How to Choose the Best Location for Real Estate Investment?

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.

Commercial Real Estate Projections for 2016

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

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.

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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

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?

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?

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.