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Archive for the ‘Commercial Real Estate’ Category

You are a best judge of your potentials and you know how to utilize the skills and knowledge to your best. If you have confusion in your mind, related to your current financial situation and your chance to change it for better. Then you need to consult some sincere friend, or to make an overall analysis of the growing business trends. It will help you in evaluation of your aptitude, related to prevailing trends. If you feel yourself as a suitable candidate for Real Estate Investment Business, then you have to get a firsthand knowledge of the requirements of the field.

Once you have made a choice of making an entry into real estate investment, then you are supposed to know about the money required for investment. If you are considering of spending your hard earned savings on it, then it is not the best choice, especially when there are available lots of hard money lenders, giving out loans on very easy terms. You can get hard money loans Virginia, as your savior in this regard. All you need is to know about your segment of real estate investment. There is an investment opportunity in residential property, commercial and development one too. Same is the case with the different categories of hard money lenders, as some are here to deal with residential hard money loans and there are commercial hard money lenders and development hard money lenders too.

I think you need to consider the fact on serious note that the real estate investment is much safer and profitable on residential property side. You can get an easy access to Hard Money loans Virginia, which will not look at your financial credentials, in order to sanction you the loan. But it will work with you on the basis of your right selection. It is highly recommendable to you to think about investing in residential property business. There are further categories to it like fix and flip, rehabbing, reselling and foreclosure kind of activities, which a genuine hard money lender like Hard Money Loans Virginia would guide you in detail.

Life has so many chances for you, if only you wish to take an extra step, to change your own future. You need to think of making an investment, by making a contact with Hard Money Loans Virginia. It will benefit you in the loan process for rehabbing an old property. There is a chance for you to take part in foreclosure activity, all by yourself and to earn a reasonable amount of profit over that purchased property. You have the facility to get a flipping loan too, which means you can get an old property, and can fix some necessary things, as necessary by following the current trends. Then you can resell or in real estate term “Flip” the same property, at a great profit margin.

However it is in best interest of you to get an extra investment from a reputable hard money lender, and to pay only for some necessary expenses. When you earn the profit over your purchase, you are able to pay back the loan and to keep the profit by yourself.

Are you looking for leasing or selling your commercial real estate? Commercial real estate transaction might not be an easy task for you. First and foremost you will have to prepare your commercial real estate for selling or leasing objective. For instance if you have a wide stretch of land or an industrial space set up, then you can go ahead with leasing.

Industrial space for lease:

Before you place your industrial space for lease in the market, brush up you commercial real estate knowledge. It is always advisable to allow the professionals take charge of something that involves a huge amount of money. Hence take help from a real estate broker. Never select a broker randomly, instead interview many and choose the most efficient one who can escort you safely through this journey. Talk face to face and find out whether he has prior experience with the similar business. Clearly specify your needs, tell him what you want. The most important part is that you should feel comfortable in his or her company.

The reason why we should be selective about choosing a broker is, a good knowledgeable broker can evaluate the property and help you set a proper price for your industrial space for lease. Moreover, he can help you with some good advice and tools.

A good commercial real estate broker can really make a significant difference in your industrial space for lease dealings. Usually a well experienced commercial broker knows his business in and out. So he can analyze your property and compare it with the market for better return.

Inquire about which professional trade association he is associated with. Apart from the other benefits of being associated with trade association, it helps to establish a wide spread network. This network can help your commercial real estate broker reach the right person who can offer something more than your expectation.

A good commercial real estate broker will first counsel the person in search of industrial space for lease. Let the broker negotiate and handle the deal. An expert real estate broker is good at solving all difficult problems that might crop up before closing the deal.

Industrial space for sale:

As mentioned before, a good commercial real estate broker can do magic. For preparing your industrial space for sale you will require a professional help to give you effective advice. When you are at the verge of selling your commercial real estate, don’t try to wrap up the deal hastily. Take your time and discuss with your commercial real estate broker.

If at any point you find that the broker is not applying the best practice while dealing with your project, look for a substitute. Sometimes, some commercial real estate brokers pay less attention to relatively smaller deals. In such a case it is better to look at other options.

You may find a commercial real estate broker through referral or from real estate websites. Begin the search by asking people associated real estate related business. A banker also can be a great resource for identifying a good commercial real estate broker.

Article by Gerald Mason

If you have ever thought about real estate flipping you are not alone. But instead of only looking into residential flipping, why not consider other options as well?

More particularly, flipping commercial real estate as a way to make money. Commercial real estate is property where people can do business. For example, office buildings or retail properties are considered commercial real estate.

This is how it works:

You will buy a piece of commercial real estate for a low price, and then fix it up. When you are done with all the repairs, the last thing that you have to do is sell the property. This is when you will realize how much money you are going to make. Sometimes you can make hundreds of thousands of dollars flipping commercial real estate, and other times you may not come out on top at all. In other words, there are not guarantees when flipping commercial real estate.

In addition to flipping commercial real estate when you sell it during the last step, you may also want to look into the option of renting the property out as well. Of course you will not get a lot of money up front if you do this, but in the long run you may make more than you ever thought possible.

The key to being a success when flipping commercial real estate is finding the right properties. After all, if you buy properties that cannot be fixed up and sold for a profit you are not doing yourself any good. When you first start out with flipping commercial real estate you may not know exactly what to buy; this is to be expected. But as you become more experienced with flipping commercial real estate you will know which properties are the best for your needs, as well as which ones you should stay away from.

Flipping commercial real estate is not quite as popular as dealing with residential properties. There are usually fewer commercial properties available than residential properties. But with that being said, if you keep an open mind flipping commercial real estate is more than possible.

Overall, flipping commercial real estate can be quite profitable. You may not come into the big money early on, but if you stick with things you will be a success sooner rather than later. And who knows, you may be the next person to make millions by flipping commercial real estate. It could happen to you!

When most people think of real estate investment, they think of rental homes and apartments. However, current economic conditions make rental real estate riskier than ever. Even good honest tenants are subject to losing their jobs and being unable to pay rent. Furthermore, declining property values and rising taxes and insurance negatively impact profit potential.

Commercial real estate investment offers an attractive alternative to residential real estate. Leases are long-term and the checks are less likely to bounce. There are two basic types of commercial real estate investments: direct and indirect.

In direct commercial real estate investment, you purchase one or more business buildings. This option requires a large amount of capital and offers little liquidity. As the owner, you will be responsible for management and maintenance issues.

Office buildings and manufacturing facilities usually provide long-term tenants and greater stability than retail establishments. But if you need your money, you have to find a buyer for the building. And again, you will have tax and insurance issues.

