Let’s Talk Commercial Real Estate Investing, Shall We?

Commercial Real Estate Investing

The financial industry greats will be the first to tell you that real estate investing has the potential to bring in serious profits. They will also gleefully inform you that the risks in some cases far outweigh the potential, especially if they are among the more cautious investors in the industry. Those who have made their fortunes in real estate however will tell you that investing in real estate is worth every ounce of risk when you manage to work through the rough patches and find your way to real estate investing fortunes.

Commercial real estate is somewhat unique among real estate investment types. This is the type of real estate that requires a high investment to get into the game, much higher than most residential property and equally it poses great risks depending on what you plan to do with your commercial real estate investment. Of course you will also find more than a few options for your commercial real estate investment that many investors find appealing.

Most investors find leasing office or building space to be the safest route to take when it comes to real estate investing. The path of leasing office space or warehouse space to businesses is also lucrative and can help you learn the ins and outs of commercial investing. They feel that this is a relatively steady source of income because most businesses prefer to keep their locations as long as possible. Smart business owners are well aware that customers, clients, and vendors need to be able to find them in order to do business with them and for this reason, prefer to keep their business in the same location whenever possible rather than reestablishing themselves in different locations year after year.

Commercial real estate investing is a bit of a different animal than traditional residential real estate that many of us are more familiar or comfortable with. You will need to do a lot of research before jumping in with both feet with this particular sort of real estate investment. Commercial real estate investments can take on many forms. From strip malls and outright shopping malls to business and industrial complexes to sky scrapers and high rise condos you will find all manner of commercial real estate interests. Whether your interests lie in business or personal types of commercial real estate there are significant profits that stand to be made.

Unfortunately, beginners often find the path to commercial real estate investing laden with thorns. You will need a massive contribution to fund your commercial real estate pursuits and it is probably best if you can find a group of investors in order to share some of the risks. Real estate, in and of itself, is a high-risk venture. Commercial real estate bears a little more of the risks in the beginning however once you’re established and people, particularly investors, know your name you will find that path to real estate wealth is much easier obtained through commercial real estate, if you play your cards right than many other types of real estate investing.

To create even bigger profits it is often best to work as part of a team of investors when it comes to commercial real estate investing. Not only does this approach spread out the risks to some degree but also helps find the good buys, spreads the labor pool, creates an environment of ideas, and allows you to bounce those ideas off one another seeking temperance and enthusiasm for members of your investment group in like measures. It is a great idea for those who are looking to build a prosperous future in the field of commercial real estate investing and can be extremely profitable for all involved.

Commercial real estate investing can be extremely intimidating if you allow it to be. Avoid putting yourself in a situation where you feel out of control or completely uncomfortable for your first commercial real estate investment but if you have the means, the price is right, the deal appears to be solid, and you feel you are ready for the challenge, commercial real estate profits can be a serious motivation.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

If this article has been helpful, please leave a comment below.

Cheers,
Valerie Adams
Valerie@ConversionMarketingExepertz.com

The Benefits of Real Estate Investing


Real estate investing is increasing at a staggering rate these days. More and more individuals are learning that real estate investments can offer wonderful earning potential. Real estate investing is a process which has many attractive qualities that make it a viable money-producing opportunity. There are a number of benefits that go along with purchasing real estate investments and the following paragraphs will highlight some of these benefits. As you will see these attributes make it quite apparent why individuals are becoming interested in investment opportunities of this type.

Build Equity in the Property:

For those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners since the more equity a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.

Possible Tax Advantages:

Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.

High Rate of Return on the Sale of the Property:

When the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin. Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected. If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.

Lease the Property to Tenants


While some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants. By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.

Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so. These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

Valerie Adams
Valerie@ConversionMarketingExpertz.com

Real Estate Investing: Simple Ways To Make More Deals And Earn Greater Profits

Get In There’s Still Time


If you surf the Internet and read books on real estate investing you will come across a lot of useful information, though the majority of these sources concentrate on providing information on just one particular sphere of investing. The best part about this form of real estate investing is that you can earn money in more ways than one and never have to spend your own money in the process.

