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How to Choose the Best Location for Real Estate Investment?

Posted on by Nathan Diones

How to Choose the Best Location for Real Estate Investments

One of the biggest dilemmas real estate investor’s face is when they buy and invest in a property at a poor location.  With this, they don’t get to close a deal more often, if not, not ever.  How do you really choose a great location if you want to buy, sell or hold property as a long term investment?

best real estate locations

How to Choose the Best Real Estate Investment Location

Natural Disasters

Although rental fees in disaster-prone areas are so low, only the bravest souls are prepared to buy or rent commercial and residential spaces here.  I mean, if you really want to earn a huge amount of profit in real estate business, don’t risk your money by purchasing properties in an area prone to tornadoes, earthquakes, and flooding.  Plus, paying for premium natural disaster insurance is a waste of money when you can just outdo this and look for better locations.

Amenities

Check the neighborhood if there are great amenities that residents and professionals would love to use during their stay.  This could be a park, mall, fitness center, pool, theater, and other facilities that could attract potential buyers and renters.  You can also ask the local government of their future projects in the area so you will be informed of any risks and opportunities that could affect the property’s value.

Employment

Get your statistics and see if the area is calling out for more employees and workers.  Locations that have high employment rates are more likely to get higher property value.  And also, if there are more workers needed in the area, this means more tenants.  It is always wiser to invest in a town that has a diverse economy and doesn’t rely on one particular major employer, such as a local mine or large distribution center.

School’s rank

The rank of schools in the area affects your property’s value negatively or positively.  Why?  Because if the location has more schools that are on top of the best schools list, parents would want to enroll their kids in these schools.  Not only that, your tenants could also be thinking of growing their family some time soon, and this calls for a child who would be entering school after few years. And when there are students going into the location, these students will be your potential customers.

Crime rate

Who would ever want to live in a vicinity where he could be harmed or killed anytime?  Who would put their lives in danger?  Even you yourself won’t ever stay in the area for a long time.  Crime statistics is a great way to learn whether or not your commercial property’s location can generate sales.

Neighborhood

Speaking of crime rate, schools, and amenities, your neighborhood is one of the biggest factors in determining the value of a property.  Look for great amenities, learn about the ranks of the schools in your area, and get crime statistics to know if your tenants will have amazing neighbors.

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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.

Tips on Making Money in Commercial Real Estate: How Do you get Started?

Posted on by Nathan Diones

Investing in a real estate property and then putting it to market takes a lot of effort on the seller.  You will have to spend huge sums, time, and energy, before you can make bigger profits out of it. But how do you really increase the value of the property you are selling?  How do you get to earn more?  Here are a few expert tips for you to get started.

Shopping Center Investing - Yucaipa, CA

Shopping Center Investment – Yucaipa, CA

Enrich your knowledge

Don’t ever jump into an investment without having any deep knowledge about your idea.  Educate yourself on everything you need to know about the business such as the following:

  1. The initial and running capital you need
  2. Local pricing
  3. Taxing
  4. Where top schools and universities are
  5. The lingo
  6. The basic math
  7. Bookkeeping
  8. The possible problems

You don’t need to be an expert to pursue a real estate business, but you need to have enough knowledge and skills on how to do and manage this venture, because in the first place, you spend a fortune for this. Now you don’t want to lose another fortune just by neglecting to do your homework, do you?

Prepare for the worst

What’s the worst thing that could happen to you in a real estate investment?  You could be losing every amount of pennies, sweat, and time if the business doesn’t go with your plan.  Are you ready to lose all of it?  And do you have extra in your bank account so you won’t be left with nothing?  And, aside from foreclosure and bankruptcy, you could be losing your mind, too.  Maybe I’m just exaggerating, but no.  The amount of money, time, and dedication you spend on a high-class business endeavor is so huge, it could cause a catastrophic event once you don’t get a deal.

To minimize the loss and pain that you will have to face if the worst happens, make a business plan that outlines all the necessary steps you’ll have to take and the possible problems that could happen along the way.

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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.

Tips on Increasing Commercial Property Value

Posted on by Nathan Diones

Today, more and more startups are planning to open office or physical stores; thus, the need for commercial spaces are in demand.  Take advantage of this rush and increase the value of your commercial property by following these expert tips.

Improve the quality

What’s the best way to increase your property’s value? Improve its quality.  No one wants to buy a commercial space that is not ready to use; or that still demands a lot of fixes.  And we don’t mean just repairing damages.  We mean using better, more current paint colors, setting up an indoor or outdoor landscape, rebuilding rooms designed for your target market, and adding amenities that are of great importance to your potential buyers such a relaxation hub, a storefront, a multipurpose hall, or a snack shop.  If the property generates more income and it provides convenience, it is a win-win situation for both the Landlord and the Tenant.