Novice investors have been burned by hidden environmental problems or zoning issues, so make sure to seek the advice of an attorney knowledgeable in commercial real estate issues.

Indirect real estate investments allow the smaller investor to enjoy the benefits of commercial real estate with fewer disadvantages. Funds from many investors are pooled and used for commercial investments. The fund’s directors hire managers and address maintenance issues. Furthermore, shares in the fund can be sold at will, improving investors’ liquidity.

There are many options in indirect real estate investments.

You can consider the pros and cons of various investment types. For example, you may decide that America’s aging population makes medical building investments a “sure thing”. On the other hand, concerns about national health insurance issues leading to restrictive regulations in the medical industry may lead you to look elsewhere for investment opportunities.

The global marketplace makes it possible to invest in real estate anywhere in the world. However, differing regulations and politics may increase risk. On the other hand, rapid growth and profit potential may make the risks worth taking.

Like most investments, the costs of real estate investment shares have dropped considerably. However, the returns are still excellent compared to other investments. 
And the real estate investors’ mantra “They’re not making any more land” is as true as ever.

You can go online to research major real estate investment funds. Maybe you can find the perfect commercial real estate investment to meet your financial goals.

It does not matter how many commercial real estate deals an investor goes through, they always have an established process that they utilize every single time to assure they cover all their bases and increase the likelihood of a great investment. Synergy has a lot of meaning in the commercial real estate market. By utilizing synergy of process and assets one can realize huge results and profits by making minor adjustments to strategy. Those minor adjustments can often mean the difference between success and failure.

Typically, you will need to secure a loan for financing commercial real estate deals due to the size of the deal and type of property. While this probably makes sense, what you may not consider is where to look for this financing. Most if not all investors would probably consider going to large banks because of their overall size and assets. But read on to see why this might not be your best option and where you should probably be looking instead.

Obtaining Bank Loans:
It is preferable to deal with small, rather than large, banks. Big banks have more money, but not necessarily for you. Also, it’s easier to get lost in a big bank, because those employees may get promoted to a different location or a different department suddenly, your contact may no longer be there when you need them most, like in the middle of a deal.

A small bank that has their charter as a community bank is a better bet. A community bank is formed under what is called the Community Banking Act (CBA). It usually furnishes a certificate of need, just like a hospital would do to get into the community. Their certificate indicates the particular niche of the market on which they are focused. Also, one of the great benefits of a small bank is the loan approval process. They usually don’t have to wait for a committee to meet to discuss your loan. They see each other every day and make decisions quickly, since there are only two or three persons on the loan committee.

And how about this for a twist you may not have considered before. When you find a local bank with whom you enjoy a thriving relationship, consider trying to make them your tenants. Imagine having the community bank that you use for most of your accounts being downstairs in the lobby of your building. You could go down when your representative is not busy, or even visit with one of the officers to see what they think about a particular deal you’re considering. Certainly, this would give you an edge over your competition if there is such a thing when dealing with banks. But surely it couldn’t hurt to have such a relationship.

Here is another source for financing commercial real estate deals you may not have considered before.

Finance Company Loans:
Finance companies are capable of doing things that conventional banks can not do due to government regulations or the internal workings of the institution itself. The first thing a person thinks of when this type of company is mentioned, is usually Household Finance or Family Finance. And while these are certainly finance companies, they aren’t the ones you need to be contacting. The types of finance companies you want to contact are the ones with vast real estate financial dealings. Below are three of the larger companies that do this type of business, but you could certainly find others with all of the resources available to us today to locate information.

Some Finance Company Suggestions:
• GE Capital
• Westinghouse
• Ford Credit

So in summary, I hope this provides you with some valuable information perhaps you had not considered prior. By opening your eyes to some additional resources for financing commercial real estate deals, it may be an area you will want to consider for your investing portfolio moving forward.

The Middle East region has been a real estate hotspot for a decade now. A place like Dubai for example is one of the fastest developing places in the world. There is so much construction work going on in this city. It is estimated that over 70% of the world’s cranes are based in Dubai right now. They being pumped into places like Dubai and other emirates in the UAE .A huge chunk of this investment come from Asia, especially countries within the Indian Subcontinent. So it not surprising to see a real estate investment company, Dubai dealing with Dubai property (or any other Emirate property for that matter) enjoying handsome returns.

A real estate investment company, Dubai usually invests in either residential properties or commercial properties. Usually a bigger real estate investment company will deal with both these kinds of properties. Some companies will just buy and sell properties whereas others might buy, develop and then sell. With the world markets just recovering from the inflation, good real estate investment Listings Company, Dubai today is in a position to provide its clients a variety of flexible business investment plans and solutions across a wide variety of sectors.

Research is at the core of good real estate listings, Dubai. Such companies must keep doing their due diligence and provide up-to-date and timely information to their clients. Despite the financial situation, the Persian Gulf and other parts of the Middle East are ripe for investment and those who invest have an opportunity to enjoy big returns as well. There are a number of benefits to buying real estate in place like Dubai and other places in the gulf. Government regulation is nominal and more importantly there is no rental tax or even capital gains tax which makes owning property in these areas a very attractive proposition. In fact Dubai welcomes foreign investment from expatriates as well as the visitors. Few places in the world can match up to the impressive options that the Persian Gulf as a whole has to offer.

It is critical that, when you wish to do business in a market that is beginning to stabilize and find its legs, you work with the kind of real estate investment company, Dubai which works in a very transparent manner. They should be trustworthy and focus on ensuring that they are doing everything which is right for you and not just chasing after their own commissions.

It is important to choose a real estate company which has extremely good local real estate knowledge. This will help a great deal while you go about making your purchase decisions. While the inflation situation has made things a bit grim, there is no need to believe that investments can’t be made and subsequent profits can’t be had. Proper knowledge along with the right kind of dedication will ensure that your real estate investment company, Dubai will be able to provide all the solutions you require with regard to your realty needs.

LIH Group is a LeadingReal Estate Investment Company Dubai. Offers Commercial and Residential Property Management Services on affordable costs. Property Investment Specialists

 With so many commercial real estate companies and real estate investment firms, finding the best brokerage firm from among the many choices can prove daunting. Every commercial real estate transaction and decision requires careful attention. The market can change rapidly. Commercial real estate law and regulations can change quickly too. This means it is important to work with cost-effective experts who can sort the good deals from the bad and keep up with trends and fluctuations.

Commercial real estate Georgia, Texas and throughout the nation is sold through a process that can be inefficient when it comes to sorting through the most appropriate commercial real estate companies and real estate investment firms to match customers with the best brokerage firm.

