Commercial property can provide stable, assured and measured growth as part of a balanced portfolio. Unlike residential property, the dividends from commercial property would be usually quite high, as it is meant for commercial purpose. There are a lot of benefits in investing in commercial property.

The benefits of a commercial property:

A Significant Asset Class.
The commercial property market is worth over £450 billion in the UK alone and i am sure you can imagine what it is like in other developed and much bigger countries.

Portfolio Diversification.
Investing in commercial property represents a major diversification for your portfolio. Its volatility is very low in comparison to stock market investments and there is no correlation between the performance of commercial property and the stock market.

Predictable Returns.
Because of its low volatility, the returns from commercial property funds are more predictable and stable.

Record Of Healthy Growth.
Over the short, medium and long term, commercial property has outperformed the stock and bond market.

However, before investing in commercial property, you must also be aware of the risk factors also. Just like any other investment, commercial property has got its risks, but with a little bit of careful thought and planning, you can simply overtake those risk factors.

There is less volatility in commercial property market, so the returns are sure, but there is also less liquidity in market demand. Once you have a good tenant, they’re usually there for a reasonable duration, but the problem is that for a range of commercial property; up to medium sized premises, the selection is wide and varied with new developments springing up monthly. But there is no need to panic, as the effects of these risk factors are considerably low.

If you are a big investor looking for huge returns, the best of both worlds can be obtained by investing in large government or commercial institutional properties that hold leases for 15 years or more. Here you have the combination of assured tenancy, stable yield growth and high occupancy. This in turn maintains the capital value of the property itself. If you’re convinced, then now would be the time to get that cheque book out and invest your $50 million or $100 million. If, like most private investors, that’s a little beyond your current scope, then the optimum approach is to consider investing into a commercial property fund.

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Watch My LIVE Broadcasts (On-Demand): www.livestream.com Add me as a friend on Facebook! www.facebook.com Get DAILY growby10 Updates on Twitter! twitter.com Aug. 10 (Bloomberg) — The collapse in commercial real estate is preventing Federal Reserve Chairman Ben S. Bernanke from declaring the economy and financial markets are healed. Property values have fallen 35 percent since October 2007, according to Moodys Investors Service. Thats making it tough for owners to refinance almost $165 billion of mortgages for skyscrapers, shopping malls and hotels this year, pressuring companies such as Maguire Properties Inc., the largest office landlord in downtown Los Angeles, to put buildings up for sale. Negative Fundamental Demand for commercial space comes from employment and the income generated by that employment, said University of Pennsylvania Professor Joseph Gyourko, director of the Wharton Schools Samuel Zell and Robert Lurie Real Estate Center in Philadelphia. Mounting job losses are a really significant negative fundamental, signaling that conditions are going to be tough for the industry for a while, he said. That may spill over into mounting losses at some banks. Forty-seven percent of loans at the 7000-plus smaller US lenders are in commercial real estate, compared with 17 percent for the biggest banks, according to New York-based Goldman Sachs Group Inc.

Frequently question about commercial property

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Robert Goldsmith

Robert is a Freelance Writer For WhyPropertyInvest.com. They Specialize In Information About Property Investment. No Matter What Kind Of Property You Are Looking For Whether It Be A Residential, Or A Commercial Property You Can Find More Information Here.

If you are looking for a commercial property loan, and it is your first time getting commercial real estate financing, you are in for some big surprises. This is a whole different deal from borrowing to buy a home.

One of the biggest differences is that you have to do more to convince the lender that this is a good deal for them. Commercial real estate financiers are going to be looking hard at what you can offer them as a borrower. They may ask lots of specific questions about the nature of your business, your plans for the money, and other things that may not seem to be related to the matter at hand. Since dealing with lenders is more complicated with commercial real estate, let’s have a look at who might be lending you the money.

Lenders for commercial real estate financing include banks, savings and loans institutions, insurance companies, mortgage brokerage firms and private lenders.
Which kind of lender is best? Of course there is no single fit for every situation, and any of the above could offer you a great deal with good interest rates.

