February 23, 2011
Use Real Estate Loans To Finance A Commercial or Residential Property
Real estate is one of the most lucrative investment options. Besides using it for investing, people acquire real estate to have a comfortable and sprawling residence. Real estate is also used to further a persons business and commercial interests. Although enticing, buying a desired real estate is beyond the financial capabilities of most of us. Without the real estate loans to finance the purchase, the dream of owning the real estate would essentially remain unfulfilled.
Real estate loans can be taken to purchase a commercial property or a residential one. Commercial real estate loan can be taken for properties like guesthouses, hotels, restaurants, pubs, shops, nursing homes, warehouses, industrial facilities and leisure resorts etc. Residential real estates loans can be taken for the purchase of mansions, bungalows, farmhouses, apartments and other dwellings.
www.get-secured-loans.co.ukbest_rates_for_secured_loans.htmlReal Estate Loans use the property in consideration as the collateral. It means that the borrower has legally agreed to put the real estate as the security for the loan. The lender will be holding the title deed of the real estate with him and the borrower gets it only after he has repaid the entire loan with interest. If under any circumstances the borrower is not able to keep up with the repayment schedule, the lender is free to sell the real estate and recover his amount.
Real estate loans are available for huge amounts. Residential real estate loans can range from 25000 to 100000 and upwards. The commercial real estate loans are capable of funding real estate purchases up to 1000000. Lending amount is restricted by the value of real estate, the repayment capacity of the borrower and his credit history. The APRs (Annual Percentage Rates) on real estate loans range from 6% to 20%. A borrower has the option to choose between a fixed rate and a floating rate interest regime. The real estate loans can be repaid in 30 years. However, the borrower can choose a repayment period of 25, 20, 15 or 10 years. The shorter the repayment period for the real estate loan the lower will be the loan cost. However, the monthly installments towards the repayment will become higher as the repayment term decreases.
Lenders require that the borrower should contribute some percent of the entire value of the real estate. This is known as down payment. Lenders prefer if the borrower is able to put at least 20 % of the total value as the down payment. The balance of the real estate loan will be divided in equal monthly installments according to the repayment term. Paying a higher down payment will result in a smaller loan amount and smaller monthly installments.
Applying for a real estate loan becomes very simple if the online method is used. Online lenders do not have any application fee as compared to regular lenders. In addition to this the online application process is streamlined and does not require hefty documentation. The variety of real estate loans and their repayment options can be easily researched by using the lenders websites.
Whether a borrower gets the best or not on his real estate loan will depend on how carefully he chooses his lender. Since, a real estate loan is a long-term commitment to repay a substantially high amount, any hidden clause or fine print that threatens to drive things in the favor of lender can be detrimental to the borrowers interest. To remedy such a situation a borrower must hire a competent real estate attorney and scrutinize the fine prints carefully. Thus, by negotiating the best deal a person can get the right real estate loan to finance his dreams.
August 11, 2010
In commercial real estate, the quality of contacts and relationships you make is essential to your success. A good portion of this business relies on how you interact with brokers, buyer, sellers, engineers and city municipalities. In order to build a solid contact list that is sure to pull you through any situation, there are some key actions you must make with every person you come in contact with.
Many people simply meet a person, most likely forget his or her name, and continue with their day, with no reflection about that person, what they do, and how that new contact may contribute to their success. As a commercial real estate insider, you must start looking at every person as a possible opportunity, within and beyond your work hours.
During work hours, when you are calling and speaking to brokers, sellers, potential buyers, the city, investors, lenders and all the other various professionals in this business, never let a stone go unturned. Beyond just your normal business banter, take a minute to ask what the other person does, what they are interested in, and explain yourself to them as well. This interest must go beyond the obvious, such as, I am the owner of the property. or I am a broker in Georgia.
Dig a little deeper, and you will be sure to find a wealth of information from many of the people with whom you speak. Perhaps you will discover new projects that need a joint venture, a commercial development hot spot, a property that needs to be bought right away due to an emergency, a person who specializes in a specific type of property that you want to be involved with and so on.
