Real estate can be a great long-term investment option that can generate an ongoing passive…
Investment Properties For Sale
Investing in real estate, particularly commercial investment properties for sale, can be a sound way to recoup some of your 401k losses and save for your retirement. When stocks plunge and retirement savings accounts plummet, many Americans are fearful they would end up working until the day they died. Yet, imagine owning a successful office building and collecting a steady stream of money from tenants each month. Or perhaps you’re interested in renovating apartments into owner-occupied condos as part of a neighborhood revitalization initiative.
The government often provides aid for investors who are looking to improve a neighborhood eyesore. There are many sites offering such properties for sale. Perhaps you’ve invested in other profitable ventures and now you’re looking for the lowest priced investment properties for sale, which will allow you the ability to renovate as you see fit and charge higher prices for rent.
First, browse the sites on the Internet that list investment properties for sale in your state. Once you’ve perused the investment properties for sale sites, you’ll be ready to choose a real estate agent. Most websites make this rather simple because the property you prefer is often represented by an agent who is listed alongside it. Make sure you work with an agent who is knowledgeable and helpful.
Buying an investment property is a big step and cautious diligence is necessary to ensure you don’t run into a host of pitfalls. When you buy an investment property, mortgage professionals recommend that your own primary residence be 100% paid-off and that you’ve saved enough to cover any emergency maintenance your new building may need. Also, it’s preferable if you can make a sizable down payment on the property and plan to pay it off sooner rather than later to mitigate any losses. Remember, the quicker the property is paid for, the quicker you’ll make 100% profit.
Apartment Buildings For Sale
As you may have heard, apartment buildings for sale are some of the biggest moneymakers in the real estate investment property industry. For years, apartments have been occupied with a seemingly endless stream of college students, divorcees, relocating employees, senior citizens, low income families and young couples just starting out. Sorting through a diverse pool of applicants to find those who will provide you with a steady stream of income isn’t always easy — nor is managing schedules of repairs, landscaping, and move-in and move-out dates. However, if you have the tenacity to weather the storm, then you will be pleasantly surprised at how well this investment performs for you.
The quality of an apartment building largely depends upon the neighborhood it’s in. The goal of any commercial real estate investing is to have 100% occupancy, which is only really possible if you’re situated in a low-crime part of town that is conveniently located near bus stops, retail centers, gyms, movie theaters, restaurants and grocery stores. Tenants with children will be looking for properties that are near schools with good reputations. If you’re unfamiliar with the neighborhood you’re looking to buy in, then you should check out a site like www.city-data.com to gather some valuable statistics about the area where you’re considering investing in real estate.
Another important consideration in looking at apartment buildings for sale is the area’s average rent. Since this will be the heart of your profitability if you buy investment property, it’s crucial that you do your homework. Low rents can be evidence that your neighborhood has “gone bad.” Affordable rents today may not be affordable rents tomorrow if large developments and property tax increases are planned for your region. You want to crunch the numbers and see that you can charge a comparable rate to neighboring apartment complexes and still churn a profit.
When you’re looking at apartment buildings for sale, you’ll also need to consider insurance expenses. Some areas that are prone to hurricanes, hail, earthquakes and flooding will command top dollar from you, eating away at your income. According to natural disaster risk ranking, the worst USA property cities are Columbus, OH; Tulsa, OK; Oklahoma City, OK; Long Beach, CA; Los Angeles, CA; San Jose, CA; Honolulu, HI; San Francisco, CA; Oakland, CA; New Orleans, LA; and Miami, FL. By contrast, some of the safer cities for real estate investment properties include Mesa, AZ; Phoenix, AZ; Tucson, AZ; Cleveland, OH; Philadelphia, PA; Detroit, MI; Milwaukee, WI; Minneapolis, MN; El Paso, TX; and Colorado Springs, CO.
Investing In Apartments For Sale
Apartments for sale offer unique investments that can provide you with a steady stream of residual investment once your initial investment is paid off. Occasionally, you may need to pay for repairs, upgrades and grounds maintenance, but you won’t have to worry about the stress of flipping houses or gutting the place. Your primary goal will be to find respectable tenants who can pay their bills. Realistically, you should assume that some units will be vacant sometimes, but even so, there is good money to be made when you invest in real estate within apartment complexes.
