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Hang In The Balance

As the banking industry continues to consolidate at the local and national level, access to commercial lending by small business owners and investors continues to deteriorate.  One of the major reasons why lending is being affected is regulation and its cost....

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4 Things Every Entrepreneur Should Know About Small Business Taxes

4 things every entrepreneur should know about small business taxes. A guest post by TaxAlli CEO Zach Olson.

Sourced through Scoop.it from: ideamensch.com

With business and taxes, it’s what you keep, not what you bring in from sales that counts at the end of the day.  Business owners, more often than not, do not consult with experts in accounting or business law that can help them understand the pros and cons of each business structure, tax and legal implications and ways to keep the books in order. When in doubt, always ask an expert that can help you navigate the complex business world we live in.

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Six Trends in U.S. Commercial Real Estate to Watch for in 2016 – Urban Land Magazine

The U.S. property market landscape in 2016 will appear much like it did in 2015, with a number of interwoven aspects that bode well for savvy investors who can step out in front of ongoing economic, demographic, and technological trends.

Sourced through Scoop.it from: urbanland.uli.org

We continue to see an increase in occupancy within all commercial real estate sectors. We believe the apartment market will continue to see high occupancy rates due to the current housing issues like lack of affordability and credit and inventory availability. The retail and office space on the other hand will continue to lag when compared to apartment units. Large anchor tenants like Macys and Sears are leaving the brick and mortar stores to focus more on their online retail and co-working spaces now offering cost effective office space to small business owners. We think that the opposite is bound to happen to the office and retail space and occupancy will fall much further than we have seen in the last few years. Instead, we believe the industrial market will pick up some of or most of anchor tenants as more of the Macys of the world will see the need for distribution centers around the country.  Despite all of this, the real estate market is in for a significant shift in the next 10 years due to the change from a service to knowledge based economy. As real estate investors we must stay on top of the trends in politics, economy and the social environment that affects our income producing properties.

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Why You Should Be Investing Your Money In Real Estate

The way you invest your profits is key to your future success. Real estate investing should be a key part of your portfolio. Here’s why.

Sourced through Scoop.it from: www.entrepreneur.com

Commercial real estate can help you diversify and reduce risks while you enjoy the income that your real estate investments produce.  We advocate for commercial real estate investing to be part of your overall investment strategy. Your CPA, investment or business advisor or Jhoanna R. Jones can help you determine the best properties and percentage of your total portfolio that should be vested in commercial real estate.

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Three Things That Make A Great Real Estate Investment

You need to make some smart choices upfront when buying investment property. 

Pays a Fair Cash-on-Cash Return
you need to pro forma your deals and buy cash flow-positive properties that earn you decent returns – not those prize properties that are negative

Isn’t Too Risky an Investment
All real estate is extremely high risk
if you want to own real estate, consider simply taking fee simple title in your own name – or an entity you wholly own – to the properties you purchase. In addition, you must do the proper due diligence, analyze, test, review reports, etc., to make a lower risk real estate decision.

Doesn’t Require a Lot of Time or Managing
You can earn more but some properties just require way too much time and management to make them smart investments. Examples include vacation rentals, low quality properties in bad areas, college rentals, etc. Nice boring properties rented for as long as possible to decent credit profile tenants seem to take the least time to manage.

You need to do some hard work, research, read up, and make smart, educated decisions to acquire the best real estate investments!

Sourced through Scoop.it from: www.forbes.com

There are many benefits available to individuals when investing in commercial real estate like tax write offs and separate and predictable income streams that are not offered by any other investment products on the market. When investing in commercial real estate, you have control of the property and property values. What else you could ask for when investing your hard earned money?

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In business, nice guys finish first. Yes, really.

CEOs who score high on traits like integrity and compassion deliver better results for shareholders, says a new book.

Sourced through Scoop.it from: fortune.com

As a business owner, we must understand character is the most valuable competitive advantage in our community. When people trust you and your ability to stay true to your core values, your business gains more than sales. It gains future business deals that come from trust.  Overall, businesses and business individuals that maintain high degree of integrity maintain and deliver higher results that those that indulge in the short-term gains by cheating the system. 

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5 Exit Plans for Your Small Business – YourVelocity.com

Exiting your business requires a lot of work, especially if you make sure you are getting the most out of the it. But what kind of exit plans are available?

Sourced through Scoop.it from: www.yourvelocity.com

As business owners or real estate investors we never start with the end in mind. However, when buying real estate or buying a business, knowing the final destination should be the most important part of the decision making process. Understanding where you are heading can help you determine the best routes to take to get you to the finish line.

