Commercial Property for Lease

Getting hold of a commercial property is tough. This cannot be compared with getting a residential property for lease. There are many factors which can turn the most lucrative deal against you. Also there exist a lot of factors that can affect the business opportunities as well profitability if such a property is not chosen without thinking about the pros and cons.

To choose a proper place we need to look for the right place where we can have our business running smoothly. In such cases many people rely on their own instinct and go ahead with their own strategy and plan to get a lease. They may succeed or they may fail. But if you are looking to get a commercial property for lease, you must always find a broker who knows the tricks of the trade. Getting a broker will help you in selecting the right properties in the area of your choice.

Getting a commercial broker is not at all difficult as they are more than willing to find you the right place if you sign a small representation agreement and part with a little incentive. As they will be getting most of the fees from the owner, they will definitely secure you with the best deal available. If you are trying to lease a place in a small town where commercial brokers may not be available, you can search the public records yourself and have a deal fixed with the landowner. But choosing a broker in a big city will help you as the brokers work for the commissions and they will definitely try to get you the best deal available. Finding such a broker is not difficult at all especially if you are working with any real estate attorney.

As is the case while renting a residential property, you will find that the lease agreement is generally more inclined towards the benefits of the landlord. You have to be very careful about the terms and conditions as there are a few snags that remain almost in every agreement and if not addressed at the beginning, could dent your financial plans. Any commercial property for lease market is a cut-throat market, and any agreement should be prepared so that both the tenant and the owner get to receive benefit from the contract. As of current situation there is no fixed security deposit that you must pay and it varies a lot. You can use your negotiation skills to reduce the amount though.

The general areas that may or may not be mentioned specifically in the agreement need to be addressed properly and you should come to a decision regarding the up keeping of the common areas. However, even if not mentioned, you are responsible for maintenance and utility of the area you have taken on lease. The tenure of lease may be fixed by both the parties and can range from anything from 2 years and more. If you want to leave the place before normal deadline, you must be ready to pay out the remaining period by giving a termination fee.

What a Tenant Wants: Renovation & Remodeling Trends for Commercial Properties

The rental market can be a highly competitive one. And, as a property manager or owner of an apartment or office property, you know just how important a few essential updates can be. There are a number of remodeling projects potential and current renters hope for and knowing what they are can really help you get a leg up on the competition. Here is a brief rundown of what the most commonly requested tenant improvements are and why potential tenants seek them out in a place to lease.

Windows – First, when considering any large scale tenant improvements before renting your property, new and improved windows should be at the top of your list. Older properties in particular will benefit from updated windows. Newer, insulated windows are one of the very first features a potential tenant looks for, especially if they will be responsible for paying heating and cooling bills. New windows will regulate the inside temperature, therefore increasing energy efficiency.

Storage – How are the closets? In this day and age, ample storage is an absolute essential for any home or office. Potential renters want to ensure there will be enough room to store clothing, toiletries, files, and more. While you cannot increase the size of your property, there are several ways to increase the size of your storage. You can create storage space where it didn’t exist before, as well as make the most out of the storage areas you already have.

Clean Walls, New Paint – This is an essential one. Whether or not you have the time and budget for large scale tenant improvements, you should never turn over a rental property without giving the entire place a fresh coat of paint. Freshly painted walls lend an overall cleaner look and shows renters you put the time and effort into getting it ready for future residents.

Kitchen & Bathroom Renovations – Small but impactful details, such as new faucets, light fixtures, backsplashes, and energy efficient appliances will update the look of the unit and make it more appealing to potential tenants. If you can only focus on one or two areas during your next round of tenant improvements, make it the kitchen or the bathroom.

Amenities – Add tenant-attracting amenities to other areas of the building. Put in a new fitness center, common area or laundry room to increase your building’s renting potential. With today’s emphasis on healthy living, having an on-site fitness center is an attractive feature for your building to have; whether you rent apartments, offices or otherwise.

Choosing a Commercial Property

When leasing or buying commercial property, there is a great deal of things that you need to consider. This may determine how well your investment will be able to perform in future and so it should be done with the greatest care.

