Commercial Real Estate Investing

Because the bottom has fallen out of the residential real estate market, real estate investors have now turned to commercial real estate investing. Commercial real estate investing has many different options for the savvy investor. Some of them are as follows:

1. Investing in a retail shopping center as part of a joint venture with several other investors. This enables you to take less of a risk and get some experience in investing in commercial real estate without it costing you a lot of money. Make sure you know plenty about your partners as well as the property that you will be purchasing;

2. New construction. If you have been a project manager or general contractor, you may be able to swing commercial real estate new construction as long as you are aware of the different codes. Commercial real estate new construction is much different than residential new construction. There are different building codes for commercial buildings that vary from different municipalities. You have to be familiar with the codes when building commercial property;

3. Rehabbing or refurbishing older buildings and preparing them for business use. Again, you need to have some knowledge of building codes and requirements;

4. Buying a storefront property or free standing store and leasing it to a business. You need to know about the location, make sure you have a solid lease with a reliable and stable renter and proceed to reap a profit on the rental income while paying off the property at the same time.

Those are just four examples of commercial real estate investing. No matter what you decide to do, remember the three most important aspects of real estate investment:

1. Location;

2. Location;

3. Location.

This is an old and well worn saying, but bears repeating because it is so integral to any type of real estate investment, commercial or residential. If you purchase a storefront in a blighted area it may be cheap, but unless you plan on working in the store all day and every day and worrying about getting robbed or murdered on a daily basis, stay away from blighted areas.

You want to make sure that there is a need for the commercial real estate you plan to develop or in which you wish to invest. Office buildings and complexes are usually always in demand as professionals and others are usually looking for cheap office space.

In older towns and cities, there are areas in which older homes are being turned into office buildings and stores. In “historic districts” in towns, there is an effort to refurbish older homes and increase the value of the property in the area. These are also an ideal option for those who are thinking of commercial real estate investing.

Five Key Condsiderations for Choosing The Right Commercial Real Estate Broker

Commercial Real Estate investing requires working with the right Commercial Broker to reach your investment goals. The following Five Key considerations will determine if a broker will bring you a stream of quality properties you are looking for and makes your business their priority.

Key consideration number one: Do your due diligence.

Start by doing the same kind of Due Diligence on your Broker Candidates as you would on properties themselves. This will increase the probability that the broker you choose will be the right broker. Make sure you create a guideline containing your specific goals and needs to qualify your broker candidates. I research the agents that I will potentially be working with. I read their brochures, promotional literature, websites, past closings, etc so I can cross reference credentials and history with other brokers in the marketplace. Remember, choosing the right Commercial Real Estate broker can potentially net you millions of dollars worth of time and money.

Key consideration number two: How long has the broker been in the business?

There are many brokers who cross over from Residential Real Estate into Commercial Real Estate in an effort to “make big money”. What they fail to realize is that Commercial Real Estate is more than just selling or buying real estate. It requires an ability to understand and interpret profit and loss statements, rent rolls, third party contracts, and many more specific documents that are involved with each transaction. It’s more than just writing up a contract. If your potential broker can not figure out the Net Operating Income of a building or can not tell you what the debt service coverage ratio is, then you need to keep looking.

Key consideration number three: Have they kept current with changes in their profession along with market changes?

Ask the commercial real estate broker about his or her credentials, certification and education in terms of selling commercial properties. Your Commercial Real Estate broker may have years of experience but they also need to be able to adjust to new selling or buying methods. If your broker is not in the loop about the newest trends of investors buying pools or how new technology is affecting the market trends, you may potentially lose out on a property. I never deal with brokers who have some commercial experience, it is important to know who you are working with in terms of their familiarity with the type of investment you are considering.

Key consideration number four: Make it a point to get to know the broker’s staff.

It is important to ascertain the competency of their staff to see if your deal will be handled with professionalism and efficiency. The right broker will have key employees that have a wealth of knowledge about an area and the ability to make a transaction smooth. Things to consider are: Who do they know that will help me build my team? What type of relationships do they have in the industry? Do they maintain broad relationships that can assist me in developing market contacts?

Key consideration number five: Most of all, make sure the broker is loyal to your needs as an investor and is not in a conflict of interest.

