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If you are looking for low-priced commercial property for sale, Houston might not be your best bet. However, if you are looking to make a good real estate investment or buy premises that will really allow your business to grow and give you access to all of the clients you want, then you should definitely be looking at the commercial real estate Houston, Texas has to offer.
One of the things that has contributed sharply to the growth in the Houston property market is simply the fact that it has not slowed down as much as many other local property markets! The changes in subprime lending laws have resulted in a lot of Americans not having the money to purchase smaller properties, or spend as much as they like. However, Houston seems to have been relatively unaffected by a lot of these developments and property sales have not decreased significantly in either the residential or commercial sectors.
Houston, Texas has a lot of commercial real estate on offer, but some of these are better buys than others. All of these properties are chosen on high traffic count and are prime spots for commercial retail. Houston is a massive consumer community and retail stores with high traffic really do well in high traffic areas.
Several large name retail outlets have already moved in, and all of these enterprises are doing extremely well. The high traffic of this retail real estate is a veritable river of revenue, and many new businesses are enjoying unprecedented growth a few short months after opening in a new development.
Allot of the commercial real estate Houston, Texas has to offer has already been bought up, but new buyers need never fear as you will often find new developments changing hands several times in their first few years as ownership settles. There are a lot of good bargains to be found as companies sell of real estate to focus on other investments, and commercial buyers interested in picking up an excellent investment should look out for these.
Regularly checking the property listings will almost certainly lead to some excellent finds. A lot of new developments have not really been spotted by commercial interests from out of town, and many people have under estimated the Houston retail market.
There are developments where small retail premises can be bought for under $150,000, and these are all adjacent to well-populated housing developments situated in high income areas. If you are a retailer and you want to target a high-spending group, then some of the newer Houston neighborhoods are one place that you can really make a killing!
If you are buying simply for the sake of investing in commercial real estate, Houston Texas is definitely a great place to start for the first time investor. With low prices on fairly high revenue potential properties a careful investor can pick up a high income property for very little capital laid down. The rental from these properties will necessarily be low for the first year, but as soon as the retail potential of the premises becomes realized the rent potential will increase dramatically.
Buyers should not be put off with the recent slowing in housing sales in the area, because the number of new housing developments being built is a testament to the demand for new homes in Houston! Many people are relocating to this city and many investors are buying property in Houston for the same reason – stability.
While there seems to be an impending housing crisis just about everywhere else the property prices in and around Houston have suffered remarkably little from this. This shows great promise for long term property investors, as well as anyone who wants to ensure that their home appreciates significantly in value. This has great implications for anyone interested in investing in commercial real estate in Houston, Texas.
Woodforest is a vibrant new master-planned community with a broad array of housing choices targeted to lifestyle-oriented buyers. The 2,800-acre community will offer homes priced from the upper $100’s to $1 million. Visit http://www.woodforestdev.com/ for more information.
You can advance your profits by investing in commercial real estate. On the other hand, if you’re not heedful, you can go bankrupt. Investors can make costly miscalculations. There are a few tips and hints that will help you avoid these miscalculations. If you know what you are doing, commercial deals are effortless to put together.
You must know Your market. You can see the rate of development in the area by doing a market analysis. This will also let you know if it is on the downfall. Distressed areas will not better the commercial investor. You might be capable of beating the real estate predicament, but success is less likely with a commercial real estate investment. You can identify whether or not the local job market is being damaged by doing some market research. The job market generally slows down when the market is in predicament. This is a sign for you to look else where for your commercial real estate investment. If the market appears to be on the rise, vacant store fronts might be a good object of significance. Several people favor starting a business in a growing market. Warehouses may not be in demand, however, a store front could sell rapidly.
Remember to inspect the complete commercial real estate property. You cannot do this alone. The necessary amount of money to hire a professional is insignificant compared the the amount that you can save by doing so. Don’t forget to have the property on which the building is positioned inspected as well. In order to start his own business, one man purchased a small repair shop. Although the property was moderately priced, the previous owner was given a citation from the state to have the subterranean fuel tanks removed. The new owner was in operation for six months, completely uninformed of this. Before the owner could reopen the business, the state demanded one hundred thousand dollars of repairs. He could have avoided this financial disaster had he spent a little money and hired a professional to do the inspection.
Be sure that the money you borrow is less than the amount that you can make back. Many investors borrow money as a means of buying their commercial real estate property. As long as the interest rate is appropriate this can be beneficial. An expert investor determines beforehand that the profits from the property will cover the loan. It is easy to forget the appraisal of real estate when you become overwhelmed by an exciting deal.
It is commonly known that you should stick to what you know. If you are knowledgeable with restaurants, buy a restaurant. Pay for a service station if that is what you are knowledgeable with. A commercial property should never be purchased if you know nothing about it. One instance where you can buy one of these commercial real estate properties that you are unfamiliar with is when you are lucky enough to have a business partner who is knowledgeable with the business. Turn your back and walk away if you are not so lucky. Other properties can make you plenty of money if you just probe the market.
If you want to make a lot of money in commercial real estate investments, you simply have to learn the market and follow some common guidelines. Don’t stray from your marketing plan. You can avoid predicaments if you stay within your budget.
