the first place.

If no one wants to live there, the property’s value will drop in a hurry.

Detroit is an excellent example of this when the recession hit. No one wanted to reside in the area because they wouldn’t be able to find a job. The prices as a result plummeted and many houses were foreclosed.

Crime rates are a must when researching the viability of a property and the area one is investing in.

Analyze Amenities

What about the amenities available in the area? This would include shopping plazas, hospitals, libraries, schools, and restaurants. You want to make sure all of these are close by or the value of one’s property is going to shoot downwards.

Always make sure this is being taken into account. In fact, some real estate agencies are now giving out ‘walk scores’ to label which areas are better than others. The higher one’s walk score, the better it is in terms of its location and closeness to these amenities.

Research Price Trends

An investment is going to rely on the funds being paid to acquire the property. Therefore, pricing trends are going to have a substantial role to play in the long-term. Without knowing which direction the pricing is going in the area, you will not get a good deal.

Assess recently sold properties, rental incomes, and all other related information you could use in gauging which area is best. Two triple-net REITs hold great promise in investment sector with a positive outlook 2016. click here and find the Key Investment Strategies Using REIT

These are the tips experts use on a regular basis when investing on their own. In fact, there are many real estate magnates who have put in a lot of effort to maximize these tips and earn a significant amount of money. You can do the same as long as you are willing to research the area being invested in as soon as possible.Know everything about the property management services and key factors of Acquisitions .

Leaving this to the end is a risk not worth taking and will cause more damage than good. Don’t go down such a route unless you have money to waste. It is not worth it one bit.

Key Investment Strategies Using REIT

REITs or “real estate investment trusts” are one of the most effective methods for diversifying your portfolio and maximizing your potential in real estate. Asset management is the most important part of investment sector.

These trusts are regarded as having an annualized return of 16.7% in America. This is a staggering number considering the horror stories you may have heard about investing in general. Yet, there is potential only for those who are using the right strategies.

Well, what are the right strategies for those who want to jump in and maximize the value on offer with REITs? Let’s take a glance in this read.

Ignore New REITs

This is unacceptable with regard to your approach to REITs. New trusts are never going to provide meaningful results and the waiting period to see a return will be elongated. It takes a while for new REITs to get going and most investors are not ready to wait.

Ignore new options and go with REITs that have been running for a substantial amount of time. You want to go with trusts that have showcased payouts and prolonged success in the niche. If this is not possible, the trust is too new and not for you.

Does this mean new REITs are complete negatives? No, but they are not for smart investors who want to reduce their risk rather than add to it. Always keep this in mind.

5-10% Rule

An investor who knows what they are doing will never go “all-in” with regards to their investments in this industry. It is easy to get lost in the numbers and assume you can make a lot of money by putting all of your funds into REITs.

It does not matter how tremendous the market looks right now, all of your funds in one place is disastrous.

Don’t do it.

The 5-10% rule is fair in this regard. You want to diversify your portfolio as much as possible. For REITs, you should only be investing around 10% of your funds into this sector. Anything more and you will start to add to your risk.

Publically Traded REITs Only

These are the best and have regularly shown to do better than non-traded REITs. You have to stick to the numbers and realities that are in front of you. Get the best Investing advice by REIT.

Why take a risk with a non-traded REIT when you can go with a publically traded one? Not only are these REITs going to provide more information for you to vet the trust, but they are going to earn more as well.

Transparency is a must in this day and age. Never invest in something you are not able to get a clear look into, and that is what happens with non-traded trusts.

Don’t take the chance.

These are key investment strategies for those who want to dive head first into this sector. There are ups and downs with any investment strategy, but these options are going to ensure the results you see at the end of the year will be reasonable. Retail solutions advisors provides best real estate solution and services.

News – Leasing activity around Orlando’s skyline is beginning to pick up again

When you are involved in any sort of industry, networking and sharing resources is absolutely the name of the game. In doing this, you will have the opportunity to provide yourself the opportunity to acquire new information that will allow you to take your business endeavors into an entirely different level. In no other industry is this more true than when it comes to commercial investments. Doing this will let you reach new heights and learn more about the business, so take advantage of these guidelines in order to learn which groups you should belong to as a commercial investor. Know more about the New I-Drive Apartments Plan Near SeaWorld & Orlando’s Skyline Grows Stronger with urbanization’s across the country.

