Category Archives: Commercial Property
Commercial Real Estate Property in India
The term “Real estate” refers to immovable property or real property such as a building or land. Commonly said real estate is the legal term provided to the immovable property. With the development of the real estate and the emergence of the private or public sector in the real estate, it has become a major area of business.
Purchasing and selling a real estate property means high amount transaction and a significant investment; hence reliability, trust and faith plays a major role in this field. Depending upon the hour of the need the real estate business required specialization in fields like real estate marketing, appraisal or valuation service, brokerages, property management etc
Within each field, a business may specialize in a particular type of real estate, such as residential real estate, commercial properties, or industrial property. In addition, almost all construction business effectively has a connection to real estate or commercial properties. indiapropertyhouse.com is perfect place in all fields. You will find all services for real estate marketing, investment property, real estate for sale and commercial property for sale in India.
An important term used among the terminology of the Real Estate is the market value and price. The market value is similar to price of a commodity but has some difference too. The definition of market value it is that Market Value is an estimated amount at which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein both the parties have acted knowledgably, prudently, and without compulsion.
Market value is the fluid concept, ever changing, while price is a historical fact at a time of transaction. A price obtained for a specific property under a specific transaction may or may not represent that property’s market value: special considerations may have been present, such as a family relationship between the buyer and seller, or else the transaction may have been part of a larger set of transactions in which the parties had engaged.
Commercial Property India is committed to providing exceptional commercial real estate services across all commercial property types and service lines. Whether you are looking to acquire, sell, lease, or develop commercial property, or your interest is in real estate agent, real estate marketing, real estate investment, real estate companies, rental property, real estate sales, commercial property for sale or whatever related to commercial property we have solution for your requirement.
Staging Your Home How to Sell Fast
It seems as though it does not matter where I am, people are saying the same thing. “How do I sell my houses?’ I was just in St. Louis last week and as I was giving a one day seminar, the biggest concern was the increasing days on market, currently up to 180!
Nearly every investor in the room was sitting on properties and you could almost feel the pain in the room.
Last week I had an investor from New England call about 2 investment properties in Florida and he was upside down by $40,000-$60,000 on both!
My heart bleeds for these people. Not just the investors, but everyone that bought too late and is trying or needing to sell too early. Real estate is not for the faint of heart and you should definitely make sure that you can lose before you begin.
I think so many people see others out there making large profits on real estate investing. What they don’t see are the times they experienced large losses. I have only lost twice, one time it was just a few thousand, which did not hurt too badly, but the second time, it was nearly $100,000 which I could definitely feel in my pocket book. That one is a long story but, you can be sure that I made multiple mistakes, trusted all the wrong people, and eventually, when I decided to get out, felt as though it was the best $100,000 I ever lost. Don’t get me started. The money did not hurt nearly as bad as the loss of the relationships involved.
My point that I am trying to make is that real estate is not a sure thing and many people are losing right now. You should not be buying above 70% LTV period. Real estate is going down, not up and it is not even staying flat. As a matter of fact, it went down 8.5% last quarter which averages out to be $19,600 per house! So, each day you hold on to your house, you are losing money. On average that amounts to $91.65 a day. If this does not frighten you, it should. Days can add up fast and if you are in the national average of DOM that means you will sit on your house for 163.7 days. That totals to just under $15,400 in holding costs alone! Are you willing to lose that much? Plus, while you are holding, your house is going down again.
The chances of you selling at full market value right now are very slim because no one can really define what that is. With a market that is dropping on a daily basis, you must make sure you are accounting for the right price in the beginning or you will hold in the end.
The sexiness of the big payoff with a fast sale is, at least for awhile, gone. Now, you have to really pay attention to your numbers. As I said, I would look at a maximum purchase price as an investor of 70% LTV and then I still want to make sure it can be made unforgettable so I can sell it fast.
So when you are out there now, getting ready to list, sell or even buy, make sure you run the numbers. You must buy low enough to hold for at least six months if needed. Make sure you account for the prices dropping on the property and that you are solid in having multiple exit strategies in case it just does not sell or rent.