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Four Tips to Help You Sail Through Real Estate Investments

Real estate industry is growing at a rapid pace and is generating over $9.2 billion with over 28 million investors. With over 36% real estate investors planning to buy more property next year, and returns going high, it is the perfect time to test this growing market. The USA is one of the best places for investment in real estate. The country also has a number of foreigners buying real estate to earn profit. However, not everyone is able to laugh all the way to the bank. There are several things one needs to take care of to be able to make the max out of an investment. At the end of the day, the purpose of any investment is to excrete profits. However, real estate is a risky business. Prices go up and down on a regular basis, and one has to take care of taxes as well. So how does one beat the market and earn big? Here are four tips that will help: 1- Know Exactly Why You’re Investing There are several reasons why one may decide to invest in real estate. While some people invest to sell, some invest to rent. This point is important because it will help you set your financial goals and plan accordingly. The ‘time versus money’ concept has to be considered as well. When it comes to real estate, if you have more time in your hand you can start with less money and vice versa. Also, your goals will help you decide what kind of investment you should opt for. Mysquareonecondo.ca’s CEO says, “There are several options to invest in real estate, from condos to big bungalows to empty plots. I’d say the right option depends on the investor’s requirements. If you want a regular income you can opt for condos and rent out the property. On the other hand, if you’re looking at a big gain you can buy a big property and put it on the market, but the latter usually takes time.” In addition to this you can also consider commercial and residential properties. While both options are good for business, the right one depends on your requirements, budget and time in hand. 2. Do Your Research You need to research well before you zero in on a property. One of the most important factors to consider is the city or state you’ll be investing in. Some of the best states are: – Texas (Austin is a favorite with an expected growth rate of 9%. San Antonio also comes close with 8% home appreciation rate.) – Florida (Tampa is a good option with an expected growth rate of 5% for the next three years. Miami is also a good option) – New York (If you can afford a place in NYC, you’ll have a good reason to rejoice. While the city is very expensive, the real estate market is soaring.) – Ontario (If you’re looking at investing in Canada, Ontario is one of the hottest states with houses in Barrie, Thunder Bay, and Hamilton expected to give a return of 8-9% in the next five years) – Alberta (Places to consider include Calgary and Edmonton with around 5% return) Also, remember that just because a city is doing well, it doesn’t mean you should invest in it right away. It should be remembered that specific areas will fetch you a high price that too for a specific property. In addition to this, you have to take care of the legal requirements as well, especially if you are a foreign investor or are buying on credit. Also, do not make the mistake of going for a property just because you like it, unless you plan to live there. You should think as an entrepreneur when investing and consider the option that gives you the highest returns. 3. Take Your Time It is important to take your time, both when you’re buying and when you’re selling. Do not buy the first property you like, look around and compare all the options that you have. However, also remember that there is no such things as a ‘perfect deal’, especially when you are selling the property. Mysquareonecondo.ca’s CEO says, “Haste makes waste! It is okay if your property sits on the market for a few months. At times it takes years before a property is sold, especially if it is very expensive. However, you should also see the market trend, if the market is expected to fall tomorrow, it’s better that you sell today.” 4. Know Your Facts and Figures At the end of the day, it is a financial decision and should be made with facts and figures in mind. Before closing a deal, make sure to have a look at maintenance records, tax bills, tax returns etc. some other figures that need to be calculated include: – Your Return On Investment (expected resale value) – Your Cash Flow (debt financing) – Your Net Income (profit after deducting expenses) All these figures are important and should be calculated prior to making a sale. In the same way, when you’re selling a property do not just compare the price to your buying price, also see how much you’ve invested in the property. At times, investment is a good option. Something as small as a paint job or an extra bathroom can increase your property’s worth by up to 15%. These simple tips will help you make a good profit from the real estate market. Remember, the trick lying in doing a good amount of research and taking your time before you make a decision.

Sourced through Scoop.it from: www.inc.com

More real estate investors are discovering that acquiring and improving commercial real estate properties takes time and research. The jackpot is in the ability to find the right property, the right financing and team to help you make the deal work and meet your investment goals.

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10 Reasons Small Companies Fail and What to do About It

Why do small companies fail and go out of business? Here are ten reasons, along with advice on what you can do to avert disaster before it strikes.

Sourced through Scoop.it from: smallbiztrends.com

More often than not we find ourselves debating through our decision making process. Should we or should we not open a business. This is an important decision because it can affect our family and life in many ways and for many years. Things like starting a business should be a lengthy process and a lot of research must be done to make sure all resources are used wisely. How we decide and how we proceed in the new business scenario is determined by how much money, time, and support we have to help us make the decision. Unfortunately, these resources are not infinite. Therein lies the conundrum…

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Small Business Lending: The Traditional Banker Is Dead

Small Business Lending: The Traditional Banker Is Dead
Forbes
You might think this is an overstatement, but times are changing and the above headline might not be as much hyperbole as you think.

Sourced through Scoop.it from: www.forbes.com

“How to Secure Financing for you Business Commercial Real Estate Needs?

 As a small business owner, you should know and understand the capital financing options available to you. Banks are the largest lenders for small businesses across the United States. But, getting a traditional bank loan for a small business is often a huge challenge. About 72 percent of small business that apply in fact get rejected. That’s because traditional banks require business to meet several criteria to secure financing.  It does not mean that you cannot secure financing from a lender. Small business owners should know that commercial mortgage brokers can help them get access to the capital they need and the kind of loans available to them nationwide.”