You need to consider the property and this should include all improvements as well as land. You also need to consider the business component or lease. You should investigate and also analyze all the pros and cons of every component and how it will measure against the entire strategy of the investment.

Commercial property

When you are investing for the purposes of capital growth, there are certain kinds of retail, commercial or industrial properties that can be a very superior option. It is important to know that not all kinds of properties will perform the same. There will always be differences.

When you start to analyze the great potential of a physical property, location and position need to be considered and should actually be the key elements in the process of making a decision. In property, the capital growth of an asset comes from the increase of the land value and the location influences the demand and supply for the land and this then determines the value. A good example is a central business district where the value of land is very high and this actually drives the capital growth.

When the land value goes up, then the value of all the improvements or even the building itself will depreciate with time. This means that the land appreciation should be sufficient enough to counter the building depreciation and also to grow the asset value with time.

Position means how easy it is to access the property. You should ensure that the location matches with the kind of business that you are planning to operate in the area or premises. A good example is a distribution center that needs to receive shipping on a regular basis and needs to dispatch as well. It should have a great space and road access that isn’t hindered. This may be a good match for a city fringe or a place that is near to the port. Arterial roads make it even easier to access.

Lease

It doesn’t really matter if you are looking for a capital growth or for rent return. The leasing strategy is very important to the performance of the assets in the long run. A leasing strategy should allow regular reviews on rent so as to be competitive and viable at all times. This should include things like the provision for maintenance of the property as well as fit outs that will make sure that improvements are kept at a standard that is suitable.

The layout and size of the premises

This is a very important consideration. You should find premises that can actually handle your kind of business in a very efficient manner. You need to consider the structure and its appearance both externally and internally. Consider the height of ceilings depending on what activities you plan to carry out and all the facilities that visitors and employees will be able to enjoy.

Have You Ever Thought About Owning Property?

What does it really mean to invest in yourself? I mean yeah stocks, bonds, mutual funds, etc. But what is your plan once you reach the point you’re dreaming of? Of course everyone should constantly be saving for retirement, but isn’t there another goal besides that? Starting a low cost business may sound very complicated, but it’s actually much more simple than you think. Have you ever thought about owning property? I am not talking about launching the next big real estate venture, but would it be that difficult to own some small properties? Lets think about it for a second. If you were to buy a house for $200,000 and rent it out for $2,000 a month, that would only take a little over eight years to break even, and then you would be making an additional $24,000 a year after that.

OK well even if you have the money to make that investment, you may be thinking to yourself… “how much work is it going to be?”. To be honest, one family is not to much to take care of as a landlord. You may have to stop by once a month or so for routine maintenance, and if you are someone who is somewhat handy, then this should be no problem for you! Otherwise you could easily hire a part time worker to help with handy work. This may dip into your profits a little bit but will present itself as an opportunity to make side cash with basically no work involved at all.

As a professional investor, I would highly recommend investing in real estate to my listeners. It is a very easy way to generate profits in the long term, and if you continue to invest into this market you will be earning very large revenues down the road. This is a very simple yet costly investment, but it is also a very valuable investment nonetheless! It’s an easy way to make extra income, and you might surprise yourself with how much revenue comes your way! If you don’t have enough saved up to get through the startup costs of your venture then you may want to find investors. But finding investors with small companies like this can be very easy! The best time to start saving is right now! Owning property can be very lucrative and it should definitely be an investment considered by anyone.

A New Beginning

Over the last 7 years my wife and I have experienced life changing experiences that have left us destitute having lost a business, two properties and everything except our personal belongings gone. Creditors hounding us and still not clear of their harassment. These should have been dealt within the wind up of our company but sadly our paid representation turned out to be as corrupt as the people we bought the business off. Having carved up our estate they have gone back into the woodwork leaving us to our own devices. But this is the subject of an independent book and not what to I want to document here, serving only as a backdrop to our plans and progress and the obstacles along the way.