When looking at apartments for sale, the first thing to consider is the location. The surrounding area is one of the predominant factors when people are looking for a place to live. They want to live near bus stops, grocery stores and laundry facilities if they do not have cars. They want to live near gas stations, grocery stores and major highways if they do have cars. Tenants want easy access to restaurants, post offices, public parks, day care facilities and decent schools. Invest in real estate in an area with relatively low crime, stability and well-lit streets if you plan to charge top dollar. You may also want to consider looking for apartment buildings for sale in college towns, where there is always a steady stream of tenants.
You will also need to consider the size of the apartments for sale. Perhaps you have rented out a real estate investment property before, such as a single family house that had been broken down into upper and lower tenant-occupied apartments. It’s unrealistic to assume that a large apartment complex will run similarly to this style of investment. Larger buildings require much more maintenance and many more hassles unless you hire grounds-keeping crews and a management company to deal with your tenants. Imagine managing a 500-unit building with all those voices expressing concerns and demands at all hours of the day. Sure, there is much money-making potential there, but you must also be sure that you’re not biting off more than you can chew by investing in real estate of this magnitude.
To maximize your investment, you should spend a little money to fix up the units if need be. Painting the exterior and interior walls, repairing the landscaping and repairing dirty aging appliances can all have a dramatic effect on tenants’ perception of the building. Also, investing in energy-friendly technology could keep energy bills low, which may retain more tenants if they’re paying the bills or save you some money if you’re paying the bills. Real estate investment property carries a lot of expenses and is certainly not a simple transaction, but you could make a great deal of money if you manage things right.
New Urban Development Building Properties
Mixed-use building properties make for great commercial real estate investing opportunities. Naperville, Illinois, is a good example of urban-type development in a suburban setting. Mixed use has a fundamental impact on the way cities are growing. It represents more efficient use of land. With the traffic worsening, there’s more acceptance by households and businesses to be located in mixed use properties. The predominant preference is to live, work and play all within a short radius to cut back on unfavorable commutes and driver frustration.
One group of people drawn to new urban development properties are well-to-do baby boomers. They like the idea of comfortably aging in a resort-like setting, where they can do all their shopping, working and living in the same building. In Palm Beach, Florida, some luxury communities even incorporate fitness centers and spas into their beachfront condos. More affluent people are getting interested in wellness and there are more people willing to live this lifestyle.”
In many pockets of downtown, mixed-use building properties are replacing old factories, dated apartment complexes, senior living centers and abandoned shopping malls. Experts from the Urban Land Institute posit that nearly all modern urban renewal projects involve a combination of different amenities all in one convenient venue. City planners like these projects because they reduce the need for fuel consumption and encourage walking, which is something many Americans are conscientious about these days. As a result, many investors are snapping up old factories in property auctions and converting them into mixed-use spaces.
Mixed use development and infill development are essential to reduce the appearance of sprawl and urban decay, and modernize our major cities. Going green is another way to attract new buyers who are more eco-conscious than ever. Snapping up distressed apartments and condos near transit is a popular practice that aims to revitalize neighborhoods in trouble. Creating retail centers with drug stores and grocery stores is how you invest in real estate for the future.
Farms and Ranches For Sale
As you may have heard, now is a good time to invest in farms for sale. Historically, the past century has seen farm values rising every year, save for brief periods during the Great Depression in the thirties and the economic recession of recent years. Investing in real estate is never “a sure thing,” but the portent for farmland looks good. In the coming years, analysts forecast that more land will be needed to grow crops that will produce ethanol, to explore wind and solar power, and to grow more food for the world’s growing population.
The site, www.farmandranch.com, which bills itself as “the premier online destination for exceptional farms and ranches and land for sale”. These ranches for sale and farm properties aren’t your run-of-the-mill type of places that require substantial work. The vast majority of offerings on the site are for people looking to move to a more secluded but luxurious setting. You will even find an auction property or an overseas property here and there too.
Throughout the past 100 years, farms have seen steady increases almost every year. In 2008, the credit crisis and housing bubble brought down the profitability of farmland somewhat. Even so, prices are creeping up once again and buyers are interested. Whether it’s for cattle raising or vegetable growing, hunting or fishing, there are many properties on the aforementioned websites.