Tom Beaty offers Arkansas Real Estate information for buyers and sellers. Don’t buy or sell without visiting this Blog or it could cost you: Arkansas real estate
What is the course/experience requirements to obtain a commercial real estate broker license in Texas?
I know you must take course and Ive tried searching online but my results are vague bc I dont exactly know what Im looking for. Does anyone have any info about the length of classes, approximate cost, level of difficulty, tips or anything? Any helpful sites? I live in maryland and by the way is commercial is different from a regular real estate license? Thank you!
can I just study on my own then take the exam for commercial real estate? Is it a requirement I take classes?
Rep. Calvert speaks on the House floor about the need to address the challenges facing the commercial real estate industry.
SPOTLIGHT — Los Angeles County, California
Reported by HUD US Market Housing Conditions 2nd Quarter 2010
Los Angeles County, located on the Pacific coast in southern California, has been the most populous county in the nation for more than 50 years, with a population estimated at more than 10 million as of July 1, 2010. The population of Los Angeles County grew by 68,800, or 0.7 percent, during the 12-month period ending June 2010. Population growth improved to 0.4 percent in 2008 and 0.7 percent in 2009 after declining 0.5 percent in both 2004 and 2005. Net natural change (resident births minus resident deaths) accounted for all of the population increase during the 12 months ending June 2010. Since 2006, net out-migration has averaged 50,700 people annually compared with an average net out-migration exceeding 115,000 people a year during the peak years of 2004 and 2005.
Following employment gains averaging about 48,900 jobs in 2006 and 2007, nonfarm employment in Los Angeles County started to decline in 2008. Since 2008, all sectors, except for the education and health services sector, have lost jobs. During the 12-month period end¬ing May 2010, nonfarm employment declined by 200,500 jobs, or 5 percent, to 45.3 million jobs. The largest job losses occurred in the professional and business services, manufacturing, trade, and construction sectors, which were down by 43,700, 40,700, 37,500, and 26,800 jobs, respectively. These losses represented declines of 7, 10, 6, and 20 percent, respectively. Offsetting some of these losses was a modest gain of 8,300 jobs, or 2 percent, in the education and health services sector, which includes Kaiser, the leading private-sector employer in the county, with 34,400 employees. Other leading employers include Northrop Grumman Corporation and The Boeing Company, with 19,100 and 14,400 employees, respectively. During the 12-month period ending May 2010, the average unemployment rate of 12.2 per¬cent was up from the 9.4-percent rate recorded during the previous 12-month period.
High levels of unemployment and out-migration have kept sales housing market conditions soft since 2008. Declining sales prices, low mortgage interest rates, fore¬closure and short sales, and the federal homebuyer tax credit caused a temporary rise in existing home sales. According to DataQuick, during the 12 months ending March 2010 (the most recent data available), a total of 59,100 existing detached homes were sold, up 9,450, or 19 percent, compared with the number of homes sold during the previous 12-month period. Although home sales levels are improving, current levels are still significantly lower than the peak of 100,200 existing detached homes sold in 2004 and are less than the average annual rate of 64,850 homes sold from 2005 to 2009.
During the 12-month period ending March 2010, the estimated median price for an existing detached home declined by $43,700, or 12 percent, to $322,900 compared with the price recorded during the previous 12 months. Sales of foreclosed homes and short sales are the primary reason for the price declines.
According to Lender Processing Services Mortgage Performance Data, the number of loans that are in foreclosure, 90 days or more delinquent, or in REO (Real Estate Owned) accounted for 10.4 percent of all home loans in June 2010 compared with 9.4 percent in June 2009.
Condominiums represent more than 60 percent of new home sales and 23 percent of existing home sales in Los Angeles County. Except for North Los Angeles County, new homes are generally built on infill land, making condominiums more financially feasible to build than single-family homes. According to Hanley Wood, LLC, new condominium home sales increased by 1,150, or 54 percent, to 3,300 homes during the 12 months end¬ing March 2010, when buyers tried to beat the federal tax credit deadline. For the 12 months ending March 2010, the estimated median price for a new condominium was $437,100, up $2,100, or 0.5 percent, from the previous 12-month period. The unsold inventory of new condominiums declined 19 percent between the first quarter of 2009 and the first quarter of 2010. According to DataQuick, existing condominium sales also increased during the 12-month period ending March 2010, up by 3,850 homes, or 28 percent, to 17,900 homes sold compared with the number sold during the 12 months ending March 2009. The estimated median sales price of existing condominiums was $302,000, a decline of $34,400 compared with the price during the 12 months ending March 2009, due to foreclosure sales.
In contrast with the increased sales of existing detached homes and new and existing condominiums, sales of new detached homes have declined. According to Hanley Wood, LLC, during the 12 months ending March 2010, new detached home sales declined by 360 homes, to 730 homes, a 33-percent decrease compared with the number sold during the previous 12 months. The current total is significantly below the peak of 6,000 new detached homes sold in 2005 and below the average annual rate of 2,850 homes sold between 2005 and 2009. During the 12 months ending March 2010, the estimated median price for a new detached home increased by $18,450, or 5 percent, to $416,400 compared with the price during the previous 12-month period. The price increase was the result of more homes being sold in the San Fernando Valley than in North Los Angeles County.