One of the biggest mistakes made by most investors is the lack of multiple exit strategies. One of the biggest mistakes made by brokers and agents is over pricing in the beginning.
Both of these mistakes can be deadly in the final sale of the home for the investor, agent and seller.
One of the only few appreciating markets left is Seattle and of course small pockets in various other locations throughout the country. For the most part, the market has stopped or is declining.
So what is the solution? Buy right and learn to sell. All the best paperwork in the world does not help you if you can’t get someone to fall in love with the property.
Remember, according to nearly every financial expert, the markets will decline steadily for the next 2 years. So, if you decide to hold, get the best possible tenant buyer or renter by giving them a property they love…hopefully they will keep it that way. If you decide to sell, buy low and make each property unforgettable.
Nearly every investor in the room was sitting on properties and you could almost feel the pain in the room.
Last week I had an investor from New England call about 2 investment properties in Florida and he was upside down by $40,000-$60,000 on both!
My heart bleeds for these people. Not just the investors, but everyone that bought too late and is trying or needing to sell too early. Real estate is not for the faint of heart and you should definitely make sure that you can lose before you begin.
I think so many people see others out there making large profits on real estate investing. What they don’t see are the times they experienced large losses. I have only lost twice, one time it was just a few thousand, which did not hurt too badly, but the second time, it was nearly $100,000 which I could definitely feel in my pocket book. That one is a long story but, you can be sure that I made multiple mistakes, trusted all the wrong people, and eventually, when I decided to get out, felt as though it was the best $100,000 I ever lost. Don’t get me started. The money did not hurt nearly as bad as the loss of the relationships involved.
My point that I am trying to make is that real estate is not a sure thing and many people are losing right now. You should not be buying above 70% LTV period. Real estate is going down, not up and it is not even staying flat. As a matter of fact, it went down 8.5% last quarter which averages out to be $19,600 per house! So, each day you hold on to your house, you are losing money. On average that amounts to $91.65 a day. If this does not frighten you, it should. Days can add up fast and if you are in the national average of DOM that means you will sit on your house for 163.7 days. That totals to just under $15,400 in holding costs alone! Are you willing to lose that much? Plus, while you are holding, your house is going down again.
The chances of you selling at full market value right now are very slim because no one can really define what that is. With a market that is dropping on a daily basis, you must make sure you are accounting for the right price in the beginning or you will hold in the end.
The sexiness of the big payoff with a fast sale is, at least for awhile, gone. Now, you have to really pay attention to your numbers. As I said, I would look at a maximum purchase price as an investor of 70% LTV and then I still want to make sure it can be made unforgettable so I can sell it fast.
So when you are out there now, getting ready to list, sell or even buy, make sure you run the numbers. You must buy low enough to hold for at least six months if needed. Make sure you account for the prices dropping on the property and that you are solid in having multiple exit strategies in case it just does not sell or rent.
One of the biggest mistakes made by most investors is the lack of multiple exit strategies. One of the biggest mistakes made by brokers and agents is over pricing in the beginning.
Both of these mistakes can be deadly in the final sale of the home for the investor, agent and seller.
One of the only few appreciating markets left is Seattle and of course small pockets in various other locations throughout the country. For the most part, the market has stopped or is declining.
So what is the solution? Buy right and learn to sell. All the best paperwork in the world does not help you if you can’t get someone to fall in love with the property.
Remember, according to nearly every financial expert, the markets will decline steadily for the next 2 years. So, if you decide to hold, get the best possible tenant buyer or renter by giving them a property they love…hopefully they will keep it that way. If you decide to sell, buy low and make each property unforgettable.
Exiting a Commercial Hard Money Loan Through the Sba 7a Loan
From the frying pan into the … Business owners that “elected” to secure a Commercial Hard Money loan for their business are often surprise how quickly the time passes when they are expected to pay off that debt. There are of course only 2 real solutions to this. 1. Sell the property and pay off the loan or 2. Refinance the debt with another lender. The third option is to call your rich uncle and have him pay it off.
The game plan of course with most business owners is to give themselves some time to restructure their books, business, improve their credit score and essentially put themselves in a stronger position to get a conventional mortgage in a year or two. However, this may not be enough time or the problems were more difficult than expected.