A broker with a fiduciary interest in a property is incapable of putting my needs first. I am very careful to deal with business ambiguity up front in all contractual relationships and will work with someone based on their their loyalty to me being their first priority. Pay particular attention to how fast they return telephone calls after meeting. This may sound insignificant, but it says something about their professionalism and the way they do business. First, a broker will have information about the market that you will not, especially if they have worked in the area for an extended period of time. I have worked with brokers that have sold the exact same properties a number of times. They were able to give me history about building conditions and ownership that I was unable to get from other sources.

Interview as many brokers as needed to make sure they are a good match to do business. The right broker will find commercial properties that meet your investment and business criteria. In the long run this is a business relationship that grows over time, so make it a point to nurture this relationship. Clarity about your investment criteria will help reduce problems finding the right broker. Some resources that can help you begin your process would be The National Association of Realtors, recommendations from other investors, checking professional periodicals online and off, investment associations, and word of mouth from trusted allies.

SUMMARY:

-Choose your Broker carefully – do your due diligence here too

-Make sure they have specific Commercial education and experience

-Know the way they work and the times needed from contract to close

-Be clear on the properties you are looking for

-Make sure the Broker is always working in your best interest

-Evaluate their staff in the same way you do the Broker

-Close when you say you will – so they get paid

-Take good care of your relationship – it will get more and more valuable over time

Learn more from a proven Investor Education Resource:

Investor Tours University is a dedicated resource helping investors build wealth and achieve their defined level of success. We offer state-of-the-art commercial real estate investing education, tailored to meet the needs of investors with varied backgrounds and experience levels. Our faculty consists of a network of national experts in legal, tax, investment strategy, property management, acquisition and sales professionals who practice what they teach investors, which is how to achieve generational wealth using commercial real estate.

Real Estate Agents and the Internet – How to Buy and Sell Real Estate Today

Then and Now

Ten years ago, a search for real estate would have started in the office of a local real estate agent or by just driving around town. At the agent’s office, you would spend an afternoon flipping through pages of active property listings from the local Multiple Listing Service (MLS). After choosing properties of interest, you would spend many weeks touring each property until you found the right one. Finding market data to enable you to assess the asking price would take more time and a lot more driving, and you still might not be able to find all of the information you needed to get really comfortable with a fair market value.

Today, most property searches start on the Internet. A quick keyword search on Google by location will likely get you thousands of results. If you spot a property of interest on a real estate web site, you can typically view photos online and maybe even take a virtual tour. You can then check other Web sites, such as the local county assessor, to get an idea of the property’s value, see what the current owner paid for the property, check the real estate taxes, get census data, school information, and even check out what shops are within walking distance-all without leaving your house!

While the resources on the Internet are convenient and helpful, using them properly can be a challenge because of the volume of information and the difficulty in verifying its accuracy. At the time of writing, a search of “Denver real estate” returned 2,670,000 Web sites. Even a neighborhood specific search for real estate can easily return thousands of Web sites. With so many resources online how does an investor effectively use them without getting bogged down or winding up with incomplete or bad information? Believe it or not, understanding how the business of real estate works offline makes it easier to understand online real estate information and strategies.

The Business of Real Estate

Real estate is typically bought and sold either through a licensed real estate agent or directly by the owner. The vast majority is bought and sold through real estate brokers. (We use “agent” and “broker” to refer to the same professional.) This is due to their real estate knowledge and experience and, at least historically, their exclusive access to a database of active properties for sale. Access to this database of property listings provided the most efficient way to search for properties.

The MLS (and CIE)

The database of residential, land, and smaller income producing properties (including some commercial properties) is commonly referred to as a multiple listing service (MLS). In most cases, only properties listed by member real estate agents can be added to an MLS. The primary purpose of an MLS is to enable the member real estate agents to make offers of compensation to other member agents if they find a buyer for a property.

This purposes did not include enabling the direct publishing of the MLS information to the public; times change. Today, most MLS information is directly accessible to the public over the Internet in many different forms.

Commercial property listings are also displayed online but aggregated commercial property information is more elusive. Larger MLSs often operate a commercial information exchange (CIE). A CIE is similar to an MLS but the agents adding the listings to the database are not required to offer any specific type of compensation to the other members. Compensation is negotiated outside the CIE.

In most cases, for-sale-by-owner properties cannot be directly added to an MLS and CIE, which are typically maintained by REALTOR associations. The lack of a managed centralized database can make these properties more difficult to locate. Traditionally, these properties are found by driving around or looking for ads in the local newspaper’s real estate listings. A more efficient way to locate for-sale-by-owner properties is to search for a for-sale-by-owner Web site in the geographic area.