#1: The Commercial Real Estate Professionals And Investors Group

This group is beneficial to join whether you work in the industry or invest money in it. Either way, you will be in a great position to take your endeavors to the next level and will link up with other people who are like minded. This group is active online and has member’s only areas, forums, news and media sections and so much more. Joining such a group will arm you with plenty of information that will carry you very far as you learn and grow along the way.

#2: Value Investment Group

When you want to pool your money and resources together, there are a variety of ways to do it, but none are greater than working with one of these groups. Value Investment Group matches strategy with longevity, giving you the fire power that you need to take your business and investing endeavors to the next level. Not only will you pool strategy with other investors, you will also be able to pool money that can let you acquire valuable properties, which will take your portfolio to a much greater level in ways that you never could have imagined otherwise.
#3: Harbor Group

Few investing groups provide the level of professionalism and transparency than you will find in this group. From the Chief Operating Officer down, the Harbor Group sets a strong standard for people looking to get the most of their commercial investing opportunities. You will be able to cut a piece of the pie when looking into a variety of commercial properties in your local area. Regardless of what sort of commercial properties you are interested in, handling it by joining such a group is a must.
As you can see, these three groups are excellent and will provide you the opportunity to share resources and learn as much as you can. Whether you are a long time investor or someone who is just getting your feet wet, this will provide you the greatest opportunity to help yourself out along the way. You can never have enough allies and resources, and joining one of these groups will greatly expedite your experience and learning process. Consider joining these groups and definitely reach out to them today for more information.

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Managing a shopping center is a difficult task. The facilities are large and there are a lot of considerations to worry about, including staffing, cleaning and security, as well as the leases for the shops themselves.

If you have prior experience being a landlord, you may feel fairly confident in your ability to handle tenants. What a lot of people forget is that shopping centers are dealing with businesses, and business tenancies are governed by different laws than residential tenancies. You will need to understand that law before you go into business.

Another thing to remember is that a shopping center needs customers, and customers will only visit if there are shops that appeal to them. You will struggle at the beginning, if you have a shopping center piece full of vacant stores – you really need a high level of occupancy early on in the process, so that you can build up the foot traffic and attract new tenants. This requires good planning, marketing and co-ordination.

A lot of centres offer extra activities – such as shows, performances, personal “shopping assistants”, midnight launches and student only nights in order to attract more people. This may be a good way for you to build your business.

If you are thinking of promoting your shopping center with events like these, try to get as many retailers on board as possible so that you can offer a good experience for your shoppers. Foreign Dollars and Retail  Booming is the Top Commercial Real Estate Trends In South Florida.

If you run a centre which has pubs or restaurants in it, give some thought to the hours these merchants want to open or close. You will want to make sure that your visitors can relax and enjoy a bite to eat after shopping, but there may be restrictions on the hours that these businesses can operate, so you need to keep that n mind.

Another thing to remember is local competition.

What will bring shoppers to your specific shopping center over the others in the area? Do you have more shops? More parking spaces? Free parking? Do you have any specialized shops, such as boutique stores? Do you have a retail park nearby with a supermarket, making it a convenient way to pick up groceries and go shopping at the same time?

These are things that could set you apart from the competition and make your property a more appealing place for people to spend their time. Whatever your selling point, make sure you know it and articulate it well to the rest of the world.

Retail Solutions Advisors specializes in commercial leasing and Property management throughout Florida.

Are you considering investing in commercial real estate in South Florida? If so, you will want to familiarize yourself with some of the top commercial real estate trends in the area. In this article, we will be going over some of the different trends that seem to be occurring in South Florida.

Top Trends For Commercial Real Estate In South Florida:

1. Foreign Dollars.

The fact is, foreign money keeps on flowing into the area. Not surprisingly, a lot of the investors willing to invest in Miami and south Florida have been international investors. There are plenty of different reasons why this could be the case. For one, it has excellent weather. Another reason is likely due to the favorable tax structures present in South Florida. Also, the amount of diversity in the area probably influences investors as well. All kinds of international investors have been pouring in all the way from Latin America to Europe. The influx of foreign capital and the urbanization of the area has led to a huge resurgence in the condo market.

