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James Hussaini, President of Business Point, appears as a Guest Speaker at a Real Estate TV Show and answers the following questions: How I moved from Single…

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75% Commissions. One Of A Kind Guide & Pre-made Excel Template Teaches You To Build Your Own Cash Flow Valuation & Pro Forma. Essential For Real Estate Investors. Our Tutorial & Model Template Is A Great Alternative To Most Competitor’s Pricey Software. Learn To Create Your Own Real Estate Investment Model In Excel

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This Unique E-book Is Virtual Encyclopedia Of Real Estate Investment Opportunities And Real Estate Service Businesses.
Real Estate Investment Opportunities.

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Commercial Real Estate Investing

 

Any investment involves the commitment of funds to investment alternative with an aim to generate income. Commercial real estate investment in India is involved in generating income through rental, lease or capital appreciation.  Real estate refers to immovable property, such as land, and everything else that is permanently attached to it, such as buildings. When a person acquires a real estate property, s/he also acquires a set of rights, including possession, control and transfer rights.

Understanding commercial real estate investment is crucial because it usually involves a substantial investment and a long-term one. Moreover, the commercial real estate market can be unpredictable, as there might be lack of buyers at one place and there may be pool of buyers at another place. Investors have many alternatives of investment in commercial real estate.

One can opt for real estate investment with an aim to rent the property. The owner earns a continuous stream of rent, but is responsible for paying the mortgage, taxes and any costs associated with maintaining the property. The owner also benefits from capital appreciation over the period of time. With the aim of renting the land, owner runs the risk of not finding a tenant and could suffer negative monthly cash flows, with mortgage payments and maintenance expenses still to be borne. One with the aim to gain only capital appreciation over the time and then selling it again then investor should have strong patience. With such aim generally huge cash is locked at one place for a long period.

Rental properties in India can be purchased with borrowed funds. This means that you can purchase a rental property by putting down only a percentage of the total value. Essentially, you can control the whole property and the equity it holds while only paying a fraction of its total cost. Also, the property you purchase secures the debt rather than your other assets.

Although commercial property investment has higher returns than residential property, the risks associated are usually higher as well. The main risks involved in commercial property investment are:

Risks Involved in Commercial Property Investment

Capital intensive – commercial property can be very expensive, and hence depend on the quality of your investment. There is less room for diversification within the sector unless you have large amounts of capital at your disposal.

Tenant default – although the rental income from commercial property is high, there is always a risk that the tenant will default on the lease. This is increasingly becoming a problem, with many tenants defaulting on leases as they go out of business due to high level of competition. However, it is possible to regain the income stream by re-renting the property, but this can take time and can stop the flow of funds.

Low liquidity – the value of commercial property can be greatly affected if you need to sell quickly.

No definite value – because property prices are generally decided by the opinions of experts and not the pure market forces of supply and demand, the property has definite value. The only way to truly know what the property is worth is by selling it. This means prices can fluctuate fairly often, and this may mean that you can lose money when selling.

Despite of so many risks involved in commercial property investment, it is still one of the most profitable investment sectors. If you find the right commercial property investment, you will get a good return from your investment.

Commercial Properties Developer India

Pacifica Companies Pvt. Ltd., is one of the leading real estate developers in India following such constructed procedure to finalize the deals to avoid the later discrepancies.  We offer a wide range of future opportunities of commercial real estate investment in India. We specialize in providing the best deals for your commercial real estate projects and residential real estate projects like apartments, bungalows, townships etc. Invest on commercial projects or residential schemes in India and you are definitely going to enjoy the continuous cash flow yielding maximum returns on your investment if dealing with Pacifica – a leading real estate development company in India.

Real estate property development company, Pacifica Company offers residential properties, commercial properties, hotels projects, IT parks development, township development, mixed use development projects, land development projects etc. SEO services provided by Jigney Bhachech, CEO Opal Infotech, India.

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Investing in commercial real estate is riskier and more costly than investing in residential property – but ultimately it can be far more profitable. Whereas the stocks of major housing manufacturers have decreased over the last few months, retail and institutional investors have been investing heavily in commercial real estate, through both operating companies and investment trusts.