What is a REALTOR? Sometimes the terms real estate agent and REALTOR are used interchangeably; however, they are not the same. A REALTOR is a licensed real estate agent who is also a member of the NATIONAL ASSOCIATION OF REALTORS. REALTORS are required to comply with a strict code of ethics and conduct.

MLS and CIE property listing information was historically only available in hard copy, and as we mentioned, only directly available to real estate agents members of an MLS or CIE. About ten years ago, this valuable property information started to trickle out to the Internet. This trickle is now a flood!

One reason is that most of the 1 million or so REALTORS have Web sites, and most of those Web sites have varying amounts of the local MLS or CIE property information displayed on them. Another reason is that there are many non-real estate agent Web sites that also offer real estate information, including, for-sale-by-owner sites, foreclosure sites, regional and international listing sites, County assessor sites, and valuation and market information sites. The flood of real estate information to the Internet definitely makes the information more accessible but also more confusing and subject to misunderstanding and misuse.

Real Estate Agents

Despite the flood of real estate information on the Internet, most properties are still sold directly through real estate agents listing properties in the local MLS or CIE. However, those property listings do not stay local anymore. By its nature, the Internet is a global marketplace and local MLS and CIE listings are normally disseminated for display on many different Web sites. For example, many go to the NATIONAL ASSOCIATION OF REALTORS Web site, http://www.realtor.com, and to the local real estate agent’s Web site. In addition, the listing may be displayed on the Web site of a local newspaper. In essence, the Internet is just another form of marketing offered by today’s real estate agent, but it has a much broader reach than the old print advertising.

In addition to Internet marketing, listing agents may also help the seller establish a price, hold open houses, keep the seller informed of interested buyers and offers, negotiate the contract and help with closing. When an agent provides all of these services it is referred to as being a full service listing arrangement. While full service listing arrangements are the most common type of listing arrangement, they are not the only option anymore.

Changes in the technology behind the real estate business have caused many agents to change the way they do business. In large part, this is due to the instant access most consumers now have to property listings and other real estate information. In addition, the Internet and other technologies have automated much of the marketing and initial searching process for real estate. For example, consumers can view properties online and make inquires via email. Brokers can use automated programs to send listings to consumers that match their property criteria. So, some agents now limit the services they offer and change their fees accordingly. An agent may offer to advertise the property in the MLS but only provide limited additional services. In the future, some real estate agents may offer services in more of an ala carte fashion.

Because of the volume of real estate information on the Internet, when people hire a real estate agent today they should look at the particular services offered by the agent and the depth of their experience and knowledge in the relevant property sector. It is no longer just about access to property listing information. Buyers and sellers historically found agents by referrals from friends and family. The Internet now provides ways to directly find qualified agents or to research the biography of an agent referred to you offline. One such site, AgentWorld.com, is quickly becoming the LinkedIn or Facebook for real estate agents. On this site an agent can personalize their profile, start a blog, post photos and videos and even create a link to their web site for free. Once unique content is added to their profile page the search engines notice!

Some have argued that the Internet makes REALTORS and the MLS less relevant. We believe this will be false in the long run. It may change the role of the agent but will make knowledgeable, qualified, and professional REALTORS more relevant than ever. In fact, the number of real estate agents has risen significantly in recent years. No wonder, the Internet has made local real estate a global business. Besides, Internet or not, the simple fact remains that the purchase of real property is the largest single purchase most people make in their life (or, for many investors, the largest multiple purchases over a lifetime) and they want expert help. As for the MLS, it remains the most reliable source of real estate listing and sold information available and continues to enable efficient marketing of properties. So, what is the function of all the online real estate information?

Online real estate information is a great research tool for buyers and sellers and a marketing tool for sellers. When used properly, buyers can save time by quickly researching properties and, ultimately, make better investment decisions. Sellers can efficiently research the market and make informed decisions about hiring an agent and marketing their properties online. The next step is to know where to look online for some of the best resources.
Internet Strategies

In the sections that follow, we provide strategies and tips on how to use the Internet to locate properties for sale and research information relevant to your decision to purchase the property. There are many real estate Web sites from which to choose and although we do not mean to endorse any particular Web site, we have found the ones listed here to be good resources in most cases or to be so popular that they need mention. One way to test a Web site’s accuracy is to search for information about a property you already own.