Not A Get Rich Scheme

It should be clearly understood at the very outset that real estate investing is not a scheme that makes people rich overnight and without expending much effort. On the contrary, real estate investing means putting in a lot of hard work and it will also take time before you realize your objectives. It also requires that you perfect certain techniques and combine them with your experience and strengths; so that you act in the best possible manner at all times.

One way of getting ahead in real estate investing is through rental properties because being a landlord is an activity that has been known to man for many a long time and it has always helped one to earn good money. It is however something that does not happen too often because you don’t want to rent out your property on a short-term basis (in most cases). You can also profit from a technique known as lease optioning in which you get to control the property without actually becoming its owner. The best part about this form of real estate investing is that you can earn money in more ways than one and never have to spend your own money in the process.

Also, real estate investing could also mean going out looking for more deals because as you will have realized, the more deals you are able to close the more money you will end up earning. You can also wait for a good deal to come your way and whether you are a pushy investor or one who is patient and waits for deals to come your way you will need to be very persistent if you want to succeed in this form of investing. Thus, you should talk to as many owners as you can because the more deals you make the greater the amount of money you will have earned.

Once you realize that the more deals you close the more money will come your way you need to focus your real estate investing efforts in a few simple yet effective directions. First off, you need to try and buy properties from private owners since it will allow you to bypass competitive buyers who usually throng auctions looking for bargain buys. Also, private owners may be facing foreclosure and thus would be on the lookout for a buyer so you can land some sweet deals in this novel and effective way.

You can also profit in real estate investing by selling and leasing back. A source worth tapping out in this regard is businesses that have bought properties during boom periods but who are now facing liquidity problems. If you have the cash, such businesses will be willing to do business with you and you can then buy the property and then lease it back to the company and expect a nine to ten percent return on your investment.

However, foreclosures are a better option because you can get the property at knock-off prices and then make a good profit by selling them later, when the time is right. Using these simple strategies, you should not face any problem with increasing the volume of your real estate investing dealings and as you will have more properties on hand chances are that you will be able to convert them into more profits by making as many deals as you can.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

See you at the Top!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

Tax Liens and Distress Sales – Opportunities for Real Estate Investing

With the current real estate hiccup going on the U.S., more and more people are losing their homes because they failed to pay their home mortgages. But what happens to the homes is something few people think about. This can be a very good real estate investing opportunity for the shrewd, and one can quickly earn profits in a very short amount of time.

How To Earn Through Tax Liens

If a homeowner has defaulted on his payment, then the mortgaging bank will start the pre-foreclosure process. A tax lien will then be issued for the property, so that the right to retain the property can be gained. You can do real estate investing in tax liens for a certain property that has been issued a lien and put out for an auction sale. The way you can earn profit from this is that the state will pay fixed interest on a tax lien and there are others that will start the bidding price at auctions in the amount of the lien.

If the tax lien is unpaid during the duration of the redemption period, then all other mortgages and liabilities on the house are extinguished, and the title to the property will be cleared. The investor will now own his or her new property with a clean title. If the owner can pay the liability on his property however, the investor can still earn through interest earned on the lien. (Check with your local state, time restrictions may apply). Real estate investing in this manner can lead to profits both ways.

Real Estate Investing Through Auctions

Sales of properties by tax-distressed owners can be quite a steal. However, you’ll need to find out if your real estate investing opportunity is going to be worth it. Check the property location beforehand, because you might be buying something worthless, like purchasing a piece of land that is routinely flooded. If you are able to acquire and own a piece of land legally, you can participate in property auctions as well. But, you’ll have to have ready cash on hand or in easy access, because auction sites will typically require that those who win the bidding on their chosen properties to pay a down payment or the full amount in a short span of time, if not cash up front. This is one of those investments not for those without capital.

Starting Up Your Own Real Estate Investing Business

You can always start-up your own business in the real estate investing industry. Given that you have enough capital, and you have enough knowledge on the state rules on tax liens in your area, you can start investing in property tax liens immediately. One of the most important things to do when doing business in this nature is to check the property liens that you’ll be buying. Physical inspection is needed, but since it can be so time-consuming, limit your searches to somewhere you can drive to. A real estate investing business will also require that you have adequate knowledge of the legal processes involved, since tax-distressed sales by homeowners will involve banks and other institutions, most notably the government. You can earn high profits with just a few pieces of properties sold, but you can also spread the profit out and sell properties for a smaller markup, provided that the turnover for those profits will be faster so you can move on to other properties for sale.