We see a lot of people that their primary issue is their personal credit score with the belief that they will increase it dramatically but at the end of the term there score has only moved up slightly. Regardless of the reason, the borrower may not be eligible for a typical conventional commercial mortgage.
One traditional option for business owners to get of the hard money loan is to go the SBA 7a loan route. This is because the 7a program allows credit scores as low as 520, loan to values as high as 90% on refinances and the borrower is allowed to use projections rather than just historical financials which may not show enough income to service the debt.
But this option has had several negatives that make it, almost as low of an option as the hard money loan to begin with. For example the rate normally floats over prime at around 1-2.75%, adjusting once per quarter – with no caps on the rate. In addition, the SBA normally requires a Guarantee Fee of 2.75% of 75% of the total loan amount. So in short, the benefit is that the borrower gets an option besides hard money and the rate is normally lower, depending on what Prime is than what they could get from another hard money lender.
However, not all SBA lenders are the same and it pays to be informed. For example there is a bank that offers the SBA 7a with a 5 year fixed rate at Prime + 1 and the bank absorbs the guarantee fee… As of this writing Prime is at 5.25% so most borrowers rate would be 6.25% fixed for 5 years and amortized over 25 years. This is one of the best commercial mortgages in the industry – regardless if the borrower is perfect or not.
So, if you’re facing a ballooning hard money loan and you operate your business out of a building you own you may consider going the SBA 7a route. Regardless get out there and shop because there are more options out there than your local bank is aware of.
How to Stage a Home Property
One of the most daunting aspects of selling your home yourself is the staging of the home itself. It is possible to hire professional stagers that are trained to showcase the strong points of your home, but with a little time and effort you can stage your home yourself. The first thing to understand about staging a home is that you must attempt to disconnect yourself from the home on an emotional level. This is easier said than done, but it is necessary.
A good idea is to start with the most visual aspect of your home. The exterior. We will go into greater deatail about the interior in a moment. Cleaning up the facade of your home is an absolute must. ensure that lawns are mown and trimmed. Clear away any rough edges along the walkways and driveway. Also weed the gardens and plant some new flowers. Make the entrance to your home as welcoming as possible. After all, this is the first thing a prospective buyer will see when they look at your home. You want their first impression to be memorable…in a good way.
Now we move to the interior. The first thing you want to do is remove the clutter! Homes always have some sort of clutter that is best removed to showcase the home. This means you will have to spend some time going over what you need and don’t need. Remember that a minimalist approach is a good idea. It can be difficult for buyers to envision their possessions in another home, try it yourself sometime at a friends home. Look around and think about what you would move or change. Now do this at your own home. Time to get rid of a few things? This must be done for every room, clean out all the closets and cupboards too. Buyers are nosey, and justifiably so. Like you did before they are investing in their future and they will go through closets and such to make sure there is sufficient room for their things.
Now to ensure that viewers have a great experience when in your home there are a few things that you can do. Lighting can set a great mood in a home. Be sure to have appropriate lighting for the time of day. Temperature is another good thing to remember. Viewers are less likely to explore a cold home. Set the temperature for a pleasant medium. If there is a fireplace, light it. This will add to the ambiance and showcase one of the most popular assets of a home. The whole point of staging is to make guests feel welcome and at home. Try leaving out some refreshments or snacks if you are so inclined. It is up to you how far you will go in staging your home, but the more effort you put in the better your home will show.
Buying a Property in New Zealand
An island nation always has a special charm in the hearts of people who don’t have the luxury of living at such a paradisiacal place. New Zealand is one such country that oozes resplendence at every step. With nearest neighbour Australia, New Zealand is not a part of Australian continent. In fact, the country belongs to the largely submerged continent of Zealandia, which stretches from the north of New Caledonia to the south of New Zealand’s Sub-Antarctic islands. New Zealand is comprised of three main islands besides several other small islands that enrich the topography of the country with some breathtaking views and inspiring scenery.