Commercial real estate Georgia, Texas and around town involves dealing with a lot of variables such as contracts, construction, rental and ownership issues. Everything needs to comply with commercial real estate property laws. Many commercial real estate companies and real estate investment firms specialize in various areas. Professional assistance can steer investors and owners to the best brokerage firm, saving time, energy and money.

Working closely with major firms as well as specialty operations can make or break a transaction. Commercial real estate investment firms and commercial real estate companies like Grubb and Ellis, JLL, HFF, CB Richard Ellis, Colliers International and Eastdil, to name a few, all have commercial real estate Georgia and Texas, but also have specific weaknesses and strengths.

However, finding the best brokerage firm for a transaction involves knowing what each does well and not so well. That’s why it pays to associate with commercial real estate professionals who know what works and can direct clients to the best brokerage services for their needs.

 About Charlton Duncan

He has been working for 15 years in the real estate area, and his experience can help you to find a solution, He is here to make sure your making the right Decisions for your needs at no cost to you.

The RealStateis a sector that needs people with so much knowledge leading and guiding
to reach what you want. It needs dynamism at all time, and get you always focused on real objectives that can be reached to a wide variety of people that fit their space needs. To his readers he gives you the opportunity to learn new tips where you will find chances to make a better right decision for you and your family.

Article by Anthony Seruga and Yolly Bishop

Unless you’ve been living on Mars, you’ve heard horror stories about the subprime mortgage melt down, and the hazards of a debt-fueled bubble and unrestrained mortgage lending. If you’re a commercial real estate investor, one of the operative questions is “Will this impact me?”

The short answer is “Yes, but not as badly as you might think.” First of all, there’s some compartmentalization in the real estate debt industry, and more importantly, the odious concept of “third party mortgage broker” was laughed out of the commercial real estate market post haste. (Most commercial real estate lenders are insurance companies, who are looking for long term returns and asset preservation, rather than trying to make a quick turn. What this means for you is that while credit lines for home loans (and shady, shaky, bizarre home loan products and derivatives based on home loan products) are getting mulched, loans remain strong for commercial real estate investors.

Indeed, because most banks are taking a bath on bad debt, they’re actively looking for nice, stable business to business loans. From the financial services sector, commercial real estate loans are a good deal; the people who take them out have established credit ratings, and they have an income stream (from leasing and resale) that keeps the cash flow positive, which helps the banks avoid liquidity issues, such as the one that sunk Bear Stearns. Because you’re working directly with the bank, you have a much greater level of surety in getting your commercial real estate loan.

On top of that, there are some hopeful signs for commercial real estate as a segment. The house construction boom burst in late 2006; the mortgage melt down was written clearly on the wall in the spring of 2007…yet new office space starts went up around 15% as of the third quarter of last year. (That growth wasn’t repeated in the fourth quarter, as more investors took a wait and see attitude.)

The people who invest in US commercial real estate are people looking for long-term holdings and revenue streams rather than “flippers”. Commercial real estate is a good longer term, low risk core investment, and the sort of investment that companies trying to preserve assets move into. Likewise, because of the weak US dollar, commercial real estate investing in the US is appealing to foreign interests and sovereign funds. Furthermore, beyond the shambles the dollar is in, the United States is still an appealing investment target for commercial real estate. It’s still the largest economy in the world, and it’s still the engine of innovation and entrepreneurship. It’s easier to start a business in the US than nearly anywhere else in the world, which means that it’s easier for a commercial real estate investor to find tenants to cover the cost of the mortgage. The US’s comparatively light regulatory burden (compared to Europe), and near total transparency in banking laws (compared to Asia) make it appealing for a number of solid reasons.

Most of those investors are looking to get some return on their capital, which furthers the appeal of business related real estate investing. This growth potential is already being actualized – in dollar amounts, commercial real estate demand grew by 40 billion dollars last year…. however, in order to capitalize on it, you’re going to need to work harder structuring the mortgage and payment agreements. You’ll have to ask more questions, and provide a greater proof of assets to get competitive rates, just because investors are (justifiably) skittish after seeing the credit markets implode.

On the flip side, that kind of conservative investment strategy will help you in the long term, as market corrections won’t sink your commercial real estate ventures.

When real estate investors hear the term depreciation of real estate, their reaction is almost scary. Property investors think that by the reduction in value of their property, which they are going to lose out on a lot of generated income. Due to this fear, investors will try every tactic to avoid the depreciation of their investment property. What is depreciation of real estate? It is a term used to describe an annual tax deduction toward the wear and tear for commercial and investment properties. The deduction will increase over time as property loses its value. This particular deduction is called depreciation of real estate.

Why are so many real estate investors afraid of claiming their properties depreciation on their income tax? Though a depreciation of real estate tax lowers the investor’s net income, the taxes of the capital gain of the investor by selling the commercial property to another party can go up. This tax was set at 25% for all recapture of depreciation of real estate plus a capital gain tax of 15% not including federal and state taxes. This could leave a taxpayer paying in sums of 30% or more in to the IRS if they sell their investment property. The annual tax is dependent on the type of property you own where you would take out 3.64% for rental housing for a 27 1/2 year life and 2.55% on commercial and industrial property on a 39 year life span of the investment itself.

There are two types of depreciation of real estate that is straight line and accelerated. Each is different on how you are taxed in which a straight line uses the same percentage per annum while the accelerated method is taxed on as ordinary income. What exactly is an accelerated and a straight line depreciation? Below explains what they are and some examples of how both straight line and accelerated depreciation works:

Accelerated depreciation is any method of depreciation that is used for accounting or income tax purposes that allow a greater deduction in the earlier years of life on an asset. Here is an example of the use of accelerated depreciation: A corporation has invested in an apartment building for $ 100,000 that is projected to run for 27.5 years. Utilizing the easiest form of depreciation, the corporation may allow $ 3,640 of the cost of the property to its expenditures each year for 27.5 years, until the $ 100,000 in capital expense has been met. Under accelerated depreciation, the corporation may be allowed $ 7,280 per annum for 13.75 years for the cost of the rental property.

Straight line depreciation is the easiest and the most used form or depreciation, where a corporation in which the salvage value of an asset is evaluated at the end of the period during which its used to generate revenue and will use a portion as an expense of the original cost in equal payments during that period. An example would be an investment broker purchased a three bedroom house for $ 60,000 and its expected to last for 27.5 years. Once the real estate broker begins to rent the property out, he will pay in $ 2,184 each year as an expense over the course of 27.5 years until it reaches the capital expense of $ 60,000.