A distress sale is a great opportunity for investment, but one should always be careful since at auctions you won’t know if the property you’re buying is a good buy, and not a lemon. You should also check if the owner of the property is not on the verge of bankruptcy, because the IRS can override your lien and take first priority as well as your real estate investing opportunity away from you. Even in this case, the interest rules for each state still apply and can be a tax deduction as well.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

See you at the top!

Valerie Adams

Valerie@ConversionMarketingExpertz.com

5 Tips To Successful Joint Ventures

“I’ve always believed that that only way to cope with a cash crisis is not to contract to but to try to expand out of it” Sir Richard Branson

When businesses think of team building, business owners usually associate it with building their company’s internal workforce into a lean-mean fighting machine. Team building, however, should be extended to include external relationships such as those with other businesses. Enter joint ventures or JVs for short. The purpose of this article is to give tips to entrepreneurs and small business owners. This article is not a “green light” for spam with your links and offers please!

Joint ventures generally are business partnerships established between two or more parties (individuals, business groups, companies, corporations) for the purposes of expanding the business and achieving merits by joining forces and working as a team. The parties involved in joint venture agreements complement each other, leverage each other’s assets, compensate each other’s weaknesses, and at times equally share risks.

Less than 5% of businesses use joint ventures effectively and most don’t even use it at all. To get the most out of joint ventures correctly, multiple factors such as choosing who to partner with, approaching potential partners correctly, negotiating a win-win deal for all parties involved, and having a well-coordinated execution need to be taken into consideration.

There are several types of joint ventures. Big companies may join forces to become even more powerful and thus dominate the market, while small companies may team up to build a stronger presence in their market niche to fend off bigger, resource-rich companies. JVs can also be used to gain access into foreign markets. Foreign companies often form joint ventures with indigenous companies that are already present on the market, but lack capital or financing to truly take advantage of the market potential. Foreign companies can bring money, new technologies and competitive strategies into a joint venture deal, while benefiting from the relationships and the brand of the domestic company.

These complementary partnerships benefit all the businesses involved if set up correctly with the right partner. Here’s a powerful but simple example of a JV that many businesses can take advantage of to grow their small business fast. It is a highly efficient method of increasing business profits by teaming up with another partner whose business is non-competitive and offers a highly valuable asset, a highly responsive client list that would be interested in your products or services. By tapping into this hidden goldmine, small businesses can save thousands of dollars in marketing expense to reach their target clientele while achieving the goal of boosting the bottom line. The business offering the vehicle in which to reach these clientele, the client list, benefits from offering complementary products and services that it does not sell and makes a cut of the sales generated from marketing to this list.

Here are 5 tips for joint venture success:

1.      Choose your partners carefully. A joint venture has greater chance of being successful if partners have an excellent reputation. An essential component to good team building is having the right partners. They must be trustworthy and have a high level of integrity. Joint ventures involve extensive team building effort because it is a relationship between two parties and if the relationship is to last, it must be nurtured and kept going.

Both parties must be able to trust each other and deliver on each other’s promises. To find the right partner, perform solid market research and approach people and businesses you would want to do business with LONG term. If you want to form a partnership with a certain company, make sure that its business practices are in-line with yours. It would be very difficult for you to form a reliable team with people who lack motivation or professionalism, so you should look for well-trained, open-minded potential partners.

2.      Know what to expect from the beginning of any JV relationship. Know from the start what your goals are, what you want to accomplish, and see if your goals are attuned with the partner. Each company/person should come up with a marketing plan and clearly specify what is expected from their potential partners. Plan your strategy ahead of time and make sure you cover all the legal aspects stipulated in your joint venture contract, like resource availability and management, special allocations, mutual gains, deductions, and income issues. Stick to the business development plan and establish new priorities and goals as you progress. By efficiently managing resources and by maintaining a good, competitive business policy, you will secure the longevity and the success of your business.