New Zealand Highlights
New Zealand is blessed with some of the choicest nature’s bounties, with pristine golden beaches, snow-capped alpine mountains, crystal-clear river waters, glacier-fed lakes, and abundant adventure activities you can indulge in. This means the country is agog with tourists all the year round offering numerous opportunities to earn handsome rental income from apartments and other vacation properties alongside some of the most-visited spots in New Zealand.
The inviting kiwi weather is an added incentive to visit the country. The outdoors of the country is ideal to indulge in plenty of activities, like bungee jumping, scuba diving, zorbing, mountaineering, kayaking, surfing etc.
The natural attractions of the country are enough to lure holidaymakers, retirees, and expatriates who look for real estate investment opportunities in the country. In fact, in addition to the vacation property, second-homes are also extremely popular for the property investors due to New Zealand’s favourable living conditions, cost of living, and the rosy projections of the nation’s economy.
If you think that New Zealand is just about adventure sports, think again. For the country has a rich history and tradition of the native Maori people, as depicted through several museums and art galleries. New Zealand also has a rich treasure of flora and fauna wildly found in the National Parks and the Ocean.
The country is extremely well connected with the rest of the world through airways and seaways. The internal transport of the country depends on efficient air, road, rail, and sea routes for a variety of commuters.
New Zealand is every bit a modern country having plenty of education opportunities for lower and higher level of students. All the modern amenities, like nightclubs, discos, pubs, restaurants, cafes, theatres, cinemas etc. can be easily accessed through major kiwi cities.
The nation’s economy is also booming with Agriculture playing a major role in its upswing.
Overall, New Zealand offers one of the best places to invest in real estate. Moreover, the British investors would love the place inhabited by majority English-speaking friendly people.
Property Market in New Zealand
In recent times, New Zealand property prices have hit the roof with surging demand from the European investors, particularly the British real estate investors. This has resulted in a slowdown in the New Zealand property market. And this also means that property is now much more affordable for the budget investors. The growth is definitely on the wane and the prices are dropping, yet no one is discounting New Zealand’s property potential.
Though low, the prices are still on a higher plank. For instance, luxury apartments in the capital city, Wellington, are highly priced at £400K+, and over in Auckland, it’s even more. However, small accommodation is reasonably priced in major kiwi cities. For instance, you can make off-plan investment in apartments in Auckland for £60K+.
The Studio Apartments in cities, like Auckland, are a safe investment. They guarantee regular rental income through people who often flock the cities for better job prospects. And with the high expectations from the nation’s economy in the coming years, major pressure has to be borne by the housing industry to feed the demand for more accommodation.
The current period is favourable for any kind of property investment in New Zealand. An astute investor will exploit the prevailing lower prices of New Zealand property, and make a killing in times to come.
The kiwi legal system is identical with the British Common Law system. Resultantly, trading in property is largely hassle-free in New Zealand. Moreover, there is no stamp duty to pay on property purchased in New Zealand.
It seems that owning a property in New Zealand is cakewalk for those who possess the required finance. However, for those who have limited budget, there are lots of financial institutions in New Zealand that offer lower interest rates on mortgages in New Zealand.
The hottest locations for property investment on the North Island include Wellington, Tauranga, and Auckland. The South Island has Nelson, Queenstown, and Christchurch as jewels in the real estate crown.
The potential real estate investors in New Zealand would do well if they hire a specialist to deal with all the legalities and other formalities required for ownership of property in the country. After all, you don’t expect to be ripped off your hard-earned money just because of some negligence on your part.
Commercial Mortgages
Copyright (c) 2008 Donna Elizabeth Lewczuk
Commercial mortgages are available through banks, commercial mortgage companies and private lenders. Commercial mortgage rates vary as widely as residential mortgage rates. Traditional banks offer some very low rates. However, due to their restrictive lending criteria, they are prevented from making commercial mortgages for many kinds of commercial properties. Gas stations, with or without convenience stores, for example, can be difficult to obtain commercial mortgages for. Commercial mortgages can also be difficult to obtain from traditional banks if you don’t have excellent personal and business credit scores.
Hard money commercial mortgages are also available through private lenders. Unlike traditional banks, private lenders have more flexible lending criteria. Also known as hard money lenders, private commercial mortgage companies focus more on the current value of a commercial property than on your personal financial package.
