5 Reasons to Invest in Commercial Real Estate
Commercial real estate investing can be a great way to build your wealth. Here are 5 reasons to invest in commercial real estate:
1) Appreciation.
Many people invest in commercial real estate with the goal of earning a profit. And while there are certainly risks involved, commercial properties tend to appreciate at a higher rate than residential properties. This means that your investment will be worth more in the future, providing you with a nice return on your investment. Of course, it's important to do your research before investing in any property. You'll want to consider factors like location, market conditions, and the type of property you're interested in. But if you're looking for a solid investment that will generate returns over time, commercial real estate is definitely worth considering.
2) Cash flow.
A commercial real estate investment can be a great way to build wealth over time. When you choose an investment property, it is important to select one that will generate positive cash flow each month. This can provide you with extra money to reinvest in your property or to save for other investments. In addition, a commercial real estate investment can appreciate in value over time, providing you with even more equity. When done correctly, a commercial real estate investment can be a great way to grow your wealth over time.
3) Tax benefits.
Commercial real estate investing offers a number of tax benefits that can save you money and help you grow your wealth over time. The most common tax benefit is the depreciation deduction, which allows you to write off a portion of the cost of the property each year. This can provide a significant tax break, especially in the early years of ownership when the property is typically worth the most. Additionally, commercial real estate properties often offer the opportunity to take advantage of capital gains deferral through 1031 exchange programs. These programs allow you to sell a property and reinvest the proceeds into another property without paying capital gains tax on the sale. This can be a powerful tool for growing your wealth over time.
4) Leverage.
When you invest in commercial real estate, you have the potential to earn a higher return on investment than you would if you invested in residential property. This is because commercial real estate typically appreciates at a higher rate than residential property. Additionally, commercial real estate can be leased to businesses, which can generate a steadier stream of income than residential property. One downside of commercial real estate investing is that it can be more expensive to purchase than residential property. However, you can typically use leverage to finance a portion of the purchase price, which can help to offset the higher upfront costs. Overall, commercial real estate investing can be a great way to build wealth over the long term.
5) Diversification.
When it comes to investing, diversification is key. By spreading your money across different asset classes, you can reduce your overall risk and increase your chances of achieving long-term success. Commercial real estate investing can be a great way to add diversity to your portfolio. By investing in office buildings, retail space, or industrial properties, you can insulate yourself from fluctuations in the stock market or the housing market. In addition, commercial real estate typically provides steady cash flow, which can help to smooth out the ups and downs of other investments. As a result, commercial real estate investing can be a great way to reduce risk and achieve long-term financial security.
Commercial real estate investing offers a number of advantages that make it an attractive option for investors looking to grow their wealth. Appreciation, cash flow, tax benefits, leverage, and diversification are just some of the reasons why commercial real estate should be part of your investment strategy. If you're thinking about investing in commercial real estate, be sure to consult with a professional to ensure that it's the right decision for you.
Reference:
Capital, E. (2020, January 28). The Top 7 Reasons to Invest in Commercial Real Estate - Excelsior Capital. Excelsior Capital. Retrieved November 15, 2022, from https://www.excelsiorgp.com/resources/top-7-reasons-to-invest-in-real-estate/
Bocchino, F. (2021, January 19). Top 7 Reasons To Invest in Commercial Real Estate. Trion Properties. Retrieved November 15, 2022, from https://trionproperties.com/real-estate-investment-education/articles/top-7-reasons-to-invest-in-commercial-real-estate/
Top 5 Benefits Of Investing In Commercial Real Estate - Market of India. (2022, February 19). Top 5 Benefits of Investing in Commercial Real Estate - Market of India. Retrieved November 15, 2022, from https://marketofindia.co.in/blog/benefits-of-commercial-real-estate-investment/
The 316 Realty Group Guide to Buying Your First Home
Buying your first home is an exciting time! It's a huge milestone and achievement. But it can also be a little daunting. Where do you start? How do you know what you can afford? What kind of home should you be looking for? The 316 Realty Group is here to help! We've put together a guide to help make the process of buying your first home as smooth and stress-free as possible.