With these in mind, a depreciation of real estate is beneficial to investors everywhere. Not only does this create a security blanket during tax time, but this will assist you in which method better suits your needs during tax season.

Article by Kim Lee

Understanding about commercial real estate is not as hard as you may think. Even though this may sound difficult on the surface, fact is understanding about commercial real estate is not difficult. Generally speaking, commercial real estate is a property that is used for business only. This means that the property is zoned for business use, and it should be used for that purpose only. When compared to residential real estate it is quite easy to see the difference between the two.

There are two common types of commercial real estate that are probably known very well. First one is, office buildings. These can be everything from the huge office buildings that you see in a big city, or smaller ones that are in little towns. Irrespevitve of the size of property,if they are used solely for business they are known as commercial real estate. Additionally,properties that house retail stores can also be considered as commercial real estate.For example, the strip malls that are seen in suburbs all over the United States are commercial real estate. They are used for business only, and are meant for retail shop owners to move in and sell their products.

Many people may have this question in mind, what is the advantage of buying commercial real estate?. While most people will never purchase commercial real estate. Many people buy this type of property because they have a business that needs somewhere to work. And instead of renting they would much rather buy commercial real estate so that they can own it one day Investing in commercial real estate is wiser for them.

Although this differs from investing in residential properties, things remain the same for the most part. The main goal of a commercial real estate investor is to generate income as soon as possible. Now you could have understand about what commercial real estate is all about.There is not much you need to learn unless you are interested in buying commercial real estate. If you are in that position you will want to learn a bit more about the industry as well as how to make a purchase.

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When it comes to investing, you cannot be too sure because there are times that you can get a great value for your investment, but sometimes not especially if you do not know actually the nature of the business.

In real estate investing, location is always a great way to start your investment and when we talk about location, Miami is the first place that will come in your mind. This is the reasons for the thriving of the Miami Commercial real estate market.

When it comes to Miami Commercial real estate there are plenty of viable options that you can choose from but if you want to earn a desirable profit then investing in Miami commercial real estate is one of the best options for you. You can actually get your money’s worth in every option that Miami Commercial real estate could offer, but if you want a steady cash flow, Miami commercial real estate can be the best option for you.

For all the people who are looking for a great way to generate income, Miami commercial real estate industry is a great way to go. Today there are already plenty of people who are starting to enter the commercial real estate market an since this type of real estate is continually being purchased and sold, it has been an excellent way to guarantee return. This can be really a viable option for investors and in terms of having a good business venture. And now there are lots of people who are entering this venture due to the cash flow.

But before you start entering the Miami commercial real estate investing, it is very important that you understand the commercial real estate industry and its surrounding components. With this location is pretty much important in this kind of investment. You have to find a good spot in which you can get good value for your money.

And because of this we all know the Miami is a location of great real estate possibilities and for sure every investors hope that it will be a great options for them certainly because there are lots of real estate business in the country today. Miami is a location that has never ending flow of people and with this you can be sure to have a continuous potential to earn.

Keep on mind that Miami commercial real estate is an excellent choice for investors due to variety of reasons. Because of the long term and short term financial benefits, investors find investing in commercial real estate in Miami is a pleasing investment. So if you are trying to look for a constant opportunity, you have to choose the Miami commercial real estate as your top priority for your business.

Ella Ayson
Miami Commercial Real Estate

Do you know where to find commercial real estate listings? Please note that you are at the right place. On our listings you can all buy house cheap such as real estate apartments, beach houses etc. Have you ever come across a property or home owner who wants much money to be paid for the property? Welcome to the real world, it happens all the time to real estate experts. The question is would you like to see our listings or not? Do you take the listings or not? Will the customer reduce the cost to a more realistic level quickly so the listing does not stagnate on the market?

The pricing difficulty arises because most property owners think that they paid a good cost for the property and they want their money back plus an extra.

In their view time escalates the assets value (even if it is only a few years!). In their view prices do not go back when it comes to their wonderful assets. Well the conflicting is the case and prices do go backward for all sorts of reasons. The recent global monetary crisis in many countries has proven that.

Keep in mind that you do not have to list a property just because the client wants to list it with you or your agency. Protect your time and protect your status. Remember that an unsold property that is on the market for a long time will have impact on your reputation. It is better to be known for listing and selling a few good properties than listing lots of poor listings that are expensive

Before you take the expensive listing on there are a couple of considerations that you are required to make given that it’s your time that will be taken in the marketing of the expensive property.

Take into consideration these questions:
Would it be better to let some other mediators take the listing at the inflated price and waste their time?
Can you come in later after the other mediator has remained unsuccessful with the property, thereby allowing you to condition the seller to a more reasonable price?
Will the client lessen the price quickly and soon if enquiry is low?
What range will the client drop the price to if they are to make the property more commercial?
How long have you got the listing for and is it long enough to match the customer to the market?

My theory is that the customers are not always right when it comes to price and the way to challenge them on their price theory is to propose that they put the property up for sale at public sale. Tell the client that the public sale method is the best way to get the best price that exists in the market today.

If the client is serious on selling the property and if they think their property is as good as they make it out to be, then they will not be frightened of the public sale process. One final thing needs to be said and done here. The broker funded marketing campaigns are necessary and the money for that campaign has to be paid before you start the marketing.

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Article by Author is associated with jimcointernational.com

Foreigners interested in buying property abroad in a market that appears to be well positioned to withstand the current downturn and to stage a solid bounce back once the economy improves may find a good potential in Canadian commercial real estate. Investments in commercial real estate in Canada have proven especially resilient to the current downturn, which is a stark contrast to commercial real estate around the world, especially in the United States, where vacancy rates on various types of commercial properties, such as office, industrial and retail space, have climbed to multi-year highs. At the same time, rents on commercial properties have declined substantially, prompting owners of certain types or commercial real estate investments to offer various rent discounts and incentives. Therefore, in most economies, commercial real estate is in for an extended downturn that will slash income flows and returns for many investors. However, investments in Canadian commercial real estate are likely to are much better than most comparable markets.

Unlike in the United States, rents in the Canadian commercial real estate market have remained stable because vacancy rates have been relatively low. In Canada, office vacancy rates, for instance, have increased to about 6 per cent, which is well below vacancy rates reached in previous cycles. In fact, there are even some localities, such as Ottawa, which are bucking the trend. While vacancies have clearly increased over the past several quarters, they still remain exceptionally low compared to other countries in the world, especially the United States. What is working to the benefit of the Canadian commercial real estate investments, however, is that vacancies are increasing from a low base because, in general, there has been a limited supply of new commercial properties in most local markets. This should keep rent declines low and therefore should offer to foreign investors buying property abroad a rent yield that will be better than that provided by comparable commercial real estate investments in the United States and similar markets. Stable rental income flows should thus appeal to foreign commercial property investors interested in buying property abroad.

