Some individuals who have gotten involved with commercial real estate feel like it was one of the best decisions they have ever made. The business of commercial real estate is a secret kept by those individuals who are involved in the world and succeeding at it. Some of the rewards and advantages of becoming involved with commercial real estate is far greater than the rewards and advantages of other real estate ventures. Any individual who feels as if the business of commercial real estate is something that they would not be able to succeed in is wrong and should really reconsider this idea. Anyone who has down a little bit of research in order to become more educated on the matter and has the proper amount of motivation needed in this business can succeed. After one has become educated on the matter, they may come to realize that the benefits of this business are much greater than the expenses associated with it. Individuals that become involved with commercial property and truly commit to it and succeed are able to enjoy a life that others wish they had.
The very first benefit of dealing with commercial property is that the individuals involved in this business are able to create a work schedule that is best for them and their unique situations. Commercial property enables individuals to either work full-time or part-time, but still obtain a level of wealth that they never thought they would.
Working part-time in this business can be just as effective as working a full-time job. Some individuals new to this business may decide to keep their job and work with the real estate part-time until their cash flow increases, then they commit to it full-time.
Full-time commercial real estate professionals are able to avoid dealing with a boss and get to be their own boss. They can work in the comforts of their own home and build their very own business from the ground up. A positive cash flow along with an impressive net worth can be built relatively fast.
An appealing benefit of commercial property is that individuals do not have to train for years and years and work themselves up the corporate ladder. The barriers to become involved in this business are few which allow individuals to dive in whenever they want.
One of the benefits that entice individuals the most is the amount of profit that there is to be had. The great thing is that with the amount of profit that can be earned individuals do not have to use a huge amount of effort. One commercial property deal can provide individuals with the same amount of profit as they would see if they sold 100 individual family residences.
No matter how many deals an individual makes in commercial real estate they have to use the same process every time. One of the key words used in the business of commercial real estate is synergy. It means that huge results can be had by making very small changes.
Property is still a popular investment portfolio especially for luxury property. This segment may be limited but luxury property is never out of demand. Investing on high end property can give very promising return of investment in the future and not to mention the prestige coming with owning such a wonderful piece of property. But off course, since it will cost you a lot of money, you need to be very smart when deciding to acquire a luxury property. It is important to make sure you get what you want at the right value. That’s how you make it a good investment.
Luxury home is more than just high price tag, there’re so much more factors to determine whether a residential property is a luxury home or not. When you can afford to spend a lot of money for a property, you more than deserve to have high demand. You need the best residential property with finest and most luxurious facilities and also a location with easy access to many luxury events. Since it is also an investment portfolio, off course you want a luxury property with good ROI.
Prescott in Arizona is well known for its amazing landscape and also many high end residential communities. It becomes one of the most popular choice for those who are looking for high end properties. Prescott Luxury Homes at this area create such an excellent neighborhood suitable for your family. Off course, looking for luxury home is much more sophisticated than looking for any other property. You need to have someone who really knows about high end property market and knows about dealing with your high demand. You need someone like Donny Karcie from Re/Max Mountain Properties, a leading real estate agency in Prescott.
He is a licensed realtor with years of great reputation specializing in luxury property. With seasoned knowledge of property market in this area and his experience working with high profiled and high demanding clients, he really knows well what you really need. This excellent realtor will provide information about Luxury homes for sale in Prescott AZ selected based on the criteria you have. You will get comprehensive information of all proposed properties including information about the location, neighborhood, value of the property, and its prospect in the future. He will guide and provide assistance throughout the process including negotiating for the right price with the seller, preparing all legal documents, and everything else. It is guaranteed you will find your dream house.
"Other people and things can stop you temporarily. You are the only one who can do it permanently." -- Zig Ziglar
I'm going to provide the 30-second version of the 1986 tax reforms affecting commercial real estate and why they are important to you as an investor today. There is an instructive lesson looking back at history.
A lot has been said over the years about commercial real estate and income tax savings. Prior to 1986 many people would invest in all sorts of commercial real estate properties just because of the money they would save on taxes. The savings at that time were so accelerated that many high-income investors would literally get their down payments back in 1 - 2 years based on income tax savings.
...In steps the government...Out goes the perks, and in comes the Resolution Trust Corporation (RTC).
This change made thousands of properties go belly up because now the properties actually had to cash flow. What a concept! I say that tongue-in-cheek, of course because before that, it did not matter to many investors if they cash flowed. The tax savings and loan structures were so liberal that even a property that was losing money would 'make' money because of the investor's tax situation.
After the tax law changes many people lost their shirts - and much, much more! The RTC was created to sell all of the repossessed properties back in the late 80's. There were so many repos that a separate corporation was needed to sell them all. Wow! This meant some investors got some great deals, pennies on the dollar which is another discussion for another time.
Much has changed, and arguably for the better. Now a property has to 'naturally' cash flow. I say naturally because the cash flow is not dependent on tax savings, or government incentives.
The lesson in this 30-second overview of the 1986 tax changes is to invest in a property because it stands as a winner on its own. What I mean is that the Net Operating Income not only carries the property itself, but provides YOU, the investor, a healthy profit, as well. Do not, do not, do not use these types of tax savings in your property analysis.
Some may claim that you should include tax savings into your investment analysis, but be sure that you do not fall for this. Always remember that tax savings is simply a side benefit and NOT the sole reason to buy an investment property. If an owner or another investor is touting tax savings over and over again it probably means that it DOES NOT cash flow that well - if at all.
Do you want to learn more about investing in commercial properties? Click the link below for my FREE 7-Part Investment e-Course. I'll also send you my FREE special report and teleseminar access "How to Buy Apartments and Commercial Real Estate With No Or Low Money Down."