The profits from commercial real estate are linked to a large degree to the state of the overall economy – today, commercial property is a $4 trillion market, having increased in volume around 20% over the last five years. Most smaller investors are able to profit from commercial real estate.


The potential profits to be made from investing in commercial real estates are affected by several factors. Apart from the overall economy, the local economy and market can have a huge impact, as can the terms and length of any lease, the reliability of tenants and the overheads involved with your property.


Generally speaking, when investing in commercial real estate, to make a profit you should ideally have a long term lease from a major tenant. Finding the right tenant isn’t always easy – most commercial real estate has relatively few potential tenants unlike residential property.


During a recession, commercial foreclosures and vacancies tend to increase significantly more than residential properties. And if commercial properties remain vacant for a long period of time, owners may lose a lot of income and be forced to resell for less than the property is worth.


One method of generating a profit from commercial real estate is to look at REITs (Real Estate Investment Trusts). These are traded securities which allow an investor to take part in large scale commercial projects. REITs were created in 1960 by Congress and can be a practical alternative to bonds.


Most REITs specialize in certain types of property such as office buildings, hospitals or shopping centers. There are several benefits of REITs: they trade in the same way as stocks, so you can buy and sell them. The share price can increase in value as the property appreciates in value and shareholders also get income from rents.


Not surprisingly, REITS have become extremely popular over the last few years. Another big advantage of them is the tax benefits – by law, REITs must distribute 90% of their income as dividends.


There are several ways to invest in commercial real estate without actually having any capital. Subordination is the term for the situation in which the current owner actually takes out a second mortgage on the property to cover the difference of the amount that the purchaser has available in the form of a loan.


Another method is to persuade the owner of the property to release some acreage. That section of land can then be used to borrow money to cover a down payment on the rest of the property. Many property owners don’t even know this option exists and it can be an effective strategy when dealing with raw land.


Another method is to purchase commercial property by means of a partnership. If you are able and willing to do the work, you may be able to find a partnership that is willing to finance your deal – in exchange for a percentage of the profits, of course.


Investing in commercial real estate isn’t for everyone. But the profits can certainly be made for those who are prepared to take a calculated risk, have the expertise – and perhaps a little bit of luck.

Get Your Property Investment Guide for Your Success Now. Learn More About Fundamentals, Financial Model and Investment Tips of Commercial Real Estate Investment.

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Commercial Real Estate Investors Only: Your Invitation To Join The Worlds Only Commercial Investment Real Estate Property Investors Association, And Claim Over $616.95 In Gifts…Free.
Americas Commercial Investment Property Association.

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Ahmedabad, the largest city of Gujarat, is an important trade center that offers huge commercial potential. The seventh largest city in India, it is well connected to other important cities of the country. In wake of the escalation in property investments, real estate in Ahmedabad is currently experiencing tremendous growth.

 

The demand for realty in India has been rising immensely from last five years. Not only are the natives coming forward to buy property in India but also the foreigners and NRIs. It is bustling with real estate activities these days and Ahmedabad is among the upcoming property destinations of the nation. It is recognized as the one of the rapidly developing tier-II cities witnessing steep rise in property developments and their values both rental and capital. Real estate in Ahmedabad is slated for an overall growth i.e. across residential, commercial and retail segments in coming years.

 

Property in Ahmedabad is selling like hotcakes being a fast growing economy that assures huge profits. Various residential and commercial projects have been launched in the city by leading property developers in past few years fuelling up the realty rates. The skyline of the city is gradually transforming while endowing it with a new global identity. Real estate in Ahmedabad is now flooded with shopping malls, multiplexes, commercial complexes, SEZs, technology parks, residential suburbs and other such things. Such large scale developments have increased the overall living standards of the city, thus, attracting more and more property investors to pump in money in Ahmedabad property sector.

 

One of the chief reasons for emergence of Ahmedabad as a property destination is that it ranks among the most educated and richest cities in India. The value of commercial property in Ahmedabad is given a major boost by its proximity to the diamond hub, Surat and the state capital, Gandhinagar. This segment particularly has excellent prospects for growth and appreciation, in areas like office space, retailing, hospitality, finance industry and others. Following in the steps of BPO hubs like Pune and Bangalore, real estate in Ahmedabad is suggesting a huge demand for office spaces from BPOs and MNCs. The cheaper land prices as compared to metros also attributes to the great pace of property development and investment in the city of Ahmedabad. Other reasons like excellent infrastructure and government’s support in promoting it as a lucrative investment destination are also propelling the need for developing Ahmedabad real estate market.