Finding Real Estate for Sale

Despite the widely available access to real estate listings, many believe that MLS databases continue to offer the most complete and accurate source of real estate information. Most MLSs now distribute content to other Web sites (primarily operated by real estate agents). An excellent starting point for MLS originated content is the national NAR Web site, realtor.com, which is also the most popular web site for searching real estate listings. Virtually all local and regional MLSs have an agreement with realtor.com to display much of their active listing inventory.

Some local and regional MLS systems also have a publicly accessible Web site. However, to get complete information you will most likely still need to find a qualified local REALTOR. Many local real estate agents will also provide their customers (via email) new listings that are input into the MLS that match their predefined criteria. This can be very helpful to a busy buyer.

There are also many Web sites that display both real estate agent listed and for-sale-by-owner properties. Some of the more popular Web sites include zillow.com and trulia.com. These sites offer other services too. For example, zillow.com is best known for its instantaneous property valuation function and trulia.com for providing historical information. Another source of properties for sale is the state, regional, and local Web sites associated with brokerage companies; for example, remax.com or prudential.com. Search engines like yahoo.com and classified advertising sites like craigslist.com also have a large number of active real estate listings.

One key difference between these sites is how much information you can access anonymously. For example, at trulia.com you can shop anonymously up to a point but then you will need to click through to the agent’s Web site for more information. Many new real estate search engines allow you to sift through listings without having to fill out a form. The best strategy is to browse a few of the sites listed above to find geographic areas or price ranges that are interesting. Once you get serious about a property, then that is the time to find a qualified REALTOR of your choice to conduct a complete search in the local MLS.

It also never hurts to search the old-fashioned way by driving through the neighborhoods that interest you. There is no substitute for physically, not virtually, walking the block when you are making a serious investment decision. In this sense, real estate is still a very local business and standing in front of the property can lead to a much different decision than viewing a Web page printout.

Valuing Real Estate

As we mentioned, one of the most popular real estate tools is zillow.com’s instant property valuation. Just type in an address and in and you get a property value. It even charts the price ups and downs, and shows the last date sold (including price) and the property taxes. There are other sites that provide similar tools such as housevalues.com and homegain.com. Unfortunately, many people use these estimated values alone to justify sales prices, offers and counteroffers. However, these are only rough estimates based on a formula that incorporates the local county sales information. These estimates can swing wildly over a short period of time and do not appear to always track actual market changes, which are normally more gradual. In addition, these estimates do not automatically take into account property remodels or renovations or other property specific or local changes. This is not to say these sites are not useful. In fact, they are great starting points and can provide a good ball-park value in many cases.

When it comes to getting a more accurate value for a particular property, there are other strategies that are more trustworthy. One is to go directly to your county’s Web site. More often than not the county assessor’s area of the Web site provides sales and tax information for all properties in the county. If you want to research a particular property or compare sales prices of comparable properties, the local assessor’s sites are really helpful. When you visit a county’s Web site you are getting information straight from the source. Most counties today publish property information on their Web sites. Many times you cannot only see the price a previous owner paid, but the assessed value, property taxes, and maps. Some county assessors are now adding a market and property valuation tools too.

Given the importance of valuation to investing, we are also going to remind you of the two most important (non-Internet) valuation methods: real estate agents and appraisers. Working with a local REALTOR is an accurate and efficient way to get value information for a property. While one of the primary purposes of the MLS is to market the active property listings of its members, the system also collects sales information for those listings. REALTOR members can pull this sales information and produce comparable market analyses (sometimes called CMAs) that provide an excellent snapshot of a particular property’s value for the market in a particular area.

Finally, the most accurate way to value a property is by having a certified appraiser produce an appraisal. An appraiser will typically review both the sold information in the MLS system as well as county information and then analyze the information to produce a valuation for the property based on one or more approved methods of valuation. These methods of valuation can include a comparison of similar properties adjusted for differences between the properties, determine the cost to replace the property, or, with an income producing property, determine a value based on the income generated from the property.

The Neighborhood

There are many ways the Internet can help you get the scoop on a particular neighborhood. For example, census data can be found at census.gov. You can also check out the neighborhood scoop at sites like outside.in or review local blogs. A blog is a Web site where people discuss topics by posting and responding to messages. Start by looking at placeblogger.com and kcnn.org/citymediasites.com for a directory of blogs. Trulia.com has a “Heat Map” that shows how hot or cold each neighborhood is based on prices, sales, or popularity among the sites users.

