Commercial Real Estate

What is Commercial Real Estate Management Software?

2011-12-14T20:16:00.003-08:00

Commercial Real Estate Management Software is a computer program which was designed to simplify, easy and fasten the commercial real estate business processes. Commercial real estate includes properties like offices, shops, malls, hotels, hospitals, complexes, etc. All these properties need to be managed as they aim at earning profit. Property management software helps a manager to manage property processes, which includes projects, construction, service, document, report, manpower, vendors, material, contract, payment, etc.

Commercial Real Estate Management Software simplifies the following real estate processes:

Management of all your property details
Tenant Management
Rent/Lease Management
Property Credits & Debits Management
Contact & Leads Management
Tracking all Payments & Commission
Sell /Purchase Management
Manpower Management
Property Assets Management
Property Monitoring
Maintaining information
Report Generation & Property Documents Management
Project & Construction Work Management

This software can automate some of your works such as invoices, letters to tenants, collection, etc. Commercial real estate management software can help you to put key information at your fingertips. You can find management software in separate modules which include pre-construction, construction and post-construction.

By using the software you can streamline your day-to-day work of property management and update information in real time. Most of the commercial property owners are dependent on property management software.

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Differences between Commercial & Residential Property Investment

What is commercial Real Estate?

2011-12-07T19:47:00.002-08:00

Commercial Real Estate is used to generate income. Basically it is used for business purpose. Due to high rates of these commercial properties, most of the business entities occupy the space on lease/rent. Investment in commercial property is a good option to produce lot of money for long term.

Commercial real estate property can be divided into categories such as:

RETAIL (These types of properties are used for selling of consumer products purposes)

OFFICE (These types of properties are used for setup offices)

Office Space | Office Buildings | Office Complexes | Office Parks, etc.

INDUSTRIAL (These types of properties are used for manufacturing, distribution and storage purposes)

INSTITUTIONAL (These types of properties are used for educational purposes)

Institute Spaces | Training Centers | Coaching Centers | Schools | Colleges, etc.

HEALTH (These types of properties are used for healthcare purposes)

Usually an investor owns the commercial property and gives it on rent to business entities. Investment in commercial real estate is not a cakewalk. It requires more analysis, research and planning before buying commercial real estate.

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What is Commercial Real Estate Mortgage Loan?

2011-12-02T01:20:00.002-08:00

Commercial mortgage loan is a type of commercial loans, which is secured against commercial real estate. Means, commercial property is used as collateral to secure repayment against the allotted loan. Commercial mortgage loan is almost similar to residential mortgage loan, in case of commercial mortgage, collateral is commercial property rather than residential property.

Below are basic features of the commercial real estate mortgage loan:

The mortgage loan is typically taken by business instead of any individual
The borrower may be a partnership, small business entity, incorporated business, or limited company
Lender’s income or benefit is the interest that he charges on the amount of loan provided to borrower
Acquiring commercial mortgage loan is more complicated rather than residential mortgage loan
In case of failure in repayment by borrower, the lender have the right to seize the collateral
After paying off the loan, lender neither can seize the property nor can he claim for any deficiency

You can get mortgage loan from any Government guaranteed institutions or any other private institution. But better is that you apply in any Government approved institution. This type of loans is good for lender to secure the repayment of loan.

Due to terms & conditions, lenders don’t take much time to get agreed to provide loan. The reason behind this is that the terms & conditions of loan make repayment of loan much secure.

Blogs related to Commercial Property Loan:

Sources of Getting Commercial Property Loan

Tips to be followed before applying for Commercial Property Loan

2011-11-28T20:05:00.002-08:00

Three most important tips before apply for commercial property loan. This blog post will let you know the 3 useful pre-steps to be followed when applying for loan. These three steps include Credibility, Down-payment and PFS. A brief description of these factors has been provided below:

Credibility:

Credibility is very important before going to any financial institution or doing any type of paper work. Your credit report should have a score, means you shouldn’t be under any Judgment, Bankruptcy, or any other criminal cause.

Down payment (15% to 20%):

You must have cash as down-payment. The cash must be at least between 15 to 20 percent of the total property wealth. You need to show some cash to financial institutions and that you are able to purchase commercial real estate.

Attractive PFS (Personal Financial Statement):

PFS is very important for financial institutions. It should be very attractive. Financial institutions give prior importance to PFS (Personal Financial Statement) for determining and committing the loan amount. Your PFS may include assets such as property, insurance claim, liquid assets, and more. These assets should be heavy in worth, but not in quantity.

Get your doubts cleared by reputed real estate consultants in any metro city. Above mentioned content is only informative and not a legal advice related to real estate loan or any there activities.