Step One: Determine What You Can Afford
The first step in the home-buying process is determining your budget. How much can you realistically afford to spend on a home? Keep in mind that along with the purchase price of the home, you'll also need to factor in things like closing costs, moving expenses, repairs and renovations, furnishing and decorating, and more. Once you have a good idea of your budget, you can start looking at homes in your price range. There are a few things to consider when determining your budget for a new home, including:
-Your current income and debts
-The down payment you are able to make
-The type of mortgage loan you qualify for
A good rule of thumb is that your monthly mortgage payment should not exceed 28% of your gross monthly income. Once you have an idea of your budget, you can start looking at homes in your price range.
Step Two: Get Pre-Approved for a Mortgage
The next step is getting pre-approved for a mortgage. This will give you a better idea of how much money you can borrow and what kind of interest rate you'll be paying. It's also a good idea to get pre-approved before starting to look at homes so that you know exactly how much you have to spend.
Step Three: Find the Right Real Estate Agent
One of the most important steps in buying a home is finding the right real estate agent. A good real estate agent will be there to guide you through the entire process, from finding the right property to negotiating the best price possible. When interviewing agents, be sure to ask about their experience, knowledge of the area, and past success with buyers in your situation. You should feel comfortable with your real estate agent and confident that they have your best interests in mind.
Step Four: Start Searching for Your Home
Now comes the fun part: searching for your dream home! Start by thinking about what kind of home you're looking for. Do you want a single-family home, or would an apartment or condo be more of your style? Do you want a fixer-upper or something that's move-in ready? Once you have a general idea of the type of home you're looking for, start searching online and touring homes in person.
Step Five: Make an Offer and Negotiate the Terms
If you find a home that you love, it's time to make an offer! Work with your real estate agent to come up with an amount that's fair and reasonable based on comparable homes in the area. Once your offer is accepted, it's time to negotiate terms. This includes things like the purchase price, the closing date, any repairs or renovations that need to be made, who will pay for what expenses, and more.
Step Six: Close on the Home and Move In!
Once all the paperwork has been signed and all the inspections have been done, it's time to close on the deal and officially become a homeowner! Congrats! After closing, all that's left to do is move in and enjoy your new home sweet home.
Buying your first home is an exciting but sometimes daunting task. But don't worry—The 316 Realty Group is here to help! We've put together a guide with five easy steps to help make the process as smooth as possible. Just follow our simple steps and before you know it, you'll be moving into your dream home.
Reference:
Florida First-time Homebuyer – First-time Homebuyers, Low Down Payment, FHA Loan. (n.d.). Florida First-time Homebuyer – First-time Homebuyers, Low Down Payment, FHA Loan. Retrieved November 3, 2022, from https://homebuyertime.com/fl/?gclid=CjwKCAjwzY2bBhB6EiwAPpUpZgNFrgDdigLF3dJEOfmX2FxQDHwi06IVxeDthOGKG1xh_PaZGo1ZDxoCgQsQAvD_BwE
https://www.getfaithrealty.com/guide-for-first-time-home-buyers. (n.d.). Retrieved November 3, 2022, from https://www.getfaithrealty.com/guide-for-first-time-home-buyers
Group, K. R. (n.d.). home-buying process. Kormann Realty Group. Retrieved November 3, 2022, from https://www.kormann.com/8-steps-to-buying-your-home/
5 Clever Ways to Complete a Bathroom Remodel
When you think of a bathroom remodel, your mind probably goes to a DIY show you've watched with lots of demolition and expensive changes. It goes without saying that any bathroom renovation is a large undertaking that will not be cheap. And it can appear complicated if you're working with a small or awkwardly shaped space, with quirky (even visible) pipework, lack of natural light, and more.
What if we told you that an attractive bathroom remodel can be achieved without breaking the bank, and the walls? Fortunately, there are numerous cost-effective bathroom remodeling ideas to incorporate into your next project. Let’s get started!
Utilize Mirrors to Create the Look of More Space
When it comes to small bathroom design renovations, large mirrors can make a small bathroom feel lighter and create the illusion of more space. Consider a frameless mirror covering the entire length of one wall, which is an even better approach.
Revitalize Cabinets With New Hardware
Purchasing and replacing old bathroom cabinets can be costly. Removing the old hardware and replacing it with new hardware is a far easier and less expensive way to bring new life to your existing cabinets. Be sure that your screw alignment matches up as well, that way you don’t drill any unnecessary holes.