Schools

When it comes to selling residential property or rental properties that cater to families, the quality of the area school district makes a huge difference. There are many Web sites devoted to school information. Check out greatschools.net or schoolmatters.com. Most local school districts also have their own Web site. These sites contain a variety of information about the public schools and the school district, including its district demographics, test scores, and parent reviews.

Finding the Right Real Estate Agent

A recent addition to the Internet boom in real estate information is Web sites that let real estate agents market their expertise and local knowledge by displaying their professional profiles and socially networking with blogs. You can search to find an agent with a particular expertise, geographic area of specialization, or an agent offering specific services. The web site AgentWorld.com lets users quickly and easily find an agent with the right expertise using keyword searches and clean and simple agent profiles. AgentWorld.com also enables agents to post personalized blogs, photos and videos to help consumers find the best agent for their needs. Plus, many agent profiles include a direct link to the agent’s web site where you will likely find the local MLS listings.

Maps and Other Tools

The Internet has made mapping and locating properties much easier. To get an aerial view or satellite image of a property or neighborhood, go to maps.live.com or maps.google.com or visit walkscore.com to see how walk-able a particular property is. These sites can give you an idea of the neighborhood characteristics and the types of entertainment, restaurants, and other facilities that are within walking distance of the property. Maps.Live.com provides a view at an angle so you can see the sides of houses and Maps.Google even gives you a 360 degree street-level view for certain neighborhoods. If you have not tried one of these satellite map Web sites, you really should if only for amusement.

Final Thoughts on Internet Strategies

The Internet is a very effective research and marketing tool for real estate investors but is not a replacement for a knowledgeable experienced real estate professional. The Internet can save you time and money by enabling quick and easy property research and marketing options. Sites like AgentWorld.com also help you efficiently find a REALTOR who fits your buying or selling needs.

Always remember, when it comes to Internet strategies for real estate: More knowledge is better. You need to use the Internet to build your knowledge base on a target property or to find a real estate agent with expertise you need. However, the big caution here is that the Internet should not replace human judgment and perspective, expert advice or physical due diligence-keys to successful investing.

Finding the Best Deals in Commercial Real Estate

If you want to be successful and profitable in the commercial real estate market, it will depend heavily on your ability to find the best deals on the commercial real estate market. You can lower your burden and maximize your net income if you only invest in commercial real estate transactions that have great potential. As an investor, it is important that you find a good offer to make money, but you must remember that it takes some work on your part as an investor to find the best offer. Here are some tips that can help you find the best deals in commercial real estate so you can make a profit and get success as an investor.

Tip # 1 – Know the Area and Market – The most important thing you need to know if you want to find the best deals in commercial real estate is the area and the market. You must be very familiar with the area that you plan to invest and you also need to be informed about the market in that specific area. If you are not familiar with the area you plan to invest, then you have to make it your business to learn about market areas and trends. You cannot determine whether an investment opportunity is a big thing unless you have a good understanding of the commercial real estate market in that specific area. Take the time to find out the area and market in the area, and you will definitely get the best commercial real estate offers.

Tip # 2 – Utilizing a Pocket List – Another tip that can help you find the best deals in commercial real estate is to use the pocket list you might have access to. This listing can help you find and track extraordinary investment opportunities. Often you can get this list from brokers to help you pursue excellent real estate investment opportunities. Pocket lists are commercial real estate opportunities that have not yet entered the market. So, you basically get a jump on property before someone else does it. If you want to find many things, don’t forget to use your pocket list.

Tip # 3 – Use Online Resources – Many real estate investors today really utilize their online resources when searching for the best commercial real estate offers. Using online resources can save a lot of time; however, you still need to make sure that you take the time to do the investigation that you need to do. There are many online websites that are directed to investors in the commercial real estate market. Quite a number of investors are using online resources to find the best deals, and you can use this easy access resource to help find great deals too.

Tip # 4 – Use Business Contacts to Find Deals – If you have great business contacts in the commercial real estate market, you can use them. This business contact can help you find some great commercial real estate offers. It is important that you take the time to build good relationships with these business contacts so that you are the person they tell when they hear about a great commercial real estate deal. Fostering business contacts can take several jobs; However, it is very valuable if you can get a great business deal from him.

Tip # 5 – Get to know your Financial Capacity and Strategy – Know your financial capacities and strategies are also important if you want to find the best deals in commercial real estate. You will never want to push yourself too financially, so you need to know your financial capacity. It is also important that you have a good strategy for investing as well as for success by looking for great deals on the commercial real estate market.

