The world of real estate investing has become one of the quickest growing means of revenue for people around the world. One of the more common forms of investments is seen in the form of commercial properties. Commercial real estate investments include offices, commercial apartments, retail and wholesale spaces and many others. These investments require patience, willingness to perform research and determination. Unlike other sectors, commercial real estate has high returns and other multiple benefits. However, to succeed in the industry, you must be ready to spend time building relationships with experienced investors and property owners.
Mostly, real estate investors start by buying a residential home for their family members. However, after some period, they familiarize themselves with commercial real estate, which has more profitable deals. Although commercial real estate investments have higher rewards than the residential sector, it has some risks that every person should know before investing. Below are crucial tips that will help you to invest and succeed in commercial real estate.
Take Time to Perform Research
Investors should first take the time to learn about how the sector operates. You should gather learning resources and acquire crucial information about commercial real estate. Online platforms that deal with real estate matters can guide you to thrive in the industry.
Additionally, you can look for a mentor to guide you on how to succeed in commercial real estate. The mentor should be a friendly person who is willing to teach you the tricks and vocabularies of the sector.
You should formulate a plan that guides you on how to make wise investments. You should not accumulate several commercial properties without a proper plan. When starting out, it is advisable to focus on a single investment at a time. The process will enable you to make a good profit and succeed in the industry. You should not purchase properties that do not accumulate profits.
Work With Reputable and Motivated Real Estate Agents
If you want to buy a commercial property, you should work with an experienced agent. Reputable dealers will educate you several commercial real estate metrics, including cash on cash, net operating income, and cap rate. Additionally, they will sell you a property at a market value or below. However, you should get recommendations from friends and experienced investors when choosing a commercial real estate agent. They will direct you to the best dealer in the region.
Learn Environment and Location Issues
The location of a commercial property can determine its cost and demand. If you purchase or build a commercial building in an area that is not developed, you will unlikely get serious tenants. It will limit your cash flow. You should purchase a property in a populated area that is likely to develop massively in the future.
Conclusively, you should note that every sector has its trends. Things keep changing every time. Therefore, to succeed in commercial real estate, you should keep learning new tricks from experienced investors, media, and other sources.
The Seattle real estate market is one of the hottest markets in the country. Over the past few months, home prices have started to accelerate even more quickly. The economy of Seattle is strong, and this is encouraging many people to move to the area. Not only that, but there is less traffic in Seattle than other major cities.
The biggest driver behind higher housing prices in Seattle is a lack of inventory. It is fairly common for a home to sell within a day or two of going on the market. There are many people who want to buy a home in the area. The problem is that there are few homes within an affordable price range.
The good news is that many building companies are working on new homes. However, it is going to be several years before the new homes will catch up with demand from buyers. Over time, this should be an issue that gets worked out with more homes being built.
As a buyer in the Seattle market, reacting quickly is essential. If you see a property that you are interested in, you need to submit an offer quickly in order to be considered.
Over the past year, home prices in Seattle have increased by more than eight percent. This is a massive increase in prices during one year. Many real estate experts believe that this trend is going to continue into 2018. With more demand from buyers than ever before, sellers have an incentive to continue increasing the list price on their home.
Real Estate Investors
Investing in real estate is a great financial decision over a long period of time. There are many real estate investors who are looking in Seattle for a property to purchase.
This is another factor that is increasing the overall cost to live in the area. Real estate investors typically react quickly when a home goes on the market. Seattle is a great market to find a rental property in because of all the population growth. Rent prices in Seattle have also been rapidly increasing in recent years.
Although Seattle is a great place to live, many people are having a hard time finding a home in the area. Some people are starting to look at cities around Seattle in order to find more affordable homes to purchase. The inventory shortage in Seattle will continue in the next year.
For many people, real estate investing is a great way to achieve financial independence. However, real estate investing is a difficult process. There are various people who struggle to get started with investing.
In addition, there are many ways to make mistakes with real estate investing. Too many mistakes can result in financial failure. Here are some of the most lethal real estate investing mistakes that you should avoid.
Borrowing Too Much Money
Perhaps the biggest mistake that new investors make is to borrow too much money in the beginning. When you first start investing, you are often really excited to buy your first property. Borrowing too much money does a couple of things to your finances.
Not only will borrowing too much money impact your monthly cash flow, but it also increases the risk that you have in business. Some people struggle to pay for all of the debt that they take on.
Lowering Your Rent
Some real estate investors believe that lowering their required rent is the best way to attract quality tenants. However, having rent prices that are too low is the wrong approach to take as an investor.
As a real estate owner, there are various expenses that you must deal with. Rent payments help the owner pay for repairs and other maintenance in the home. Make sure to conduct thorough research on the area before setting a price for your monthly rental requirements.
Maintenance is one of the most important aspects of owning a home. There are many people who want to avoid maintenance expenses whenever possible. However, this is the wrong approach to take for a variety of reasons. Maintenance expenses are much cheaper than repairing a major problem.
You should conduct thorough maintenance in your home whenever possible. This is the best way to avoid major issues later on.
Selling in a Panic
If the housing market starts to drop, one of the worst things that investors can do is sell in a panic. Trying to sell a home quickly is only going to reduce the total price that you can get. Instead, focus on ways to hold your home through an economic downturn. This is the best way to enjoy price appreciation when the market picks up again.
Overall, real estate investing is a great way to build wealth and change your financial future. Avoiding major mistakes is essential to achieving financial success.