Install an Updated Sink Faucet
Adding a brand-new sink faucet, like installing new cabinet hardware, is one trick that do-it-yourselfers and designers like to use to make a sink look new and stand out, without changing the entire top or vanity. Sink faucets are also pretty simple to install, which works in your favor since you will be saving money and not hiring a plumber.
Refinish, Don’t Replace your Tub
If your tub has any yellowness or discoloration from normal wear and tear, or even shallow cracks and scratches, consider refinishing instead of replacing. Bathtub replacement should be a last resort option but will need to take place if your tub has mold or mildew, leaking, or any damage.
Create Storage Space
Bathroom storage can be a tricky endeavor. There’s usually a struggle to find storage space for towels, toilet paper, soaps, and other toiletries. Here are a few ways to utilize blank spaces for storage:
- Think about upper wall space. Consider adding floating shelves over towel bars, or a multi-tiered stand over the toilet.
- Woven floor baskets are stylish and functional, and are great for storing extra towels or toilet paper.
- A floor-stand coat rack or a behind-the-door hook are great ideas for robes, towels, and clothes.
Time to Get Creative
By following these five tips, you will get off to a great start, and even better, you can do all of these tasks yourself! If you choose to work with one of our Realtors at 316 Realty Group, they will share recommendations during the renovation process so that you can make the changes that will give you the best return on your investment. Are you ready and confident to start your bathroom renovation?
What is Probate in Real Estate?
When a person is deceased, their property, whether vacant land or an estate, must be distributed in accordance with the terms of their will. Most of the time, this will be accomplished through probate. The probate process can vary by state, but it is most often the only legal way to become the owner of real estate.
If you are involved in probate real estate, you should be aware of how the process works and how long it takes to complete the probate process. Depending on your role, you must also understand how to locate probate property, buy or sell probate real estate, how much probate costs, and the steps involved in various situations. If you are an heir or beneficiary, you may want to consider an estate loan to avoid the delays associated with probate.
Continue reading to learn more about probate in real estate and how to navigate it with these 8 things you must know.
How Does the Real Estate Probate Process Work?
The basic process of handling real estate in probate is overseen by the courts, regardless of the laws in each state. Before any real estate transaction can take place, the court must generally approve it. During this time, the personal administrator or executor in charge of the estate must abide by any court orders.
If one heir wants to keep the property but the other wants to sell it, or if multiple heirs want to keep the property but not share it, the court will decide what happens to it. Most of the time, the decision will be made to sell the property and divide the proceeds among the heirs.
If you are responsible for selling a real estate asset in probate, you must understand how probate courts sell real estate. Let's take this process step by step:
Establish the Estate Executor
If you will be handling the estate, you must have the court appoint you as executor. The executor is named in the deceased person's will in a testate scenario.
Hire a Probate Attorney
While acting as executor, it would be wise to hire a probate attorney to help you navigate the process. Your probate lawyer will represent you throughout the process and assist you with any issues that arise and will be paid by the estate.
Make an Inventory of the Estate’s Possessions
Make sure to collect all important information and documents when taking an inventory of the estate. This could include estate planning documents like a will, living will, or power of attorney, as well as assets like cars, bonds, stocks, debt, and life insurance.
Hire the Right Real Estate Agent
If you have a home that needs to be sold, a home appraisal should be performed and a real estate agent with experience selling probate real estate should be contacted. The agent will research comparable sales in the area and go over the appraisal to determine what the property's sale price should be.
Manage the Finances
You'll have a better understanding of the deceased person's finances after taking an inventory of the estate. First, you need to notify known creditors that the deceased owes money and pay their claims. The estate can also be used to pay off other debts. Upon satisfying these debts, you must file the deceased's income tax return.
Allow Time for Transfer of Assets
Real estate probate concludes with the transfer of assets. After all bills and creditors are paid and the executor petitions the court for asset transfers, the estate will be legally transferred to the beneficiary.
If, on the other hand, the property is to be sold in court, it must first be listed. The property will be listed for sale once the price has been determined. All heirs of the estate will be mailed a notice giving them 15 days to object to the sale of the property once an offer is made and the terms are agreed upon. If no one objects, the sale of the house will be handled in court.
