Notes

Some Growing Challenges For Central Aspects For Residential Property Management Companies

Is Commercial Real Estate For You?


There is so much knowledge out there about buying commercial real estate. You want to continuously expand your knowledge in the subject whether you're new or old to this. Any and every tip you learn can benefit you one day. So here is a compilation of some tips that can help you one day with commercial real estate.

Keep in mind that commercial real estate takes longer to sell, renovate and purchase. It is still a great way to make a nice profit when buying and selling it, but always keep in mind that it is a longer process than buying and selling residential real estate would be.

To be successful in real estate, it is important to know one's market. Oftentimes, relators who are successful in one market, such as large-scale commercial properties, will assume that their success will translate to other markets, such as small corporate properties. Doing the research to fully understand any new market that a relator is considering getting involved in is essential to sucess.

Investing in real estate can be a tricky proposition if you get your emotions involved. Real estate deals will come and go and if you sacrifice your emotions on any given deal, you will surely make unwise choices or spend more time on regret than business. Keep your focus on the end result, not the deal that you missed.

In order to protect yourself, make sure that the agreement that you and your broker decide on is put in writing. Add some conditions to it that will allow you to terminate them within five to ten days with a written notice if they are not doing their job well.

When buying commercial real estate, you need to buy the type of property that matches your needs and interests. If you know that you are not into doing repairs then your best bet would be to buy a property that is in better condition, You can buy a fixer-upper if you are one of those people that can appreciate a good project.

Many times the lots around your real estate will greatly impact the overall value of what you are interested in selling or buying. If there has recently been a boom than you can expect higher prices on the real estate. Conversely, if the neighborhood has been full of foreclosures than you can expect that to decrease the price.

If you come in contact with a person that represents a property that you have your eye on, make sure to ask them what their part is in this equation. It is important that you know this because you have to do all that you can to protect your personal interests.

If you are using commercial real estate as a rental property, properly screen your renters. You need to know who you have living in your properties. Be sure to use a legal lease and give them strict rules and guidelines. Rental tenants should know their rights and limits, as provided by their landlord or leasing agent.

Make sure that before you engage in the purchase of real estate, to meet with the architect for your company. An architect will give you a better idea of the blueprint for the buildings and structures that you will need to build on the new piece of real estate that you wish to purchase. This will help to facilitate your overall decision.

Investigate the status of the real estate agent you are planning to work with. He can be an independent agent or broker representing you in good faith during your negotiations, or he might also be an employee of the landlord, in which case you need to find an independent agent to avoid conflict of interest.

Having a mentor can be of tremendous help when getting into commercial property investment. A mentor can help save you from making mistakes. They will look to see if you have missed any due diligence items. A mentor can also connect you with resources you may otherwise not have.

Make sure when you apply for your commercial loan you allow a lot of time. The bank might quote you 45 days but really it could be about three months for the loan to go through. Have patience and you will eventually get the loan you are wanting.

Although it is always nice to give people a chance to show their worth, a termite inspection is not the time to be charitable. Make sure that your inspector has many years of experience. Ask to see his past work and make sure he has found termites in at least some of his inspections. There are many inspectors who just give auto-passes constantly.

This is necessary to enable you to confirm that the terms fit with the rent roll, as well as the pro forma. Unless you carefully go over these terms, it is possible that you will have to go through additional paperwork and transactions.

Before you buy something, make sure you have a long term plan to keep your buildings functional. Even if what you buy is in excellent conditions, things are going to need repair over the years. Think about major expenses such as rewiring, replacing the roof or the plumbing.

Have a real estate attorney look over any rental or lease agreements you are going to sign when securing property for your business. Not only is it possible that you need to make changes, but they will assure that you are getting a fair deal, and have options for getting out of the agreement if you need to in the future.

When determining your gross rental amount, you must apply the profile of the rental review that has been gleaned from the documents pertaining to the lease. Assuming that this has been calculated based on a fixed increase in percentage, the growth of the landlord's income will be easily understood. Alternately, the rent review may be set upon the basis of the rental market. In this case it would be hard to predict income.

if you would like to open up a business and you do not have all of the money that you need to invest in a commercial property, you should do your best to find a funding partner. You have to set up a contract with definitive rules though, because everyone needs to know where they stand in this deal.

Commercial real estate is a multibillion dollar per year industry, and if you know what you are doing, you can make some serious money in this market. If you put the tips in this article to use, you can also reduce the amount of stress involved in buying or selling commercial property for your business.

Rail funding, real property tax hike weighed by Honolulu City Council in new tax bill
HONOLULU (KHON2) — A bill to tax visitors to Oahu is moving forward in the Honolulu City Council. The 3% tax will help to fill county funds after losing out on about $45 million from the state.


For years, the Transient Accommodations Tax (TAT) was designed to help with tourist impacts on the Hawaiian islands as it was collected by the state and distributed to the counties. Now, new state law allows the counties to collect it themselves at a maximum of 3%, but some councilmembers are concerned that the money will go toward the Honolulu Rail Project.


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Under Bill 40, Honolulu could collect up to $7 million per month.


“We do need to fill that $45 million puka, and that’s the first thing that the bill does,” Tommy Waters, Honolulu City Council chair and the presiding officer, said.


That money would be divided up between:


Parks and natural area support


General fund for things like police, fire and rescue costs


The Honolulu Rail Project


Hawaii residents want better management of booming tourism industry


“Now what we have in front of us is a bill that would use that money that was supposed to help with the impacts of tourists to pay for rail,” Honolulu City Councilmember Heidi Tsuneyoshi said.


The amount of revenue that would go to each has yet to be determined. Some councilmembers warn against another option to fill the $45 million lost — a rise in real property taxes.


“If there is no action taken on this 3%, there is no 45 million, then we get to cut the budget,” Honolulu City Councilmember Calvin Say said. “Let’s be honest with ourselves, I’ve publicly said all of us in this chamber. We don’t agree with raising property taxes on our residents.”


Tourism arrivals expected to remain high through 2022, Maui overwhelmed


Honolulu Mayor Rick Blangiardi fully supports the bill but does not yet know how much revenue will be used for the rail.


“Clearly I have no apprehension at all about allocating the rest of those resources. We’ll determine what that is once we can deal with the specifics towards offsetting the cost of rail,” Mayor Blangiardi said.


As the economy continues to recover from the COVID pandemic, some industry experts have warned against putting a tax on Hawaii’s economic driver.



https://docs.google.com/presentation/d/1Y-6SaXPjRVtz9jg2jKWxkVu8RmnC1PiZlvtFgdq4U1E/edit?usp=sharing

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