It was 2009 we bought the security company and 2013 we had to force closure and liquidate the entity. In the ensuing months we had to privately auction our property in Cape Town, a 3 bedroom apartment 10 minutes walk from the waterfront and our home in Hermanus 2 minutes walk from the Marine Hotel.

So we were left with no place to live, no income and debatable prospects. It was a very sobering time. Friends rallied round and all they could to boost our spirits and elevate our mood, but is fair to say that my wife and I experienced gut wrenching fear. Everything at that point in time seemed black and foreboding. The darkness would lift but not for some months. The auctioning of our home had its hitches but it was voluntary on our part in order to preempt creditors moves. In hindsight I believe we were too hasty in our actions. However at that time I secured a contract as a Quality Lead in a mine revamp in Liberia and so it made sense for us to get rental accommodation for my wife who would be on her own for 6 weeks out every 8. I did not want her dealing with creditors on her own so this was a good solution especially as we were renting off a good friend.

We were ensconced in the rental property for 2.5 years but became obvious that our landlord was seeking to make a bigger return on his property. The amount was too rich for my purse and so I gave notice to leave 30 days hence. And so it was that we were faced with our current situation. Due to having 2 dogs we needed a rental that was pet friendly. We were able to acquire the same from another long time friend and that is where we are presently. But this was not to be a long time rental because the writing was on the wall and in the interim period of first knowing we would have to leave our first rental we had spent time scouring Hermanus and surrounding districts for vacant land. Very briefly, we did not want to buy a property and pay transfer tax and we are on limited budget because this build for our new home is going to be cash driven and only cash driven. That in itself offers constraints and a keen eye to value for money. My disdain of gated communities because they add just another layer authority and committee interference drove us away from the new gated communities being constructed that offer a turnkey solution right down to laid lawns and everything connected and completed. Another factor that would make the hairs on the back of my neck bristle is the very limited plot space normally 600 sq meters which affords space for the house, garage and very little else, not to mention the proximity of your neighbours. Not a satisfactory outcome for the R 1.5 million they were asking for at the time. The land alone was R 600, 000, R 1000 per sq. meter. Much searching and researching led us down the path to find the ideal plot for our needs in Fisherhaven. The plot is just under 3 times the size of those above and 2.5 times less the cost.

I have to admit there was some second thoughts at first but the deal being done and our commitment to building a home for cash within our budget to secure a good part of our future and obviously a place for us to live was our goal and desire. There was talk of the proximity of Fisherhaven approximately 14 kilometers from Hermanus, a lack of local amenities and the distinctly rural feel to the location were the early objections. In reality what we experienced in traffic snarl ups and just the shear numbers of people during the peak Christmas season which makes everything you have to do like parking that much more frustrating and annoying. The run by car which lied to the west and the airport side of Hermanus takes 10 to 20 minutes depending on traffic. On the west side of Hermanus near Sandbaai there is a 300, 000 sq. m Mall being erected by Checkers who is one of the anchor retailers. This just means traversing 3 sets of traffic lights and a distance of 10 km to access the Mall and all its delights. What is gained by living in Fisherhaven is the tranquility, the space to live undisturbed by your neighbour and room to think without distraction. Sounds like my kind of place!

We have sourced a builder having scanned and assessed the market. We are happy with our choice and so now we are embarking on the early tasks having sat down with him and addressed and ironed out.

We are building a one story abode of 168 sq. m which is a modest abode by all standards but the remit that a step and the outside surrounding landscaped garden will form part of an extended external entertainment area serves our purposes to have outdoor living in the summer months and minimal area to maintain and heat in the winter. The house is of my wife’s and mine design which is currently being formalised by a draftsman to be presented to the Municipality for ratification. The Christmas holidays conclusion will mark the gearing up of the build activity once the plans are approved. Then it’s game on and we are looking forward to it.

There has been one problem to be addressed already which id one neighbour appears to have encroached onto my land by a meter wide and 40 meters length and has erected a 1.8 m vibracrete fence full length. This will be addressed and I donĀ“t envisage difficulties.

5-6 months build will bring us to May-June 2017 and we are marking the time and the milestones. This is the log of our trials and tribulations and long sought after success.