Every person has the potential to further your commercial real estate endeavors. So even when you are not at work, talk to people! Now, be courteous, of course, and don’t ream a person with a list of your qualifying questions and expect them to race to your side and help you out. There is always give and take in any valuable relationship.
Build rapport and get to know the people. A simple, So what do you do?, What business are you in?, or What are you interested in? are great conversation starters that will help get the ball rolling.
I have met numerous private investors and loan officers to whom I give more referrals than they know what to do with. In turn, I can get money, not only for my projects, but for those who may be purchasing my developments as well! It is amazing what a little kindness, genuine interest and casual conversation can unveil.
Although talking is a great way to find information, it is what you do with your information that really counts. Every person I meet, or have a potential to do business with, I ask for their name, number and email, so that I might contact them sometime about their work. If it is someone you feel has an asset or other contacts that could help you, explain to them that you think it would be mutually beneficial to do business with each other. Always ask permission to contact them if you should have a project they might be interested in, or if they may have more information regarding their profession.
This may seem forward of you in some cases, but you can always explain to them that you are always looking for people to do business with, and that their help would be very much appreciated. It is astonishing what people are willing to do if you ask for their help.
Give them a business card and your contact information as well. Give them permission to contact you whenever they would like, and tell them you look forward to speaking with them on another occasion.
After you have had a meeting with a new contact, store the information in a safe, organized place. Write a note about what you discussed, what you liked about the person, and how they might help you. Be as detailed and specific as possible! The last thing you want to do is sit down to a list of one hundred contact names and numbers, and have no idea what they do, or how each may benefit from building a relationship!
I know many people use digital resources, rolodexes, and other such organizing devices. This is great. However, I have my own tool that has proven to work really well. I use a basic, spiral notebook, like the kind you would use in high school. Because I may not always have access to my computer, or be at my desk with a rolodex, I keep with me this basic notebook wherever I go!
It is here that I write the name, date, place and contact information, including notes on what we discussed with every person in which I could potentially do business. The pages never fall out or get lost. I do not have to wait to get to a computer to type this information that is fresh in my mind, and it can conveniently travel in my car, briefcase and just about everywhere else! It is not fancy and complicated, but easy and functional. I call it My Big Black Book. You should try this method, and see how it works for you.
Realistically, not every person you meet is going to be that super contact. However, if you have a very informative and helpful conversation with someone, make it a point to send them a letter or email thanking them for their time, how you will use, or have used their advice, and the results you’ve experienced. Be sure to document what it was that you discussed so they know the exact conversation to which you are referring.
By being grateful, acknowledging other people’s work, and staying in contact with new people you will quickly build a contact list to rival those of seasoned commercial real estate professionals.
You will have go to contacts that can assist you on specific projects, put a good word in for you with the local city government, recommend you for projects, and notify you of properties that you may be interested in. Your opportunities will come more frequently and with better possibilities as your contact list builds. In a nutshell, follow these simple, yet essential rules:
Build relationships.
Be grateful.
Stay in contact.
Document all conversations.
These are the keys to building a successful, money-making contact list that will be with you for years to come.
July 28, 2010
How To Become A Commercial Real Estate Expert In Your Own Backyard
Many people may not realize you can literally become a commercial real estate insider just by working in your own local community. There is a wealth of opportunity for those who are motivated and wanting to make a difference, not only in their own lives, but in the lives of people in the community as well.
You do not have to travel across the United States or around the world to find money making properties that will financially take care of you for the rest of your life. It simply takes two things in order to become a real estate insider: knowledge of your community’s real estate opportunities and a steady increase in your own education.
What makes a real estate insider?
A real estate insider knows the ins and outs of the real estate market in his or her own area of interest. This interest could be in office complexes, strip malls, large apartment complexes, medical buildings, and various other income producing properties The commercial real estate insider recognizes trends, the value of property, changes in values before they happen, all zoning laws and regulations, and infrastructural changes that can drastically affect the values of land on or around the new development.
The commercial real estate insider also knows the city decision makers. He or she knows with whom to speak in order to get information, advice, notice regarding changes in the zoning laws or regulations, and to stay ahead of the real estate market.
How do you become a commercial real estate insider?