Commercial Property Loan, Step-by-Step General Loan Processes

2011-11-27T21:27:00.001-08:00

This blog will let you know the general processes of commercial loan. These loan processes can help you map out your time and money. People get frustrated and irritated, when they don’t have an idea about the entire process of getting loan from lenders. Below is the step-by-step basic overview of loan process:

First, submit the loan application to lender
After going through your loan request, the lender will ask for some information like credit report, income and existing debts
Once you provide the asked information, a loan officer will review your credit report, amount of available collateral and income
After a review, lender will decide if any other information is required like financial statement, property report you owning, etc.
Preliminary environmental reports, title reports, area maps, lease summaries, and property appraisals may also be asked by lender
Once the above mentioned formalities are done, your loan package will be submitted to decision makers. After a decision, the processor will present you a letter of intent or term sheet
In this step you will be asked to choose a most attractive loan offer. After signing the letter of intent, you have to return it along with a Cheque, if required. After receiving letter, the lender will issue a final full loan commitment
If your loan is approved, you will receive closing documents
After the closing process, the lender funds the loan with a draft/cashier’s cheque, or electronic wire transfer

Above are some basic processes of getting loan from lender whether you apply for commercial property loan, business loan, or buy commercial land. Loan can be applied either by yourself or through property dealers in Delhi, India, America, Australia, or anywhere.

How to Buy Commercial Property, Few but Important Tips

2011-11-21T20:55:00.001-08:00

There are wide varieties of commercial property for instant office space, retail shop, mall, hotels, shopping centre, warehouses, etc. Before purchasing a commercial property, there are several things to consider. Very few, but important tips on how to buy commercial property:

You must have some cash as down payment for commercial property you are going to buy. Normally it is 20% of the property rate.

You need to map out the time for acquisition of property. Possession/Acquisition takes time even if you have right property and enough cash. You need to consider the time for negotiation process, checking out of environment issue, property appraisal, etc.

Gather higher information on commercial property and hire qualified property inspector to check the property.

Above mentioned are the few but very important tips on how to buy commercial property.

This is only an informative blog post, not a legal advice.

Useful Tips to Buy Commercial Land

2011-11-21T01:19:00.001-08:00

This blog will let you know some important things about how to buy a commercial land. Buying a commercial land is much crucial than residential land. Before purchasing a commercial land, investor has to map-out many things. Lots of aspects have to be kept in mind initially such as price, location, convenience, market, legal formalities, business requirements, etc. In this post few precautions of buying a commercial real estate land are mentioned like:

Site size: Before buying a commercial land you must calculate the size of land according to your business requirement and budget. Size matters here as due to every sq. ft. of commercial land costs a lot to investor. So, take care of land size first to make it a better deal.

Select a Merchant: Find out a reliable dealer to buy a commercial land. Without the help of a reliable property dealer, it is very difficult to purchase a commercial land. Commercial land is not easily available and the terms, rules and documentation formalities are much more crucial rather than the residential land.

Examine the Location: Before buying examine the entire location of land. One must take care of the location as all the business communication, availability of manpower, easily transportation, etc. depends on location of your commercial land.

Negotiation: There must be some negotiation in the process of buying commercial land. There is no fixed rate of land anywhere. So, negotiation in price can save lot of money which can help in commencing or re-locating your business. In most of the deals of buy/sell commercial land, negotiation is a successful activity and makes investor happy by saving lot of money.

Legal Formalities: All the legal formalities of buying process of commercial land must be done. If you do not take care of all legal documentation formalities meanwhile purchasing commercial land, your business establishment may get into some illegal trouble, which may cause you a loss in business.

You must consult with some reputed property dealers in top metro cities like property dealers in Delhi, New York, Beijing, Washington D.C., Canberra, Moscow, Dubai, and more.

This post is only informative, it doesn’t relate to any legal advice.

Differences between Commercial & Residential Property Investment

2011-11-18T01:24:00.001-08:00

Commercial Property completely differs from residential property. The buying process, rates, rules, benefit, profit, policy, terms, locality, and formalities of commercial properties are different from those of residential properties. So, before investing in property, you should know all the pros & cons of both types of the property.

Investment in commercial property is full of exciting opportunities of profits. The basics of investment in commercial and residential property are same. Below are some key differences in commercial and residential properties:

Rent/Lease Period:

Commercial property can be rented out for longer period rather than residential property, which gives a certainty of rent income for long time. Commercial property can be leased or rented out for several years rather than 8-12 months. Commercial property rent tends to be reviewed annually, which gives an opportunity to increase rental income. The tenant for residential property can be found easily without waiting for long time. In case of commercial property investor has to wait for long period to get tenant for the property.

