Rural Mortgages

You Can Sell Your Commercial Property Regardless Of The Economy

You Can Sell Your Commercial Property Regardless Of The Economy

Sam Johnson No Comments

Sell Your Commercial Property Regardless Of The Economy

Nowhere else in real estate is this as true, as with a commercial property. When dealing in anything commercial, you need to stay fully informed.

You can’t always rely on commercial real estate listings if you want to find the best property available for the best price. When deciding to invest in commercial properties, the idea is to make a profit, or an income. If you buy a property that does not make you money, you are simply a property owner, and haven’t really made an investment.

Network and make connections with other real estate investors, as this is an excellent way to learn about great deals. Not only is this a good way to find possible properties to buy, but you will also gain a great deal of knowledge from the different experiences of other investors.

If investing in commercial properties, always be aware that there are many other properties available. Nowhere else in real estate is this as true, as with commercial properties.

Instead of simply accumulating commercial properties, become on investor. When deciding to invest in commercial properties, the idea is to make a profit, or an income. If you buy a property that does not make you money, you are simply a property owner, and haven’t really made an investment.

Buying a commercial property is a process that takes much longer than purchasing a single family home. It is going to take more time to prepare the property so keep that in mind. Because you may end up making bad decisions as a result, do not try to rush and do things too fast.

Commercial real estate is a tricky business. If you do not take the effort to do a thorough inspection when you’re about to sell a piece or buy of commercial property, you may end up losing money in the long run.

When shopping for commercial real estate, using a property broker will save you a great deal of money and time. The broker will do a good bit of the grunt work for you and will be able to broker a better deal for you as they have a better knowledge about the market and more information about it.

One important tip to remember when investing in commercial real estate is that you are going to not only need a lot more money for a down payment, but you will have to pay much more for inspections and appraisals than you would for residential real estate. You may not end up purchasing the property you are investigating either, so you really need to have funds available for several inspections.

Always be aware that there are many other properties available if investing in commercial properties. Because you feel it is a last-resort, you should never allow yourself to feel pressured into a sale. Other properties always go up for sale, so keep away from becoming emotionally involved with your sales.

If you want to find the best property available for the best price, you can’t always rely on commercial real estate listings. Check out the article below and use these tips in order to find what you’re looking for in the commercial real estate market. Approaching the market from an informed standpoint, is always the way to go.

Purchase Multi-family Homes or Apartment Buildings

Sam Johnson No Comments

investment apartment buildingsOne of the most profitable real estate investments you can make is the purchase of multi-family homes or apartment buildings. You can choose to live in one unit and rent the rest out. Or you can rent out all of the units both multi-family homes and apartment buildings. It will increase your passive monthly income, as well as your net worth, exponentially.

Why Choose Multi-Family Homes or Apartment Buildings?

Both multi-family homes and apartment buildings offer you the unique opportunity to own property which is generally at a lower risk than a single family home. Additionally, both offer you the ability for obtaining monthly passive income. There is generally a strong demand for multi-family homes and apartment buildings.

How to Choose the Right Property?

Choosing the right property to invest in is a matter of evaluating the value of the property.  You also consider the incomes it generates. You should do your due diligence on the property, review its income potential and possible yearly expenses.

How Much of a Down Payment is Required?

Generally the purchase of a multi-family home or apartment building will require up to 30% down payment. Versus the lower down payment requirements that come with purchasing a single family home.

How Do I Qualify for a Mortgage for the Balance of the Purchase Price?

Generally, to qualify for a mortgage loan for the balance of the purchase price you have to offer a personal guarantee for the loan. This can be interest in another property or in your own personal residence.

Managing your Property

Once you have purchased your multi-family home or apartment building you should hire a property management company. It will deal with all of the various tenant issues which will likely arise. This will free up your time for your real estate investment business. You won’t have to deal with the day to day issues of the residents of your building.

Isn’t it time you learned how to capitalize on one of the best markets for real estate investing that this country has ever seen? With the recent flood of foreclosures now is the time to learn to invest correctly in real estate.

 

Rural Property Mortgages

Larry Gonzalez 2 comments

When you are looking to purchase your first rural property or add to what you currently have, the bank is generally the first thing that comes to mind when looking to borrow the money to make the purchase.  In my experience, that may be setting yourself up for more headaches that it is worth.

Rural Field View

My preference is to keep the bank as far away from my property as I can and this includes when it come time to borrow money to buy more land.  Now I am not saying you need to save your money to buy acreage in cash.  That is actually a really bad idea as you will tie up all the money you have which could be used for operating your business, you will miss out on the tax advantages of being able to expense your interest payments and limit your ability of expansion quite drastically.

Borrowing money to expand your farm business can be a good thing as long as it meets your needs and does not involve leveraging more that is really required.  Most often, when you take a bank loan, the bank will want not only to have a lien on the property you purchase, but every other property and asset you have in the business as well a personally.  This will generally be justified by the bank in stating if you have enough confidence in yourself to make the payment, this should not be an issue.  So long as you pay, nothing will be in jeopardy.

While this may be true, the other side of the issue is that you are running a business and if you leverage every asset you have for a particular purchase today, what happens tomorrow if you need funding for something else?

The answer to that question is that you will need to return to the bank to ask them to lend the funding to you and if they refuse you, you will have no other options because you will not have any assets available to borrow against to get the additional funding you want.  Most people do not see this until it is too late and they they have to scramble to find a way to take the bank out with Alternative Commercial Funding such as Commercial Rural Mortgage Lenders and the like.

I will tell you that this is much harder than is sounds.  Most often, the bank will be so well entrenched in your business that taking them out will come at a great business and personal cost – something that is not discussed as you are signing the contracts with them at their office.

Banks are not always the worst choice, but they surely are not always the best choice.  Please, do yourself a favor when you are looking to purchase property, do not just talk to your bank, also speak with Alternative Rural Mortgage Lenders for Rural Property Mortgages.  The interest may be a bit more but you will not have all the other restrictions place upon you that you will likely have with the bank.  Keep your eyes wide open!

As always, if you have any question or comments, I would be please to hear from you.

 

AB Don PicMy name is Don Goldberg and I am a farmer in Ohio, USA and my family has been involved with farming before our family made the move to the United States four generations ago. [more]
Ohio Farm Bureau