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Property Management Blog

Published on Saturday, May 2, 2009

Commercial Real Estate Investing

Investing money in land or property has become very popular to beat uncertain economic conditions. It increases economic growth as it adds to the countrys GDP. It can be sold in the future at suitable time to earn revenue. Not only for economic welfare but also for personal or commercial reasons, it is banked upon by many people. Out of many property ventures, commercial real estate is a profitable one indulged by those investors who specialize in property business. Its market has risen compared to other housing business. Modern strategies can be exploited with innovative ideas and sustainable initiatives for expansion of the property business. However, the prime requisite for opting for a commercial property is the type of the business.

Location is very important for a commercial real estate . It must be well-connected with the centre of the city, having all the necessary facilities within easy reach. Since it is meant for business or company needs its position speaks for itself. Finding such a place is relaxing with assets and property brokers who are legally assigned for this task. A property agent works for an agreed commission. He helps the buyer to purchase at a reasonable price while for the seller he selects a high-revenue earning deal. Beside professional assistance, the property needs impressive displaying and catchy presentation before its prospective buyers. Advertisements through newspapers or internet are very common. The latter one is the most effective reaching out to a huge number of people within a short time.

To find the ideal commercial real estate among so many available in the market a person takes recourse to the internet. It speeds up the process. The company websites give information regarding their services, terms and conditions, and policies which an interested person comes across. This makes it easy for him to compare and contrast prices, features and services of companies. A simple market research through the fastest means at the end provides him with the best option. It saves time in traveling personally to each place to observe the properties directly. Just a click on the mouse and several companies lay bare in front of his eyes. Necessary documents must be kept ready while negotiating the deal. Moreover, it must be finalized before an attorney.

Since commercial real estate that can be rented or bought, is of various kinds from office space it is important to know about their features and all other relevant details. Again business type affects the size of the commercial property, and so the owner must realize this need very clearly. It is suggested therefore that a buyer has explicit understanding of the feature and nature of his business, and what he desires in his office. Planning a business carefully is hence a very crucial step to a successful deal. With systematic approach he must assess the entire matter very thoroughly before he goes for a property investment. This will not only save time and energy but also available resources that he has in his hands.

A commercial real estate boosts the reputation and success level of a business. Investing in lucrative properties should not be ignored. This resource can be exploited in the future to bring in more profits. However, it is wise to be organized and cautious about the observance of rules to avoid getting cheated.

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Author: Web Master

Categories: Property Management




Landlord Knowledge Base

If you’ve ever considered investing in a few rental properties in Philadelphia or Bucks County, PA now might be a good time. Prices are still low in Philadelphia, but have been on the upswing. According to the National Association of Realtors, the median price of an existing home in a US metropolitan area grew 13.7% between July 2012 and July 2013, the latest in a 17-month streak of year-over-year price increases. 

New landlords can choose from properties that are likely to appreciate and a large pool of potential renters.Licensed realtor Pat Mueller cites a few reasons for this trend: “Many families have lost their homes to foreclosure and are entering the rentals market for the first time in years. Mortgages are also harder to get now, so fewer people are qualifying for a new one.”The more skills you bring to the table to get into Houses for Rent in Philadelphia Philadelphia or Bucks County, PA and the more time you have to devote to your properties, the faster you can make a return on your investment. 

But investing in rentals can also be disastrous (or too stressful to be worthwhile) without expertise. Here are three professionals you may consult about your new rental properties, and what you can do to mitigate how much they cost you:Handyman:  You may need to hire a specialist for some work on your rental. If you need new outlets or new pipes, for example, hire an electrician, plumber or licensed contractor. Handymen usually tackle smaller, more manageable tasks, like:

  • Painting and paint removal
  • Drywall repair
  • Minor appliance repairs (fixing a leaky toilet or faucet, among others)
  • Installing tiling or flooring, moldings, windows, doors
  • Refinishing decks, cabinets and other wood items

When You Could Skip It: You could do any (or all) of these projects yourself if you have the time and interest in learning. Of course, this only works if you live relatively close to your rentals and are flexible enough to service them on short notice. And if you’re willing to respond to the occasional 5 AM basement flooding.

Average Savings: Any base rates or costs-per-hour vary from location to location in Philadelphia or Bucks County, PA , but nationally, you can expect to spend an average of $60 to $85 per hour for repair costs. It general costs less to hire an individual handyman than a handyman employed by a company. Expect an additional charge if your job requires a trip to the store for materials.

Resident Property Manager As the owner of a handful of rental properties, you may be able to manage them yourself, but if you want help, a single resident manager would probably be more cost efficient than a property management company. Resident managers may:

  • Serve as a handyman
  • Advertise vacancies in your units
  • Show apartments to prospective tenants
  • Review rental applications
  • Collect rents

When You Could Skip It: Again, the closer you live to your properties and the more spare time you have, the less likely you are to need a manager. The obligations of being a boss will also cut into the time you save on maintenance.

Average Savings: The national median wage for residential managers is just over $25 per hour. Research the wages in your community and adjust according to how much responsibility your manager will take on. 

Real Estate Agent: Once you’ve gotten your financials in order and done your own research on the neighborhood(s) you’re considering, you might contact a realtor to show you potential properties. You can also arrange for a realtor in Philadelphia or Bucks County, PA to show rentals once they’re ready to rent.

When You Could Skip It: It depends. Even if you’re a local, or have thoroughly researched the neighborhood(s) you’re considering, a realtor is a great resource for a first-time rental buyer. Realtors have access to data and statistics not necessarily available to the general public and first-time buyers may not know all the right questions to ask. Using a realtor to fill your Houses for Rent vacancies is less of a no-brainer, depending on your other time commitments or whether you plan to hire a resident manager who could do the same thing.

Average Savings: As a buyer of rental properties, as when buying your own home, sellers typically pay most, if not all, of the buyer’s realtor fees. In this case, Mueller points out there’s little reason not to work with a realtor. For help in filling your units in Philadelphia or Bucks County, PA, the services of a realtor would set you back between 10-20% of the unit’s rent per month.  Mueller recommends interviewing with several brokers before making your final decision to invest into Houses for Rent .

The Bottom Line: As a new landlord, you can’t necessarily control the flexibility of your schedule or the amount (and cost) of unexpected repairs to your properties. Rentals are a long-term investment. However, to maximize profits from your Houses for Rent, new rentals, you can buy close to home and start small. It is best to begin with just one or two properties. This will allow you to maximize the time you spend on your properties’ needs, and minimize the amount you’ll have to pay anyone else.


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