Month: April 2019

Rents in Class A & B Apartments

The resident mortgage underwriting standards remain stringent. It is difficult to obtain a mortgage, even those offered by the Federal Housing Association. FHA loans are intended for lower-income buyers. Impaired credit is often the reason the option is not available to them.

Yesterday’s class A is class B today. There is a significant demand for class B apartments. Even those with no major renovations are experiencing rent growth, just not at the same rate as those that underwent significant renovation. Significant renovations include more than new appliances. The whole package includes cabinetry and a new leasing center.

Competition

The gap between class A and class B is so wide that it is unlikely the class A rent will be within reach of current class B renters. Even though the competition between class A properties may cause rents to fall, the difference varies by 4.1 percent nationally.

There is little or no competition for new class B apartments. The inventory has declined in recent years due to demotion, conversion, etc. There has been no adequate replacement. The lack of replacement presents the opportunity for rent growth for class B.

The supply of multifamily units coming on line at present exceeds the …

Knows for New Investors

  1. Take advantage of free resources. Things like internet searches, downloadable documents, and networking events accelerate your efforts. Back in action, ready for a deal. Yes! I just knew I’d have more properties in no time. Unfortunately, it wasn’t that simple. I kept running into properties that didn’t pan out. I couldn’t believe it! I had financing options with no deals to close. Then I realized why I was stuck, AGAIN. Solely focused on financing, I placed no effort in actively pursuing a deal. At the time, I figured I had to achieve one goal before beginning on another.
  2. Success is not linear. Work on your goals simultaneously to maximize on time and efficiency. Had I owned this mindset, I would’ve closed on my next deal sooner.
  3. JUST GET STARTED, embrace risk. Never stray away from pursuing what you want regardless of the challenge. Things may not happen as planned. Commit to the end-goal and you will earn the result you desire.
  4. Don’t place all your eggs in one basket. Although necessary, risk should never be painstaking. Fortunately, my investment was cash-flowing and I officially became an entrepreneur. High on investing, I planned to move forward with another deal. What does

Assess A Property Development Site Quickly

If it is an existing industrial property it’s a reasonable bet that it is zoned for industrial but if there is residential uses in very close proximity then it may be zoned residential/mixed use. First call; the local council land zoning maps. Either give the local council a call or get onto your smartphone or tablet and have a look yourself.

If you are looking at a house block (or two) in an area with many apartment blocks in close proximity then it is likely to be zoned residential. A quick call to the local council can confirm this.

As most people are interested in residential development I will focus on residential “quick assessment”. You may have heard about “back of the envelope” feasibilities; well that’s what I would do now. Note that everyone has their own way of doing things, this is my way and you might not agree with it; that’s fine though. This works for me and that’s why I use it.

Lets say you had a 2,000 sqm block of land and there are 4 or 5 storey apartment blocks near you. To me this means that you could develop about 4,000 sqm of gross floor …

Go For Affordable Homes

You buy around the same amount of space as your friend at lower cost

Developers charge a premium to their based upon the location of their projects, the brand value of the developer and showing a promising future. Your friend may have a premium flat of about the same carpet area as your affordable home but, think, he’s paying for the brand value and NOT value of home.

They appreciate faster

Developers may be selling affordable homes due to the distance between city’s center and the project but think about the rate and pace at which cities are growing. Take for instance the case of Delhi; a few years ago Jasola was considered to be the end point in the capital where one could take home but today Delhi is crossing its city limits everyday. What is beyond city limit today can tomorrow be in the city.

Good returns

Since affordable homes have nice value for money, they tend to give good returns over investments. Your friend could be living in a premium apartment that doesn’t give returns but an affordable home is bound to give HUGE returns for sure.

Simple living

Living in such a home would mean that …

Dream House Hunting

  • Research on Your Realtor – There are several approaches to making an offer and most real estate companies have their standard operating procedures. There’s the submission of a letter of intent or even meeting with them first before making any kind of offer. There are those that extend invitations to view the property first or even invite you to auctions. Feel free to inquire what their processes are just so you know how to proceed with your offer. Do remember that for any oral or written offers make sure that you use simple enough language and be direct to the point.
  • Look For Options – This allows you to choose from their other properties if your original preference doesn’t pan out. Better yet, ask for other options yourself instead of waiting for their offers. Just be sure to be specific on what characteristics or features that you will require of your dream residence. These realty companies would be very happy to show you their other wares, complete with details, viewing and even free feasibility studies if available. Also, you might want to find other realtors as well, preferably with a satisfactory rating from former clients and partners.
  • Ask About Property

Rent for Lifestyle, Leverage for Investment

If you ask any REAL investor about this, they will tell you – that they have plenty of home loans for their investments, but rent the roof over their head! In fact, we have spoken to more than a few successful investors and they all have this in common. Only after achieving financial freedom did some of them get a home loan for their dream home.

