Monthly Archives: December 2015

Why To Invest In Real Estate?

Posted on by Nathan Diones

Why you should invest in real estate? Is it, your passion or just you need to buy property for tax reasons! Here are the reasons below that will make you clear with the concept of why to invest in property rather than any other assets. Property investment is a way to go long.

Apartment Building Investment Offering Long Term Wealth

Apartment Building Investment Offering Long Term Wealth

Here they are……

  • Portfolio Diversification That Minimizes Risk: With the investment in property, you minimizes the risk with the portfolio diversification. Buying property near your principle place is really a good idea, as by this you would be able to keep an eye on the tenants. Another reason, being known to the place and moreover you can rent it to someone known.

But, when the question comes upon the risk of diversification, you need to think like this.

The principle place where you are residing, if it is at risk and you have bought another property at that place, then not only the new one is at risk, but the old property also. People who, wish to overcome through this risk factor, needs to consider things ass given below:

  1. Make purchase of property in different state or city
  2. Within different areas and price ranges
  3. Need to use different investment strategies
  • Value of Tangible Assets: Real estate and share, two terms, are one of the most important investment areas for some people. Yeah! These should be considered for the long term investments. But, there is a huge difference between the amount required for starting it. When an investor needs to buy shares, he can buy it with few hundred dollars, but when the question is about buying a property, one has to investor has to make hundreds of thousand dollars. For this, you need to find an investor that can help you out in generating maximum benefits with the minimum risk factor. And Regioncy will be perfect choice when you plan out investing in the property. A stock market carries risk along with it, it can completely volatile or make you touch the sky. But, risk is just parallel to it. But, when compared to the investment in the property, it has capital growth & minimum risk with huge benefits like: rental income is consistent, advantages in tax, bricks & mortar security, total control on investment. This, complete specifies the fact, that property is tangible and you are always aware of the condition of your property & can make changes accordingly.
  • Rental Return Income: So, what the objective of buying a property? Simply, that it can achieve wealth for you somehow. You might be aware of the fact that, for every investor, rental income is important, so as to return the mortgage loan or medium to meet any other property expenses.
  • Capital Growth Is For Long-Term: For the property investor, this investment is carried as a steadfast return of the investment in the coming future. Over the period of time, property investment increases the capital growth for sure.
  • Are you Aware Of The Fact, What Things Drives Capital Growth Of Property?: Capital growth of property relies on few points, which are listed below:
  1. Location
  2. Size of the property
  3. Development of the area where the property is
  4. Sales value of the surrounding areas
  5. Population residing in that area
  6. Wage level of the property
  • Benefits in Tax: The good thing about investing in a property is that, there are various tax benefit upon buying. The deductions for which you claim upon taxes by buying a property are as follows:
  1. Interest, on which you have borrowed money for buying a property.
  2. Tenancy cost, the cost paid to the property managers for advertising your property.
  3. Maintenance & Repair, the cost for the maintenance & repair for restoring the items and goods, such as kitchen renovation.
  4. Cost Holding: This is the cost that includes the money upon buying a property, which also includes corporate fee, gardening cost, contents insurance, pest control and building cost. These   are tax deductible costs.

Always talk to your accountant to ensure you are claiming your maximum legal entitlement when it comes to tax time.

 These reasons, will help you out while you invest in property for making a right decision in the whole journey. By this, you will avoid costly mistakes and will reach your financial goals sooner than you expected.

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

What to know about investing in a shopping center?

Posted on by Nathan Diones

For those who are looking for their next major investment, many are turning to the world of retail shopping centers for high profit margins.  As with any kind of real estate investment, understanding the market in your area is one of the most critical components to any kind of investment of this nature.  Doing thorough research and risk analysis before making this investment decision can be the difference between a lucrative investment and a total loss.

Some other important factors to look into for shopping centers are the current occupancy rates, length of tenant leases, quality of tenants, as well as the demographics of the area. Within this you should take a look at current, or even potential, anchor stores.  These will be draws for other retail tenants and bring in a greater customer base to the shopping center.  Grocery stores are a very popular and desired anchor store for their necessity and market stability.  Finding a shopping center with multiple anchor stores is a great way to grow your investment.  So look into the profitability of each retail store, and both current and potential future tenants.  Anchor stores such as Target, Nordstroms, Best Buy, Ross or other big box stores,  are an integral part of the shopping center’s success.

Shopping Center For Sale Redlands

Net Leased Shopping Center in Redlands, CA. 

Also, looking at the location and present condition of the shopping center is another make-or-break component of this investment.  Factor in the costs of upgrading the appearance versus a newer and pricier option. Perhaps you would prefer to get things up and running faster.  In this scenario you’ll pay for the higher property cost upfront.