2. Retail Is Booming.

Another huge trend that is occurring is retail. Retail happens to be absolutely booming in the marketplace. The good news is that this increase in retail investment and return is not expected to stop anytime soon. With all of the different International buzz about retail development in Miami, it has led to a significantly higher amount of demand in Miami and other parts of South Florida. Because of the increasing demand, developers have begun to realize that they need to increase the efficiency of the space that they have available. This combined with a lot of big box retailers downsizing due to the presence of E-Commerce and you have a lot of potential in the area. Because South Florida has a tremendous amount of tourism, the employment levels are fairly stable which further makes it such a great place to invest whether foreign or domestic. Before Buying or selling real estate, you need to know the value of the property

As you can see, there are two major trends that are occurring right now in the South Florida area. If you are considering or looking at investing in the area, you should do your research to see which areas are really booming. Location is key whenever you are trying to invest in any kind of commercial real estate. While certain areas might be booming, others might not be as investment worthy. Once you find and establish a good location, you will also want to check to see what the growth potential of it is like. Is the area going to be getting more and more development in the next few years? Is it more of a long term investment opportunity or do you see returns coming in almost immediately? These are some of the top questions that you should answer before you decide whether or not to invest in anything. Also, keep an eye on the International investing as it could have huge impacts on the growth potential of certain areas.

Learn how Can You Make Your Shopping Center Better and keep your Retail Tenants Happy In Your Shopping Mall

Renting out a property can reap a rather beneficial income; however, there are various factors that must be taken into account in order to keep the tenant happy. It is important to remember that only happy tenants will be easy to work with and therefore result in simple, advantageous interactions without disadvantages. This article will provide some information on the different considerations to take into account when renting out retail space and maintaining peaceful tenants.

Consideration #1: Maintain The Property Effectively

While a property may seem sturdy, it will at some point require some maintenance; and, if you are renting a property the maintenance obligations will become your obligation. It is simple to ignore the problem and hope the tenant will deal with the issue but this is not responsible and can cause arguments. In order to maintain a pleasant relationship and ensure future business, it is recommended that you attend to maintenance issues promptly. This indicates attentiveness and eagerness to increase the tenant’s enjoyment of the space, which may lead to a prolonged tenancy agreement. It should also be noted that delayed repairs can be subject to legal liability claims if the tenant is injured as a result.Check out the gloomy message from the bond market for Property investors.

Consideration #2: Completing Regular Inspections

In addition to being a legal requirement, regular property inspections are useful to check that the tenant is caring for the property. While tenants will report any maintenance issues, they do not often report issues that are caused by their own neglect. An inspection will bring any of these problems to the fore and will provide you the opportunity to repair any damage that may have been caused. It also shows the tenant that you, as a landlord, are showing an active interest in the property.

Consideration #3: Maintaining Positive Relationships

Maintaining a positive relationship with the tenant is a highly effective means of ensuring that they remain cooperative. This is due to the fact that they will feel ‘listened to’ and that their needs are being considered by the landlord. By listening to their grievances and responding quickly to queries you can be sure to win their confidence and encourage a lease extension. Of course, the requests should not be approved without full consideration and if a request is denied the reasons must be provided in writing with the response.

Consideration #4: Remain Realistic

It must be remembered that even the most pleasant and responsible of tenants can damage a property is some manner. It may not be intentional, but accidents do occur and in some cases they can be very detrimental. If the tenant has a strong track record there is little to be gained by adopting an unreasonable and ineffective approach. Always be realistic when dealing with tenants and understand that you are placing the property in another individual’s hands when handing over the keys. To reduce the financial damage it is recommended that landlord insurance be purchased providing coverage for both accidental and malicious calamities.

Final Words On The Matter

Renting out Commercial brokerage can be exciting; however, it can be very overwhelming. By using the information above you can make an informed decision on how to maintain a working relationship with your tenants and keep the activity exciting.

Read more about the commercial Leasing Services and how to effectively managing commercial retail property & Key Real Estate Trends in Florida for Investors

If you’re planning a trip to Orlando, you’re going to want to do some shopping while you’re there. There are many great places to shop in Orlando and if you know the best places you can find a lot of great things at steep discounts.

