The Real Estate Investor's Insider December 2011
Header2

I hope you had a great year! It has been for me! As we move into 2012, be aware that there will be more great deals on commercial real estate out there. We are also seeing group investments comming about as well.
If you have any interest in that, please contact me.In addition, my websites are changing! Keep a look out for more great commercial real estate information that you can use!
Sincerely
Rob Cassam
Carolina Realty Advisors

704-442-1774 Ext. 100

Important Investing Considerations

While investing in commercial rental property can be a lucrative endeavor, it comes with numerous considerations that you may not have encountered in the residential rental market. Before you commit to a commercial rental investment property, consider the following areas of concern.

Laws relating to everything from the initial purchase to eviction of tenants are often vastly different for a commercial investment than for a residential investment. Zoning laws alone can frequently cripple your plans for the property if you do not fully understand them prior to purchasing the property. In some cases, the laws work in your favor; however, it is of paramount importance that you have a clear understanding of them before you invest. Value. The factors that affect the value of a commercial investment are frequently not the same as those that determine the value of a residential property.

Commercial renters are obviously looking for something very different in a rental than a residential tenant. When you purchased your home, for example, you likely looked for an area where future construction was not anticipated, whereas the value of a commercial property often benefits from any planned growth in the immediate area.

Financing the purchase of a commercial rental property can be complicated and confusing. Since you are not going to be living in the property yourself, lenders typically have a separate and distinct formula for determining eligibility for a commercial loan. Qualifying for a residential mortgage is relatively simple and straight-forward. If your credit score is good enough and your debt to income ratio low enough, then you will likely qualify. Obtaining a loan to finance the purchase of a commercial property is considerably more difficult.

If you are considering investing in commercial property, do yourself a huge favor and take the time to consult with a commercial real estate professional early on in the process.

Sensible Selling Tips

Although selling a commercial property is based on the same basic principles as selling residential property, there are a number of important differences. If you are the owner of a commercial piece of property and are planning to sell the property in the near future, there are a number of considerations that you should take into account in order to avoid a costly mistake.

While it may seem an obvious consideration, determining the actual value of the property should be your first consideration. The true market value of the property may be considerably more or less than you think it is. The value of commercial property can be affected by a number of factors including location, zoning, and future plans for the area, among others. Take the time to have an experienced Realtor evaluate your property to determine the appropriate price point for the sale. Another thing to think about before putting your property on the market is what you plan to include in the sale.

Many commercial properties have, or have had, a business operating out of the property. As a result, there may be equipment or fixtures currently located on the property. If you plan to sell them with the property, make sure you include their value in the sale price. If you do not plan to sell them, be sure to remove them ahead of time or make your intention to exclude them from a sale clear to avoid confusion.

Commercial sales contracts and financing can be significantly different than a residential contract and corresponding financing. Financing for a commercial investment is typically harder to get and make take longer for approval. Buyers do not come 'pre-approved'. As a seller, you want to insist on a substantial earnest money amount as well as a reasonable, but short, period of time within which the buyer must obtain financing if possible.

Again, an experienced commercial real estate professional can be invaluable during the sale of a commercial property by providing the right advice.
In This Issue
Investing Considerations
Selling Consierations
Announcement
PLEASE NOTE NEW OFFICE ADDRESS:
1001 East Blvd. Suite B, Charlotte NC 28203
Personal Note
Resource

Landlords Using Doggie DNA Tests to Catch Pooper Scooper Violations!

This is NOT a joke! This company called BioPet Vet Lab actually has a service that will identify the guilty pooch to pooped on your property using DNA testing. Take a look at their website Poo Prints

Contact Information
Rob Cassam, MBA, CCIM
Carolina Realty Advisors
1001 East Blvd. Ste. B
Charlotte NC 28203
Tel: (800) 587-4066 Ext. 100
Fax: (704) 442-8841

robcass@ix.netcom.com
Website
What I do...

I provide real estate brokerage services for small and medium sized businesses, investors, and individuals who are fed up with losing money, paying too much and/or, spending too much time not getting the right piece of property for their particular situation. I act as the quarterback in the real estate transaction for my clients who coach me in managing all of their different needs.

My clients love not needing to worry about making bad decisions or bad investments and love winning negotiations.Take a moment to think about these important questions:

How are your properties helping you in your life?

Have your investments turned out as planned?

What types of problems have you had growing your portfolio?

How has the economy impacted your rents and vacancy?

Are you satisfied with your income and asset portfolio?  Is it meeting your needs?

How much of a problem is dead equity in your property?

How long are you prepared to go on doing nothing about situations in your business that are not quite right?

Give me a call, I may be able to help.

Carolina Realty Advisors

charlotte nc commercial investment real estate

The Insider's Guide to Commercial Investment Real Estate