However, the upside to a more outdated shopping center is the lower initial cost of the property.  Additionally, you can choose to update what you wish at your convenience. Putting these updates off is not always optional.  Although, if these are relatively minor cosmetic issues, they can be spread out over the course of time.  Additionally, you can create an even more modern version that is suited to the preferences of the target markets you are trying to reach.

When considering this type of investment, it cannot be stressed enough that your location is such a crucial component to your success.  With many measurable signs of the economy’s continued improvement it is an excellent time to consider investing in shopping centers.  Comparing locations from city-to-city and within the areas of a selected city should be carefully researched.

While there are so many different kinds of investment properties out there, it is important to find the one that is best suited to your specific situation.  No matter which type of property you decide on, all investments take a lot of research and a dash of good luck.  Ensuring that you do the appropriate legwork with your initial investment will help safeguard your investment.

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Is investing in Commercial Real Estate right for you?

Posted on by Nathan Diones

Whether you are highly experienced in the realm of residential properties or you are new to real estate investing altogether, there are a few important considerations to keep in mind when dealing with buying and owning commercial real estate properties.

Net leased Jiffy Lube

Net leased Jiffy Lube

The first, and arguably most important, factor to consider is the property’s earning potential. A wise commercial investment can yield a far greater return than even multiple residential properties. The keyword here to note is “wise.” You’ll find that there are more complex details upfront, so it is important to make sure you do thorough research.

During your research you’ll find that calculating the valuation of a potential commercial property can be a bit more complicated than residential. You should become familiar with your market cap rate values and understand that this is a factor you can influence within your property. So it is something you can make work to your benefit. This is in contrast to residential properties, which often fluctuate in price. If you’re a homeowner you probably understand the emotional component at play here. Residential valuation tends to be much more subjective.

Some other vitally important differences in the two markets are the leasing structure and symbiotic business relationship at play in commercial real estate. Again, this can be a bit more complex on the commercial side, but it is something that can be an asset in the right hands. For instance, one way to increase the value of your property is to find tenants that are low-risk, long-term, and a good fit for your commercial building. There is more flexibility in the leasing terms for commercial property.

In this context the symbiotic business relationship means that both the property owner and tenant have a vested interest in the financial success of the property. As any residential property owner can tell you, this is not often the case with rental properties. The commercial property owner usually only pays for the mortgage of the building while the tenants maintain the integrity of their leased space. These are major contributing factors as to why there tends to be a great deal more stability within the world of commercial property.

Retail Strip Center For Sale

Retail Strip Center For Sale

Another desirable attribute of commercial property is that most businesses close at night and have fewer after-hours emergencies. This is another way in which it is a stark contrast to the unpredictable issues arising at a place of residence. Many commercial property owners even outsource their maintenance or other managerial aspects of running their building to a property management company. If you’re too busy to dedicate the time to run a commercial property it might be wise to look into this option. In this way you can further simplify your investment with peace of mind.

As you can see, doing your homework on the front end could ultimately result in some major financial gains for you as an investor. Commercial real estate is certainly not for everyone, but if you are willing to put in the time and effort to make a sound investment there is a lot of money to be realized, on both rental income and property appreciation.

 

 

Regioncy Banner LogoBased in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Hire a property manager for my apartment building?

Posted on by Nathan Diones

If you are the owner of an apartment building you might be considering whether or not it is worth it to have a property management company step in to manage the day-to-day functions of your apartment building. Here are some of the important factors that might influence this decision and help make it easier to determine if it is the right path for you:

Experience

If this is the first apartment building you have invested in it would be to your benefit to learn from the expertise of a property management company. Even if only in the beginning, they can help get you started. This company will assist you with navigating the common pitfalls and unforeseen problems which might arise in running the daily operations. They handle the paperwork and guide you in the process of running a multiple unit building.

If you are well-versed in managing a property with multiple units it might not be as necessary to hire a property management company. Although you might have experience in this area, it is wise to consider investing in a property management team in the short-term as they can help you establish a routine with your new property, as well as a clear direction for the future.

Time versus Size

Garden Style Apartment Building

Recently Remodeled Garden Style Apartment Building

Depending on the size of your apartment building and the amount of time you have to dedicate to this task, a property management company could very well be what you need to be successful. Consider that issues with units or tenants often arise with little to no warning at all hours. The larger your building the less you are able to do on your own. Factor in the other commitments in your life: other investment properties or jobs, family, friends, hobbies, emergencies. Be realistic with your assessment of the amount of time you have to put into completing these tasks.

If you have a smaller building that you are focused on running yourself you might want to skip the property management company. Again, this is particularly true if you have experience running a building with multiple units. It can be a daunting task, so really take the time to weigh whether you are ready to take on all the responsibility.

