Will You Add? - Real Estate

First $1000 Using Affiliate Marketing - Starting Up Experience
Hi, to all readers.Let me share with you some experience I been through when I was starting up the online business. Starting an online is very difficult.. Not because it’s hard to build a website, generate traffic, building mailing list or even every others things.. Internet Marketing is easy, if you follow step by step.The Most Difficult things you will meet when you starting your online business.Doing Online Business need a lot of time and patience. Once you took the first step, you will spend more time in it, due to you becoming very motivated.I’m sure a lot of you guys are working on the 8-5 jobs. And the 8-5 job is a need for you to generate income for your monthly usage and I understand how you feel when you have not enough time to do your business…This is applying same to me…I spent a year researching and learning about online business, when I have very little time to start up my online business then I realize that I have not enough time to do it fast. I’m been working everyday just to have enough money to use.. I’m a Chinese, Tradition of Chinese Saying “When you grow up working, It’s time for you to look after your parents and giving th

. Most investors don’t like retail strip with gross leases. However, if you can convert these gross leases into NNN you will be able to get strong appreciation.

2. Most investors don’t like a shopping center with high vacancy. However, you may be able to buy at a low price. If you can turn around and improve the occupancy rate quickly, you will be able to realize good appreciation.

Property Management:

Once you purchase a property, you will need a good property manager to help increase the rent. The property manager is a key partner to implement your investment strategy. In order to increase the rent substantially, e.g. 30-50% more compared to the rent in the previous lease, the property manager must demonstrate to the tenants that the new market rent is a fair market rent. Otherwise, the tenants may make a wrong decision and move out. This involves research to determine fair market rent and providing comparables to the tenants. So as a fair business person, you want to make sure the property manager has an incentive to do the extra work. One way to accomplish this is to compensate the property manager a certain percentage of the appreciation when the property is sold in addition to the typical 4-5% property management fees. This is a win-win for both the property manager and landlord when the property appreciate

Photo ID Cards-Who Needs Them Anyway?
It may shock you to find out how many companies and even government agencies outsource their identification card needs. Is it only due to the price tag of the equipment and software needed to allow an organization to produce ID cards internally? ID cards are dictated by law in some cases and in others they bring an instant appearance of credibility to the carrier. In any case, many organizations are no longer purchasing expensive software and hardware to meet their requirements or wishes.Personally, since I’ve been in the identification and tracking industry for over 10 years, I have worked with many different types of organizations in helping them develop solutions for their registration or simply photo identification needs. One thing that has become clear is the providers of these services have either chosen the high road or the low road. Many of these service providers have become self governing to ensure only individuals that should carry identification proving the person is really a police officer, EMT, or whatever the case may be. While others have chosen a more profitable route of selling ID cards to anyone who is willing to pay the price. You can search the internet for “

Investing in shopping centers in California presents a real challenge for many investors. Most shopping centers in the state offer very low if not the lowest cap rate in the nation, e.g. 4-6% range. As a result, the cash flow is weak compare to shopping centers in other states. Investors will also need more money for a down payment, e.g. 40-70% of the purchase price to qualify for a loan. The upside is that the vacancy rate for retail properties in the state is among the lowest in all 50 states. For example, the retail vacancy rate in San Jose is only about 4%, the second lowest in all major metro areas (Oakland has the lowest vacancy). This means the income stream should be very stable. So, as an investor, if you don’t achieve strong cash flow, you must look for property with strong potential for appreciation to achieve better investment returns. To accomplish this, you could:

1. Sell the property at a lower cap rate. If you purchased a shopping center at a higher cap rate 5-10 years ago then you will be able to capture strong appreciation. However, if you purchased the property recently at a low cap rate already, it’s not possible to reduce the cap rate much lower. So this approach probably won’t work.

2. Increase the rental income. Most NNN leases have a fixed 3% annual rent increase. Assuming the market cap rate remains the same, this will only equate into an unimpressive 3% annual appreciation, unless you want to achieve appreciation in different ways.

Property Analysis The goal to increase the rental income begins with the analysis of your purchase. While most retail properties in California offer 4-6% cap rate, many properties charge tenants below market rent due to

1. Poor property management and/or simply ignorance about market rent. Some property owners choose to manage their own properties to save expenses. However, they are among the worst property manager if the collected rent is used to measure their performance. They often are not aware of the market rent and so they often lease to the first tenant to ensure the unit is occupied quickly.

2. Long term leases signed when the rent was low.

So the key is to identify properties with below market rents and a low price per square foot. These properties will provide you with upside potentials. However, the market rents often have a wide range. For example retail space in San Jose commands between $2-5/SF a month. It’s not easy to determine if the tenants of the property pay below market rent. The following are some properties that have low upside potential that we may want to screen out:

1. Big-box properties with anchor tenants, e.g. Wal-Mart, Target, or Safeway. These big national tenants often sign long term lease with low rent due to its creditworthiness and large rental space. Once the lease is signed, the rent is locked in for 20-30 years. So it’s almost impossible to drastically increase the income within a short time. As a matter of fact, many big-box retail properties in California are listed at below replacement cost. This is because they have long term leases with below market rent. They are on the market for a long time and yet is not sold because the cap is low, e.g. 4%. The prospect for higher income is sometimes 15-20 years away when the lease expires.