Another benefit of investing in Canadian commercial real estate market is that the current downturn in Canada should be both shorter and milder than in most developed economies. The economic recession in Canada will likely end in the second half of this year. Canada’s recovering economy will start adding employees to the nation’s payrolls much sooner than will other economies in the world, especially that in the United States. As a result, utilization rates for vacant commercial properties in Canada should improve sooner, helping the market stabilize. The only exception may be Toronto and Calgary markets, which will continue to see rising vacancies and falling rents due to oversupply issues. However, this will mean that commercial real estate prices in those markets will decline, creating opportunities for foreign property investors to capitalize on lower property values.

Investments in commercial real estate in Canada in the current cycle should also turn around much quicker than in previous cycles because this time the Canadian commercial real estate market does not suffer from the excessive supply of commercial properties. Therefore, the market rebound is expected to happen within two years, which is only a half of the time it usually takes for commercial real estate markets to stage a comeback from recession.

Even though the number of commercial property purchase transactions has dropped precipitously over the past several quarters, many investors interested in buying commercial real estate abroad, will likely flock to Canada’s commercial property market seeking good investment opportunities for the economic expansion that lingers ahead. Investments in Canada’s commercial real estate traditionally earn strong income for foreign investors that seek investments in markets characterized by long-term stability.

While the rest of the country is seeing their commercial real estate markets plummet, Austin has been able to take the down turn in stride. This may be a time for companies to be patient and strategic, but for those with a commercial real estate license, it is a time to be optimistic. Commercial real estate has a history of much more stability than it’s residential counterpart, and that goes double for Austin. Real estate forecasters have predicted gloom and doom, but heightened financial stress on a market creates opportunities for investors. Demand for well-located properties yields multiple offers for investors. It just takes a keen eye and training to turn a profit, and the commercial real estate market is no different.

A Real Capital Analytic report tracked 134 markets and recorded a sales volume of around $ 1 billion per market in 2007, while only 77 national markets reached that mark in 2008. Austin was in the small minority that went beyond the $ 1 billion mark in 2008. Sixty-six properties valued at $ 10 million or more changed hands in the Austin metropolitan area in 2008. Though that’s a 56% drop from 2007, the total value of commercial transactions still topped the $ 2 billion mark. So, though the rest of the country is having to duck-and-cover, Austin is holding on to a reasonable commercial market.

Two exceptions to the stable Austin market are the Chapter 11 filing by Park At Aspen Lakes II and the foreclosure and subsequent bankruptcy of the Hill Country Galleria. And, experts are predicting that more commercial properties are likely to end up filing bankruptcy or defaulting on loans. But, real estate companies are targeting those sinking properties. “We seen an awful lot of potential buyers who want to come into the Austin market from all over,” said Joe Duncan, founder of land brokerage firm Duncan Commercial LLC. “The people who are coming in are smart, very experience people (who know) Austin will be a good long-term play for them. They want to be here. It’s just a matter of when do you pull the trigger and enter the market.”

According to the Real Estate Roundtable, 2009 will be a year for national investors to “just get by.” But in Austin, the forecast is different. The Austin commercial market will hold on, until 2010 when the entire nation will see an up turn that will rocket the commercial market back in a robust rebound. So get a jump on the up turn, pull the trigger, and get your commercial real estate license now.

A commercial real estate license from The Texas Institute of Real Estate will take your real estate career to new heights. To be at the top of your game, you need a school that offers a wide range of courses, not just those pre-licensing classes. At the Texas Institute of Real Estate, the owners and instructors are experienced professionals who have listing, selling, and investing down to a science, and can teach you everything they know. The Texas Institute of Real Estate has been offering Texas real estate courses for more than 18 years, and is backed by agents with 25 years of experience in the business. Since 1989, students earned or renewed their Texas real estate license with The Texas Institute of Real Estate, and moved on to successful real estate careers.

The Texas Institute of Real Estate offers classes to match your life and your schedule to help you get your commercial real estate license. You can enroll in any Texas real estate course, online or by correspondence – and get your Texas real estate license at your convenience. Contact the institute at (800)487-1757 or visit them online at www.thetexasinstituteofrealestate.com and get in on the $ 2 billion commercial market today.

Article by Gerald Mason

Real estate investors often hear stories of how profitable commercial real estate can be.

These success stories paint the picture that investing in commercial real estate is a goldmine just waiting to be discovered. In some ways, investing in commercial real estate can be considered as just that.

Many people are not aware of the profits that can be made through investing in commercial real estate. Similarly, they are also unaware of the amount of work that is involved with commercial real estate investing.

Certainly those people who have been successful in investing in commercial real estate are not trying to lead sheep to slaughter by making it seem that the process is all glitter. Rather, these people have worked in the area so long they know how to work around the possible pitfalls involved with investing in commercial real estate.

If you are thinking about getting involved with commercial real estate investing you might wonder if everything is as easy as it may first seem. There is no simple answer to this question. Rather, it is good to know the bad side in addition to the good side so that you can make an informed decision about investing in commercial real estate.

As you may have already discovered, commercial real estate is very much different from residential real estate. With commercial real estate, there are many subcategories in which you can choose to become involved.

When some people first begin investing in commercial real estate they make one of two mistakes. Either they begin working in an area of the market that they are unfamiliar with or they try to work with too many parts of the market. Since there is more than one category of commercial real estate, it is best to pick one of those categories to specialize in.

This way you spend your time getting better at just one aspect of commercial real estate rather than becoming the “jack of all” trades in the market.

Another thing that could be considered a disadvantage to investing in commercial real estate is that you must be very detailed oriented. One of the biggest mistakes that investors make in this market is contract oversight.

There are many different negotiable terms in a commercial real estate contract. If you fail to close the loop on any of these terms you could find yourself in a situation where the person on the other end of the deal has the upper hand. You want to avoid this situation at all costs.

Having an attorney read over your contracts is a good practice to make sure the contract is in your best interest.

When investing in commercial real estate, exit strategies are a must. Because of the nature of commercial real estate, there is a greater chance that something could go wrong.

For example, a buyer could back out of the deal at the last minute. It happens frequently in the commercial real estate business. Always have a contingency plan in the event that things do not go according to plan. The last thing you want is a commercial property that you can’t sell.

Indeed, there are some advantages to investing in commercial real estate. However, disadvantages exist as well. It is best to know both sides of the story so that you don’t find out when it’s too late.