What you should really be worried about is the loan officer, more than the actual lending institution. It is the loan officer’s work that will ultimately make the lending process either go smoothly or not.

When choosing a loan officer, look for someone with good experience. The best place to find an experienced professional is through your realtor. They will usually have one they have used in the past, whose work they have always been happy with.

There are also certain lenders who specialize in specific business types. For example, some specialize in financing warehouses; some specialize in office real estate. This can be a great advantage.

With commercial real estate financing, lenders want to know everything they can about the place you are buying or refinancing. So that you won’t be surprised at some of the questions, some typical ones follow.

The income the property has been making. They will want to see income statements and expense statements. This might be the #1 consideration, more even than your income.

They’ll want to know about the owners of the property. You’ll have to provide financial statements for all the people who own the business.

You may have to provide information about the managers or whoever will be running the place. Because they are concerned with a return on their investment, they want to know that the business will be run by competent, experienced managers.

They will definitely check the borrower’s credit history. This will be a less important factor than the financial history of the property, but it can still be a deciding factor in whether or not you get the loan.

The lender will want to know how much the property is worth, according to an official appraisal.

You should tell them about any plans you have for building or changing the property in any way. For example, if you plan to do any construction, they will want to know that.

When dealing with lenders, always remember that risk is the #1 consideration for them. While you’re building or improving your business, and you’re thinking about all the great things coming your way, all they are thinking about is the possibility of failure. To them, it’s just a matter of whether they will get the money back or not.

You can find commercial real estate financing, just look for a good loan officer, and be prepared to provide whatever information they request from you.

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When will they stop? … mortgage loan real estate bubble option arm

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Seriously Interested In Real Estate, but what is the market like at the present moment?
I’m from Chicago, IL but is currently in Memphis, TN attending school. My major is Business Administration with a concentration in Real Estate/Finance. This is something I would like to seriously pursue, however the market at the moment from my understanding is not great right now. What are the things I should consider before making this move that is, where to start?? I also would like to eventually branch off and start my own establishment either in the Chicago or Memphis area. Any experienced brokers/agents with great advice would be extremely helpful.

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Obtaining commercial real estate financing can be a difficult task for even the well-prepared. A visit to KISCL can help prepare you. http://www.kiscl.comAcquiring a residential investment property loan can be a daunting task if you go in unprepared. By performing a few simple calculations, you are informed about your borrowing options. http://www.kiscl.com

This year alone, Americans are expected to borrow about $1.33 trillion in acquiring 7.4 million houses, condominiums and co-ops. Real estate financing has its secrets and you’ll gradually learn them by continuing to research everything you can find online and offline about home mortgages, mortgage loans, commercial mortgages or investment mortgages, current interest rates and get quotes when you can too. Before you apply for any real estate financing, if you have a lot of bad credit because of consumer debt for credit cards or personal loans, you’ll want to try to eliminate or reduce this debt. It may affect your ability to qualify for a home mortgage and make the estimated monthly payment.

An adjustable rate mortgage may be a good choice if the market is good or appears to be good for a few years, because on the average, most people move or refinance within seven years. But interest rates can go up if a rosy picture is painted that the economy is flourishing – like more jobs being available. This can lead to inflation, which will send the interest rates up. Finding the best loan program for your needs depends on a number of factors, including: how long you think you’ll stay in the home, how much money you have to put down, how you’ll finance the closing costs.

When financing real estate it’s important to know that a low FICO credit score does not always mean you won’t qualify for a home loan or home mortgage. 30-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage and if the market is good, you can benefit from locking in a lower rate for the full term of the loan. If you’re having a problem getting a home mortgage and the seller still owes money on the home, you can check with your lender and see if you can get a wraparound mortgage. Although it’s not legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference, but make sure that a wraparound mortgage will not trigger a due-on-sale clause.

An adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to terms that are specified ahead of time. If you’re having a problem getting a loan or home mortgage why not consider a lease-option on a property. A lease-option on the real property will allow you to set a good purchase price now, and then apply a portion of the rent each month toward your down payment, building up equity in the process.