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Is Multifamily Property Investing For Me? – FortuneBuilders

If you are looking for higher monthly cash flow and less risk, multifamily property investing may be for you.

Sourced through Scoop.it from: www.fortunebuilders.com

Multifamily properties are still seeing occupancies in the high 90’s in most areas of the country. Although local banks would shy away from investment properties there are many loan options available to investors looking to enter the market with lenders nationwide. This is one of the many reason why commercial mortgage brokers are a great resource for debt and equity financing not available in the local community.

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Investing In Real Estate: What You Should Know

Money is a necessity today, but knowing how to invest wisely is important.

Land near water or in the heart of a downtown area is likely to produce real value over time.

TIP! Listen more in negotiations than you talk. You may be shocked to find out that people can negotiate against what they say when they they’re allowed to talk a lot.

This can help you to feel confident about owning the right direction. You don’t want to be stuck paying out of pocket for the mortgage on your property because the rent isn’t sufficient.

TIP! Always check out the whole neighborhood where a property is before you buy anything there. Some neighborhoods are obviously a better value than others.

Take a good hard look at the entire neighborhood before investing in property there. Neighborhoods where people want to live tend to hold or even rise in value over time, and neighborhoods that are depressed won’t pay off so well. Location is always be the key determinant for a property’s value.

TIP! It’s a good idea to diversify your real estate portfolio by branching out to other cities, states and even internationally, but your real money making is around your community. You know your area the best.

Understand that your time is money. You could love rehabbing, however is the amount of labor required worth your time? Or is it better suited to looking for the next great investment opportunity. It’s okay to make time for focusing on other important aspects of the business.

TIP! Hire a reliable property manager. Make sure they are qualified and honest.

Don’t purchase real estate in bad neighborhoods. Pay close attention to where a property is located. Do all of your homework before you make a decision.A great deal on a beautiful house might mean that it’s in a bad area. It may be hard to sell this kind of home and it may be easily vandalized.

TIP! Don’t let your real estate investments eat up your cash or emergency reserve fund. Understand that when you invest in real estate, your money may not be readily available.

Don’t buy a property that’s not affordable.If you purchase a rental property, the rent should pay for the monthly mortgage. It’s not a good idea to depend on real income in order to pay the mortgage payment.

TIP! Learn about foreclosures sooner by using a listing service. This will help save you time.

Is your area experiencing gains in property value increase? Are there a lot of rental properties? These are the questions to ask yourself. You want to know exactly how you buy.

TIP! Do not make a real estate investment you are unable to pay for. For rentals, you need to recognize that some may be empty at any given time.

Do not let your emotions to get in the way while you are negotiating. Keep emotions out of it to ensure you don’t pay too much or don’t make enough profit in the end. You can earn more money this way.

TIP! Prior to purchasing a rental property, look at the rental history in the area. You cannot expect to charge much more than the highest local rent.

If you have a vacancy in your investment property, always save for the time when you may have an empty building. This fund will keep you more calm and allow you to choose the right renter instead of the first person who comes along.

TIP! Try buying in heavy foreclosure areas if you can afford to hang on to the properties for awhile before reselling. There will always be a bounce-back in the market eventually.

A good way to find out how worthy it is to invest in a good financial investment is by looking at the area. If you learn that many properties in the area are vacant or unrented, chances are good yours will stand empty too.

TIP! Talk to all tenants before investing. Tenants who are not trustworthy can damage your property and decrease your property value.

Be ready and willing to give up certain things in order to stay under budget. Perhaps, you want to fix up a house to resell, but know that costs can quickly add up.It’s a guarantee that at some point you’ll need to sacrifice something will have to be sacrificed eventually to meet those monetary goals. Be prepared to compromise and willing to give things up.

Real Estate

TIP! Think about engaging a trustworthy partner. This reduces your risk.

Do not overextend yourself when you invest in real estate. It is wiser to begin modestly than to invest to much right out of the gate. You would not want all your savings to be at risk. Real estate investing should not replace the plans you have already. After you have started to succeed, you can figure out if you want to change how you are doing things.

TIP! Carefully choose properties. When it comes to investing in properties, your tastes are not among the primary concerns.

You want to have a large down payment for an investment property. Sellers are generally easier to work with if you have cash in hand. It also make getting a mortgage approvals. Paying cash can let you don’t have to worry about the mortgage.

TIP! You need a budget to have the money to invest. Create and stick to a monthly budget.

While you are probably chomping at the bit to get started, it is important to tread carefully. Begin with small and move up little by little as you learn the ropes. This will keep you safe in the market.

TIP! Before entering into any investment agreement, know the guidelines on when you can cash out. This will help you decide how much money to place in each investment.

Now, it is time to put all these tips to use. We all want to take care of our money well in order to attain our individual goals. You can help others after first helping yourself.

Sourced through Scoop.it from: wrfchina.com

TIP #1: Fall in love with the numbers not the property.

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