Ways to Reduce Noise Pollution When Building a New Home

You are starting a new life and you cannot think of any better way to jumpstart this goal than by having your own home built. You imagine yourself leaving your 8 to 5 work and very excited of driving your way to your new dwelling where your family awaits you. But how can this ideal be just as a perfect or near perfect one if the neighborhood you’re going to build your house is one of the busiest and noisiest? The rest of the article gives you some ideas on how to resolve the noise pollution which may be brought by the environment where your house is to stand.

Developers and house contractors have just mastered some techniques on how a new construction home can have a more quiet environment. This is very far from how homes decades ago are constructed where roofs and walls have marginal effects on blocking sound.

Today, there are many soundproofing techniques that can be done with the most obvious way which is to cut down on the noise makers themselves. Within the household, appliances perform their tasks to make tasks easier to do. Over time and through regular use, the parts become subjected to wear and tear which may eventually cause disturbing sounds like rattles, buzzing, and other unwanted or ringy noises. You should fix them or have them be fixed by professional repairmen before damages become worse and sounds become more disturbing.

Do you also know that among the most cost-efficient way of blocking sound is with the use of sound-absorbing home accessories? Home decor stores now sell sound-reducing or sound-blocking curtains. These are proven to decrease sound entry and not having tiles and hardwoods as dividers which just cause sound to bounce and bring vibrating effect to the household.

The installation of doors from one room to another is also an effective way to reduce sound. Solid doors are easy to install whether you are building a new home or just in the mood to remodel or sound proof.

However, the door themselves must be soundproofed too. The opening and closing of such passages might just be among the noisiest activities in the household. Reduce the clanging sound they produce by weather-stripping them. Self-adhesive tapes which can be bought on rolls can help you do the trick.

A cozy home is one where you can feel relaxed after battling a day of tiring tasks at the workplace. It is where you should find solace most of the time and where noise should be something that is very far from being disturbing. Soundproofing is a key element to do this. If you’re building your home, remember to sound proof!

Choosing an Ideal Cabin

There are many reasons as to why you can choose to buy or build a cabin. With so many manufacturers operating today, it is not hard to find a suitable option within your budget. However, there are many considerations that you will need to make before you settle for any cabin at the end of the day.

Vacation home

By getting your very own small house, then you essentially have a vacation home, especially when you are buying away from home. If you are buying one to serve as a holiday home, then you need to consider some amenities that will definitely come in handy as you use it.

This choice can even allow you to make some money by renting it out when not in use. Even though it may be expensive to maintain such an option, it is still worth your while. As long as you keep up with the repairs, then it should not be so hard to maintain.

Security

This is yet another very important aspect to consider before making the purchase. Security is an important aspect that has to be dealt with. When you have strong doors and secure windows, it will be able to keep thieves away from your property. Making your home foolproof is one way in which you can guarantee your own safety.

It is important to seek the services of a very reputable contractor to get the best security measures installed. Such a contractor can also take care of inspections and any issues that need attention. This is the person to call in case you have an emergency.

Space

When you are making a choice, then you need to consider the space requirements that you have. Consider how much space you will need so as to be comfortable and how many people you intend to have living in at any one time.

The number of bedrooms matter, especially when you have children to think about. Consider the number of bathrooms that will be enough for you and your family. When you consider the questions, then you should be better placed to make the most informed decision and find the perfect option for you.

Special interests and needs

When you are doing your search, then it is important to ensure that your specific interest or needs are also addressed. This includes things like having an elderly person over or anyone with limited mobility. If you or a member of your household is handicapped, then you have to consider them and go for an option that will make them more comfortable without requiring too much help.

If you are a pet lover, then you should ensure that the home is also pet-friendly, so you can leave them without having to worry.

Budget

Working within a budget will definitely allow you to plan. You will narrow down the things that you must have and consider the quality. Regardless of how restricted the budget is quality should never be compromised.

Choosing the Ideal Building Company

There are many sides to building residential buildings. Many constructions can be seen mushrooming in all parts of the world. However, it is important to find the best building company to make sure that they can tackle all the issues that may arise. Some of the issues that may face the companies include short cash flows, the high cost of building materials and so on. Most of the building companies that have failed are usually the smaller contractors who tried to expand very quickly.