Tip # 6 – Make Sure to Practice Due Diligence – It is very important that you carry out due diligence if you want to find the best commercial real estate offers. Due diligence is one of the most important steps in finding many things. Some things you need to consider when practicing due diligence are the condition of the existing property, the actual property value, how much you can generate from the property, title issues, zoning issues, and many other important aspects. Make sure that you take the time to do an adequate due diligence to ensure that you really get the most commercial real estate that you plan to invest.

Using all these tips together can help you find great commercial real estate offers. If you want to be on the road to success, great deals are important, and these tips will allow you to find the best deals in commercial real estate that

Commercial Real Estate – A Complex Purchase Done Correctly

Purchasing commercial real estate is a much more complex process more so than purchasing a home or just purchasing land. But, it doesn’t have to be so difficult. One of the best decisions that you can make is to higher a real estate agent that specializes in commercial real estate sales.

This individual should have experience in working with the type of property that you are interested in buying or selling. There is more to take into consideration, after all, than just the value of the building and the land.

A commercial real estate agentwill help you to purchase real estate for a business or for rental property by doing his homework. It is essential for him to determine if the area is worth the cost that is being asked for it.

If the value of the land and building are not going to benefit you, he or she needs to determine this through a series of reports and then present it for you. One of the key elements of his job is to find the prime location for you to put down your business that will make it as successful as possible.

If you are looking to sell your commercial property, the right commercial real estate lender will help you to get the best price for it. In addition to helping you to determine the value now and into the future, the real estate agent must also determine if the best way to market your property.

It is unlikely for a buyer to just drive by and bid on the property. Investors need to come from far and wide and for that a specific and skilled agent is required to provide the right marketing potential.

Interview the commercial real estate agents that are available today. Find out what they propose to help you with and the cost of it. Most importantly, determine if what they have to offer you is what you really want. Find out more about their experience and their success.

Finally, determine if they are the right person by developing a plan of action with them to insure that this commercial real estate transaction goes as smooth as possible.

The Best Commercial Real Estate in New Jersey

For example, there are three major commercial centers in the following locations:

1) Northern New Jersey: Right across the George Washington Bridge and the Lincoln Tunnel from Manhattan as well as the Tappan Zee Bridge making it a great location for proximity to New York but at a less expensive price.

2) Southern New Jersey: Right across the bridge from Philadelphia giving it a fabulous overflow from that city and state, again, at a more affordable price.

3) Atlantic City: A huge gambling and entertainment city on the Atlantic Ocean with casinos, hotels, restaurants and more all within walking distance of the center and connected by the Boardwalk.

Each location is near neighborhoods with good schools, clubs, shopping and everything else employees would need. Once you select your favored location, what amenities make any commercial real estate the best? The best commercial real estate buildings must set themselves apart from the other buildings nearby and make prospective employees attracted to the building as well as the business.

Exterior Features

When searching for excellent commercial real estate in New Jersey you should keep an eye out for the following factors:

• Attractive design
• Enough parking and access to public transportation to attract tenants with employees that need to get there
• Aesthetically pleasing landscaping to give the building curb appeal
• On the interior the best commercial real estate properties must have amenities like:

Interior Features

Some of the features that can be found in top-of-the-line New Jersey commercial real estate:

• Attractive lobby with plants and excellent building materials like marble
• Enough elevators that hold everyone during rush hour and get employees to their offices fast
• State of the art operational systems including, heat, air conditioning, water, and wireless Internet access
• Attractive, clean bath rooms
• At least one restaurant or café that can serve employees meals
• A bank on-site, or at least an ATM machine
• Workout room with TVs that employees can use to keep in shape.
• If it is a large building, day care facilities can be particularly attractive.

Neighborhood Features

Things to look for in the surrounding area:

• Off-site shopping and restaurants for employees or entertaining executives
• Convenient entrances and exits from major commute routes
• Nearby corporate parks to find a pool of employees

An example of a building with an excellent interior, attractive grounds, and excellent nearby amenities is the Mack-Cali Bridgewater I in Bridgewater, New Jersey. Attractive from the exterior with beautiful landscaping, it has won awards for its energy reduction efficiencies. The building is near several major routes for commuting, and other buildings in the nearby business corridor make it easy to attract employees and clients to this building.

