Dealing With Renovations for Your Multi-Housing Location

If you own rental property, then you know how important it is to keep it in good repair After all, if you don’t, then tenants will become irate, and ultimately you will have empty units. But, at the same time, getting work done on a property that needs several different projects can be stressful – especially if it means trying to manage the work or even just trying to get things organize!

Fortunately, there are a number of companies who are more than happy to handle multi-housing renovation projects for you. They understand the various complexities involved, and know how to plan and organize the assorted projects so that everything gets done by the time frame you need.

But, how do you know that a particular company can handle a multi-housing renovation project? Can every construction or remodeling crew accomplish what might seem to be a Herculean task? The answer – no! Not every construction company is equipped to handle multiple jobs being done within the same location. That requires a company with enough people power to get work done – effectively and efficiently. So, how can you find this type of company? Much like finding any other skilled craftsman! However, there are some things to keep in mind.

· Look for companies that have perform multi-hosing renovation projects in the past. You might want to talk to other property owners and find out who the recommend (or not) to get work done in a practical, cost effective manner.

· Talk to the respective companies, and explain what you need to have done. Be sure they understand what your timeline looks like, and what your budget is.

· While it is important that the renovation team listen to you, and not over rule all your concerns or needs, it is also important that you listen to what you have to say. If you feel as though you aren’t being hear, or are made to be in significant, then that company should not be hired!

· If there are tenants still on the premises while work is being done, be sure to let the tenants know what is happening and perhaps learn of there is a time that works better for them to have the jobs done.

· Only work with companies that are fully licensed, bonded and insured! You don’t want to get stuck with any outstanding financial issues or a job that was started but left unfinished resulting in having to start this process all over again.

· Never pay more than a third of the price in advance! Companies that ask for more than that are risky choices for work to be done.

Multi housing renovations do not have to be stressful for your or tenants. Take care in your hiring and before you know it, you can have your property as up to date as you want.

The Risk/ Reward Of Buying Investment Real Estate

Like, nearly, everything else, in life, purchasing, and owning, investment real estate, should be considered, on a risk/ reward basis/ scale! While, many have earned their fortunes, or supplemented their incomes, buying these types of properties, doing so, is not true, for all! There are many possibilities, both, positive, and negative, and a wise buyer/ investor, recognizes, understands, and analyzes, as many of these, as possible, in order to make the smartest decision! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, some of these types of considerations, variables, etc.

1. The purchase price: The process begins, with closely, examining, and considering, whether the price, you purchase the property at, will serve your objective! Do you know, the realistic range, of rents, you might be able to charge, for tenants’ leases, etc? How easily, should you, be able, to rent these, so there are fewer vacancies? What might be your cash flow, after considering your financial outputs, both up – front, as well as on a monthly basis? How will you determine the rents, you charge? Are you certain, you aren’t over – paying, for this investment? What rate – of – return, are you seeking, and how will you get there? How realistic are your objectives?

2. Upgrades needed: What condition is it in? Will you need to make certain repairs, upgrades, etc, at the onset? If you think you will need to upgrade, soon, what will be your strategy, and focus, and will you be disciplined, enough, to – create a realistic, workable, time – table? Remember to factor – in, any expenditures, in these areas, you will need, to make, in order to determine, your overall cost of purchase!

3. Potential upgrades: Fully consider, and budget, for future upgrades, which you, envision, will need, to be performed! When you determine these, and adjust, your projections, accordingly, you begin to better understand, the correlation between the potential rewards, versus the possible risks!

4. Cosmetic and structural: There are 2 basic forms of upgrades, to consider, cosmetic, and structural. Obviously, the latter, cannot be delayed, while, you sometimes, might be able to delay the former. However, whether it makes sense to proceed, immediately, with a cosmetic change, it’s important to weigh, whether doing so, might make, the property, more sought – out, viable, and potentially, able to generating, enough additional revenue, to make this a smart approach. Before purchasing, it’s important to have a qualified, Home Inspector, or Engineer, comprehensively, examine, the entire structure, in terms of its overall quality, and expectations!

5. Rental income: Examine, on the lower – end, what the property (unit – by – unit), might deliver, in terms of rental income. Make your projections, based on only about 75 – 80% of these figures, in order, to ensure, you are able to handle the cash flow!

Examine potential investment property, using the risk/ reward approach! Don’t do this emotionally, but, do so, in a logical, analytical manner!

Factors You Cannot Ignore When Buying Commercial Property

Buying commercial property from where to run your business can be one of the best decisions you make especially on costs. It is a much better choice cost wise compared to properties on lease or rentals that can be quite pricey. It is however important to remember that commercial real estate carries more risks compared to buying residential property hence you need to do your research thorough and run a complete analysis before making the final choice and going through with the buying process. Below are some of the factors you should never ignore when hunting for commercial property for your business.

The location

This is very tricky because no one can predict what will happen in the future. The location that looks lucrative today may not be the same tomorrow and you need to tread very carefully for the sake of the business. Consider trends of past businesses in the same area even if you are targeting a new property. You also must evaluate the location in relation to your suppliers and end users Accessibility, not just for you but also for the end users is very important just as is connectivity. Never jump onto a property you like without seriously considering its location.

Modification restrictions

There may be property laws applicable to restrict modification or the property interior or exteriors and you need to be completely aware of this when buying. Start by knowing what your business requirements are the look and the laws and study them well to find out what is allow and what is not allowed legally. It is also important to remember that you may have some maintenance costs to deal with and you are better off being aware of this beforehand.

Support services

They are what will help in the smooth running for your business and in the end will impact on the resale value when the time to sell comes or rental value for that matter. These services include security, lift and parking among others and you should look into them before finalizing your deal on the commercial property. Find out what services are most important for the business and choose accordingly. A property that comes with them all will save you costs of putting what you need in place.

The neighborhood

Apart from having the potential for business growth, the neighborhood should have basic utilities available. You really cannot run your business well without proper drainage, water and electricity. It also helps to look at the infrastructure development within the area because such can impact on your business positively and also negatively. Such developments will impact property value too in the future. For instance a railway construction can bring in accessibility to your business but then again you may have to keep up with lots of disruptions every time the train passes by. Find out what impact the developments around the property will directly have on your business and be open to other possibilities too.