Tag Archives: nnn

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.

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.

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.

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.

Triple Net Lease Market Is Nearing Perfection

Posted on 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

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).

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