2. Retail centers with very high price per square foot, e.g. more than $800/SF. You will need to charge the tenant $4/SF a month plus NNN to achieve 6% cap. This is almost the highest rent in the market so it’s hard to push it up even higher.

3. Retail centers with long term options AND fixed 3-5% rent increase instead of being adjusted to market rent. You should pay attention to this little detail in the lease as it may have major impact on the rent you collected. The problem is the appreciation is often higher than 3-5% annually in California. So if rent is not adjusted to the new fair market rent at the beginning of a new lease option, the rent is most likely below market rent and it may not sell at the highest market price.

On the other hand, if you see multi-tenant shopping centers offered at 4-5% cap but priced at only $200-300/SF it’s very likely the property has below market rent. This kind of property will offer strong potential for appreciation. Once you see this property, you should also see if the property is:

1. Adjacent to an anchored tenant. Business owners prefer to be near an anchored tenant as this anchored tenant will bring in more traffic to the center. The business owners are willing to pay higher rent for this location.

2. A multi-tenant strip with small units. In general the rent is higher for small units, e.g. 1000 SF than for larger 4-5000SF because there are more tenants looking for 1000 SF units.

3. On a major artery or near the freeway. More traffic and convenience are always good for business.

4. In a stable or growing area with higher household income. When the local residents have higher disposable income, they will spend more time and money for good and services offered in the retail centers.

5. Located in an area with low vacancy rate and high rents. Ideally, you want a property lease that will expire within 1-5 years. This will allow you to adjust to the higher market rent quickly.

Sometimes it helps to see problems as opportunities. For example:

1. Most investors don’t like retail strip with gross leases. However, if you can convert these gross leases into NNN you will be able to get strong appreciation.

Property Management:

A New Approach To Electricity Can Save Money And The Environment
Electricity used to be as simple as flicking a switch. Not any more. The markets have been liberated and the pie has been shared between 6 major suppliers - the ball is now in the customers' court. Not only that, global warming is making us think differently about the way we use energy. By partnering with an electricity supplier that understands their needs, small businesses are finding they can help the environment and save money.As a Sales & Marketing Director for Electricity4Business, we do not pretend to be a green company, but do believe in helping businesses conserve energy. We are not powered by windmills or solar power - there simply isn’t enough green energy produced yet. At present, the electricity we provide is made from burning fossil fuels just like everyone else's. But by encouraging our customers to cut unnecessary consumption, we can save them money and help protect the environment.So how do electricity costs mount up? Not so long ago, you could walk into a shop or small business and the only equipment you would find was a telephone, a cash register and possibly a computer. Now there are dozens of gadgets and appliances sucking up energy almost everywhere y

remains the same, this will only equate into an unimpressive 3% annual appreciation, unless you want to achieve appreciation in different ways.

2. Long term leases signed when the rent was low.

2. A multi-tenant strip with small units. In general the rent is higher for small units, e.g. 1000 SF than for larger 4-5000SF because there are more tenants looking for 1000 SF units.

3. On a major artery or near the freeway. More traffic and convenience are always good for business.

5. Located in an area with low vacancy rate and high rents. Ideally, you want a property lease that will expire within 1-5 years. This will allow you to adjust to the higher market rent quickly.

Sometimes it helps to see problems as opportunities. For example:

1. Most investors don’t like retail strip with gross leases. However, if you can convert these gross leases into NNN you will be able to get strong appreciation.

Property Management:

Ignore Your Car Insurance - DIY Repair?
Are you one of the many people who prefer to arrange private repair of your car after an accident? In a survey carried out by Autotrader, it was revealed that increasing numbers of people are seeking such a repair rather than risk losing their no-claims bonus.“Why is this?” you ask. Especially as most policy providers will allow you to protect your no-claims bonus for an optional extra fee. The answer, it seems, comes down to customer satisfaction. One fifth of those surveyed said they were not happy with previous repair work carried out and level of service they received.Is this what things have come down to? We try in vain to keep our car insurance as cheap as possible by avoiding using it whenever possible. The reality is we will end up spending more in the long run by paying a private firm to carry out repair work. The alternative of informing the insurance company and having them carry out the work, however much it affects your premium, will most probably not be nearly as expensive.For example; if your car were to be involved in a collision and cost ?2500 to repair it, the increase in your motor insurance premium over the next few years may only be a fe

or Safeway. These big national tenants often sign long term lease with low rent due to its creditworthiness and large rental space. Once the lease is signed, the rent is locked in for 20-30 years. So it’s almost impossible to drastically increase the income within a short time. As a matter of fact, many big-box retail properties in California are listed at below replacement cost. This is because they have long term leases with below market rent. They are on the market for a long time and yet is not sold because the cap is low, e.g. 4%. The prospect for higher income is sometimes 15-20 years away when the lease expires.

