SVNCincinnati.com

Getting a Good Deal in Commercial Real Estate

SVNCincinnati — Thu, 12 Jan 2012 20:55:14 +0000

Investors looking for an alternative to the stock and bond market might consider real estate as a viable investment vehicle. After all, real estate is historically one of the most safe, yet lucrative investments a person can make. Even smart investors make money during a down real estate market.

The question is what type of real estate to invest. There are two primary types of real estate, residential and commercial. The former is frequently associated with “flipping”, that is, buying a residential property, rehabilitating said property and selling it for a profit. Residential real estate investing also includes buying single-family properties and renting them on a short or long-term basis.

Commercial real estate investment is the purchase of unimproved land, retail facilities, institutional facilities and other commercial sites such as banks and office complexes.

Basics of Commercial Real Estate

Commercial real estate differs in both use and zoning. While some commercial real estate is used for residential purposes, almost no residential real estate may be used for commercial purposes. Commercial real estate is reserved to certain uses, determined by the local governing authority. It may be used as a retail establishment or for institutional use, such as an assisted living facility or hospital.

The designated use is usually strictly enforced and conversion to another use is typically very costly, if not impossible. Any commercial real estate investor should be aware of city, county and other government zoning laws.

Investing in Commercial Real Estate

Like with any other type of for-profit venture, there are considerations to be taken when investing in commercial properties.

Invest wisely and with patience. One of the largest pitfalls in purchasing commercial property is not allowing it to be profitable. While projections will be a strong indicator of future earnings, there is no guarantee. Purchasing multiple properties only to find a few actually make money will defeat the purpose.

Be willing to sell. Property owners can loose a significant amount of money when fighting the inevitable. Buildings will age. That translates directly into roof repairs/replacement, plumbing replacement, electrical wiring replacement, parking lot rehabilitation and other costly upkeeps. Holding onto a property too long means being responsible for a big price tag.

Don’t diversify too quickly. In the world of stocks and mutual funds, diversification is the name of the game. It helps not only to improve gains but minimize risk. In the world of commercial real estate, this is simply not true–at least, for new investors. Different property types have different needs and on-the-job learning is not a viable strategy to make money in commercial property investment.

Be aware of environmental impact. Any architect will tell a commercial investor if a property doesn’t pass an environmental impact study, it simply isn’t worth the money. Environmental regulations might turn what appears to be a good investment into a money-pit nightmare.

There are more considerations when buying commercial real estate. After the transaction, will you be the landlord collecting rents or will you hire a property management service? What type of leases will you offer? Triple N lease, gross lease or modified net lease? The answer is to hire a licensed real estate broker. An experienced brokerage firm won’t make the mistake of letting you make a costly mistake.

Commercial Real Estate Terms

SVNCincinnati — Thu, 18 Aug 2011 18:39:31 +0000

The real estate industry is constantly changing and evolving. It is important to stay current and relevant in today’s market if you want to stay ahead. Sperry Van Ness believes in excellence. We strive to deliver only the best and are dedicated to our clients. The following are commercial real estate terms and their definitions.

Appraisal- An estimate of value based upon an analysis of the property by a professional

Assignee- A person to whom a contract is assigned

Assignor- A person who transfers a contract to another person

Build out- The improvement of the interior of a building

Certificate of Occupancy (CO)- An official form given by the government which says that the building is able to be occupied legally

Chattel- Household items and goods

Contingency- A necessity of a contract that must happen before the contract can be completed

Default- Failure to fulfill promise or obligation

Delivery- The transfer of an item from one person or entity to another

Ejectment- An action to regain possession of a real property

Estoppel Certificate- A legal instrument completed by the person taking out the mortgage

Exclusive Agency- A contract or agreement in which a broker has exclusive rights to represent the owner

Fiduciary- A person who speaks for another individual on financial or property matters

Incompetent- A person who can not handle their business or personal affairs

Irrevocable- Unable to be changed or altered

Judgement- A decision made by a court

Loss Factor- The percentage of a gross area lost to structures such as walls, elevators, and other items

These are just a few of the important terms in commercial real estate. Please visit our blog soon for the other half of the terms and definitions. For specific information or questions please call Sperry Van Ness at (513) 936-9100 or visit our website.

