So I've been saving up to buy a shop/office/showroom(if I wait to save up for even more) in a prime location in tier-1 city of this part of the country. The builder has their PDFs-data structured out well, in terms of mode of payments. I'm a newb-noob person in investment altogether. I'm thinking from a perspective that if I buy this, I'll have a solid asset in my life(from this start point in my life). Asking whether it would be good or not, is a shallow question perhaps.
The structure is somewhat like, we buy it right now, we will get the possession in next 3 years. Once that happens they will also find the tenant to rent this shop/office/showroom for. Whatever rent comes through that, they will get around 9% (or some percent) of commision for next 10 years. I know this is like a common format in the market, but since I didn't know the technical tname name for it, I thought to describe it in words.
I know it is safe because my cousin has invested in it in recent past. I want to know what are the technical, social, political metrics that I should analyse before buying this. I have searched online, but articles, websites are obviously too generic. YouTube videos are often times some kind of promotion. So please advice, guide, recommend any knowledge that can help me in long term.^(not only in real estate but weatlth compounding creation in general, as a software engineer I only know how to get job and work, and on the way to learn investments :) )
Hi,
We are selling a commercial property overseas for $5M. The title is still under our deceased parents and we are working on the extrajudicial settlement of the estate. There are three heirs, so each one will receive $1.6M. The buyer can wire transfer the divided amount to three bank accounts in CA, USA. Do we need to pay any taxes? Any additional forms to file for taxes? I know California doesn't have any inheritance taxes, what about federal? We are notifying our banks about the large transfer and unfortunately, our CPA is a bit clueless.
Thank you!
Who do I need to contact? I've tried getting in touch with the building owner with no luck. The contractor doing the work was no help. Do I file a police report? Is there a city department to call for this?
We received no communication about this construction project. I have verified that a sunken gate post and an in buried (sticks up from the ground) electrical junction box were placed on our property.
Edit: Thanks everyone for the suggestions. BTW, this would be commercial vs commercial, not residential vs commercial.
My siblings and I own a holding company for a commercial office building. The building is currently being managed by my brother who's also running his own law practice and he's swamped. I'm going to start helping him and considering starting up my own property management company. Any idea if there's any benefits to or issues with creating the company within the holding company, and pay the company, or not create a separate company and pay me as an employee? Or is this an attorney question? Thanks!
I’m about to close escrow on a commercially zoned property of 1.25 acres in a small but popular town on the Big Island of Hawaii. It has a small 80-year old house on it that I’m planning to remodel and rent out, but I’d also like to do something else with the property, given its advantageous commercial zoning. Construction costs are high in Hawaii, so although I’d ideally build 8-10 apartments on the property, I’m also trying to think outside the box with some different, potentially more lucrative, ideas with lower capital costs. It’s basically a flat property, fronting the main highway that runs through the town. The biggest negative is that it’s in a flood zone so there will be some hurdles to overcome when building anything, as far as planning and permitting go. Any thoughts on highest and best use for a property like this? Thanks in advance!
Hello, Commercial Real Estate community! I am new to working in this industry and I'd love to get your thoughts and feedback on a few questions.
In addition to the title question above, I am also wondering how have you seen (or not seen) social media help you market your commercial property? Do you find that it's successful in driving interest and leads? Or is its strength primarily in building brand trust? Do you have any thoughts on what works and what doesn't?
Thank you for your time.
Here's the thread, https://mobile.twitter.com/TheLastBearSta1/status/1469007239797170181
So, I'm not the brightest, but I was trying to wrap my head around this whole China Property Developer default situation, I even drew some of those web charts at home to try and make sense of it. And I think I have it understood. Correct me if (when) I'm wrong.
Recently, several giant commercial property developers in China have officially had their bonds rated to, "Restrictive Default," meaning the developers bonds are no longer viable collateral, investors won't get their money back, they're in the process of filing bankruptcy proceedings, and it's causing asset backed securities (ABS) to go tits up. Unfortunately, our markets have alot of money tied into these developers on way or another and the contagion will be obviously apparent.
Essentially how it goes is an investor buys asset backed securities (ABS). The ABS are made up of a bunch of commercial papers (CP). The CP are classified as, "developer bills to be paid," with money recieved from the investors of the development companies themselves. And the CP are only worth anything if the developers investor money continues to rise and pay those bills.
With the returns from these ABS being so high during their rise, an opportunity was presented for Tether to buy high yield ABS as an easy way to park unregulated crypto money and provide liquidity.
The developers begin putting old CP into new CP to prop up ABS. But essentially this means these CP hold last months old bill and this months new bill but as one CP. (Sound familiar?)
As an example, this implies if one CP fails, it could result in 1, 2, 3, etc. CP to fail with it. Developer bills start to get to high and they stop having enough investors money causing CP to fail to be paid, which makes the CP worth much less and also makes them lose investors. This causes ABS to be worth less too.