Tax on Property:

GST (Goods and Services Tax) have to be paid when buying a commercial property, but investor can recover this tax by including it in rent price of the property, Means, investor can impose this tax on tenant of the property.

Maintenance Cost:

The maintenance cost of commercial property is paid by the tenant, means landlord gets the complete profit of rent. Landlord/investor can impose this cost on tenant. As investor you must be sure about the maintenance cost so that there should not be any future dispute regarding the cost. in the case of residential property mostly everything is fixed in the rate of property rent.

Locality of Property:

The location of commercial property and residential property differs a lot such as location requirement of commercial property includes good transportation, big parking space, availability of manpower, easy communication, etc. But, when we talk about residential property, it includes amenities like park, schools, hospitals, consumer market, malls, security, transport, etc

Property Loan:

Process of getting loan for commercial or residential property is not similar to each other. Loan for commercial property includes various requirements, TC and policy. The interest rate of commercial property is also higher than residential property. Commercial property loan process is much time consuming, you need to map out your time before apply for loan.

Initially you need to a property so that you can invest at right place. Analysis of all differences between commercial and residential property must be done if you are confused with your investment decision.

Renowned property dealers of metro station can turn out to be an expert of real estate sector. Consultation with those property dealers cans strong your decision power of buying a property.

This post is only informative, it doesn’t relate to any legal advice.

Sources of Getting Commercial Property Loan

2011-11-16T21:15:00.001-08:00

Buying commercial property is not an easy task. Many things have to be calculated, researched & analyzed before purchasing a commercial property. The cost of commercial property is more than residential property. So, finance is the big barrier in buying the property. To remove this barrier, majority of business entities choose an option of loan, though getting loan is also a big task.

There are many ways of getting loan. May finance entities or individuals are there to finance your property requirements. Below are the some examples:

Mortgage Banking Firm:-

Mortgage Bank, a state-licensed banking entity, provides mortgage loan directly to the consumer to purchase a real property.

Saving and Loan Institution:-

Savings and loan institution association, or S&L, is a financial institution that specializes in making mortgage and other loans.

Regional Bank:-

Regional banks are also there to provide loan to consumer. Although regional banks have some limitations to provide loans or other services, it will not be a trouble to get loan from a renowned bank. Despite having limitations, these banks can manage to provide you a good amount of loan.

Private Investor:-

Contact private investors. Some individuals are very wealthy and provide loan to others to purchase property or commence small business. The benefit of getting loan from a private investor is that you need not have to get into much more tension of loan documentation formalities.

When buy commercial property, bank is the most popular way among the above mentioned options for financing a Commercial Property. When banks are giving loans, they have a list of some requirement that is supposed to be fulfilled by the consumer to provide security and assurance against the loan. Following are the some common requirement of banks:

· Commonly banks do not finance more than 75% of the value of property.

· The applicant must be above 21 years old

· The assurance can be supported with a debt-repayment ability of property by a ratio of 1:20X or higher. Debt Repayment Ratio can be calculated as Net Operating Income / Total Annual Debt Burden.

Take care of fraud agents or small finance entities that are experts at making fool out of you by taking some advance money as a loan processing fee or some other tricks. After getting money, they direct you towards fake deal. Some property dealers in Delhi are worth trusting to deal with them.

This post is only informative, it doesn’t relate to any legal advice.

How to get office space on Rent?

2011-11-07T20:13:00.001-08:00

Office space is the space where an organization/company could do all business related documentation work. Before getting a space, many things have to be kept in mind such as location, electricity, water, easy available manpower, transportation, security, etc. If organization doesn’t have its own space for office, it doesn’t mean that they can’t setup an office. It is definitely possible to establish an organization by acquiring some space on Rent.

Below are some useful tips that should be taken care of before taking an office space on rent:

Consult an agent: - Before renting an office space, organization needs to consult a reliable real estate agent. The agent is the person who can help you a lot through his knowledge and experience about rates of office space rent, location, culture of area, facilities, amenities, market you need for your business, etc.

Determine Budge & Do Negotiation: - Set your money limit before taking office space on rent. Owners of property or real estate agents try to make as much money as they can. Without negotiation in property rent rate don’t acquire office space, because most of the property owners/agent tell high price of their property. Mostly after a session of negotiation, owners/agent downs the rate of property.

Confirm that you can restructure the space: - Before taking space ask owner/agent that you are free to decorate the space according to work requirement. You will not get office structure as per your business requirement. So, you will have to re-structure office space like receptionist’s counter, waiting room, conference room, training room, cafeteria, work station, cabins of senior staff, and other rooms.