If you’ve tuned into HGTV recently, you’ve likely stumbled upon one of their many shows about tiny homes. These small accommodations have swept the nation, and many people are now looking to downsize for their next home buying endeavor. These small houses have made such an impact on not only people’s personal well-being but the nation as a whole. Many cities around the world have embraced the concept of tiny homes as a solution to homelessness. Whether it’s for personal or communal gain, these tiny homes have swept the nation and are likely not leaving anytime soon.
There are an abundant amount of reasons that people are choosing to live small. The main benefit to having a smaller home is the financial savings it provides. People who have downsized to tiny homes have saved money in the buying process and beyond. Tiny homes average selling point is between $19,000 and $50,000, over half the cost of a standard single-family home. Due to its size, these homes also save on almost all utility bills. For those who have a stationary tiny home, you are looking at an average savings of 50% on your electric and gas bills. For those with the ability, splurging on items such as cars and vacations becomes more feasible when living in a tiny home. There are endless benefits that come with being a tiny home owner. Everything from sustainably to eliminating clutter is achievable when choosing to downsize to a tiny home.
Our very own Seattle is making great strides at putting the tiny house phenomenon to a good use. As affordable housing is a constant concern for many cities around the world and such locations are struggling to find answers. Seattle is making strides, through tiny homes, to improve homelessness. Earlier this year, it was found that there were only around 100 affordable housing apartments available in the Seattle area. This was nowhere near enough to accommodate the number of homeless citizens in our city. Seattle city council members agree that tiny homes are a more appropriate solution to homelessness. The tiny homes that the city is providing for its homeless residents are sustainable and sufficient living situation. As of now, there are five communities that exist. The tiny homes cost around $2,000 and are assembled by volunteers. If the expansion of tiny home communities continues, the city can expect to a decrease in homelessness. This means fewer people sleeping in tents or cars and more people getting their lives back.
Real estate is quickly becoming one of the most desired professions around the country. There is a major process involved when it comes to being a realtor. Making the decision to become an agent can end up becoming one of the most rewarding experiences. Nothing compares to the feeling of helping people find the home they will make many memories in. Once you have decided that real estate is your calling, follow these steps to obtain a real estate license in the state of Washington.
The state of Washington requires anyone seeking a real estate license to complete 90 hours of education. This education is broken down into two parts. The first part is 60-hour course regarding the Fundamentals of Real Estate. Across the country, realtors must complete this portion of the course. The second part of the course, which is only applicable in certain states teaches Real Estate Practices. Fortunately, you are able to complete these courses online. Organizations such as, Kaplan Education offer online programs for those seeking their license. Once you have completed all of the necessary educational course you can continue onto the exam portion.
Washington has a specific provider that proctors the exam. The Broker’s exam can be taken with Applied Measurements Professionals Inc (AMP). The school where you completed your education can pass along your proof of completion to the testing organization. Once AMP has received your credentials you are then able to apply to take the exam. You can apply for the exam online, via phone, or mail. There are various testing sites around the state. Find the one closest to you by visiting AMP’s website.
- License and Background Check
Once you have successfully passed the exam you are then able to apply for your real estate license! During your exam, you are given a fingerprinting card. With this card, you must go to one of the designated centers and get your fingerprints done. Upon receiving your clearances, you can submit your application for your license. Finally, upon receiving your license, you are allowed to start your exciting new career!
Once upon a time, showing your house off to buyers just meant cleaning it. But now, “staging” has become a part of the sales process. Staging means decorating your home to appeal to potential homebuyers—a process that can mean anything from repainting the walls, to buying new furniture or updating old appliances.
Staging is about more than making your home look good—it has to look like what potential homebuyers are interested in. And today, more than 30% of those homebuyers are millennials—people born between 1980 and 2000. So how do home sellers appeal to this new generation? Here are some ideas:
Make it Photogenic
If you want to appeal to millennials, make sure your home has a good online presence. Take clear, attractive photos and make sure all the details about your home are posted on the web. What they find online may very well determine whether millennial homebuyers even want to visit.
Keep it Clean and Simple
Obviously your home should not be dirty when you show it off. But more than that, eliminate clutter. Millennials like homes to look spare and simple, with lots of space for entertaining. Many millennials—and certainly those looking into buying a home—have full-time jobs coupled with busy social lives, so they will want a place that looks easy to maintain and keep clean. Hide knick-knacks, and anything that might make your house look dated: doilies, quilts, lots of fancy china, or heavy or frilly curtains.
Millennials are concerned about the environment; so don’t be surprised if you are asked about your home’s sustainability. Projects such as insulating your home or installing more efficient appliances can help draw in young homebuyers worried about their footprints.
Fashion a Home Office
Creating a home office doesn’t have to be a major project. If you have a guest room or catch-all space in your house, clean it out and stick a desk and chair inside. Many millennials work from home, at least part-time, and want a designated space to work from.
Even if you don’t have the budget to make major renovations, just painting walls can make a huge impact. Wallpaper, especially patterned wallpaper, can make a home seem old-fashioned and cramped. Full-wall mirrors from the 80s are arguably worse. Painting your walls is a good way to modernize. Use light, muted colors to make everything seem modern, spacious, and well-lit.
Think About Location
Are you in walkable distance from a grocery store, coffee shop, or library? If you answered yes, or if you can think of any other choice destinations in reasonable walking distance, make sure to advertise it! You can’t change your location, but it would be a mistake not to promote it.
What’s Wrong With Being a Fixer-Upper?
If your house is a fixer-upper, and fixing it yourself is out of your budget, be honest about it! Many millennials are looking for a move-in ready house, but others would be happy to get a deal and a challenge.