Now, theres a lot of big money that holds ABS through Tether and in general, but the falling price and downgrading of developers bonds causes a loss in collateral on investors books, and the drop results in margin calls and liquidations (eventually), which drops the entire market in a domino type fashion.
Unfortunately this is the exact same thing as 08. Mortgage backed securities (just like ABS) were bundled up with a shit ton of mortgages (like CP). And when people kept borrowing money without the ability to pay it back. Because of markets had to adjust to the high i
... keep reading on reddit ➡Hi, thanks in advance for any responses, I'll try to keep this concise.
So I (26) inherited the freehold to a small commercial premises in a seaside town (England) at a very young age which has been paying me quarterly since I was 18. It's a bakery, and has been let out for as long as I can remember. My Dad dealt with all the affairs growing up, but kept every letter to do with it from solicitors etc, which ofc I now have access to.
The rent hasn't been raised for ~15 years, so as you can imagine it should have increased by quite a lot, percentage-wise. I contacted an estate agent to provide a valuation, and they asked for a copy of the lease as it is letted out. Now, I sent them what I have (land registry - proof of ownership) but they said they needed the lease, but I can't seem to find one, and nor can the solicitors (the guy my Dad dealt with sadly passed away). They suggested contacting the tenant for a copy. My Dad seems to be clueless to it all, responding to any question with "all the papers are in the draw".
So I suppose my questions are:
Is it awful to contact my tenant for a copy of the lease that I should have?
What complications would there be if there in fact weren't a lease, and it was a cash deal my Dad set up all those years ago?
Does an estate agent need a copy of this lease to provide a property valuation for rental/sale?
I'm just a bit lost on how to proceed, and who I should be speaking to in order to get this process of increasing the rent started.
Thanks again for any responses!
I'm considering purchasing a single-family home in a mix-use area on the edge of a commercial district. We have a non-profit that we plan to lease the property to already lined up. We are trying to get a conventional mortgage on it. I'm entirely new to the world of investment properties and digging my way through insurance quotes.
Since it's a conventional mortgage and the property is a house, our lender and everyone else just kind of assumes we are getting home-owners or "landlord" insurance. I assume that's not a great idea though, since I would think those policies probably have some sort of exclusion if business is being conducted there.
Assuming we form an LLC to hold the property asset, what's the type of insurance product we need to look for specifically? If my LLC has no employees and doesn't do anything except hold this mortgage and lease the property, do I need general liability and the other suite of policies common for a small business? The non-profit that would use the property has liability, E&O, etc. insurance and I think requiring that is fairly standard for a commercial lease.
I’m in North Carolina, the area I’m in is country but developing fast. My house is off a highway. It’s becoming unappealing for me to live here with the increasing traffic, but I see the potential for business. Would I have to talk with a zoning board for rezoning?
I am planning on opening a business soon. I need financing to get started. I need money to start building the business but I also have my eye on a property I want to buy for my business. Do I need 2 separate loans or am I supposed to include it all into one loan?
Happy new year to all , hope this new year brings you closer to your RE investment goals. I own a few town homes in Charlotte NC area. New to investing in Louisville KY area. I have been looking on MLS for small multifamily opportunities and recently gave an offer(Letter of Intent to purchase) through our NC realtor. We got the signed LOI back from seller’s agent this week. Next step I wanted to go to a formal contract and had a quick question.
Option 1: Since my realtor is NC licensed and not licensed in KY , he is recommending I reach out to a local Louisville KY attorney ( Pitt and Frank) and get a Custom contract put together to send to seller’s agent as a next step. Option 2: Reach out to the sellers agent in this transaction (Who is KY licensed realtor) and get the latest copy of a standard commercial contract in KY and fill that out with the terms and conditions in the LOI. Option 2 is definitely cheaper but If I spend for Option 1 , I can reuse it for future purchases in KY. Option 2 is definitely faster as attorneys may be backed out ?
Property is a small multi family around 950k.
Any pros and cons of each approach. Thoughts please ?
Property: small commercial building in mid-Atlantic region. 6 units under one roof, at about 5,000 sqft each. Current tenants include auto repair/maintenance and automotive custom work.
Situation: For personal and business reasons, I’d like to purchase this building although it’s not listed for sale.
I visited the building last week because I happen to know one of the tenants. While I was more closely looking at the external building features, the property manager came out and invited me to tour a smaller, 2500 sqft vacant unit. Since the person assumed I’d just be a renter… I just went with it rather than immediately mentioning my purchase interest. Im younger and inexperienced so didn’t want to fumble the ball before even playing the actual game
Anyways, we left it with a couple facts that I discovered
- The owner is old (94) and has downsized portfolio over the years
- The owner has a daughter… I’m not sure if they’d expect to take over or not
- The property manager has worked with the owner for 30+ years
I’m reaching out to this community to ask: “how would you play this?”
