Investment
Commercial Real Estate,... Properties, Factors to Consider
Commercial from a user perspective would be any property purchased to do commerce, such as Industrial, Factories, Warehouses, Offices Apartments, Multifamily, Rentals, Hospitality, Hotels, Motels, Resorts, Medical Hospitals. The government will segregate these into much finer classifications for zoning, and other regulatory purposes.
Development from the government perspective is segregated into groups by planning boards, zoniing officials, EPA, National Historic Preservation Act, Endangered Species Act.,
From the government's need to manage a community, zoning has been created that normally keeps like with like. Children are not exposed to high traffic areas, and extreme noise is not in the residential section. The major heading for zoning Residential (single-family and multifamily homes) Commercial (retail and office) Agricultural (farming/farming-related activities) Historic Industrial (manufacturing and production) Rural
Approuches to using real estate as an investment
Land Banking : speculation upon rapid land appreciation. Buy and hold.
Land Developer: Purchase, add value, buildings prior to selling.
fix and flip or repair and sell, the same ideas of the popular residential houses. Buy property that needs some tender Loving Care , improve that property with a target audience in mind.
Wholesaler, Locate a great deal, make a contract or option, then sell that contract prior to closing and taking possession .
Owner Occupied, Purchasing a property with your own business as the primary user. Occasionally a series of stores are available, instead of leasing, purchasing the grouping and occupying for you own business what you need and collecting rent .
Buy, Rehab, Rent, Refinance, Repeat, Building wealth by letting the occupant's rent pay the mortgage.
Cost estimating is crucial: factoring all the cost that will be involved to make the project profitable, : Purchase price, engineering cost, cost to comply with planning boards, zoning, Building or renovating cost, time estimations, Time costs every day that it is not returning a profit is a day that the same monies could have been working elsewhere.
Underwriting is the process where a financial Institution or leader verifies your income, assets, debt and property details in order to issue final approval for your loan. This analysis is an important part that gives you a clear imagine of where the project stands in relation to affordability and profitability
Who do you need a good working relationship with? The real estate agency (us), a commercial real estate attorney, contractors that specialize in commercial properties, management company, commercial lenders,
What is your target rate of return on investments?
