Business Rentals

If you are thinking of investing in commercial real estate, consider business rentals. Business rentals range from storage facilities, office buildings, storefronts and strip malls. While some commercial real estate investors build business rentals and then act as a property manager, others simply purchase buildings and renovate them so they are suitable for business rentals.

Commercial real estate investing has many facets. When most people think about commercial real estate investments, they think about giant malls or industrial parks. Few think of small business rentals that also encompass commercial real estate properties.

When purchasing a business rental, make sure that there is a lease in place or you have a client in mind who wants to lease the property. Few people invest in commercial real estate upon speculation as it can be quite risky. It is financially prudent to seek a sound investment when choosing business rentals. Business rentals in blighted area are risky at best. Commercial real estate in a declining area is usually not a good idea. Location is the most important aspect of any real estate investment.

Before investing in a piece of commercial real estate, an investor must perform due diligence. Due diligence with regard to business rentals includes the following:

Ÿ An inspection of the property to make sure it is structurally sound;

Ÿ Environmental inspection if required;

Ÿ Zoning consideration - if you are planning on making a change in the type of business rental, make sure that the current zoning is applicable;

Ÿ A survey of the property with all easements included;

Ÿ A title insurance commitment detailing any liens, covenants, restrictions or tax problems recorded against the property.

In addition, make sure you are aware of all the applicable laws in the municipality where the property is located. You would not want to purchase a piece of property to lease for a tavern if the municipality does not allow liquor. When considering business rentals, take a look at the surrounding area and see what will work well in the community.

Storage facilities are another example of business rentals. Companies and individuals use storage facilities to keep items they cannot keep in their office or home. Business rentals such as storage facilities, make good commercial real estate investments.

Other business rentals include strip malls, office buildings, office complexes, storefronts and free standing structures. People invest in business rentals for many different types of reasons, the main one because it is a steady source of income for the investor. The loan on the property can be paid off by the individual or business renting the property and, if your commercial real estate investment is in a location where the properties appreciate in value, you can earn money years down the road when you sell the property, or you can continue to hold onto the property and gain the income from the business rental.

Business rentals can be a good solid investment if an investor has knowledge of the real estate market, invests in a desirable location, performs proper due diligence and is mindful of what is needed in the area in which the property is located.

Mark Moebius
CEO
MILJONAIR Development
MiljonairDev.com
636.300.9000

3451 St. Albans Rd. Suite 5B
St. Albans MO 63073

Learn to Invest from the Pros

There are many real estate programs on the market for you to learn from when it comes to investing in real estate. The problem is which ones to buy and which ones to let go. You can learn to invest from the pros if you know what to look for in the programs.

The first thing you need to do is determine what marketing niche you are going to specialize in when it comes to investing in real estate. You may want to invest in bankruptcies. You might choose to flip properties. Another avenue for investment is buying rental properties. Either one you choose can yield a good profit. The real estate pros who are successful have chosen a marketing niche in which they specialize. You can learn to invest from the pros who have specialized in your market.

Find someone who is offering training programs in your area. These are the people who have made money investing in the local market in which you are planning to invest. This is the person you want to listen to. It will do no good to try techniques used by someone in Colorado when you live in Florida. You want to learn from someone who knows the laws governing your area. You want to find out what you can about the real estate investment market for your part of the country. Finding a local investor who has made it work will allow you to learn what you need to in order for your business to become successful.

You will also want to invest your money into a program that has a complete training package. Someone who is selling you a book and a few tapes is making their money on the program you are buying. Many of these program authors have not even made a real estate transaction other than to buy their own home. You want to learn to invest from the pros who have been there and done that. You want to find out what worked for them and what mistakes they made. A good investor who is willing to share his or her knowledge will tell you the pitfalls. They are willing to share the mistakes they made so you can avoid them. This is the person you want to learn from when it comes time to invest in real estate.

Many of the top investors who have made their living buying and selling real estate also will share other success stories with you. They are willing to let you get to know others who have been taught to use the same system. The true real estate investor is not afraid to hand out references. They know their system works because they use it every day to make good money. You can learn to invest in real estate from the pros who are willing to provide you with a list of names. Speak with these other trainees. Find out what they like about the program and what they do not. Let them tell you of the experiences they have had when it comes to investing in real estate.

The one true way to know if the real estate program is right for you is if there is a support line or a team willing to walk you through the system. The last thing you want is for someone to sell you a bunch of books and tapes and just walk away. You want to learn to invest in real estate from the pros who are willing to stand behind you. There are actually a few who will make deals with you. These are legitimate deals where the two of you go together to examine the property and go together for the financing. This type of professional investor is the one who wants to see you succeed. This is the one real estate professional investor who will teach you what you need to know in order to become successful on your own. This is the investor whose package you should buy to learn how to invest in real estate from the pros.

Mark Moebius
CEO
MILJONAIR Development
MiljonairDev.com
636.300.9000

3451 St. Albans Rd. Suite 5B
St. Albans MO 63073

Financing your commercial real estate investment

There are many different ways for financing your commercial real estate investment. You can either go to a bank or join an investment group that will finance the rest of the project. There are good reasons for choosing either of these options.

If you are planning on investing in your own commercial real estate venture, financing your commercial real estate investment will probably take place at your local bank. You will have to come up with a good part of the money for the project, a detailed business report, a statement of assets and liabilities and other documentation that states how you are going to pay for the property and how it is going to be used. They will also want to see a business plan as well as information from the municipality where the property is located prior to loaning you money.

Getting a bank loan can be time consuming, but if you are planning on making a career out of investing in commercial real estate, this is an excellent opportunity to build up a relationship with your banker. Once you have established a good credit history with your banker, chances are that they will be willing to lend you more money in the future at a better rate.

You will also most likely have to provide any financial information pertaining to yourself as well as income tax statements. If your business is incorporated, you will have to show proof that it is in good standing with the state in which it is incorporated when financing your commercial real estate investment through a bank.

If you do not wish to pay interest rates or fees charged by a bank, you can enter into a real estate partnership with an investment company or investment group when financing your commercial real estate investment. You will only have to put up a portion of the money, but will have to split the profits with the other partners in the group. This can be quite beneficial for someone who knows little about the commercial real estate market but wants to make their money earn a higher yield that it would do in a money market account, mutual fund or a bank.

Commercial real estate investment is blooming across the United States. Unlike the residential market, the commercial market is still proving to be a viable option for those who want to invest in the real estate market today. However, investing in commercial real estate is completely different than investing in residential real estate and financing your commercial real estate investment is also quite different. You will deal with a bank that is rather stringent in their requirements, or an investment group where you will share in the costs as well as the profit.

As the interest rates are low, financing your commercial real estate investment through a bank has never been better than it is right now. Be forewarned, however, that if you choose this route, you have to know something about what type of investment you are financing, how it will be used, have good credit and have a solid and proven business plan.

Mark Moebius
CEO
MILJONAIR Development
MiljonairDev.com
636.300.9000

3451 St. Albans Rd. Suite 5B
St. Albans MO 63073