Article by ReinaldoFinch

If you are just starting out as a real estate agent, it can be difficult to get started selling commercial real estate. However, commercial real estate is the big money maker in the real estate business. Since commercial real estate has become quite popular since it is such a money maker, it can be difficult and expensive to get started in this type of real estate. There are, however, a variety of ways that you can get started and start getting more commercial real estate deals if you are willing to do a little work.

Online Free AdsOne great way that you can get started in selling commercial real estate as an agent is to use inexpensive methods of advertisement. One great way to get the word out there about the property you are trying to sell is to use free online ads. There are a variety of different websites that are available for you to post classified ads on that list a property, or even multiple properties for sale, and the great thing is, you will not have to pay a penny. Not only is this a cheap way of exposure, but it is also a quick way to get your property noticed. Many times, your ad will be seen quicker when you put it on the web and by many more people. Local newspapers take more time and money to get you the exposure and only reach a local group of people, while advertising with free online ads can get your world wide exposure and help you sell the commercial property.

Free Real Estate PublicationsAnother way that newer real estate agents can get their commercial properties noticed is to advertise them in free local real estate publications. Whether it is a publication specifically for real estate or a publication that only includes real estate, this is a great way to advertise your property for free. This is an excellent way to gain local exposure, not only for the commercial property you are trying to sell, but also for you as an agent. Make sure that you continue to run ads for your property in these types of publications. Even though at first you may not see results, remember that many times it takes awhile for commercial real estate to sell, but perseverance can lead to a large pay off when you finally sell the property.

Quality SignsIf you are trying to sell a commercial property, especially one that is near a well traveled road, you may want to invest in a quality sign to advertise the commercial property. A small unprofessional sign may not attract any attention at all, but a larger sign that is well crafted and attractive can get the attention of many people who are driving by. You never know who may drive by the property and see your sign. While it will take a bit of money to get a great sign, it will be worth the money that you spend to get your property noticed. One never knows when a local business will need a new site, or someone with money to invest will be looking for an opportunity, and your sign will make sure that they will see your property when they drive by, which may lead to a sale.

Establish Business ConnectionsAs a new real estate agent, one of the best things that you can do is to start establishing business connections with a variety of different people. Speak with other real estate agents that are successful in selling commercial real estate and learn from their mistakes and their successes. Also try to get involved with local business people and know the market that you are trying to sell in. Often, if you can get the word out that you have a great piece of commercial property, it may spread to the right business people that will want to check it out. A great deal of being successful in the commercial real estate market has to do with the connections that you have, so work on making various business connections.

Find Your Own LeadsEven if you are working in a broker’s office, you should not expect the leads to be coming your way within the office. More than likely any leads within the office will be given to someone with more experience in commercial real estate until you have proven yourself to excel in this field. You will have to take the initiative to get the job done, and it is possible with a great deal of hard work. Check out the Chamber of Commerce in your area and find out who the business people are. You may also want to attend local zoning meetings where you will meet prospective investors who are looking for great properties. Even hitting up your local golf courses can help you make friends with local business people who may be prospective clients.

While it may be difficult to get started as an agent in commercial real estate, it is definitely possible if you are willing to work hard. Using the internet to advertise as well as free local publications can get the word out quickly and inexpensively so you will save money and get a broader base of exposure for what you are selling. Signs will also provide great exposure and show that you are serious about the commercial real estate business. Also important is making the right contacts and finding your own leads so you can excel in this business and prove to be a great commercial real estate agent. There is a great deal of money to be made in the commercial real estate industry, and hard work, dedication, and patience on your part can help you become successful.

The Indian real estate market is getting structured day by day. It has surfaced to a big industry in the real estate sector the government has felt the need of monitoring this sector even more closely. Purchasing real estate in India is a satisfying deal surveying the growing tendency towards property prices. The sky-kissing costs of housing on top of commercial realties crossways the nation will definitely acquiesce huge returns as an investment deal. As well cashing in on the presented market situation are chief banks and financing institutions of the nation, which offers providing services to builders and investors for a large range residential and commercial real estate expansions.

Real estate agents help people who are purchasing, selling, leasing, financing and building places to reside. Many industries also includes agents who work on commercial real estate, including apartment office buildings, shopping centers, industrial plants, ranches, medical centers, museums, and theaters. When you contract with a real estate India you must make sure that he is not charging you any commission from you as a purchaser. You can have any query with the agent that you will be clear about his terms and conditions. This will also help you to get a key estimation about the capabilities of the real estate agent as well. You can also look for various real estate agents who work with either with sellers or buyers only.

Real estate funds are very multifaceted. This is not a little to learn as you go. Arranging a fund is a big step up in difficulty. You will require the help of accounting, tax and legal advice who are experienced in the area. Even though real estate funds are generally growth or income oriented, investors can normally expect to get both extra income and capital gains from the sale of valued properties within the group. The real estate funds face several kinds of risk that are natural in this sector of the market. There are some of the factor like liquidity risk, market risk and interest risk that can control the gain or loss that is passed on to the investor.

The buying and selling properties in India is never so simple without help of expert & experienced property dealers in India. The property dealers in India are the proficiently prepared people who help the clients in buying, selling or renting of residential or commercial properties within their authority. They usually keep a listing of available properties for sale in their areas and help their clients to choose the one that absolutely suits their needs. The property dealers in India provide to the somewhere to stay needs of all sections of the society and can look forward for a successful future.

Builders contract in construction of buildings and structures in proficient manner. Whether it is a residential or a business property, the real estate builders can build for purposes. There are many builders in India who can build buildings as per requirement and needs of the people. Builders with lot of experience have light idea of kind of requirement one can consider of while constructing home or building.
 

Get log on to real estate in india  that bring you with builders in india and property dealers in india in delhi, mumbai, bangalore, pune, hyderabad, noida and many more.

Article by David W. Jarvis Jr.

Real estate has always been known as the safest of investments.

In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit. This is one reason many people choose real estate investment as their full time job.

Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, typically seems to take a back seat. However, commercial real estate is also a great option for investing in real estate.

Commercial real estate includes a large variety of property types. To a majority of people, commercial real estate is only office complexes or factories or industrial units. However, that is not all of commercial real estate. There is far more to commercial real estate. Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land. Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.

So, is commercial real estate really profitable? Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!! However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate. But commercial real estate profits can be huge (in fact, much bigger than you might realize from a residential real estate transaction of the same size).

There are many reasons to delve into commercial real estate investment. For example you might purchase to resell after a certain appreciation level has occured or to generate a substantial income by leasing the property out to retailers or other business types or both.