However, if this is one of many investments and you are already on a tight schedule as it is, bringing a property management company on board will probably be your best bet. Otherwise you will likely find yourself with too many fires to put out. The result will be many unhappy tenants. In this day and age of online reviews, it is imperative to do your best to create happy tenants.

Age and Condition

Another important consideration is the age of the property, as well as its current condition. For newer buildings there is rarely much maintenance involved. Many of the appliances are still under warranty and other repairs are often minor and infrequent.

However, even with a newer building its condition is an important component to consider. A poorly maintained yet fairly new building can become just as costly as an older apartment. In either of these instances a property management company will be your best bet. As any apartment building owner will tell, maintaining the frequent needs of an older building can be a full-time job in itself.

Weighing the Pros and Cons

In the end it is ultimately a decision of how hands on you wish to be with your investment property. It is crucial that you take all of these factors into consideration before deciding if a property management company is right for you. If you need additional information or would like a free market analysis of your building please contact Regioncy Real Estate by clicking here.

About Regioncy Real Estate

Regioncy Banner Logo

Based in Southern California, Regioncy Real Estate is a full service commercial real estate services firm serving investors, landlords and tenants nationwide.   Regioncy focuses on multi family, office, retail, industrial and residential developments.   Core capabilities of Regioncy include real estate management, analysis, representation, acquisition and disposition.

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Reasons For Which A Great Real Estate Agent Is Needed

Posted on by Nathan Diones

Not every realtors are created equal. Like almost all industries, there are plenty of fantastic pros, nevertheless once in a while an undesirable apple rubs some sort of customer as well as owner that further damages the reputation of rest of the real estate agents.  In the event you’ve got into undesirable situation previously, don’t allow it to occur again. If you aren’t  comfortable with your agent, immediately stop every piece of work with him. You’ll find many more great agents in the market of this industry — don’t move ahead before you have got that one.  When you will finally find a wonderful realtor, you’ll locate an abundance of good reasons to get grateful for him or her. As working with the highly professional and a trustworthy real estate agent helps in delivering big benefits for both: buyers and sellers.

At Times of Difficulty They are Always With You

Down the middle of a new deal that appears to be providing you with additional heartache in comparison to love? Maybe it’s not really your “deal” you thought to be, or even a thing just doesn’t look appropriate?  But a good estate agent will take up your call even at 10 pm, hear you and will support your decision about it. Selling or buying a house is often a serious economic deal & the decision in relation to it should not be taken by flowing into emotions.  Your adviser must uncover almost every problem and also, in the event if it’s the best selection,  suggest backing out of the deal before you even bring it up. They’ll be on your side, and also trying to develop a long-term relationship — not just make a swift money.

Within The Record Time They Will Help You In Selling Your House

A great list broker doubles as an administrator, designer, along with connection of things speedy along with rapid pertaining to home improvement.  Pondering on selling, however daunted through the thinking behind making your own home,  repairs or simply just deep cleaning? Good real estate professional agents undertaking all the responsibilities along with relieving needless dilemma for the precious time to get saved.  After your approval, the broker can muster way up some sort of workforce including painters, stagers, ground finishers, property planners — and also the list proceeds. At this point, your broker will be the only one to contacted for the fast completion of the work of your home.

They Are Aware Of Your Juggling Work

A genuine real estate transaction could be monotonous. An individual always wants a random signature or perhaps a report notarized. Inspectors and appraisers want to get into the house, and from time to time on the list of functions features a last-minute demand is there which you can’t be ignored.  A superb agent understands that you have an existence beyond your own property transaction. She’ll get to your dwelling even at night or may hook a person within the reception of your respective workplace.  For making your daily life much easier and your transactions smoother, a great realtor is ready with its  services 24/7. And they love doing it for their delighted customers. Moreover, this thing builds their reputation as well.

Helpful Data About Your Home Is Presented In Front Of You Even After Long Time

You might have experienced and found that most of the real estate agents after completing the deals move forward. But a professional healthy & good agents are aware of their duties and also fulfills them.  People are always interested in knowing the current value of the property in the market and to what extend their investment has proved to be the best. In this matter, real estate agents can personally maintain a report of complete analysis which can provide complete information to the client regarding the market value of their property. By this, owners remain informed about their property.  It’s a fact that you are well informed about all these things, but an active real estate agent by keeping you in the loop is the best thing.

They Have A Market And Remain Well Informed About The Current Market

Good deals can be cracked if an agent has good market and remains informed. Also, well connected links with the other agents and other deal makers that can help in grabbing the big time opportunities.  A genuine and a serious agent will keep of your interests in mind and will provide you ample of opportunities by teaming up with its staff. These efforts will surely help in find a dream house for you.  If you find such an agent in your life, make sure to be thankful to him. Though, you haven’t found such a real estate agent yet, contact us for the full fledged services by visiting http://www.regioncy.com/