Silicon Valley Commercial Realtors

Exit Strategies

localbiznetwork — Sun, 27 Dec 2009 11:11:02 +0000

More important than guessing the future of a local market, you need to have a clear plan in mind when purchasing property. A smart investor knows exactly how he will exit the property before he buys. An even smarter investor will have a backup plan in case the first course of action doesn’t work. In short, know the market and your plan before you begin to invest.

Commercial Real Estate Smart Guys

To get more information about commercial real estate get in touch with ‘Commercial Real Estate Smart Guys’. They are located in Silicon Valley, California and provide a full range of commercial real estate services for tenants and property owners. Their email id is speck@cresmartguys.com and Ph: 408-307-9785. Visit their website http://www.siliconvalleycommercialrealestate.biz/ for more information.

Falling Markets

localbiznetwork — Wed, 23 Dec 2009 03:29:54 +0000

While most markets have risen over the last five years, some flattening out, and some may have already dropped. This type of market offers great opportunity to the savvy investor. When property values are falling, inventory often rises, and many sellers become highly motivated when their properties fail to sell quickly. Motivated sellers will do whatever it takes to sell their property. Whether sellers need to move from the area, are struggling financially, or have other pressing reasons to sell, they may want to accept a below-market offer.

Commercial Real Estate Smart Guys

Inventory Trends

localbiznetwork — Mon, 21 Dec 2009 03:00:08 +0000

Inventory, defined as the number of properties offered for sale a good indicator of current market trends. If inventory is high because of economic recessions, like what we have today, the high inventory will lead to falling prices. Investors with cash hand will be able to purchase properties at deep discounts. There are also seasonal fluctuations in inventory, such as fewer listed properties in the winter months than in summer and a surge of listings in the spring. Some areas, such as resort destinations follow seasonal trends. Generally, seasonal drops in inventory reflect the trend to market properties more aggressively in spring and summer months when real estate markets are more active properties sell year-round, though investors should plan to review the price for winter listings or at least know that properties take longer to sell during those months.

Commercial Real Estate Smart Guys

Basic Strategies to Limit Risk

localbiznetwork — Wed, 16 Dec 2009 02:49:42 +0000

Some basic strategies can be used successfully in virtually all market conditions, especially in falling real estate investment markets.

Become educated in your local market first by understanding the large-scale trends-from global down to national, regional, and specific areas.
Learn about target area and study market indicators, such as vacancy rate this month versus last month or last year.

Armed with this type of information, you will be able to make good decisions

Commercial Real Estate Smart Guys

Rent predicted to rise in future

localbiznetwork — Mon, 14 Dec 2009 03:28:17 +0000

Although short-run economic downturns may jack up vacancies and depress rents, rent levels will go up over time because future demand will increase faster than future supply.

Here are three reasons why:

Population growth - during the next 20 years, US population will grow by 50 million from 280 million people to 330 million people.

Household growth - to house the population increase would require a net gain of 20 to 25 million households

Incomes - the long term outlook for US productivity looks bright, and will add to household buyer power.

With pension plans, stock market volatility, social security, and lifetime jobs all engulfed in a fog of uncertainty, smart real estate investment for the long term will deliver a profit generating future.

Commercial Real Estate Smart Guys

Six Ways Real Estate Will Produce Profits

localbiznetwork — Thu, 10 Dec 2009 07:50:12 +0000

Convincing evidence confirms that during the next 20 years, people who own single-family homes, duplexes, 4-plexes, and small apartment buildings will build wealth, and a profit-generating future, that they can count on.

Savvy real estate investors will produce profits that will build in these six ways:

1. Dependable and growing flow of income (rent increases)

2. Property value increases (appreciation)

3. Mortgage payoff (amortization)

4. Value creation (property management)

5. Instant gain (equity from bargain purchase)

6. Government benefits (tax benefits, tax deductions, rent vouchers, etc.)

Commercial Real Estate Smart Guys

Why Own Real Estate Investments?

localbiznetwork — Wed, 09 Dec 2009 04:59:07 +0000

Today, wealth planning and investing stands critical to your health, wealth,

and peace of mind for your future. Real estate investments can be a valuable addition to your portfolio mixed with your stock market securities.

Here are many reasons why people own real estate investments:

1. Build wealth part time while keeping your full time job.

2. Protection from stock market volatility.

3. Prepare for retirement with a steady cash flow stream from investment properties.

4. Save for children’s college education expenses.

5. Build wealth through property value appreciation and rental income.

6. Use of leverage to maximize return on real estate investment.

7. Create multiple income streams.

Commercial Real Estate Smart Guys

PARTIES TO THE LEASE

localbiznetwork — Sun, 15 Nov 2009 13:37:40 +0000

Make sure you get the names on the lease exactly right! It’s so basic, yet so neglected. Find out if you are dealing with an individual, or a partnership, or a corporation, or some combination. Make sure the person signing the lease, on either side, has the legal authority to bind the entity to a contract. Ask for a copy of the partnership agreement, or a corporate resolution. When it comes time for the parties to sue one another, it can make a difference.

Commercial Real Estate Smart Guys

OPTION TO BUY/RIGHT OF FIRST REFUSAL

localbiznetwork — Wed, 11 Nov 2009 02:52:48 +0000

Sometimes, a large and financially strong tenant in a multi-tenant building, or a strong tenant in a single-tenant building, will be able to negotiate an option to buy the property. Failure to acquire a purchase option, such tenants can sometimes negotiate a “right of first refusal”, which entitles them to match the terms and conditions of a bona fide offer received by the landlord.

Commercial Real Estate Smart Guys

TENANTS & ESTOPPEL CERTIFICATES

localbiznetwork — Sun, 08 Nov 2009 14:40:54 +0000

Prior to closing escrow, a new owner or lender needs to know that the leases being transferred are valid. The tenant is therefore required to verify its lease with an “estoppel certificate”, which is a written declaration by the tenant that the lease and any acknowledged modifications to it, are in full force and effect. It verifies the commencement and termination dates, the amount of any prepaid rent, the date to which prepaid rent applies, and the amount of the security deposit. Finally, it lists the terms of any special agreements with the landlord, and contains a statement that there are no uncured defaults by the landlord to the best of the tenant’s knowledge. Time is of the essence for return the estoppel certificate to the landlord.

Commercial Real Estate Smart Guys