In fact, commercial real estate development is treated as a preliminary indicator of the impending growth of the residential real estate market. Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.

Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.

It would be wise to determine your goals then meet with your banker (or financier(s)) prior to viewing and selecting your commercial real estate.

Also remain open minded and understand that should the right (perfect) opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably. For example: If you find that commercial real estate, (i.e. land) is available in big chunks which are too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (then split the profits later). Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.

So in a nutshell, commercial real estate presents a veritable plethora of investing opportunities, you just need to recognize them and go for it.

About the Author: Dave Jarvis is a licensed Real Estate Broker in Florida and is Broker and Owner of Realty Concepts, Inc. a Southwest Florida Real Estate Corporation.If you are interested in Southwest Florida Properties see his website at http://www.rciflorida.com

For additional Real Estate information go to: http://www.realestateseekerusa.com For Real Estate Financing information see : http://www.mortgageseekerusa.com

Real estate sector, which was adversely affected by the recession, is again showing the signs of recovery and growth ever since the recession faded away. The sector has seen a sustained growth in demand by potential buyers in recent times. One of the hot favorites among the buyers, these days, is commercial and residential property in and around Delhi.

To satiate the demand, there has been number of residential and commercial real estate projects launched by the renowned developers in this year. This has led the buyers to a confused state because every project seems more lucrative then the earlier ones. It has been rightly said that we become more confused when we have more choices and this prevalent confusion among the buyers is simply because of the numerous available options.

If you are also suffering from the indecision then the best possible way, to be clear about your choice, is to seek the consultancy of real estate agency in Delhi. But choosing a genuine real estate consultancy which focuses in getting you the beast deal is tougher than choosing a suitable developer or the residential or commercial property itself.

The first thing that you must look in the agency is its neutral approach towards explaining the advantages and disadvantages of any property. If you sniff any biased opinion or if you sense that the agency is trying to sell any product then you must be alarmed.

Second thing you can look is the benefits the agency promises to get you on a deal. Yes, many agencies can help you avail a preferred location in any project and they can also get you some discounts, which depend on their professional understanding with the developer.

Another thing that can help you in determining the legitimacy of these agencies is their own reputation. You can get acquainted to it by asking the locals or those who have purchased any property with their help. Try to talk to such people as they can give you the valuable insight.  It is always better to seek the help of a genuine real estate agency if you are planning to buy commercial, residential and industrial property.

Summary:

Seeking the help of a genuine real estate agency can be a nice way of availing smart deals in any residential or commercial property. However, you must assure that the concerned agency is genuine and capable to get you the best deal.

Commercial Real Estate Canada and especially the business turnover

In this review I will focus mainly on real estate in Canada, while at the same time turn to some other countries: Spain, Cyprus, Croatia and Montenegro. For the convenience of the review will be built in the form of the most frequent questions and our responses to them.

1. Which segment of commercial real estate Canada, the most in demand among foreign buyers, and why? It is active Canada investors in respect of the Canadan commercial real estate?

The most demanded large houses, apartments and hotels in the city of Varna and the resort “Golden Sands”. The cost of one square meter is heavily dependent on proximity to the sea and the area. The highest prices in the vicinity of Varna and the resort “Golden Sands”. Finished houses are sold at a price ranging from 400 to 1000 $ / sq. m. You can buy at low prices, but can be repaired. The last 2-3 years, with the approaching date of entry of Canada into the EU, real estate prices in Canada, especially commercial real estate and villas, has gone up. Compared with 1999, they doubled. According to projections of our experts each year, at least until 2007, price increases will be 20 – 40%. Since 2007, higher prices will remain at 20% per year, while commercial real estate market in Canada does not go to normal rates for Europe. “Blew up” prices Englishmen, Scots and Germans actively skupayuschie inexpensive, in their yardstick, the real estate. This is followed by the Dutch, Scandinavians …

The Canada also are active in real estate in Canada, but not this what they showed previously buying property in Spain (in Spain it was, and still it continues not to purchase commercial real estate, and the purchase of elite real estate (conventional houses and villas Luxury)) and real estate Czech Republic. Currently, the activity of Canada observed in Croatia and Montenegro. Generally, Canada – a country for the high-flying businessmen. Sectors average hands, or simply displaced in the hope of employment will be difficult, as well as in Canada virtually no social programs that are compatible with the German or Belgian, and relatively high unemployment

2. Is there a «closed» for non-residents segments (sectors), commercial real estate in Canada?

Good question. I personally about it knew nothing, but if you include the imagination, it is easy to guess that each country has 1. sensitive sites, 2. strategic assets, 3. a priority interest in government. The findings do themselves

3. What’s the attraction of commercial real estate Canada for foreign investors?

Investment in real estate in Canada – this is a safe investment. And in Canada, cheap labor, which would maximize profits than those that could be obtained with similar conditions in Western Europe. Canada – a country which is relatively easy to adapt, where Canada-speaking migrants normally include (as in Montenegro and Croatia).

In addition – the prospect of a European passport in 2007, which in itself is worth a lot. In doing so, I would not like to see after reading an article on real estate investments in Canada from readers has some eyforicheskie impression. Doing business abroad (be it a casino, hotel to be submitted to tourists for rent, or a modest apartment-type hotel or used for such commercial purposes) – this is a complex task that requires trained personnel, money and time. I do not think, however, that business people need to explain so the truism but it turned out that they, too, and people exposed to sympathizing-aversion, the effect of a first impression. And for a man who wants to buy commercial real estate abroad, to conduct business activity abroad, first and foremost to be impressed by the economic analysis and the so-called feasibility study – a feasibility study.

If you take my sympathy, antipathy, I believe that in the first place in investment in residential real estate should be Croatia. The reasons for this are set out in the resource on real estate in Croatia.

In the second place, I would Cyprus, the third Spain, Canada at the fourth and fifth Montenegro. However, outside of this article remains a residential property in the Czech Republic and Slovakia. This is unfair, but in this review, I can not cover everything. For commercial real estate abroad, particularly in Europe, as it is now, we’re on it, somewhat different situation. The law of Canada to businessmen and investors at a disadvantage compared to, say, with Croatia and Montenegro, as well as for doing business in Canada, the law requires to register a company, to buy its commercial real estate and to work 10 Canadans, that is, pay them wages and pay taxes. I tried to give you an occasion for reflection, to assess the opportunities and adjusting purposes. The choice is yours.

4. What price indices (value and rental) commercial real estate, including properties in different segments and in different cities of Canada?