Bottom Line
Dealing with probate real estate can seem quite daunting and time-consuming, but upon reading how the process works, you may realize it doesn’t have to be so challenging. Our Realtors here with 316 Realty Group are well-versed in the realm of probate real estate and you want one of them on your side. Give us a call if the time comes for you, we would love to assist you in any way we are able!
Why is Buying Land a Good Investment?
Investing in and purchasing land can be a difficult concept to understand. Most people have never given much thought to this concept. You might be wondering, "Is buying land a good investment?"
People aren't always willing to think outside the box with their money. You don’t always need to follow the lead of tv personalities, flipping houses, and doing outrageous home renovations. They make it look so easy, but no one is really talking about why land is a great investment.
Let’s go over some reasons why land is a wise investment!
Land Provides a Sense of Security
Land in its natural condition will always be valuable! There really is no extra effort required of you when owning a piece of land. Think of it this way, there is no renovating for you to do, no maintenance for you to take care of, you just own it.
The key to investing in land is to buy a property that can be improved one day. Whether you are holding onto the land for yourself, plan to pass it down to your family, or plan to sell in the future, it is a good idea for the land to be suitable for building on.
Land is a Limited Resource
Land is a valuable and limited resource. There is no endless supply of land, and no one is making any more of it! As the population of the USA grows, the cost of land and availability of land will increase as well.
Land is Tangible
No matter what the world decides about money tomorrow, land will continue to have value. Unlike stocks and shares, land doesn't disappear.
Land is a tangible and physical item that belongs to you, regardless of the economic climate worldwide. Although the value of money and currency may fluctuate, ownership never does.
Land Value Increases
According to the most fundamental economic principle (supply and demand), raw land will inevitably increase in value as demand for the limited asset grows. Rather than asking whether land will appreciate, the question now is how much it will appreciate.
If you do your research to make sure the land you are purchasing is in a path of growth, future developers may find it very attractive. You could eventually make some easy profit selling it way beyond what you paid for it.
Land is Less Competitive
While most people out there invest in condos, housing units, and house flipping, it’s not as common to buy a piece of land. As we mentioned at the beginning, today's TV shows have glamourized house flipping and it seems everyone wants to try their hand at it.
In this case, taking the road less traveled can definitely work in your favor.
Bottom Line
You may think investing in land is only for the wealthy population, but it can really be for anyone. It can provide you with a sense of security, it is a limited resource, it is tangible, its value increases over time, and it is a less competitive route to take.
At 316 Realty Group, we are more than happy to assist you in finding land on any budget. If you want to learn more about buying land for yourself or simply for investment, contact us today! We would love to help you.
First-Time Home Buyers & Rising Inflation
If you're like many first-time home buyers in the United States, you're probably worried about what inflation means for you. How do you know how this will affect the purchase of a new home? It doesn’t really help morale when you hear the latest statistics about inflation. In April 2022, inflation accelerated by 8.3% more than in April 2021, keeping inflation near 40-year highs!
In today’s blog, we will go over what inflation means for you, so you can better understand this concept, and move on with finding your first home. Let’s get started!
Inflation, in Plain Terms
Let’s first go over what inflation is. Inflation is the process in which prices increase over time. In other words, your money right now is worth less than when you first possessed it.
As consumers, we don’t like to witness inflation, but if you look at the big picture, some inflation can be a good thing. A healthy economy should always have some inflation, as rising prices encourage people to buy goods, houses, services, and more, instead of waiting until later. This results in more work that is available for producers, which means they can continue to hire.
Inflation can be good if occurring slowly, and not too quickly. For example, think about your favorite coffee shop, that latte you pay $3.50 for suddenly jumps to $6. That would be a shock, to say the least!
Housing Impact
Inflation impacts housing prices simply because the price of materials used for the construction of homes goes up.
Home appreciation is impacted because homes go through price increases, due to many variables. Such variables include the home’s condition, number of bedrooms/bathrooms, location, and condition.
Home Buying Impact
As a first-time home buyer, you’re curious about what impact inflation could have on you buying your first home. Due to the nature of inflation, the prices of homes will continue to climb for a while. Mortgage interest rates will rise, which means taking out a loan will become more expensive as a higher interest rate leads to higher monthly payments.