Private lenders are often able to fund a commercial mortgage if there is a clear picture of how the loan will be paid back. When determining whether to fund a commercial mortgage, private lenders will often look at the ratio of income to operating expenses. Unless a borrower has repeated defaults and bankruptcies, private lenders are not as concerned if the borrower has less than perfect credit.
When applying for a commercial mortgage, be prepared to provide your commercial mortgage company, be it a bank or a hard money private commercial mortgage lender, with the following:
- A completed standard commercial mortgage loan application, which includes a personal and business balance sheet
- A description of the use of proceeds of the commercial mortgage you are seeking
- A description of the property
- The current value/purchase price of the property
- The cost of improvements you will make to the property
- An estimate of the property’s value after improvements
- A repayment plan for the commercial mortgage/hard money loan
- For a hard money loan, provide an exit strategy for the commercial mortgage
- will you refinance this commercial mortgage with a traditional bank after making improvements or alterations to the existing property or some other scenario?
Owners considering a commercial mortgage refinance will find many unique loan programs. Specialists of commercial mortgage refinancing offer some of the best loan options available, most of which local banks simply don’t have. Refinancing your commercial mortgage is not an act exclusively reserved for the time your commercial mortgage matures. There are some great reasons for refinancing your commercial mortgage prior to this (see the article “Why a Commercial Equity Loan”).
Now, given the current the state of the capital markets its more important than ever to work with seasoned professionals. Lender guidelines and underwriting parameters are changing rapidly as banks try to protect themselves. Options for commercial mortgage refinances, though still broad, are getting harder to determine and close. Just as important it is key to know not only which lenders are offering the lowest rate and fees but which are still actively funding loans. A good, seasoned mortgage professional will know who these lenders are.
Commercial mortgages are available through banks, commercial mortgage companies and private lenders. Commercial mortgage rates vary as widely as residential mortgage rates. Traditional banks offer some very low rates. However, due to their restrictive lending criteria, they are prevented from making commercial mortgages for many kinds of commercial properties. Gas stations, with or without convenience stores, for example, can be difficult to obtain commercial mortgages for. Commercial mortgages can also be difficult to obtain from traditional banks if you don’t have excellent personal and business credit scores.
Hard money commercial mortgages are also available through private lenders. Unlike traditional banks, private lenders have more flexible lending criteria. Also known as hard money lenders, private commercial mortgage companies focus more on the current value of a commercial property than on your personal financial package.
Private lenders are often able to fund a commercial mortgage if there is a clear picture of how the loan will be paid back. When determining whether to fund a commercial mortgage, private lenders will often look at the ratio of income to operating expenses. Unless a borrower has repeated defaults and bankruptcies, private lenders are not as concerned if the borrower has less than perfect credit.
When applying for a commercial mortgage, be prepared to provide your commercial mortgage company, be it a bank or a hard money private commercial mortgage lender, with the following:
- A completed standard commercial mortgage loan application, which includes a personal and business balance sheet
- A description of the use of proceeds of the commercial mortgage you are seeking
- A description of the property
- The current value/purchase price of the property
- The cost of improvements you will make to the property
- An estimate of the property’s value after improvements
- A repayment plan for the commercial mortgage/hard money loan
- For a hard money loan, provide an exit strategy for the commercial mortgage
- will you refinance this commercial mortgage with a traditional bank after making improvements or alterations to the existing property or some other scenario?
Owners considering a commercial mortgage refinance will find many unique loan programs. Specialists of commercial mortgage refinancing offer some of the best loan options available, most of which local banks simply don’t have. Refinancing your commercial mortgage is not an act exclusively reserved for the time your commercial mortgage matures. There are some great reasons for refinancing your commercial mortgage prior to this (see the article “Why a Commercial Equity Loan”).
Now, given the current the state of the capital markets its more important than ever to work with seasoned professionals. Lender guidelines and underwriting parameters are changing rapidly as banks try to protect themselves. Options for commercial mortgage refinances, though still broad, are getting harder to determine and close. Just as important it is key to know not only which lenders are offering the lowest rate and fees but which are still actively funding loans. A good, seasoned mortgage professional will know who these lenders are.