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Showing posts from March, 2020

Cost-Effecting Ways of Staging Your Home to Sell

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Making a good first impression on prospective home buyers is the key to getting your house sold within a relatively short period of time. Once your house is on the market, you'll want to make sure any major flaws, aesthetic issues, and potential buyer turnoffs have been fully addressed before the first prospects walk through your front door. Although serious house hunters often return for a second -- and sometimes third -- walkthrough of your home, first impressions determine whether they'll be back for another look. Since time is of the essence and you may be on a limited home improvement budget, it's necessary to prioritize the projects that will have the most impact on the image you project. When it comes to making cost-effective decisions on preparing your house for showings, your real estate agent can provide helpful insights and objective advice. Seasoned agents can size up a property within minutes and identify ways to improve the look and feel of your home. ...

Commercial Real Estate- The Key Factors About Lease Provisions That Become Detrimental To The Value Of An Investment Property

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March 6, 2020,   in  Commercial Real Estate In commercial real estate, it’s important for investors to understand the structure of a lease and provisions included. Lease structure greatly impacts property value whether you are selling or purchasing a commercial real estate. On the other hand, tenant or lessee can negotiate the best lease terms in lieu of long term commitment backed by the corporate or personal guaranty. Such a lease allows the tenant to do future business planning, run cost effecting operation and build a loyal customer base.  The key factors that you need to consider a lease structure: Base terms and option Rent bumps and income growth Lease Structures & Landlord responsibilities Lease Guarantor- corporate, franchisee, or personal Rigorous assignment Indemnification language Base terms and option Longer the base terms, the higher the property value. When structuring options, whether for 25 years, 15 years, 10 years, or 5 year...

How Corona Pandemic (Covid-19) Affects Commercial Real Estate Market

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The Corona Virus (also known as Covid-19 or NCov), has majorly impacted stock market, the travel industry, and the entertainment industry. Stocks have plunged to their lowest, suffering the worst crash since 1987. The travel industry and entertainment industry have suffered greatly with the lockdowns and quarantines. On the other hand, the impact has been limited on commercial real estate industry. It appears to be much less rattled. Investors are still actively investing. Here are the key factors why commercial real estate will still thrive over long term- Covid-19 impact is expected to be short term until the virus is contained US Economy is strong enough to absorb short term negative impacts Nature of commercial real estate investment is long term hold Interest rates are all time low In a recent report released by Marcus & Millichap titled “Coronavirus Outbreak: Implications for Real Estate”, they predict that most impacts will only be temporary until the virus i...

Real Estate Investment Trusts: How to Start

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Photo by Nattanan Kanchanaprat via Pixabay Would you like to invest in real estate? To buy thousands of income-producing properties, from apartments to office buildings to industrial parks, all over the country or the world? It you’re wealthy, you might dispatch someone to travel far and wide and do just that, but even if you’re not rich you can participate. The tool that enables this is a Real Estate Investment Trust, or REIT. What is a REIT? A REIT uses its investors’ money to buy or finance real estate that produces income. It’s an investment in property rather than stocks or bonds. The profit it earns from leases and rents is distributed to investors. By law REITs must pay out 90 percent of this income to the shareholders, but 100 percent is more common. Most REITS are Equity REITs, which directly own property. Mortgage REITs are indirect, investing in mortgages and mortgage-backed securities. Most REITs are publicly traded and listed on national exchanges. Some are p...