What to Do in This Market?
You're wondering what you should be doing as a first-time home buyer in this housing market. First, it’s s a smart move to pay off any existing debts, in order to have a better DTI (debt-to-income ratio.) This is an important factor a lender will look over when deciding to approve you for a loan. Make sure to avoid opening any new credit card accounts or making any big new purchases, this could harm your credit greatly.
Be Honest With Yourself
As a first-time home buyer, and especially in the current market, your budget won’t be able to fit everything you want in your home. Make a list of what your home absolutely must have and cannot do without.
Talk to your real estate agent about these aspects and don’t forget about fees and any funds you need to be aware of and may need to bring to closing.
Closing Up
This market may be intimidating for first-time buyers, and it may feel like you could be locked out of the market. High rates are combined with high home prices, and affordability is being pushed farther away right before us. If you have the means financially, you may want to start the search now and make a move. Contact our team at 316 Realty Group so we can guide you through the process of buying your first home, we promise you don’t want to do this alone!
Tips for Finding the Perfect Neighborhood
So many of us have done it. You are browsing through homes for sale online and one catches your eye. You fall in love instantly and immediately begin to envision yourself there. That’s it, this house must be yours!
You arrive to view the home, only to find there are homes around you that look like they’re running a junkyard, the road isn’t as calm and tucked away as you’d like it to be, and there is a lot of through traffic that makes you uncomfortable, especially having little children.
With all of that being said, if you're thinking about buying a home, keep in mind that you're also investing in the neighborhood. You’ll never love your house and want to stay if you don’t also love your neighborhood.
That’s why we’re going to share tips and tricks on how to scope out and be your own detective when it comes to finding the perfect neighborhood for you!
Drive Around & Do Your Homework
One of the most effective ways to get a feel for what a neighborhood is really like is to go drive or walk around it at different times of the day. Take mental notes on what you see while scoping out the area!
Interaction With Neighbors
When walking or driving through a potential neighborhood, it’s important to be aware of any people that approach you and make eye contact with you, which could be a sign of a friendly community. Tools like Realtor.com also showcase which communities have good schools, and more data that reflect a great community and surrounding area.
Observing Surrounding Area
Check for any abandoned buildings or vacant lots, which could be used in the future for commercial development and could definitely impact the feeling in the neighborhood and impact the value of the surrounding properties. Look at the average property taxes for that specific area over a span of several years, and note any fluctuation. You could also dive deeper by contacting local resources like a city hall or Chamber of Commerce to find out about any future plans for the area such as building more homes (if a new development) that may change the feeling of the neighborhood, increase traffic, and in return, increase taxes.
Observe the conditions of the houses, yards, and streets. Look for any signs of vandalism or other deterrents like bars on windows. Especially if you have children, do your research on crime statistics in your neighborhood, whether it’s online (which can be limited,) or by calling the local police department. Lastly, don’t forget to observe traffic speeds too, and the noise level and traffic flow of the street.
Can it Meet Your Family’s Needs?
When searching for the perfect neighborhood, it is also vital to consider your needs and your family’s. Only you know your and your family’s needs, and you must keep in mind what makes a neighborhood special to you, and what makes it a place you would want to grow and rest in! Questions you could ask yourself are:
- Are you in pretty close proximity to grocery stores, shops, or restaurants?
- Is the commute time to your place of work reasonable? (Distance and time both matter! Try doing a test run and seeing how long it would take you at peak times.)
- Are there any nearby parks or activities for yourself and your children? (Bike paths, hiking trails, playgrounds, state of national parks.)
- If using a school, is it a reasonable distance from the home?
- Are there many trees for shade and coziness, or sidewalks for easy strolls and bike rides?
- Is it an older neighborhood with variety and character, or a newer development with a lot more homes and less space and privacy between houses?
Let’s Get Searching!
Our realtors with 316 Realty Group are focused on our client's needs and understand the concern about finding the perfect neighborhood that fits your family. With local insight and knowledge of the area, we are here for you to guide you through the process of searching and finding a home and neighborhood that checks off all of your boxes. Reach out to us today and let’s begin the search together!