When engaging with the residential builders, there is information, that one has to ask so as to understand whether the company is robust or not. It is important to deal with a company that has a reputation that is long and well established. There are many companies in the construction industry that fail every year due to receivership and liquidation. The most common trait of such companies is the fact that they were still in the infancy stages and were under five years in operation.

What happens if a company fails?

Sometimes a building company may fail for one reason or the other. In such a case, the subcontractors and the homeowners suffer a lot financially. This is because they are caught in the failed process. The homeowners are often protected by a guarantee that covers the deposit loss or non-completion of any project. This is what gives the homeowners a lot of confidence. It is important for the customers to be very careful and only pay the sum of money agreed and depending on the stage of the work completed.

A building company should be very conscious about its cash flows. Most of the companies that have failed before do so because of time delays or sometimes post-rebuild the kind of delays from the insurance companies. There are managers who fail to concentrate on the finances and instead keep on seeking out some new clients. Sometimes the staff may need to take time off due to illness or injury and thus drag the schedule behind. In most cases, the smaller companies are greater impacted because of the limited number of staff.

With the current economic situation, everything seems to be rising in price. There are things like scaffolding have to stay at the site longer than before to adhere to the set safety laws.

How homeowners should find the right partner

To ensure that you find the best building partner, the traditional method can be applied where you ask for recommendations regarding the best player in the market. It is important to get out and see the kinds of projects that the potential companies are working on and get a feel of the quality. You should also talk to other people who have already been through a building experience and get their opinion and recommendations.

If you find that a builder has some projects that have stalled, it is a very bad sign and should be your reason for thinking deeper about your options.

If a builder happens to mention things such as provisional costs or if they say that, the prices will be confirmed later, that is a contract to avoid at all costs.

4 Ways To Wholesale Real Estate

Want to invest in real estate with no financial risk and no money or credit? Wholesaling houses is a popular choice. I personally think wholesaling can be a challenging way to get started, but the fact that you can get started in real estate investing without any barrier of entry makes wholesaling an attractive option. If you can get good at this side of the business, you will be success with anything you want to do. The reason I say that is finding deals is what makes a wholesaler successful. If you can get good at finding deals, you have unlimited potential.

Once you find a deal, you need to understand how to sell it to make your profit. Here are four ways you can structure your wholesale properties.

Contract Assignment: This is the easiest, but comes with some risks if not done correctly. It is also somewhat restrictive as bank owned properties will prevent this. This works well when you negotiate your deals directly with the seller. The way this works is you will get a house under contract and then you will assign your rights in the contract to another buyer for a fee. That new buyer will take on the rights and responsibilities in the contract and will close in your place. It is best to get your fee paid up front, but it is very common to get your fee when your buyer buys the house. Here are a few things to keep in mind when assigning contracts.

Be sure that you always disclose to your seller that you are or may assign the agreement to another buyer for a fee. I suggest you actually put this in the contract. Sellers should be OK with this if you are transparent that you are an investor who buys houses for a profit before you start to negotiate.

I would get money from your money that is at least enough to cover any earnest money you put up with your seller. That way if your buyer defaults on the agreement you at least cover your costs. Always try to get the entire fee paid when you assign the contract.

I like this way the best because it is easy to do on your end, it is easy for the buyer and the buyer’s lender, and it is the cheapest way to go.

Double Close: This just means that you actually buy the house and then resell it. There are several ways to do this, but the most common is to buy and sell in the same day or within a day. Typically, you will need to bring in financing to get your closing done with the seller, which is why this is my least preferred method to wholesale. Also, because you have two closings you will have two sets of closing costs, so it is the most expensive way too. With that said, some wholesalers prefer this method because they do not have to disclose to the seller their intent to resell and they can both keep their deal with the seller and their deal with their buyer private. It is believed by some that this is a good way to protect your profits. The information will all become public record at some point, but that is well after the closing.

