Commercial Real Estate ? Introduction to Commercial Real Estate …
Friday, August 19th, 2011 at 11:23 am ?
www.REIClub.com – What Is Commercial Real Estate Investing? Here’s A Quick Video On The Many Types of Investments And Their Benefits. Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on the many types of commercial real estate and some quick benefits to each. TYPES OF COMMERCIAL REAL ESTATE – Multi-Family Apartment Buildings – Self Storage – Mobile Home Parks – Retail Space – Office Buildings – Industrial, Manufacturing and Warehouses – Land Development – Hotels and Resorts – Health Care Facilities DIFFERENCES BETWEEN COMMERCIAL AND RESIDENTIAL – VALUATION – Residential: Purchase – land value and property value, Rent – FMR – determined by area – Commercial: Purchase – determined by income potential, Rents are determined by $/sq.ft, demand vs. supply – FINANCING – Residential: Smaller deposit, 100% loan to purchase, lower rates, but not as easy to get seller financing – Commercial: 30% deposit, higher rates, but better chance of leveraging – seller financing or using OPM. – RENTAL COMMITMENT – Residential: 1 year with option to renew, tenant quality fluctuates, vacancies hurt – Commercial: 3-20 Years, annual rent increase, better tenants, more flexibility with vacancy – MANAGEMENT – Residential: Most of the time YOU are the manager, time consuming, not budgeted for management – Commercial: Property management expenses built right into the valuation of property, professional companies to manage the …
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