Over the years, my clients have understandably wanted me to pursue every avenue to sell their property. To do so, they often request that I list their property as an investment in addition to listing it under a particular commercial real estate category. While this may seem like a good idea, in my opinion, unless you really have a property that can be considered an investment property, it is not particularly helpful.
Recently, one client asked to have their office building listed as an investment property. Office properties can be an investment but in my opinion, this property did not qualify. It was about 50% vacant and all of the leases in place were short term leases.
Similarly, I have had clients ask to have land listed as investment property. Certainly, there are people who will buy and hold land for a potential windfall down the road but unless the land has a lease or some sort of on-going income potential, I do not think that it is appropriate to consider it an investment property.
For a true investor, neither of these cases would get you past first glance. For something to be an ideal Investment property, it should have the following -
Ongoing income streams - Usually this would be rent. In the past, some people have assumed an appreciation of the property over time in their decision process. In my opinion and in light of the tremendous devaluation of real estate over the last few years, that is a mistake. When making an investment decision, the best practice is to consider the actual income streams themselves in valuing the asset.
Long terms on the income streams - Ideally lease terms remaining should be 10 to 20 years. When buying an income property, a new owner does not want to pay for a property that may be vacant in 1 or 2 years.
Single tenant users - This is not to say that people will not consider multiple tenant properties however, as you increase the number of tenants, you also increase the number of potential headaches associated with the property.
Credit Tenants - Whether you have a single tenant or multiple tenants, the leases associated with the property are only as strong as the tenants.
Triple Net Leases - Ideally, an investor will simply want to collect rent and deposit a check. For them the best leases have the tenant responsible for the property taxes, insurance, utilities and maintenance of the building.
Full or nearly full occupancy - Some properties are advertised as income properties which have significant vacancy. These properties often advertise a cap rate for the property that assumes the vacant area will be leased at the asking lease rate and the asking price for the property. In my opinion, this is misleading. If a property is not fully leased, quoting a cap rate in this way makes no sense. An investor making an intelligent decision would be best served selecting a property which is fully occupied.
For Investors to compare apples to apples, they need an investment alternative that is basically as simple as any other investment option. With stocks, bonds, or interest bearing accounts, you simply invest the money and do not have to take on property maintenance, leasing and other chores and expenses. Of course, these criteria significantly reduce the number of properties which you might consider and I realize that not every property will have all of these features. But I will also tell you that properties like this do exist and can be found.
There are definitely properties which will sell that do not have all of these features and expectations of these features differ somewhat with the type of property (i.e. retail vs. office). However, if you are marketing the property as an Investment option, the successful seller will try to match these criteria as closely as possible.
Miami is one of the best cities when it comes in investing. There are lots of investment opportunities that you will encounter as you conduct a search in this great city.
This city can offer you several options and for sure you will find the perfect property for you. And when it comes to the Miami commercial real estate markets, there are also a lot of options that you can choose from.
If you are planning to put up your own business center in this city, well there are lots of office spaces in Miami commercial real estate that you can choose from. Now there are lots of options that you can choose from. You have an options of renting on your own or sharing a single complex with others which is a practical options for those first time business person. You just have to make sure that you will pick the desirable property for your business and make sure that it can give you positive effects on your business.
When choosing Miami commercial real estate properties, you have to check all the factors that can affect your business. It is important that you have to start with the location of the property then the advertisement and other amenities. These are the important factors that can affect your business so make sure that you have to manage it properly especially if you prefer to rent a property on your own.
But if you prefer to share the building with other business, make sure that you are ready to face different problems that may arise. Those could not be a good choice because you may end up problematic. Problems start when you have common concepts for your business. There will be tight competition especially because you are sharing one property. This is not good start especially for that first timer.
Aside from commercial complex, Miami commercial real estate also offers other properties. There are also industrial properties that are suitable for heavy manufacturer and storage. These properties are suitable for those who have large business that are searching for a base location. But if you think that the property is too big for your business, and then you can opt for subleased the extra space that is available. In this way you ill be able to save a little amount for your rental fee.
If you want to have a thriving business, then you have to search the right Miami commercial real estate property. You have to ensure that the property that you are going to choose is something that can perfectly fit your business needs.
If you have a business, you will need to settle various aspects that can affect the income that you can generate from it. With this, you will also have to remember that one of the most important factors would be the commercial real estate property that you might want to rent or buy. This is a big factor that it can affect your actual profit in the long run.
This is an important decision that you will have to make so you can simply choose amongst the Florida commercial real estate properties that are available and decide when you are sure of the option that you have. You cannot afford to have a mistake so it would be better if you are going to spend just enough time before making any kind of deal.
There are various opportunities in the Florida commercial real estate market. It can be the right place for your business but you should also consider that there are other things that might affect your profit. You will only have to remember that the property that you will buy will have an impact so you should be wary of your choices and the decisions that you will have to do.
You should also know that there are various types of Florida commercial real estate properties available. To be able to get the best one, you will have to know each time. When you learn about the qualities of each type of property, you can assess the different kinds that are available and you will be able to check if there is a type that suits the needs of your business.
Just remember that the property has to have the right location, size and reach to the people that you can cater to. This will be the qualities that you will need to watch out. Once you know the different Florida commercial real estate properties, you can now decide if there is a kind that you can really want and it can be a perfect match for your business.
The kinds of properties will have an effect on the prices so you should also be careful in getting one. Business means that you will have to prefer a property that costs less but you should also consider a property that may not be cheap but if it can generate enough output, hence it can still be considered as a right decision.
A Florida commercial real estate that you will choose will affect your business because it can play a big part in getting in touch with the people that might need your products or services. If you want to get the best out of this business, you will have to ensure that you know your options well and you have considered each type. This way, you can say that you are prepared and there are valid reasons for each decision that you will make.