How To Spend Money Wisely On A Commercial Property

When it comes to spending money to invest commercial, you need to consider the business sector type to focus. It is worth considering that purchasing commercial property can give you considerable amount of return. However, it can take time to achieve this objective. Therefore, you need to have persistence as well as intelligent planning.
It is of paramount importance to formulate a strategy and effective guidelines that will assist you to reach the desired goal with respect to investment in commercial property. Following are some useful pieces of advice on how to spend money wisely to accomplish such goals.
The truth is that you have scores of investment opportunities in the investment market, but you have to find out how much time and effort you can devote and then focus on those commercial properties that meet the guidelines and can prove rewarding.
You next step is to set a budget and figure out the cost of commercial properties being considered. You had better not cross the budget limit.
Aside from the abovementioned suggestions, you might find out how much you are going to invest, the kind of investment, and the required time span of return. For example, you can enjoy immediate income, equity growth, tax benefits and so on. Keep these above things in mind and design the investment accordingly.
Your next step is to know market strength. Only concentrate on deals that are considered strong in the market. If you have no idea about it, you had better turn to a professional real estate agent.
If you have no previous experience with investment in commercial properties, you are likely to make mistakes while purchasing properties. In order to avoid such mistakes, you can follow the following tips and make right decisions.
Every area is different; therefore, you should apply different types of techniques so as to find out if a property located in a specific region will be lucrative. For this, carry out a comprehensive analysis of the different regions and the income of the residents of those areas. By doing so, you will have an idea about whether it is good to invest in a particular area.
Another important consideration is the physical condition of the property. It covers tangible as well as intangible items related to the property. Tangible items may include building system, structural components and surroundings. Intangible items may include rules and regulations regarding the use of property, zoning, titles and so on. Again, it is most recommended to take the suggestions of a professional real estate agent.
Finally, it is a strong recommendation to collect information about the expected income from the property and the total expenses that would occur to own the property. It goes without saying that the expected income should be greater than the expenses involved. Keep these pointers in mind and you will be most likely to make the right purchasing decision and it will also save you a lot of moolah as you will be purchasing the property at a reasonable rate.

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Running Your Own Hotel or Motel

Compared to the traditional residential investments, running your own hotel or motel provides much more upside potential of the investment returns. In general, hotel or motel properties have two categories: flagged and unflagged properties.
Flagged properties
Flagged properties are properties that associated with a national chain or franchise. For the lenders' point of view, flagged properties are premium real estate. Franchised hotels or motels generally have higher occupancy rates due to the better national marketing campaigns and national exposure. The hotel franchisers will also offer greater support in the form of national reservation system and other daily management support. The disadvantage of the flagged property is that the franchisee has to meet the strict set of criteria set by the franchiser. Therefore, you may lose part of the control of the property. Moreover, in return of the services the franchiser has provided, you are expected to pay an annual basic franchising fees plus a fraction of profit from the sales growth of your business.
Unflagged properties
Unflagged properties are in dependently operated hotels or motels not connect with a national chain or franchise. Due to the lack of national exposure and support, if you are a new hotel or motel property investor has little or no successful investment experience, unflagged properties are much more difficult to operate. The only advantage of owing an unflagged property is that you don't need to pay national franchising fees and have full control of the property in all aspects from design to daily operation.
Additional fees and expenses
On top of the more complicated management and operation, investing in hotels and motels is also expected to pay additional fees and expenses. Transportation such as airport shuttles, taxis, or bus services may affect the operating costs of the property. Resorts that use other public or private amenities such as lake, health clubs, casinos, park or nature preserve may also be subject to use fees or membership requirements. For example, a lakeside hotel which has its own yacht club may expect to pay the user fees of the lake in addition to the cost of the yacht purchases. For bed-and breakfast properties, investors have to be careful of zoning restrictions, business licenses, and health department requirements. Because most of these businesses are residential-turned commercial properties, they incur costs of meeting government requirements.
No matter which type of hotels or motels you are investing in. Location, amenities, ages, management, and the property's physical condition all play a part how the property performs financially. Understand the strength and weakness of the property and address the problem in the early stage is crucial for the success of the investment.
Fewer lenders are eager to finance the purchase of hotels and motels, and those who are willing to consider it want to see stronger numbers than they'd require for multifamily, office, or retail properties. If you need to finance for the property purchase, make sure you work with a commercial loan broker who has access to specific hotel/motel lenders.

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A Bigger Trend - The Tiny House

"Revolution" is a strong and powerful word. It certainly is more powerful than the word "trend." Not so long ago the word "downsizing" was used to describe an extended period of extreme job loss that changed the lives of many and dashed the dreams of home ownership for others. From 2008 to 2010 there was an increased awareness of American consumer habits as a result of the downturn in the economic climate that identified habits to live life LARGE including indulgence in super sized beverages, servings of French fries and even more importantly building "McMansions" that were far from modest homes. A large percentage of those homes with extreme amenities are now assets or liabilities of bank portfolios.
Historically, periods of economic hardship have resulted in success stories for large and small corporations alike. Companies that offer tiny houses may be the next great success stories on the "timeline" of our country. Without a doubt, this concept offers great spaces in great places. These homes are a creative and innovative alternative to traditional home ownership amidst a changed economic climate and a distressed housing market. Tiny houses offer alternatives to paying high rent and are portable which alleviates the red tape of building codes and permits.
Tiny houses are generally built to include 50 to 750 square feet and come complete with all of the necessary features of a comfortable home including portable heating and air conditioning. Thanks to portable climate control, homeowners of tiny houses can even have outdoor pet houses and not have to worry about their pets acquiring heat or cold related illnesses. Tiny homes do not have unused hallway spaces and promote a more "Earth Friendly" lifestyle. Tiny houses are also a great option for those who may be seeking a cabin or a "second home" away from the hustle and bustle of life. Hallways in tiny houses can be utilized for storage spaces and homes are complete with a designer feel and look much like modern day homes. The benefits of living in tiny houses are numerous and include:
-No or low mortgage payments
-A significant decrease in monthly utility bills
-The possibility of "off-grid" living
-More choices in where a person would like to live (think rural versus urban)
-Feeling a greater sense of control over one's finances, regardless of what's happening on the "national/global" scene
-The ability to add a rental property for additional income for a fraction of the cost of new building construction
-A lifestyle based upon simplicity, rather than complexity
After giving the "tiny house" concept some consideration, many may ponder this question "if my home is smaller, if I have less material items, can my house still be a home?" Is "keeping up with the Joneses" more important than focusing on our passions and dreams? More than likely the answer to both of these questions will be a resounding "yes." After all, haven't we all noticed an increased trend in restaurants offering Tapas and "mini desserts" to eager consumers?

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