To start, you should understand that a large part of commercial real estate is dealing with the officials and decision makers of the city or county because they are the ones who decide zoning and use for every piece of property within the city’s or county’s boundaries. They plan for future growth, and attempt to create a balance among both residential and commercial properties so that the community does not grow too quickly or become unbalanced.
Due to the fact that the city officials are so important to your ability to develop, renovate, and otherwise do what you want to a property, it is crucial that you get to know these people and create a rapport. You also need to know what is occurring in your community regarding real estate at all times. Zoning often changes; there may be new regulations or codes regarding the zoning, or the intended use could be limited to only a few uses that will hinder your intended project. All these things can greatly affect your dealings with a specific property, and how you pick and choose your opportunities.
A good way to meet these important officials, as well as learn about the real estate market in your community, is to attend zoning and planning meetings at your local Chamber of Commerce or courthouse. It is there that you can meet face to face the people who will influence your future as a commercial real estate insider. Introduce yourself as a real estate investor, and give them your card. Ask intelligent questions regarding real estate in your community.
Eventually, after building a rapport with these influential people, ask if you could meet with them to discuss a certain project, or something in which you could use more information or advice. You should always come to these meetings prepared with your questions typed so you stay on task and topic. Show that you appreciate their time, knowledge and expertise.
It is a great idea to ask for a few more introductions to people they know who may be able to help you. Always send a thank-you note that briefly reviews your discussion, what advice you used and how it will or has helped you. When you show appreciation for their advice, they are more likely to help you in the future, or share information of which others may not be privy. You will begin to make excellent contacts and learn key elements regarding your specific market. This is how you become a commercial real estate insider.
Beyond meeting the people who make the big decisions regarding the use of property in your community, you must know the laws and regulations regarding the various types of zoning. Zoning labels may differ from city to city, as do building criteria, the size of lots, building and fire codes, and limitations. You must study these rules and regulations so you know what you can and cannot do to a property. As these rules and regulations often change, it is important that you listen and take solid notes at all zoning and planning meetings, and other important real estate related meetings you might attend.
Your goal is to know your market inside and out so you can make decisions based on the changes in the market before anyone else even knows they are coming. You do this by recognizing certain points, such as an increase in vacancies of commercial property, or an increase in the median home price, or how the new mall planned to be developed in one year is going to greatly affect the land values around it.
In addition to understanding your own market, you should be reading the newspaper, trade journals, commercial real estate books, attending seminars, and speaking with others in your area who are involved with real estate so that you are constantly increasing your knowledge. It is with this constant training that you will learn strategy, finance, information about private lending, how to find deals, how to present offers, what markets are hot, new opportunities in the area others are not aware of, and many other tools and strategies that will keep you ahead of the rest.
To be a real estate insider, you must always be on your game. Make those contacts. Ask pertinent questions. Learn everything you can about your business, and act on this information. You will find yourself finding opportunities that you did not know existed, and you will become a commercial real estate insider sooner than you would think!
April 7, 2010
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Commercial real estate investment is reaping benefits for investors
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Commercial real estate investment refers to the class of real estate that is primarily meant for investing money for profits later on. Examples of such properties include:
Restaurants (including franchises)
Retail
Office buildings
Self-storage (Mini-storage) industrial
Strip malls
Hotels (also called “hospitality”)
Multi-family apartment buildings
Why invest in commercial property?
Unlike residential real estate, Commercial real estate investment is evaluated, bought, and sold based purely on numbers – on a set of factors that describe what kind of return on investment you can expect with the property. Most Commercial real estate investment is expected to make a return for you on an on-going (monthly) basis. With the retail boom and increasing return on investment in the commercial real estate market, the value of commercial real estate have grown by leaps and bounds, particularly, in the commercial areas, where the local retail shops and shopping complexes have been replaced by huge and swanky malls.
What to expect?
Remember though! Commercial real estate investment is a long term opportunity, do not expect to increase you net worth over night. No one is going to profit all the time. Real estate investors have to suffer through times of little to no cash flow – it is part of the game.
This may cause panic but if you can stick with it for the long term, cash flow will increase. Investing especially in real estate is not for the weak of mind or body. It can be frustrating, and stressful. But for successful investors the rewards are priceless.