2. A multi-tenant strip with small units. In general the rent is higher for small units, e.g. 1000 SF than for larger 4-5000SF because there are more tenants looking for 1000 SF units.

3. On a major artery or near the freeway. More traffic and convenience are always good for business.

5. Located in an area with low vacancy rate and high rents. Ideally, you want a property lease that will expire within 1-5 years. This will allow you to adjust to the higher market rent quickly.

Sometimes it helps to see problems as opportunities. For example:

1. Most investors don’t like retail strip with gross leases. However, if you can convert these gross leases into NNN you will be able to get strong appreciation.

Property Management:

Is Making Money On The Internet A Myth?
This question was put to me last week, and while it was simple enough for me to answer at a seminar, it was also thought provoking and occupied my mind for much of the journey home. This is because by far the bulk of information I receive in my mailbox each day is related to making money on the Internet.How many times have you seen Websites, e-mails, and newsletters start their headline with the following words:How to Make Money......and continue with words like, ‘on the Internet', ‘from your Website', ‘with your eBook', and so on. It seems like the Internet is packed with teachers who want to tell you how to make money from their $7 eBook, with their free 5-part e-mail course, or by using their $97 software that is endorsed by the name of every ‘guru' that ever had a Website.I find it amusing that these people all support and endorse each other's products, and because on this topic I am a complete cynic, it only tends to drive me away. It is like those products that are supported by images of income statements, which on their own mean nothing. Hell, one multi-national just submitted an annual report that showed income in excess of $50-billio

the highest market price.

2. A multi-tenant strip with small units. In general the rent is higher for small units, e.g. 1000 SF than for larger 4-5000SF because there are more tenants looking for 1000 SF units.

3. On a major artery or near the freeway. More traffic and convenience are always good for business.

5. Located in an area with low vacancy rate and high rents. Ideally, you want a property lease that will expire within 1-5 years. This will allow you to adjust to the higher market rent quickly.

Sometimes it helps to see problems as opportunities. For example:

1. Most investors don’t like retail strip with gross leases. However, if you can convert these gross leases into NNN you will be able to get strong appreciation.

Property Management:

The Smart Investor Waits For Events That Will Disturb Markets
Within the last several weeks the Federal Reserve announced its long range goals for the economy and the stock market rallied.But then, several days later, the Middle East ignited once more, sending markets sharply lower.The Fed’s policies quite rightly inform stock valuations, because the Fed directly influences interest rates. When rates rise, investors have the option of moving their money to bonds, to CD’s, and to other interest bearing vehicles, and out of equities.But what does the Middle East have to do with the value of Altria, parent company of Phillip Morris, maker of Marlboro cigarettes, and majority owner of Kraft?Altria, along with most other big stocks dipped when investors heard about Lebanon. With world tensions rising, you’d think people would smoke more and Altria would spike on such news.This example shows that markets overreact to events.You can take advantage of this fact through diligent observation and patience because bad news is cyclical. There is regularity to it, despite its erratic appearance.Before 9/11, for example, there was a period of unusual calm, an absence of bad news, especially for the United States.

. Most investors don’t like retail strip with gross leases. However, if you can convert these gross leases into NNN you will be able to get strong appreciation.

Property Management:

Of course, some tenants with marginal profits won’t be able to afford the higher rent and will move out. The property manager will have to evaluate the financial and business strengths of all the tenants and identify potential move-out’s. She will plan accordingly to find replacement tenants to minimize income disruption.

Prior to a substantial rent increase, you may want to make cosmetic changes to the center to give it a new look. You may want to consider the following:

1. Re-paint the center.

2. Re-surface and paint the parking lot.

3. Ensure the air conditioners and heaters are in working condition.

4. Fix any leaks in the roof.

When the tenants see these improvements, they may convince themselves that it’s too risky to move the business to another lower rent location.

Favorable Financing:

You can also improve cash flow by obtaining financing with favorable terms from unconventional sources, e.g. insurance companies or conduit lenders instead of typical commercial lenders. While you have to pay higher loan fees and closing costs, the long term savings in interest payment are substantial. This should lower your interest rate from about 6.75% to 5.8% for multi-tenant shopping centers.

Conclusion:

The commercial real estate market in California is very different due to its very low cap rate. To achieve strong investment return, you will need to be a creative business person with this “so-called” passive investment. By choosing the right property with below market rent, hiring a highly-motivated property manager, and selecting low-interest financing, you will achieve strong cash flow and robust appreciation within a relative short time.

Disclaimer: The investment strategy and investment management information presented in this article should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. The authors intend to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The authors makes no warranty or representation regarding the accuracy or legality of any information contained in this article, and assume no liability for the use of said information. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.

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For the last several months I've been collecting and organizing links for the free Christian Resource Center. Now that the public area is up and the members’ area is well under construction,...

Lately we have received many questions regarding this issue. People wonder why nobody talks about joint application on unsecured loans.

The 2007 Atlantic Hurricane Season is now upon us. And for those of us in the Southeast Region of the United States, it is a time when we begin to think - how bad is it going to be this season?

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Will You Add? - Strategy for Shopping Center Investments in California

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