Builders reduced single-family home construction activity because of competition from foreclosures and the continued loss of jobs in the county. Single-family construction activity, as measured by the number of building permits issued, peaked in 2005, when more than 12,200 single-family permits were issued. Preliminary data indicate that, during the 12 months ending May 2010, about 2,250 single-family homes were permitted, a decline of 5 percent compared with the number permitted during the previous 12 months.
The Los Angeles County rental market has been balanced since the fourth quarter of 2008 because it has benefited from increased demand and a lower rate of multifamily construction. Based on data from Reis, Inc., between the first quarter of 2009 and the first quarter of 2010, the rental vacancy rate increased slightly, from 5.3 to 5.5 per¬cent. According to Reis, Inc., in the first quarter of 2010, average effective rents declined $50 to $1,350 compared with rents during the first quarter of 2009.
Multifamily construction activity, as measured by the number of units permitted, declined during the 12 months ending May 2010 compared with the number permitted during the previous 12-month period, based on preliminary data. The number of multifamily units permitted was 3,500, down 1,900 units, or 35 percent, compared with the number permitted during the previous 12 months and was significantly lower than the average annual rate of 10,200 units permitted between 2005 and 2009. Currently, 84 percent of the multifamily units permitted are for rental units, up from 52 percent in 2006. The 375-unit 1600 Vine Apartments in Hollywood opened in November 2009, with move-in special rents ranging from $1,794 for a studio to $11,125 for a three-bedroom townhome.
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For professional expertise with Los Angeles, San Diego, Orange County, Riverside, and San Bernardino — commercial real estate, apartments for sale, investment property, commercial REO’s, commercial BOV’s, commercial broker price opinion BPO’s, or asset management, please contact Michael Duhs, Managing Director of East West Commercial at Michael.Duhs@EastWestCommercial.com or (949) 939-8352. Visit us at http://www.EastWestCommercial.com.
As Reported by Trepp
Defaults on commercial real estate loans are beginning to play a larger role in the failure of FDIC-insured institutions than construction loans, according to Trepp LLC.
Six banks closed by the government on Friday – three of which were in Georgia — had $152 million of nonperforming loans, 44% of which were CRE mortgages. Roughly 37% of the NPLs were construction loans.
“We have seen a shift over the last several quarters with commercial mortgages contributing to a larger portion of the distress” said Matt Anderson of Foresight Analytics and a resident CRE expert at Trepp.
The failure of the six banks brings the total for this year up to 125. Last year the Federal Deposit Insurance Corp. closed 140 bank institutions.
As of June 30, banks and thrifts held $1.01 trillion of CRE loans (not including multifamily loans) on their books with 4.28% considered seriously delinquent, up from 2.89% a year ago, according to FDIC figures.
Banks also held $383 billion of construction and development loans with 16.9 % considered seriously delinquent (90-days or more past due), compared to 13.5% a year ago.
Meanwhile, FDIC has 829 banks with $403 billion in assets on its “problem” list.
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For professional expertise with Los Angeles, San Diego, Orange County, Riverside, and San Bernardino — commercial real estate, investment property, commercial REO’s, commercial BOV’s, commercial broker price opinion BPO’s, or asset management, please contact Michael Duhs, Managing Director of East West Commercial at Michael.Duhs@EastWestCommercial.com or (949) 939-8352. Visit us at http://www.EastWestCommercial.com.
If you are wondering to buy a property but short of finance is the hang-up for you, then don’t get upset because there is a plausible solution for it. That is: Commercial Real Estate Loans. Through such type of loan assistance, you can effortlessly procure property for a business purpose that too at a competitive interest rate.
Chiefly, commercial real estate loans are used for business purpose but it can be also utilized for the agricultural use, shopping centers, apartments, motels, hotels, automobile dealerships, office buildings and for many other commercial purposes.
No doubt, through commercial real estate loans, one can obtain considerable amount of money and buy the properties that they would like to but in order to obtain them, you are required to keep your one of your property as Collateral to be on the safer side of the real estate lender who will be providing you with such a large sum of money.
The main reasons behind opting for Commercial Real Estate Loans are its wealth of benefits that it provides. Besides rendering stability & high return on investment, it provides investment security. These are the two weighty points that draw an individual to get the hold of owner occupied commercial real estate loans. Longer duration period for repayment is the added advantage of acquiring commercial real estate loans.
Sources that furnishes with the commercial real estate loans are: Bank, Financial Institutions and Large Building Societies. The most unsurpassed way to acquire commercial real estate loans is through internet. To bag a lucrative deal, bit research is required to be necessitated. And so, make sure that you carry out a thorough research and have in-depth knowledge of the lender, as in; if he is reputed and authorized.
This article has been provided courtesy of commercialmortgage.net. Commercial Mortgage is a Commercial real estate loan division of Griffin Capital Funding offers owner occupied commercial real estate loans and owner occupied commercial loans with no personal guarantees, favorable loans rates and good terms.