Study the historical data of the property

Studying historical data means studying everything about the property’s past financial history and activities.  This could be the building or company’s earnings, revenue, financial growth, and the cash flow it generates.  Historical data is great information that can simultaneously help you increase property value and decrease your expenses.  It can also show you how to price and improve the property, as well as predict any possible financial constraint you may face in the future.  In other words, historical data helps you make wiser decisions and prevents you from making any wrong turns that could hurt your business.

adding value to commercial property

Tips on Increasing Value to Existing Commercial Real Estate

Provide a long-term benefit to your customers

One great thing that you can do is to lighten the load of your tenants’s wallet in the long run such as cutting down utility bills by replacing energy efficient bulbs, solar panel systems and well as low flow water fixtures.  The last suggestion may sound like an expensive upfront cost, but if you can explain how much they could save by using solar power and reducing water waste, it could be of great advantage for both you and your tenants.   Properties with these energy efficient upgrades attract a higher quality tenant, and most often resulting in a higher net operating income for the landlord.

Who and what are its neighbors?

Your neighbors can affect the value of a property. And when we say neighbor, we mean the people living in your vicinity and the kind of properties that surround your commercial space. Even the condition of your neighbor’s home can make a negative or positive impact to your sales and Tenants.  Neighboring houses with physical and legal problems for example, can aggravate the value of the property you’re putting up for sale.  So before buying a house or commercial property that you want to refurbish, sell or retain as a long term investment, make sure you’ve got neighbors with good reputations.

 

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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.

Considering The Possibilities Of Commercial Investing As A New Career

Posted on by Nathan Diones

When looking into commercial investments it can easily become a daunting undertaking. As a novice or real estate outsider it can seem that the odds are stacked in the favor of those with the experience behind them. However, while there is certainly a learning curve, it is absolutely something one can master with a little bit of dedication and thorough homework. For instance, take a look at the case of a recent purchase of a Dollar Thrifty Rental Car operation out of Fort Lauderdale, Florida.

Dr. Selvin Passen previously had a successful career as a medical doctor of pathology. He is now known as a successful commercial real estate investor. After retiring from medicine Dr. Passen, with the help and vision of a co-investor, began investing in marinas. This business decision proved to be a smart and very lucrative one. He is now known as a lead investor within marinas all around the state of Florida. Through a series of wise investments and equally wise business partners this practitioner of medicine is now a well-respected investor. His story is one of many which allows those of us with some trepidation, and also interest in commercial real estate arena, to see that it is absolutely feasible to become highly successful.

Boat Marina Investing

                                                          Boat Marina Investing

To continue with the inspiring tales of a doctor-turned-commercial-investor, let us look ahead into one of his most recent purchases. It was recently published that Dr. Passen has made the purchase of a Dollar Thrifty Rental Car operation. This property was last traded in 2003 for 5.45 million dollars. Dr. Passen’s management team purchased this property on his behalf for just at $10.5 million. In just over a decade this property’s value has doubled in value! Dr. Passen and his team of managing investors sees the great value in this property to add to his already impressive portfolio. Revisiting the importance of location with any kind of real estate investment, his investment will surely prove to be a wise choice in years to come. Florida continues to be an extremely popular tourist destination. What better investment could there be than a rental car facility next to a busy airport? Excellent strategy along with a team of dedicated investment advisors is a win-win strategy for sure. This is just another example of how someone who had a dedicated and successful career elsewhere became a savvy commercial real estate investor.

Real estate is one of the smartest investments you can make. The more you learn the smarter your investment decisions. Better investment choices means a greater return on investment. You too could join the ranks of those enjoying a second career that is often less time-consuming and stressful, and also more financially rewarding, than your previous career. If you are retired or considering retiring but don’t want to quit working and making money, then you might

Regioncy Banner Logo

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.

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.

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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Commercial Real Estate Owners Using Recycled Water Delivery Services to Increase NOI

Posted on by Nathan Diones

Commercial Real Estate Owners Using Recycled Water

As the drought within California continues, the landscape is changing back to what it once was without lush palm trees and over watered grass.  Savvy commercial real estate owners are now finding ways to cut their own water use and increase their net operating income (NOI).  In addition to the many different types of water saving devices for both residential and commercial property owners, many investors are shutting off the sprinklers and turning to a water delivery service, more so a recycled water delivery service!  Such recycled water delivery services  are becoming more popular within California.  The cost effective delivery services can be set up on a regularly scheduled service and merely show up to water each property as needed.   The recycled water is free within certain areas so property owners simply pay for a service fee.  These service fees to each recycled water delivery company are lower than the cost of keeping the sprinklers on every other day and when coupled with the fact that less water promotes less vegetative growth, the costs savings are even greater due to the fact that the landscape doesn’t need the attention it normally would.   The benefits of using recycled water on real estate investments or even on our own homes is rapidly growing and should continue to do so even when California’s snow pack returns to normal levels. Commercial Real Estate Recycled Water

Commercial Real Estate Recycled Water Uses

Commercial Real Estate Recycled Water

Commercial Real Estate using a Recycled Water Delivery Service.

 

Regioncy Real EstateBased 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.

Rents rise again in Southern California, but not so fast this time

Posted on by Nathan Diones

The average rent paid for housing in Los Angeles County in the first quarter climbed 2.4% compared to last year, to $1,520 a month, according to new figures out Thursday from real estate data firm Reis Inc. That’s roughly in line with inflation. Orange County is up 3.5%, to $1,660.

Both counties rank among the costliest rental markets in the country — though well below the $2,277 average rent paid in San Francisco and $3,233 in New York — and also among the tightest.

Redlands Four Unit Building