So why were these people doing the exact opposite to what we have been told? The truth is, you don’t need to get a home loan to have a roof over your head. You should be using your savings and the banks to generate income for you. Wouldn’t it be better if your investments pay for themselves and your rent? (PS: That means you’ll be living for free!) Of course, you will have to be mindful to find the right deal, i.e. the positive cashflow property deal, one that gives you positive net income post expenses! They are not easy to find, but once you know how to do the numbers – you will not look back!

Best tip for all aspiring investors – is to use as little of your own money as …

When Buying an Apartment

First off, you are going to want do some research – preferably online. It is much easier than using a newspaper as it provides you with accurate picture and details. Once you’ve started going through a few different locations, you should start to think about budget.

Determine which elements are essential within the neighborhood you want to live in. Are you willing to sacrifice anything you cannot have? A great list to start off with includes bus stops, parks, clubs, shops, subways, or restaurants.

Once you have figured out which location you feel as though would serve your needs correctly, take a tour of it with the seller. Ensure you ask any and all questions you have.

You should make a small list while walking through the place of any damages or repairs that will need to be done. It is common for the seller to fix these in order to strike a deal; otherwise, they will knock the cost down a bit.

It is an excellent idea to get a grasp of how much your monthly bill will be when living here. Simply ask the seller for an approximation of how much the electricity bill, water bill, and other …

Purchasing Industrial Property

Return

Residential property investment is actually relatively low risk and as a result, low return. Commercial property includes a higher return but this comes in a higher risk. For instance, a flat or device will average a come back of 5% whereas commercial property, such as the warehouse, may average 8%.

Danger

The higher risk comes as higher vacancy rates. Let’s make use of the warehouse example. It could take a while to locate a new tenant for the actual warehouse, many months and possibly greater than a year. Conversely, finding a brand new tenant for your residential property will require generally a week or even two.

Duration of rents

Residential leases tend to become for six or 12 several weeks. However, commercial property leases are usually for a much longer time period. It is not uncommon to possess leases that are to have an initial five-year period, using the option to renew with regard to another five years, after which another.

Quality of renter

The tenant is obviously an important part of your home investment. In commercial home, a government or large corporate tenant is recognized as a ‘blue chip’ renter. They are likely in order to rent your …

Benefits of Using a Quality Property Management Company

  • Higher Quality Tenants
    One of the many jobs of a property manager is to find quality tenants to fill vacant properties. They thoroughly screen applicants by examining factors such as their rental history and credit score, calling their references, and even interviewing them to determine if they would be a good tenant. This process ensures that properties are filled with desirable tenants who will take care of the space, make their payments on time, and produce a steady income for the property owner. Management companies have vast experience sorting through applicants, and can spot warning signs and red flags easily.
  • Shorter Vacancy Cycles
    The owner isn’t making a profit if their property isn’t occupied. In fact, unless they own the property outright, during times of vacancies owners typically have to make the mortgage payment out of their own pocket. When a property is occupied tenants’ rent can be put toward the mortgage payment or used as income. Property management companies take care of marketing and advertise properties to the appropriate audience and see that the vacancy is filled.
  • Better Tenant Retention
    Tenant turnover requires additional time and money to clean, market and fill the space, all of which is costly

Get Involved in Real Estate

Get educated

Before venturing into the sector, it’s essential to get educated. Many colleges hold real estate classes where you get to know the finer details about the sector. Even if you don’t enroll yourself in any course, keep a close eye on the latest events in the market. Read business newspapers, journals and make the sector your passion. Watch out every development in the sector and analyze them.

Start interning with a real estate developer

To know the tricks of the trade, start interning with an established property developer in your area. Observe how they handle clients and close a deal. Working with an agent will clear many doubts and give you practical knowledge about the sector. At the same time, it will help you to set up contacts with different people involved in the segment.

Know your area well

To get started, research your area well. Know the market trends in your zone and the prevailing prices of residential and commercial properties. Accompany a realty broker to find out about properties on sale.

Have adequate funds

Realty projects involve a huge amount of money. With time, land, labor and material prices have shot up. Therefore, you need to …