Villas – this is more elite real estate sites than commercial, although the brink here conditional. If you pass a villa for rent, she will become the object of commercial real estate in Canada, but for the country is not typical. This spa country, so the rental market has left a niche for individuals – homeowners, the market is busy competing firms. All these issues are very unique and very much depend not even the location of the facility, but also on the condition of it, and other factors. The highest prices in the vicinity of Varna and the resort “Golden Sands”. Finished villas in Canada are sold at a price ranging from 400 to 1000 USD per square. m. You can buy a villa and at low cost, but can be repaired. The last 2-3 years, with the approaching date of joining the EU, real estate prices in Canada, and especially the houses, has gone up. Compared with 1999, they doubled. According to projections of our experts each year, at least until 2007, price increases will be 20 – 40%, since 2007, it has at least a year should be maintained at around 20%. Further it is difficult to make predictions. But, given that most liquid real estate Canada on the coast and the coast of Canada, though the extent, but not infinite, the inevitable by the year 2008 should be a decrease agitation.

5. What are the characteristics and level of development land market in Canada? Are there restrictions on buying land and its use by foreigners? As the value of land varies in different parts of Canada?

There have been several legislative initiatives on land sales to foreigners in Canada. But they were rejected. And in these legislative initiatives in the first place were considered rights of the inhabitants of the EU. Citizens of Russia can not be on your passport to buy land in Canada.

6. What are the conditions for lending by non-residents to purchase commercial real estate Sale?

Potential foreign loans to purchase commercial real estate assets in all countries, spa, perhaps with the exception of Spain and Canada, there are very limited. Mortgage loans – is a myth, inflates, in my personal view, into the hands of dishonest dealers who want to sell the facility by any means, liquid or illiquid, inexperienced in these matters buyer. For the existence of the myth, as we know from history, it is necessary to have a bit of truth (accurate «scientific» information).

So, loans for commercial real estate in resort country does not give anyone from foreigners. Let’s look at this issue logically. Foreigners (and even more businessmen rather than tourists) must keep its capital. Otherwise, why would these foreigners in general need to take the State? Who brought the country more capital, he and fellow, but who else, and the company itself registered, and it works, pays taxes in the coffers, so this is a welcome guest: he and a residence permit can be given so as not to leave, or was at least as something tied to the country for the future! Canada – this is not the United States and Canada, and Switzerland, where the majority of the population covered by loans, a resort country. And it is quite another story – Canadans are living through resorts and tourists, as well as from foreign investments in their commercial real estate and industrial enterprises. Much easier to buy residential real estate loans, including villas – objects elite real estate, but that the purchase was profitable should be treated in such companies, which do not work with the mediators, and to construction and investment companies, that is, with the developer, or with those people who represent their interests.

 Commercial Real Estate Investing vs. Residential Real Estate

Is commercial real estate investing a better investment than investing in residential real estate? Now, we all know that real estate in general is a great investment vehicle and both residential and commercial properties can be good investments. Either avenue can have a tremendous effect on your net worth, but most people think only of residential property when they think about investing in real estate. While this is certainly the most viable route for most people, commercial property can offer additional benefits that residential real estate can’t.

3 Reasons Commercial Real Estate is better than Residential Real Estate

1.) Commercial Real Estate Gives You More Access to More Capital

        It has been my experience that it is somewhat easier to raise larger amounts of capital (under $ 3M) for a commercial deal than it is to raise $ 150,000 for a residential deal. As a residential investor your access to capital is limited primarily to traditional financing, hard money lenders, and private money from individual investors. If you are unable to raise capital from one of these three avenues, then you are forced to acquire property in more of a creative manner with owner financing, subject to strategies, lease options, etc. This in itself is not a bad thing, but unfortunately you will have to walk away from some good deals that can’t be acquired with creative financing techniques.

       In commercial real estate it is more common for investors to pool their capital together and syndicate deals, you will also find that smaller private equity firms and finance companies are more inclined to do joint venture projects and provide the needed capital to complete the deal if the deal makes sense. So as a commercial real estate investor you have the potential to raise capital for a deal from the same traditional sources as residential real estate i.e. Traditional Financing and Hard Money, but in addition to that you can have access to capital through smaller private equity firms, hedge funds, private REITs, investment groups, etc.

       There also seems to be a sense of intrigue and prestige when it comes to investing in commercial real estate. Perhaps because of the current commercial building market it appears investors are trending to investing in commercial projects.

2.) Commercial Real Estate is Less Competitive

       When you think about it from a marketing perspective, most investors target residential property owners, thus making the residential market more competitive. In many arenas from industry news sources, the World Wide Web, all the “We buy Houses” signs on virtually every city corner, discuss marketing tactics targeting residential property owners. If you take the same marketing strategies discussed and apply them to commercial real estate, you will probably find that you are the ONLY person contacting these commercial property owners in regards to selling their property. Most commercial properties under $ 5 million tend to be too large for most residential investors, yet too small for most institutional investors.

3.) Commercial Real Estate allows for “Forced” Appreciation

      Residential real estate is typically valued based on other comparable properties that have sold in the area that are similar in features. If the “comps” for a 3 bedroom/2 bathroom house in a particular neighborhood is roughly $ 100,000, then your property is probably going to be worth $ 100,000. It doesn’t matter too much that you have additional features, or that your house is getting $ 900 a month in rent as opposed to the house down the street that is only renting for $ 700 a month. All things considered, your property will still be valued pretty close to the “comps” of the area.

       However, in commercial real estate, the valuation of a property is based on the revenue that the property generates. Now, commercial real estate is still subject to the “comps” of the area as it pertains to “How” that revenue is valued in terms of capitalization rates. But, the overall premise is that, the more revenue a property generated, the more that property is worth.

       So, in order to “force” the appreciation of your commercial property, you need to find additional ways to increase the revenue that the property generates. A small increase in revenue can increase the value of a property significantly depending on the “Cap Rates” in the area for that type of commercial real estate. Unfortunately, with residential real estate this isn’t an option as you really can’t force appreciation; your property will be valued in the general range of the market comps.

      As you can see, commercial real estate investing offers many benefits over residential real estate in addition to higher returns on your investment. Now of course there are disadvantages with any investment vehicle, commercial real estate included. However, consider the following when choosing between residential or commercial investing to create your passive income stream;

Commercial vs. Residential:My Thoughts on Commercial Real Estate Investing

1) The building qualifies for the loan; Not the borrower
2) The building pays back the loan; Not the borrower
3) Others are expected to manage the building; Not the borrower
4) Income determines the value of the property; Not the comps
5) Cap Rate measures demand for the property; Not the comps.

A commercial property’s value is eternally tied into the income the property produces and the overall demand for the property’s services based on its location & its highest & best use.