3.      Draft proposals like mini-sales letters. Compose a professional proposal letter explaining the advantages of the joint venture in a convincing way. Keep it short, clear, concise, and coherent while briefly introducing your business and why they should do business with you. Remember to tune in to the radio station your prospective JV partner listens to, WIIFM or What’s In It For Me. If you want to propose a joint venture to anyone you have to give them a really good reason why they should do it. Otherwise, they will most likely decline your proposal. Successful companies receive many joint venture offers, so you have to stand out. You should educate them about the advantages and the benefits of choosing you over the others. If this partner happens to be a dream partner, stay persistent as persistence demonstrates sincerity and determination to make it work for the potential JV partner.

4.       Avoid shooting too high with your offers. If you are a smaller business, do not target your offer to a large company first as it will most likely be thrown away. Instead of aiming too high at this point, establish successful joint ventures with small companies in order to get noticed by the bigger, powerful ones. Establish a reputation as a solid business owner who knows how to turn joint ventures into gold for their partners.

Businesses naturally gravitate towards successful businesses. Remember to toot your own horn by announcing JVs through press releases and/or articles in trade magazines. As your business expands, the competition will quickly become aware of your presence, and there is a chance that powerful companies might come up with proposals of joining forces with your company.

5.      Be honest and open with all business transactions always. Once you have negotiated the details of the joint venture, the actual work begins. In order to keep things going, a lot of trust, understanding and expertise are needed for ongoing team building on both sides. Maintain an open dialogue and always address issues upfront before it becomes a bigger problem that threatens to break up the partnership.

These are the basic rules for joint ventures and it is ultimately up to you to see whether a deal will be successful. Learn with each joint venture deal to improve on the next deal. Deals can only be made if you go after them. With lots of hard work, you’ll develop enough expertise to be a joint venture expert and take your business to the next level.

I hope you get lots of tips from this article. If so please leave a comment below, like and share.

If you are interested in learning how we leverage joint venturing in real estate investing and house flipping click here. http://bit.ly/2KrhfKD

Valerie “The Coach” Adams

Conversion Marketing Experts, LLC.

Valerie@ConversionMarketingExpertz.com

/ Offices: California, Chicago, Georgia

#team building, #joint ventures, #smallbiztips #realestateinvestingjoint venture banners

6 Tips On Your Next Fix N’ Flip Project

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1.      Be sure the contract is assignable. I’m seeing lately that there are restrictions on assignments. Many times, this information comes as a surprise to the investor. I see developers with regulations that say the buyer can’t assign the contract until he or she has lived there for one year or before a certain percentage of condominium units are sold. Also, the developer may hold the best units for the end, which makes assignment prior to that nearly impossible.

2.      Know the developer or re-habber. How is your potential partner aligned to finance this flip project? Have they had a recent successful project before? How long will this project take to completion? Do your research? Make sure you have a very comprehensive outlining the project completion. I see it more and more where people are holding out contracts and deposits, and the developer isn’t moving as quickly as the investor had been told. Carrying costs need to be analyzed know the cost of delays. When using a real estate professional be sure he or she knows and goes over these costs.

3.      Know the area you will be working in. When it comes to a specific investment property, you or your associates should be experienced in that area and in that neighborhood. If the market has reached top price, then investors need to be cautioned. house-construction-1005491Take thing into account that relate to local corporate holdings relative to the area. Local company transitions and political decisions that affect mortgage rate and lending laws; both in the retail and investment sectors.

4.      Are you offer concessions as a part of closing? Make sure all of this is spelled out in writing to be handled by the closing attorney or title company. This way once you close on the property you can walk away with peace of mind; knowing these will be handled as promised and professionally.

5.      Look for fees. Recently, developers have been charging assignment fees that may eat right through your profits. In order to assign the contract, the buyer has to pay a fee to the developer. Also, some developers are saying that resales must be done in-house. The buyer must use the developer’s real estate associates. For associates that’s fine, but for buyers or investors, it isn’t always a good thing.

6.      Plan How To Handle Money. It’s important that you know you should get professional help, such as from a certified public accountant (CPA), about ongoing tax liabilities, short and long-term handling of investment profits. As an investor; I am telling you get accounting advice, and that will help you determine whether to hold the contract or the unit for a while before you resell it.

Thank you for reading this article. If you got value from this article, please like and share it. Also I would love your feedback so please comment below.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

Cheers,

Valerie Adams,

Conversion Marketing Experts, LLC.

California/Chicago/Georgia

Valerie@ConversionMarketingExpertz.com