A direct route could be to simply call the property manager and ask if they would entertain any offers
Another way could be to ask for a meeting with the owner to learn more about the vision/direction of the building and it’s ownership
Hoping someone with some experience in acquisitions can challenge me to think about this in a different way or offer potential routes to success.
I am looking to bring a boxing club to the north Des Moines area. Or the urbandale area. Let me know what suggestions you may have. I’d like to know what my options are with 1,000-4,000 square feet. Thanks in advance
I want to purchase a commercial property but looking for a bank that require minimum down payment. I've been in contact with a couple and they've been requiring hefty down payments.
Hey everyone!! So here’s the deal: I own and operate an art and furniture handling company in NYC. My biggest clients have 2 different storage facilities they use - one being normal dry storage for their company and the other being fine art and furniture. I have a very good relationship with them. They and other clients have expressed an eager interest in me getting a warehouse space and consolidating their storage. It’s a lot (approximately 10,000-15,000 sq ft.)
Sooooo I’m wondering what type of insurance one needs to get a lease on a large warehouse. Additionally what kind of extra insurance I would need to cover the very expensive items they have. I’ve been reading about commercial property insurance and I currently have a very high policy of commercial general liability. I’m having a hard time finding answers or an idea of what this might even cost so I know what I’m getting myself into while I crunch numbers. Any help at all would be incredible. Thank you in advance, apologies for the ramble/terrible grammar.
I'm attempting to find a commercial property group that might buy my property at 80% of an insurer assessed value and hold my property for the two years it may take to qualify for a full loan. In the meantime, I would like to maintain a lease on the property, until I can repurchase the property at its full assessed value.
I'm seeking any advice or recommendations to assist in obtaining the help I need. What type of real estate groups should I approach, and how should I approach them? Who in what position should I talk to? How can I make any deal more appealing?
The details of the property's current financial condition:
Owner-occupied tavern restaurant
Assessed at $150,000 by insurer
Owes $90,000 on loan
Needs $30,000 in repairs
Seeking $120,000
In my request to begin immediate leasing
Seeking to lease AS-IS
Will begin repairs and upgrades immediately, willing to include monthly updates in contract
I will accept total liability
I will offer profit sharing
The property's physical condition:
First floor needs support in crawl space
Second floor bathroom needs an osb panel replaced
Bottle shed needs new roof (approx 6'x6')
Garage needs resheeting for the roof
Roof needs flashing, which has lead to... Two ceilings and One 6' wall need repair
The property is an owner-occupied tavern/restaurant near a few notable rural draws surrounded by bedroom communities for two larger metropolitan areas.
I am desperate to restore my family's business of the past four decades, and any help is appreciated.
That guy seems to be not vacating from the commercial property. Also, that guy is very influential and has political connections to the richest politicians. Police is also not taking the case since that guy seems to be too influential. Owner's sons are in US and unable to come now, so I think they are really taking advantage of the old age.
Legally speaking, what could that owner do?
I’m putting in an offer tomorrow on a commercial property. I don’t have a realtor. I’ve been working with the listing realtor. Should I ask for the realtor terms to be negotiated down in the LOI between the seller and agent? Or should I save that for the formal offer?
The artwork would be community based but we don't have a set design in mind at the moment.
Ideally I'd love to see a wikipedia article entitled "list of commercial properties owned by the mormon church."
The commercial cult has given so much of the widow's mite to google to suppress this.
https://www.google.com/search?q=commercial+properties+owned+by+the+mormon+church&oq=commercial+properties+owned+by+the+mormon+church&aqs=chrome..69i57j33i160.10052j0j7&sourceid=chrome&ie=UTF-8
Hello, I am trying to configure a commercial property I own to support as many S19s as possible. I am a complete noob when it comes to electrical work. I am going to hire someone to do this work but I don't even know how to have an intelligent conversation about this. How would I articulate this ask to an electrician? I assume I need a new sub-panel with beefed up amperage (30?).
Say I want to run 8 S19s, do I need 8 outlets? Or is there a more efficient way to do this?
Should I put in a surge protector?
What is ballpark cost of this type of work?
If anyone has any relevant reading material that would be appreciated as well.
Cheers
We have been renting a commercial unit in Ontario for 30 years our lease has expired but when and since have always maintained I would give atleast 3 months notice if I were to move out, the landlord just gave me a months notice to vacate unless I sign new lease at a substantial increase. As mentioned we've been there for 30 years and weren't expecting such a large jump in rent even more then alternatives we have in the area, after 30 years of tenancy even though our lease is expired to give a months notice is not morally right, I am wondering if its legal? I read some states the length of your tenancy plays a factor in how much notice a landlord can give, but can't find any info on this for Ontario other then broadly saying month to month means 1 months notice is all that is required on either end. Anyone know what legal rights we have in this scenario? We are preparing now for the move but with all the preparation and work required 1 month is crazy ideally at the least 3 to 6 even given 30 years of occupancy. Appreciate any info or suggestions, what happens if come end of february we are not yet ready to move what is the next step the landlord can legally take? Thanks