Ranches for sale are popular income properties because many American vacationers want to “just get away from it all.” Some individuals want a truly relaxing, “all-American” vacation not too far from home but well beyond work stresses and responsibilities. A rural western experience is similar to cottage country in that there are no neighbors, no slicked up tanned college students partying and no noisy, congested traffic.
When you’re looking at ranch buildings for sale, try to find a place that has luxurious fixings inside the building but still offers some of that good old country tradition. You can have cattle, sheep, horses or border collies on the property. You can have a spa, golf course, tennis court or fitness center nearby or on the property as well. Scenic nature and good hiking trails should also be a consideration in selecting the right location.
Commercial Property Listings
Perhaps the next big bail-out will be to stop the bleeding of commercial listings, which have not benefited from the housing stimulus initiatives at all. As first time buyers move into houses with their tax credits, many investors are having a hard time accessing credit or obtaining investment property loans to refinance their debts. Now is no time to learn how to invest in real estate, but for those who already know what they’re doing, there are still a few dollars to be made out in the wilderness of this economic recession.
Many first-time investors like to go through a licensed real estate investment property broker when dealing with expensive commercial listings. The three biggest real estate franchisers are Century 21, Coldwell Banker and RE/MAX. They offer millions of overseas property listings across the world with thousands of offices and real estate professionals. Whether you’re looking for overseas or USA property, you will find a base of knowledgeable professionals to help you make the best decision.
The Commercial Brokers Association (CBA) is another good place to start looking up commercial listings. This association has provided a valuable multiple listing service since 1977. They offer administrative services, electronic forms management and a course in real estate buying, selling and investing in real estate.
Profitable Investment Properties
Millions of Americans lost a good chunk of their 401k savings in 2008. This sudden loss of capital has many baby boomers scratching their heads, wondering how they can recoup some of their losses in a hurry. In the past, real estate was always a “safe bet,” since housing values were always climbing and people were always buying. Even so, if you approach investment properties with a wise business plan and look for the right real estate investment property deal, you can still come out ahead.
One type of profitable investment property is the vacation home market. Many investors look into overseas property where conditions are favorable to American investors. According to the Association of Foreign Investors in Real Estate, a non-profit trade group, some of the best foreign places to invest are safe bets like London, England; Paris, France; Shanghai, China; Tokyo, Japan; Singapore; Munich, Germany; Sydney, Australia; and Hong Kong.
The idea with buying investment property overseas is that you must look for location, location, location! Choosing a safe, industrialized city, which sees a good deal of tourism each year is a smart bet. Many investors also like coastal beach properties to rent out as well. According to the editors of Live and Invest Overseas Magazine, the top coastlines to check out are: Veraguas (Panama), the Samana Peninsula (Dominican Republic), the Rocha province (Uruguay), Salinas (Ecuador) and Boracay (Philippines).
Creative real estate investment properties include mixed-use buildings, which are becoming more and more popular nationwide. Instead of purchasing office complex investment properties, a buyer would purchase a building that contains office space, condo/apartment/hotel units, restaurants, shopping facilities and entertainment venues. Since there are different types of businesses in mixed-use buildings, the space is more likely to weather any kind of economic storm.
Mixed-use is an emerging movement and cultural shift, not just a passing trend. Under this concept, our homes, shops, offices and transportation centers are getting more integrated and in close proximity , which reduces commuting time and expense, conserves energy, heightens quality of life and enhances a feeling of community. And it’s particularly attractive in our suburbs, which are especially prone to urban sprawl. The ideal location for such US property is in a thriving metropolitan city or active suburban community, where a lot of people live, work and play.
There are many different places to find investment properties. You can browse local newspapers or Multiple Listing Service (MLS) websites in search of buildings for sale near you. You may also enlist the help of qualified mortgage professionals to guide you to the best deals. Sometimes they have access to unlisted properties or expired listings you wouldn’t otherwise be able to find. Property auctions and tours of government foreclosures can also be a way to find deeply discounted buildings that are up for sale. Before you take this big step, be sure you’ve taken classes, investigated building trusts and decided how you’ll manage the ownership of this new property.