If you have a great location with all the building amenities and services that can be provided, then you have found a perfect building for your company. New Jersey has so much to offer that whether you are near Manhattan, Philadelphia or Atlantic City – they all have the potential to be great locations for you business in New Jersey.

How to Invest in Commercial Real Estate

Commercial real estate investing is done by business people for profit. There is a lot of difference between the commercial business real estate investing and the other investment properties like agriculture, residential and industrial. Commercial real estate gives a long and stable income which makes it the most lucrative option. The initial investment in the real estate property is very low compared to the returns. Examples of these properties include retail outlets, office buildings, strip malls, restaurants, hotels, apartments, multi-family apartments and many others. There are wide varieties of options available for a person to invest in commercial real estate properties.

Commercial real estate purchases are similar to other properties. The system of the investment is same which is based on selling, buying and all other legal transfer procedures. However, before investing a person should see that how much percentage of return a commercial estate property can give. A person should always research in the market before investing in any property.

First of all, check out the location of the commercial property you are interested in. Then look at the nearby areas that may develop in the future. Also make sure that the commercial property you are interested is free of any legal action and that the title is clear. Do not rush to get any property – otherwise there is a good chance that you’ll end up in a deal that you regret.

For the people who are beginners commercial real estate, you should proceed with due care. It is always advisable to take suggestions from the experts who have experience. If you are low in your budget or choose not to hire a professional for advice, you have to spend the time necessary to collect information from all the sources available in the market.

Commercial real estate investing can be challenging and interesting, but profitable as well. More information on commercial real estate investing can be found in magazines, newspapers, and online. The Internet can be a good source to get information and other things related to commercial real estate investing. There are many websites which can provide you detailed and updated information on commercial real estate investing. Good luck!

Professional Real Estate Marketing For Business

The people involved in this property transactions include buyers, sellers, lenders, insurance companies, legal entities and buyer and seller real estate agents. Each of these professional groups may target the same clients with different types of services on offer. Property transactions involve a multitude of professional inputs to achieve successful outcomes. Buyers of property have different motivations and levels of economic strengths. This makes choices depended on personal or business circumstances. The various types of property offered cater for the varying purchaser needs.

Agents representing owners and purchasers of property target buyers and sellers primarily. Lenders are focused on the lending needs of clients involved in property dealings. Insurance companies provide all manner of coverage for owners of property. They very often place emphasis on their low rates relative to competitors.

Non electronic advertising includes mass type mailing to targeted residential areas. Many real estate agents holding listed properties open on weekends for buyers and sellers also use these functions as lead generators. Other more traditional forms of advertising include contact information and business promotion advertised on vehicles. Many also use printed media outlets which may the national, regional or local. Cold calling on the telephone can also be incorporated.

The twenty first century has seen a revolution in commercial, residential and industrial property advertising channels. One such channel many successful professionals harness is online advertising through websites. These websites can be developed to match client specifications by website programming entities and business concerns. The key is effectively targeting the provider of the services area of expertise to client needs in order to generate more business.

Websites come in different forms and are designed for different types of business providers of property related services. One common factor relevant to all websites is the professional design. These sites should be easy to navigate, have content that is relevant to the targeted searchers and have a compelling marketing message.

Social media services are fast becoming indispensable for a significant number of business entities providing property know how for the public. There are various and growing numbers of these mediums for advertising purposes. The most effective media outlet for each business or self employed entity must be investigated as competition exists. Standing out from the pack is always a key goal.

For professionals in the property business enhanced real estate marketing is vital. Traditional forms include open houses, referrals, bulk mailing to targeted areas and street signs. Many focus on the web centric ways of advertising. This includes the provision of websites with online search engine capabilities. The increased potential reach capabilities of web based self promotion makes this approach increasingly appealing. Whether more traditional or new innovative web based are utilized the generation of new leads and growing the business is paramount.

Real Estate at a Glance

Real estate is defined as doing business over land from housing and apartments to bringing up educational institutions, business establishments and for other purposes. Driven by factors like comfort and luxury, the common man has grown his thirst to make possible his dreams. Their thirst is pacified by aesthetic architecture of the buildings that promises of ultra modern lifestyle in a profound manner. However the land chosen should meet all the parameters from all perspectives. The businesses dealing in real estate differs from country to country. Occasionally it is supposed to be synonym with real property where the piece of land is improved by building fences, walls and apartments. ‘Vastu Sastra’ is also often taken into account while going for real estate, which is held accountable for a man’s health, wealth and prosperity.