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In addition to shopping at the Disney World resorts and theme parks, you can also find great deals in and around Orlando if you know where to go.

Shopping doesn’t have to be expensive in Orlando, it all depends on where you shop and what you’re looking for. If you go in with an open mind and are willing to do the legwork you’re sure to find something for everyone on your list.

Flea Markets

Orlando is home to several great Flea Markets. The largest is within half an hour of most of the theme parks and packs a lot of great discounted Disney World souvenirs.

You’ll find clothing, Disney World Souvenirs, swords, knives, tools, household goods and more all within this Flea Market. They even house several great food vendors so if you’re hungry while you’re out and about shopping you can easily slip in and grab a bite to eat, or better yet, grab something to take home after your shopping adventure.

Lake Eola Farmer’s Market

At Lake Eola Farmer’s Market, you’ll also appreciate great discounts on a variety of items. When it comes to Farmer’s Markets and Flea Market’s, Orlando seems to know exactly what they’re doing.

This region focuses on providing plenty of options for shoppers at great discounts so you’re sure to be able to visit those theme parks and still pack home some fantastic souvenirs that won’t break the bank. If you have a large shopping list, this is the place to go.

Department Stores

If you prefer to shop elsewhere there are still plenty of shopping venues to choose from. You can find he latest and greatest fashion trends in the Mall at Millenia as well as the Florida Mall.

Here you can choose from toy stores to outlet centers and everything in between all within walking distance. Whether you prefer name brand fashion or top designers of the year you’re sure to find something here.

Retail therapy is just around any corner when you’re paying a visit to Orlando. Just step out your door and take a short walk and you’re sure to find something of interest.

With so many shopping adventures you may have to schedule in a few shopping days on your next trip to Orlando and Disney World. You may find that you’re spending just as much time at your retail therapy.

Be sure to pack an empty bag to load all of your new found loot home. Otherwise, you may find that you have to purchase a new bag at one of the many markets in order to make it home with everything that you’ve purchased. Also, be aware that you may have to pay a small fee for another bag after your shopping trip.

We have over 100 years in the commercial development field, and we specialize in retail development. From marketing strategy to plan approval, our team is equipped with unparalleled knowledge of the industry

No matter when you start to plan your vacation to South Florida, you always need to take a number of factors into consideration so that you can have a great time. The overall timing of your visit will play a major role in how much money that you spend as well as how crowded it is going to be once you get to your destination. This is due in large part to the raise in room rates during some of the high peak seasons, as these are times when countless people make their way to Florida.

A good rule of thumb for planning is taking a look at weather patterns. The temperatures and the way the weather is will determine the peak seasons for travel. South Florida is looked upon as being sub-tropical and the high peak season is usually in the winter time. There are a lot of people who like to book their travels to this region from around the middle of December through the middle of April. However, there are now more travelers who are spreading the time frame for travel to South Florida even further. Check out the best places to shop in South Florida and importance of Asset Management

However, if you are able to stand the high heat and humidity that may come along with travel to South Florida in the spring and summer months, you may be able to still get in good with a lot of the great deals that are to be found. This time of year can be nice for making a trip to a resort that is close to the beaches or even making sure that you are going to be visiting some of the many exciting water parts that Florida has to offer.

One thing that you will want to keep in mind is that there is a known hurricane season throughout Florida. If you are thinking of traveling between June and November, you may end up in the middle of some pretty significant storms. The best that you can hope for is taking a look at some of the common trends for storms around the southern Florida area and choose the month that suits your travel ideas the best. Finding the right deal and ROI are the most important part of Asset Management

When looking at some of the popular travel times and holidays, you will usually see that there are many that are extremely popular for travelers across the state and just not in the southern region. These holidays include President’s Day Weekend, the week of Easter, Memorial Day week, July 4th, Labor Day week, Thanksgiving, Christmas, the New Year. Not only are the major theme parks and other attractions packed during these times, but the beaches will often see quite an uptick in visitors.

Regardless of the time of year that you are planning out your visit to South Florida, you will always see that putting plenty of time in to do the research will be best. By working with a travel agent or consulting a reputable travel website, you will be able to plan a vacation to remember.

Retail Solutions Advisors specializes in commercial real estate leasing and management throughout Florida. Know more about us.