What Is a Commercial Real Estate Broker?

SVNCincinnati — Thu, 18 Aug 2011 17:31:45 +0000

The real estate market today is complex, in-depth, and has a wide variety of individuals completing different jobs. There are real estate agents, real estate brokers, and many more. Many people are confused with what job a broker is supposed to do. Here is a brief description of a broker’s responsibilities and a few tasks that they perform.

A real estate broker is someone that works for a commission to arrange and then facilitate a sale of a property for a seller or a buyer. They can also negotiate contract. Another thing brokers can do is advise and council individuals who would like to purchase properties. Sperry Van Ness only hires the best and most experienced brokers. Our team will work diligently to deliver results for you!

A broker can provide many different services. As real estate trends change over time, some of these services might also be offered by an agent. Some of the things that might be offered are a comparative market analysis, property management, auctioning properties, and sometimes even offer to prepare contracts and leases. Real estate brokers can save you both time and money! Call (513) 936-9100 today or visit our Sperry Van Ness website for more information!

A Few Tips on Commercial Real Estate Investment

SVNCincinnati — Wed, 17 Aug 2011 20:45:45 +0000

The world of commercial real estate can be overwhelming for not only a beginner, but also for someone with experience. Sperry Van Ness is dedicated to making a difference for the better. Real estate investors everywhere can depend on Sperry Van Ness to achieve superior outcomes and results. We accomplish this by first listening to our clients’ interests and intentions. Next,those points become our primary pursuit. Our principal goal is to help investors realize their aspirations of a successful venture. Below are some helpful tips for commercial real estate investments.

The most important tip is to use common sense and to take your time. One of the first things you need to know is that commercial real estate deals are time-consuming and require lengthier periods to complete than a regular home mortgage. Not only do they take a nice amount of time to buy and close the deal, but also to repair, restore, and remodel. Just as these commercial real estate properties take longer to purchase, the same can be said of the period of time it will take to sell. It’s wise to break down the sale into phases or stages, that way you can keep the project on track without forgetting details because of the long intervals of time. Patience is an essential virtue, especially when it comes to investing in commercial real estate.

Another tip is to ask all the questions, even the hard questions. Even if you are an experienced investor, there is no possible way to know it all or have all the answers. Here at Sperry Van Ness we strive to improve your knowledge and proficiency of investing. We evaluate properties and ask the difficult questions for you. Some of theses questions include Americans with Disabilities Act and environmental compliances. Deals can fall through if one detail is overlooked or missed.

These are just a few tips on investing in commercial real estate properties. Sperry Van Ness is the only brokerage firm that markets all properties on a national basis. We are proud that our investment community has used our national range and influence to reach over 100,000-strong brokerages when marketing our properties. For more information, please call us today at (513)936-9100 or visit our website at www.svncincinnati.com!

Cincinnati Business Courier Deal of the Week–Closing of Kenwook Park Place

SVNCincinnati — Thu, 28 Jul 2011 23:51:10 +0000

Sperry Van Ness Senior Investment Advisor, Matt Dunaj closes on $15.5 MIL Deal in Cincinnati, OH

Deal of the Week by Lisa Benson of the Cincinnati Business Courier features the closing of Class A office space just north of Cincinnati in Kenwood, OH.

Download “Closing of Kenwook Park Place” PDF Article

Bart Weprin Makes Wall Street Journal 2007

SVNCincinnati — Thu, 28 Jul 2011 23:49:41 +0000

Cincinnati’s own, Bart Weprin, makes Sperry Van Ness’ 2007 Top Advisors as seen in the Wall Street Journal

Sperry Van Ness Top Advisors 2007

Download “Top Advisors as seen in the Wall Street Journal” PDF