Don’t Sign long agreement: - Try to sign a short agreement rather than a long period agreement like Five Year, Ten Year, etc.

Control over Utilities: - Make sure that after renting you will have the control over the utilities like heating, air conditioning, water, etc.

Secure Communication: - Before signing agreement, confirm that all communication could reach you easily like all mails, letters, parcels, shipments, etc. It must be secure place for all your communication.

Parking Space: - Before renting an office space, make sure that there must be enough parking space to cater parking needs of your customer or clients.

Comfortable Place: - Place must be a comfortable location where your client could reach to you easily. If the location of your office is difficult to find, then you can lose your client. In this situation, client will prefer to switch to other company.

Don't Pay Extra: - Meanwhile signing the contact, confirm that you are not paying anything extra other than the office space rent. According to lease agreement, there should not be extra charges like parking charges, any shared amenities, etc.

Agents of metropolitan cities like property dealers in Delhi, Mumbai, Pune, and Chandigarh have been found to be more reliable. They advice you as per the above mentioned tips.

This post is only informative, it doesn’t relate to any legal advice.

Real Estate Listing

2011-11-01T02:02:00.001-07:00

Real Estate listing is a medium of advertising the real estate property. There are many ways of listing properties such as listing the real estate property in Print Media (news papers, periodic, classifieds, etc.) and Online Media (online classifieds sites, property verticals, portal for property, etc.). The first question that arises in mind is about choosing the best medium to enlist properties. So, don’t get confused with multiple options, rather analyze what medium is mostly used by people for this purpose. Advertising is done at the location that is common among a majority of people.

Which media is good? Online or Print?

Print Media:

Print media is the traditional way of advertising. Here, advertiser makes many efforts for advertising his/her business, but this mode is very time consuming and full of efforts. There are many manual processes which are done before advertising on print media and it consumes lot of precious time.

Online Media:

Online Media is booming very fast and users/searchers are switching from print media to online media. Online media has instant, updated and more relevant information as compared to print media. Due its advantages of various options to contact advertiser, online media is effortless and does not require much time. Due to all these advantages of finding real estate property online, users have adopted this media and this is the reason advertises want to post ad on online media. For listing a real estate property on the websites, advertisers just have to fill-up a form where they put their business and property details and after an approval they can instantly see the ad on the website.

Below are some top websites of real estate which have option of real estate listing:

http://www.realtor.com/?source=web

http://www.trulia.com/

http://www.mls.ca/splash.aspx

http://www.99acres.com/

http://in.iproperty.com/

http://www.allcheckdeals.com/

It has been analyzed that most of the property dealers in Delhi are getting attracted towards online media and they only prefer to list their ad on real estate website which has options of real estate listing. In online listing you can list any types of property such as buy commercial land, real estate building, office building, residential land, residential flat/building, etc.

Commercial Real Estate

2011-10-30T08:00:00.001-07:00

Commercial property is basically a compilation of four major categories, Retail, Office, Industrial and Multifamily. Various kinds of properties come under these categories such as, office, medical store, retail shop and even a rented building. But in short any property that generates profit out of its use is a commercial property. So, any landlord that gives his property on rent that also falls under the commercial property.

Every businessman wants to own a commercial property for the expansion of his business. But to arrange a commercial property in India is not so easy and especially during the time when US is going under the recession and Europe is loaded with the highly over leveraged debt. Whether it is Indian investor or the foreign investor everyone is wary because of the unambiguous government policies and lack of transparency in the real estate sector.

Twocircles.net reports that Real Estate sector has not yet recovered completely from the impact of the Recession 2008-09, whereas it has again undergone a slowdown due to high interest rates and prohibitive property prices. The RBI has also hiked the housing loan interest rates. So, most of the property buyers have postponed their plans to buy the new property.

Due to high property valuation, Foreign Direct investment (FDI) has also slump down to 2.97 percent from Rs.121, 000 crore in 2010-2011. All the major banks have shut their doors for this industry. The slowdown in the FDI is really an issue of serious concern for the commercial real estate market.

According to the report of Economic Times, Real Estate sector, instead of 15 percent growth, will not exceed more than 10 percent in the coming years. The property rates are so high and even the taxes on the construction is so high that government really needs to think over the prices otherwise this sector can really face troubles in the coming years. However, if you want to buy a commercial property then there are some experts like CCIM (certified commercial investment members) who can assist you in acknowledging the market position so that you could arrange the best property at most equitable prices.

Before buying commercial property you need to consult with any real estate agent because these agents are well capable to consult you and review the property for you, they have good knowledge about commercial real estate.