Borrowers can submit information to the lender about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.

And keep in mind that adjustable rate mortgages are best for homeowners who aren’t planning on staying with a property for a long time. A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes will probably change. People usually are not aware that they may be able to customize their loans. Just ask the mortgage broker or lender if this is possible. Although lenders advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years that may be more suitable. This may allow borrowers to build up equity faster but keep their monthly payments affordable.

The 30-year loan could be your best choice if you’re looking for a long-term stable loan, for instance, if you’re planning to stay in your house for a long time. Some lenders may impose limits on how much of your down payment can come from money borrowed from other sources. The disadvantages of a fixed-rate mortgage compared to an adjustable rate mortgage include a possibly higher cost. These loans are almost always priced higher than an adjustable-rate mortgage.

A range of mortgage options are available. Some home loans require little money down. And if you’re on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.

Also keep in mind that low credit scores do not mean you cannot buy a home or other real property. Continue to explore the options and you’ll come up with the best real estate financing. And thinking positive about real estate financing is important but so is being realistic. Make sure you can make the mortgage payments for a reasonable length of time to build up plenty of equity, so if you do get sick or lose your job you can easily sell your house or any other real property before you get into a foreclosure situation; try to plan ahead.

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www.CommercialMortgageTips.com Do You Need Commercial Real Estate Financing? We Have Access To The Largest Number Of Commercial Lenders In The US. Call 561-208-6469 NOW!

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Can anyone recommend a good online real estate finance course?
Hi there, I was wondering if anybody could recommend a good online course that would help me work through “Real Estate Finance and Investments” by William B Brueggeman, and Jeffrey Fisher.” Thank you so much!

Best, Luke

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For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

If you are considering purchasing or selling a home, condo or any other type of real estate, you will most likely need the services of a real estate appraiser. An appraiser performs an assessment of properties and other types of real estate to help establish its value. While there are several methods appraisers use to establish the value of real estate (e.g. cost method, income method, and comparison method), for residential properties, the comparison method (also known as market value) is the most common approach. The appraiser’s job is to provide an opinion about the value of a property based on its “highest and best use.” If you are financing the purchase of a property, your lender will normally require an appraisal to make sure that the property is really worth the amount loaned.

The real estate appraiser is tasked with carrying out a completely objective assessment of a property and will normally provide a written evaluation report. This is accomplished by a physical inspection of the property, as well as a comparison to other similar properties for which the value is already established. To make a determination about value, the appraiser gathers details such as the size of a property, size of the lot, location, condition, best use of the property, amenities, etc.

After this initial inspection, the appraiser may scout the neighborhood to compare the property with other similar properties in the neighborhood by age, size, price range, etc. The appraiser then gathers additional data from several sources such as the local Multiple Listing Services (MLS), which provides information on current and recent comparable sales. The appraiser also gathers information from his/her own past experience in the local market. All of these sources of information are taken into consideration while writing the appraisal report, which will provide an estimate about the value of a property.

There are many reasons to use the services of a qualified appraiser. When purchasing real estate, an appraisal provides you with a negotiating tool and helps ensure that the price you are paying is appropriate. If you are selling your property, the appraisal will help you determine an appropriate price range. Besides real estate and mortgage transactions, you may need to order an appraisal to lower the tax burden (assuming the value is really lower than the value established by taxing authorities), to establish the replacement cost of insurance, to settle an estate, etc. An appraiser only gives an estimate of the value of the property. A real estate appraiser is not to be confused with a home inspector.

If you are considering buying or selling a home, condo or any other type of real estate, you can use the services of a qualified real estate appraiser who will provide an estimate of the fair market value of your property.

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Financial Markets (ECON 252) Real Estate is the biggest asset class and of great importance for both individuals and institutional investors. An array of economic and psychological factors impact real estate investment decisions and the public has changing ideas of real estate as a profitable investment. People’s demand to buy a home by taking on long-term debt, called a mortgage, is often tied with the overall health of the economy and financial markets. In recessions, home buying tends to …

Help answer the question about real estate financing

Can I obtain more attractive real estate financing terms by using a stock portfolio as additional collateral?
I’d like to purchase a rental property but I’m having a hard time obtaining financing because I am currently a graduate student and don’t have any income. However, I do have a stock portfolio valued at about $295,000. Is it possible to leverage the stock portfolio as additional collateral to obtain financing?