In this field, Pune for example is one of the fastest growing city in many terms. It is in the outskirts of Mumbai and is very comfortable to live there in terms of climate. Cities like Bangalore, Pune, Noida also hold in them cosmopolitan nature where people from nearly all places have migrated for better prospects. With modern facilities and amenities, these cities are one of the fastest growing in terms of mushrooming of educational institutions and software industries. Further, these places also have high demand of Residential projects, Commercial projects, Office projects and Bungalow projects that have been taken into account and given due shape to make the dream of making it big in life come true.

The comfortable and amiable climate has also made people to mingle with the working culture of these cities. These cities make the place ideal to do business and hence render an opportunity to grow. With abundant green coverage and right proportion of population the cities are ideal place for the growth of real estate business. Here, the demand and supply values also go in hand in hand. This business is mushrooming and flourishing in the city, the available infrastructure is also getting better and better day by day.

The cities have prospered and so are its neighboring places which have given a boost to the demand of real estate. The demand is also gaining wide popularity because of low rates of interests provided by banks, keeping money in fixed deposits, stock markets variation and the huge returns on mutual funds. Further, the demand of real estate sector has also sky rocketed because of initiatives taken by Indian government which has allowed 100% FDI in the construction and development sectors.real estate property, commercial and residential property

Today, customers have a wide range of choices in real estate in terms of 1/2/3 BHK flats, classy malls, posh residential buildings and complexes, large multiplexes and 5-star hotels. These facilities & amenities have come up in the cities that offer a thrust to the real estate and a chance to blossom from the budding one.

Commercial Real Estate to Lease Vs Own

In my daily dealings with small business owners I see entrepreneurs struggle with the question of whether to lease or own consistently. The idea of owning can be very appealing, especially now as interest rates are still low (historically), new loan programs are popping up like 90% non SBA financing and 30 year fixed programs. And, building bargains seem abundant.

This question is certainly not new. Businesses have struggled with this for years – in good times and bad. The decision can become complicated quickly as objective (financial, space needs, etc.) and subjective factors (business image, growth plans, pride of ownership, etc.) combine. Forces outside of the business owner’s control, such as the general economy, interest rates, future real estate values, further obscure the issue.

The most thought of advantage of ownership is the potential appreciation. However as we are seeing now, appreciation is not always guaranteed.

Historically, financial experts have broken down the question by quantifying the factors such as the difference between the down payment/monthly mortgage vs. lease payments (among many others factors such as tax rate, tax benefits, interest rate, inflation, depreciation, expected holding period, expenses, etc). The point is to come up with an estimate of the buyers Internal Rate of Return on the down payment injected into the purchase.

Internal Rate of Return is commonly discussed, analyzed and dissected. Many factors can be manipulated, such as the anticipated appreciation rate inflation rate etc, to come up with different projections. Some of the major pros and cons of ownership include:

Pros

o The creation of equity
o Monthly mortgage payment is usually lower than comparable lease payment
o Potential future rental income
o Assisting owners with wealth/retirement
o Building an asset that will assist in securing business lines of credit and other forms of loans
o Pride of ownership
o Stability
o Control
o Business image
o Not being exposed to increases in rental market
o Not being exposed to whims of landlords
o Dramatic tax benefits

Cons

o Property management responsibilities
o Interest rate exposure on adjustable mortgages and/or if mortgage balloons
o Opportunity costs of down payment not being in a more liquid asset, or being used for business operations
o Decrease in functionality of building
o Building value subject to market conditions
o Length of time in selling building
o Decrease in space flexibility

These types of analysis can be very useful and give a clear perspective on a complicated issue. But, for most small business owners in general and in our Michigan economy, the question really boils down to money, and long term plans.

First of all, can the business really afford to inject 10% or 20% into a facility? Equity is hard to “tap” in commercial real estate. Many businesses need that capital for daily operations. Secondly, what is the difference in the potential mortgage payment vs. lease payments? Is owning going to increase cash-flow for the business (as it commonly does)?

Long term plans. Owning can be the wrong strategy for companies with strong growth potential/ expansion plans as selling on the short term can be expensive and difficult. Also, companies seeking venture capital may want to shy away due to how real estate ownership affects their books.

So, without overly simplifying the issue, the economy seems to be making purchasers think more of “now”, how holding real estate affects their business immediately vs. traditional long term hold IRR type mentality. Many buyers are discovering that despite concerns over the market, ownership still makes a lot of sense for their business and personal wealth.