This is the method you will use by default if you do not do your contract on the front end correctly, so we do see double closing frequently.

Flip the Entity: This has become the most common way to wholesale in my market. Most, if not all, the successful wholesalers will use this strategy. Especially when wholesaling foreclosures where contract assignments are forbidden.

The way this works is the wholesaler will set up a separate entity, like an LLC or a Trust, and put that entity as the buyer of the house to be wholesaled. They will then sell the entity itself for a fee. The benefit with using this strategy is that actual contract on the house does not change. Since the buyer of the house is the entity, there are no issues with any regulation or assignment restrictions. The downside is it could be more work because of the extra step to set up the entity, and there could be additional fees to register the entity with the state. The risk for the buyer is whenever you buy a company you are buying all of it. So, if the entity was used in another transaction and owes money to anyone, the new buyer could be on the hook. Knowing this, the best way to do this transaction is with a brand-new entity used for this one purpose.

Relationship Close: I don’t know if there is an actual name for this method. In fact, it is rarely seen. What I mean by relationship close is that you have such a strong relationship with a buyer that you write offers in the buyer’s name. For this to work, you should be a licensed agent and preview houses for your buyer. You would need to understand their criteria and only offer on houses they will want to buy. I have a client that works this way. He has an agent write his offers and the agent/wholesaler gets paid a commission with each successful closing. They do 2 to 3 deals a month with this strategy. My client just signs contracts without looking at them at this point and trusts what the wholesaler is putting together solid offers. There is always an inspection clause protecting the buyer and the agent, but more than 9 out of 10 houses that go under contract close. That is because the agent/wholesaler knows the business and knows what this buyer will buy.

6 Real Estate Blogging Tools and Gadgets Worth Considering

If you are someone venturing and trying luck in real estate, you should consider having a blog that speaks up about your interest in the field. Blogging is one of the greatest marketing strategies that are being taken up by various organizations irrespective of their size and niche. Whether it is a company dealing in medicines or some individual fashion designer, blogs can help get online attention and lots of visitors to one’s website which in turn provide many new customers.

Here are 6 Real Estate Blogging Tools and Gadgets Worth Considering:

1. Calmly: This is a professional text editor available online. Calmly encourages distraction free writing. Using this tool one can write, add images, and more. It gives an idea of how one’s blog will look like with all the information and pictures.

2. Hemingway App: Your blog should be readable. It should be written in easy to understand language as it will be visited by people across the globe. So, readability is one crucial thing that should be considered while writing a blog. Hemingway App is one tool that can help analyze your blog for readability. The tool highlights the text that might be difficult to read and even suggest solutions improve the readability of the blog.

3. Irfan View: This is an amazing image editor. If you are planning to start a real-estate blog, you might need to upload a number of images to showcase properties, buildings, and localities. Such images are quite heavy in size and may take hours to upload. Using Irfan View one can edit images to reduce the size of the image.

4. Co Schedule’s Headline Analyzer: Headlines are the first thing that catches the attention of online visitors. If your blog doesn’t have an attractive headline, the chances of it being left aloof or ignored are more. The Co Schedule’s Headline Analyzer helps one analyze the headline and it suggests changes that may make it more interesting to read.

5. Piktochart: This is an info-graphic app. It is easier to inform someone through infographics as it saves one time from reading the entire post. Online visitors hardly spend more than 5 minutes on a web page. The Piktochart can come handy in conveying the message within a fraction of seconds. This tool although takes some time to create info-graphics, it is worth considering for your real estate blog. Using the tool, you can create graphics conveying information about the place such as the society, schools and shopping complexes near the property.

6. Canva: A blog with amazing graphics can help your blog stand out among the competitors. Canva is one blogging tool that allows its users to convey their message through graphics. It is an easy to use the tool and does not require any technical qualification to use it. The graphics designed by Canva can be shared on social media as well.

The internet has made our world appear so small that we can do almost anything while sitting in front of the PC/laptop screen. This technology has proved quite beneficial specifically for the real estate industry. The internet has helped us create a virtual world of our own where we can imagine ourselves in a home that we always dreamed of living.