How to Choose the Best Location for Real Estate Investment?

Posted on February 1, 2016 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?

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.

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.

Commercial Real Estate Projections for 2016

Posted on January 26, 2016 by Nathan Diones

Viewpoint 2016 report predicts a positive influx in real estate investments in 2016. Because of a drastic increase in jobs and startups in 2015, commercial and office space rentals and property values will soon follow the flow; especially in the European countries where job creation and vacancies are soaring.

Commercial Real Estate on the Rise Again

Other important reports of Integra Realty Resources (IRR) Viewpoint 2016 are as follows:

There will be a huge demand in office space since it provides longer and more durable benefits for renters. 18.6% of US real estate business will also get at least a 4% increase in Central Business District Class A. And Manhattan, which raked $8.4 billion in its investments last year moved forward to second rank in the US Market. This leads to an increase in price per square foot in the city, which is now at $1,497 and average apartments now sells at least $1,737,565.

Condo and multifamily residential units are and will be in demand in 2016. Real estate investors are not into single-family buildings today, as it is more expensive and riskier when a tenant vacates the unit and there is no one to replace the renter. The owner will have to pay for mortgage and utility bills. 90% of real estate properties are now in a redeveloping phase, and 88.7% of multifamily units can expect an influx for the whole year, except those cities that are affected by the fluctuations in oil price.

Retail remains strong and will keep going stronger in 2016. Online shopping and everything that is involved in it will keep soaring as well, thanks to omni-channel media marketing. Physical stores are now planning to expand their reach to online consumers especially in Orlando, Boise, and Jacksonville.

The industry that faces the biggest threat is the hospitality market; however, hotels and restaurants located in airport and suburban areas will get the highest RevPAR in the next 12 months.

The full report of IRR Viewpoint 2016 includes detailed methodology, real-time statistics, predictions, and charts, covering different industries involving the future of real estate business.

What is Viewpoint?

This is an annual report provided by IRR covering different economies and industries all across the country, which centers on real estate. It shows data, predictions, analysis, market analysis, investment, customer care ratings, leasing trends, valuation, and market conditions.

Take the time to read the Viewpoint to follow trends, maintain an asset, let go of the risk, and make wiser economic strategies regarding your real estate investment. As Michael Welch once said, “Real estate industry is changing constantly, and Viewpoint’s report will follow that change.” Keep yourself updated on real estate trends by keeping up with IRR Viewpoint. Everything in it may not happen but it sure can save your failing commercial property investment.

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

Posted on January 22, 2016 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 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:

The initial and running capital you need
Local pricing
Taxing
Where top schools and universities are
The lingo
The basic math
Bookkeeping
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.

Tips on Increasing Commercial Property Value

Posted on January 19, 2016 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.

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.

Why To Invest In Real Estate?

Posted on December 22, 2015 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

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:

Make purchase of property in different state or city
Within different areas and price ranges
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:

Location
Size of the property
Development of the area where the property is
Sales value of the surrounding areas
Population residing in that area
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:

Interest, on which you have borrowed money for buying a property.
Tenancy cost, the cost paid to the property managers for advertising your property.
Maintenance & Repair, the cost for the maintenance & repair for restoring the items and goods, such as kitchen renovation.
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.

Is investing in Commercial Real Estate right for you?

Posted on December 11, 2015 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

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

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.

Hire a property manager for my apartment building?

Posted on December 7, 2015 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

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

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 December 4, 2015 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/

Triple Net Lease Market Is Nearing Perfection

Posted on November 21, 2015 by Nathan Diones

While triple net lease (NNN) properties still continue to break prerecession prices, investors’ appetites for NNN properties continue drive up prices and compress cap rates to new historical all-time lows.

Recently Closed Dollar Tree at 5.25% Cap Rate

Business Is Good

With cap rates being compressed by higher demand than the market can supply, net leased properties such as JPMorgan Chase, Dollar Tree, McDonald’s, Walgreens and many alike are experiencing new all-time low cap rates in the low 4% or 5% range, according to Nathan Diones, Broker and president of Regioncy Real Estate, a commercial real estate brokerage, based in Yucaipa, CA.

With the looming threat of interest rates on the rise, investors have been gobbling up all types of net leased products consisting of retail, office and industrial. If the Feds decide to raise interest rates prior to the end of 2015, we could see a pullback on sales until the market adjusts to the new rates.

Regioncy offers both buyer & seller representation for Net Leased Property (NNN).

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

Posted on April 8, 2015 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.

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Tag Archives: investment real estate

How to Choose the Best Location for Real Estate Investment?

How to Choose the Best Location for Real Estate Investments

Natural Disasters

Amenities

Employment

School’s rank

Crime rate

Neighborhood

Commercial Real Estate Projections for 2016

What is Viewpoint?

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

Enrich your knowledge

Prepare for the worst

Tips on Increasing Commercial Property Value

Improve the quality

Study the historical data of the property

Provide a long-term benefit to your customers

Who and what are its neighbors?

Why To Invest In Real Estate?

Is investing in Commercial Real Estate right for you?

Hire a property manager for my apartment building?

Reasons For Which A Great Real Estate Agent Is Needed

Triple Net Lease Market Is Nearing Perfection

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

How to Choose the Best Location for Real Estate Investments

Natural Disasters

Amenities

Employment

School’s rank

Crime rate

Neighborhood

What is Viewpoint?

Enrich your knowledge

Prepare for the worst

Improve the quality

Study the historical data of the property

Provide a long-term benefit to your customers

Who and what are its neighbors?

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