• Commercial Property

    Main Considerations For Purchasing Smaller, Investment Real Estate!

    Smaller, investment properties, often, offer, significant financial/ economic benefits, in terms of creating a combination of asset growth, return – on – investment, and some degree of safety! However, this is true, only, if, the purchaser, first, thoroughly, understands, what to seek, and why! Different potential properties, have, varying, potential, for optimal performance, etc! While, everyone, cannot, consistently, take care of, afford, or get involved, in major real estate deals/ purchases, far more, are able to take advantage of smaller properties, etc. These vehicles, often, include, one, to four, family/ unit, houses, and, while some, offer, attractive investments, others, may not, always! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 4 significant, meaningful, main/ essential considerations, and evaluations.

    1. Cash flow: Cash flow, when it comes to these, usually, refers to, the difference, between, the funds/ revenues, received, and the monthly costs. It is important to consider these, in a conservative manner, by, basing evaluations, not, on the highest, potential rent – rolls, but, by market – based rents, and, no more than 75% occupancy (to avoid, a potential, cash – crush, if there are any interruptions, due to a variety of possibilities/ contingencies). In addition, the investor, must, be careful, to ensure, his personal cash flow, doesn’t suffer, by using too high a percentage of his reserves, for up – front costs, as well as creating reserves, etc!

    2. Area/ neighborhood/ local market: Before, making – the – leap, thoroughly, consider, and evaluate, local real estate market conditions, and discover, the marketplace, for rentals, in terms of, availability, demand, advantages, and/ or, disadvantages! Thoroughly, know the specific area, and determine, if it offers, the best scenario, for you, and your priorities and purposes!

    3. The 6% Rule: Many pay close attention to, what is often, referred to, as the 6% Rule, when it comes, to purchasing, smaller, investment properties. This means, three – quarters, of a realistic rent – roll, must achieve, at least, a six percent profit. Expenses, must include: mortgage – related expenses, including principal, interest, taxes, and escrow; landlord – paid utilities; repairs; renovations; upgrades, and reserves, etc.

    4. Property condition: Understand, the existing condition, of the subject property, and, what, will need to be addressed, immediately, on an intermediate – basis, and in the longer – run. Reserve funds, must be used, and prepared, for as many contingencies, as foreseeable, etc! On the other hand, don’t be, overly – influenced, by staging, and overestimating, rent – rolls!

    After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I believe, strongly, in the possibilities, and advantages of investing in smaller, investment properties, but, only, when, this is done, carefully, and in a focused manner! The smarter, you proceed, the better – off, you will be!

  • Commercial Property

    How to Acquire Good Office Space For Lease

    In the past, most business owners required offices to thrive in the market. Today things have changed and most business owners use coworking spaces or even home offices. You can save plenty of time and money if your office can do better in a coworking space. Below are guidelines on how to select a nice office space for lease.

    Think about your employees Centrally Located Offices

    Choosing a centrally located office space not only helps the employees in their commute but, even for guests who visit. There are multiple commercial complexes around the city which are located in the city’s hotspots. A good example of a commercial space for lease is The A, which is located on the eighth floor at One Indiabulls Centre in Lower Parel. The A has affordable office spaces, which are well equipped and meet the world class standards of office working areas. The interiors of The A are professionally done to create a vibrant working place with an aesthetic appearance. Your business will have an official address in one of superior business centers if you become a member of The A at One Indiabulls. Other prime business centers are DLF, Peninsula, Bloomberg spread across the city.

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    Consider the distance to amenities

    Choose your office in a location where you can access amenities that you will need. For example, you can locate it near shops or restaurants where your clients or employees can go for refreshments. Make sure that the place is also near facilities, such as meeting spaces or banks.

    Consider your budget

    You must check the rent charged for the office. Choose an office that you can run and pay its bills and rent without running losses or getting into debt. Look for a space that will suit your current budget.

    Budget for extra expenses

    Apart from the actual rent, there are other fees charged when you are renting an office space. The property owner may charge fees for other utilities such as data and phone. Read the lease agreement properly to find out other extra charges included. Also find out who is responsible for repairs between you and the landlord.

    Read and understand the lease agreement

    When leasing an office for the first time, you must thoroughly read the lease agreement properly. Don’t just go with the landlord’s statements. Make sure that you understand all the fees charged before signing that agreement.

    Choose a secure building

    Choose a building that is safe and secure for you and your staff. Check if it has guarded entry, security personnel and after hours security.

    Consider a spacious Office Space

    Go for an office that your workers can fit in with no congestion or excess space. Make sure that they all fit their desks and get enough room for movement. However, you can lease a larger space if you intend to grow within the lease period. You should also choose an office layout that will fit the nature of your business.

    Consider adequate parking services

    Make sure that there is adequate parking space when leasing an office. The parking lot must be able to accommodate your employee’s vehicles and some of your clients. The parking area must also be safe and secure. If you are in a city where most people use bikes, ensure that there is enough racks for your employees and customers.

    In conclusion, choose an office in a building that will sell your services. If you rent a property that is almost falling apart, you may lose clients. Rent a good office space where clients will have confidence in the services you are offering.