Thanks for your help.

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When people call me, typically one of the first requests they make is for a house in a “nice” neighborhood. And this makes sense to want a neighborhood that is safe and enjoyable. But there are some benefits to buying real estate in the rough part of town or on the wrong side of the tracks. This article highlights some of them.

- There is less worry of your neighborhood going downhill because it is already downhill. Good neighborhoods can get bad and bad neighborhoods can get better. Since the price usually reflects the current condition, buying in a neighborhood that has room for improvement might be a good idea.

- If you are buying a rental, you usually get better cash flow in rough neighborhoods. If you are renting your property, there are more renters and they are more long term. It’s difficult to rent in good neighborhoods because fewer people are looking to rent and those who do are generally there short term while they look for a house to buy.

- You can look better in comparison to other landlords. Landlords in rough areas frequently don’t maintain their properties as well as people in nice areas. Therefore, if you maintain your properties, you can blow away your competition, and charge more for it.

- If you are in a rough neighborhood, you can propose that your property change will improve the neighborhood and you have a better chance of getting a different zoning. Conversely, if you are in a good neighborhood, it’s hard to make the same argument.

- You can buy more property. If you want to spend 500k, you can either buy one house in an upscale neighborhood or six or seven houses in a rougher neighborhood.

- They’re more recession proof. When the economy goes south, real estate in rough neighborhoods is less affected.

In summary, I am not saying you have to buy in a bad neighborhood. But simply that if you are looking for long term investments sometimes its a good idea to wander over the tracks and look around a bit.

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Introduction to www.thepowertobefree.com Michigan Based Commercial Real Estate Investment Club. Darrick Scruggs – one of the founders of The Power To Be Free , the real estate investor with over 10 years of experience in investing in SFH and apartment buildings gives a brief introduction about himself and the club

Help answer the question about real estate investment

Are there any real estate investment courses out there that arent scams?
I am basically looking for a course, if anyone knows of one that isnt a scam, that teaches the basics of real estate investment.

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Working in Central Texas Escapeso Austin Real Estate is a small team of realty professionals. Their website provides a description of the different Austin Condos and Austin neighborhoods.

Baby boomers, baby boomers, baby boomers; we all hear this term over and over again. So who are the baby boomers? Baby boomers are people in the United States who were born between 1946 and 1964. Approximately 78.2 million people fall into this category.

As a group, baby boomers comprise the largest population cohort in the history of the United States. The size of the group gives it vast influence over American politics, popular cultural, and of course, real estate. To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow. Below are some highlights from the NAR study.

AGE DISTRBUTION

According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.

HOUSEHOLD INCOME

As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.

HOME OWNERSHIP

About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.

FUTURE REAL ESTATE PURCHASES

About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.

WHAT FEATURES ATTRACT BOOMERS

When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.

PREFERRED COMMUNITY AMENITIES

When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.

WHERE DO BOOMERS WANT TO RETIRE

When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.

BOOMERS AND THEIR REAL ESTATE AGENTS

Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.

SUMMARY

The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow

Watch the video related to real estate investment

Financial Markets (ECON 252) Real Estate is the biggest asset class and of great importance for both individuals and institutional investors. An array of economic and psychological factors impact real estate investment decisions and the public has changing ideas of real estate as a profitable investment. People’s demand to buy a home by taking on long-term debt, called a mortgage, is often tied with the overall health of the economy and financial markets. In recessions, home buying tends to …

Help answer the question about real estate investment

Can anybody answer this real estate investment company advice?
I’m almost 90% sure that i want to start my real estate investment company as a corporation not a LLC. I was wondering is this a good idea. Also, can’t i sell shares of my company to private investors to raise capital. Any advice on starting a commercial real estate investment comapany will help.

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