The residential sector being at its best today, is no less in Ahmedabad as it promises huge benefits in coming times. The housing sector of the city offers luxurious lifestyle, marvelous architectural designs, equipped with all modern amenities like 24 hour power backup, water supplies, security and other such facilities. Pollution free environs enveloped in greenery make Ahmedabad residential property a favorite with buyers and investors. Some of the well known local and national builders such as DLF, K.Raheja Corp., N.G Developers, Navratna, BGP Builders, Saumya Constructions, etc. are catering to the need of quality residential apartments in the city. They have also laid out plans to construct retail malls and luxury hotels to cashing in on the deep pockets of the population and the prevalent surge in property prices.

The most favorable part of Ahmedabad real estate is that globe-trotting Gujaratis i.e. NRIs are investing huge capital in the sector. This has resulted in an alarming increase in property prices in all housing, commercial and retail areas. With improvements in infrastructure, realty values in the city are already observing an upward trend while new construction activities are expected to zoom it further.

Deepika Bansal writes on behalf of 99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estate industry. It is a forum where buyers, sellers and brokers can exchange information, quickly, effectively and inexpensively. At 99 acres, you can advertise a property, search for a property and browse through Ahmedabad property and other Properties.

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The commercial real estate investment clubs in Michigan can help investors find properties that are sitting waiting to be purchased by someone. There are different kinds of commercial properties for sale, such as regular commercial sites and commercial lots. Some of these have not been developed yet. Once they get a buyer, development can begin.


The state of Michigan has lots of families whose income fits in the middle class range. Since the state is known for supporting different types of things relating to sports, such as swimming pools and other related sports, there is no doubt that commercial real estate would thrive here. The commercial real estate investment clubs in the state have connections to make things happen.


In the state of Michigan, you will also find commercial real estate for retail areas, physician’s offices and industrial areas. With the help of the local investment clubs, you can find information on commercial lots and office buildings. There are lots of places in Michigan where you can get your money’s worth in commercial real estate investments.


Members of the commercial real estate investment clubs can help you create a business plan. This plan should include what your business is about, the focus and objective of you business, and who your customer base will be. As long as you provide the club members enough information, they can assist you with finding viable commercial properties.


The commercial real estate investment clubs in Michigan can help you search for different investment properties if you are not familiar with the process. You should narrow your choices down to a few in the beginning. This way, you won’t get overwhelmed with information. There are plenty of commercial properties to select. However, the best properties that investors seem to thrive on are the ones by the lake area.


If your business is one that needs to have a location near the lake or waterfront, keep in mind you will be paying a little bit more because of the location. Location means a lot when you are want to invest successfully in commercial property.


You as an investor should choose an area in Michigan where it is conducive to the demands of your business. The commercial real estate investment club can help you do that. They can help you select an area where the traffic will flow. If you choose a high traffic area, it may cost you a little bit more. Don’t despair, it will be worth it in the long run. The clubs in Michigan are very familiar with the industrial areas that surround where they live.


Some of the club members may be familiar with the lake front and waterfront areas in Michigan, and can provide tips and insight as to whether or not the area is a viable location for you. There is no need of setting up shop there if you don’t have anything to show for it.


The commercial real estate investment clubs in Michigan can help you find quality real estate agents and brokers who can secure a deal for you with that property. The clubs can also help you check out getting financing and insurance for it.


If you are considering a commercial investment in the state of Michigan and need assistance, do your homework, check a few local clubs out, find the best one that suites your needs, attend their meetings, educational seminars. Find people that are successful and have experience investing, see if you can partner up with them, learn from them.

If you’d like to find out how to start or bring your Real Estate Investment business to the next level, request your FREE blueprint to success($197 value)as well as a FREE Video of the highlights of The Power To Be Free monthly seminars at http://www.thepowertobefree.com

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