Author: Total Service

Building Vs. Renting: What’s Best For My Business?

Total Service

Many businesses grapple with the decision of whether to find several Minneapolis general contractors and build a space or to simply rent an office. The decision will largely depend on the stability of the specific business, the current and future needs, and the business financial state.

Primary Advantages for Building Commercial Space

Having the stability of ownership is a major benefit for companies looking to buy commercial real estate. You can partner with a reliable Minneapolis general contracting firm to build the office of your dreams and have it for years to come. Additionally, there are no lease terms, meaning you won’t have to renegotiate or pick up and possibly move every few years as a renter would. You can establish yourself in the business community and make a name for yourself.

Financial Benefits to Building

One of the most obvious benefits to buying office space is the fact that the building is an investment. Partnering with the right commercial construction company that can build a beautiful and functional space can pay off in the long run. Depending on market conditions, you may also be able to make a return on your investment when it’s time to sell. Additionally, if you need to move on but don’t want to sell your property, you can rent it out to another company and draw additional income.

The government gives buyers tax breaks for interest, depreciation, and property tax deductions, which is another added benefit to buying instead of renting commercial real estate. Additionally, sometimes there are added tax credits for first-time buyers.

Like other areas around the country, the Minneapolis commercial construction sector has plenty to offer businesses looking to increase their property portfolio options. Investing in commercial real estate is a great way to diversify your portfolio.

Disadvantages of Building a Commercial Property

The closing costs for buying commercial real estate can be sky high, and for a business not financially stable that can be a big problem. Similarly, for a business not fully prepared to buy, property taxes can prove burdensome. It is important to ensure that your company is fully capable of handling all of the costs associated with buying.

Financial Benefits of Renting

Although you arent building equity in your leased space, there is also some financial benefit to renting. If something goes wrong in your building, you won’t have to foot the bill for calling a general contracting company to come out and make repairs, which could be costly.

Additionally, you won’t have to pay property taxes or city assessments, which can be a financial burden to companies that aren’t fully established. Perhaps one of the most evident benefits of renting is that your company isn’t subject to the whims of the financial and housing markets. A market crash can send your property values plummeting, and as a renter, you won’t have to worry about losing an investment.

Additional Benefits for Renters

With so many options available in commercial construction, it can be difficult for a business to definitively settle on a particular location. Another advantage to renting is the freedom that it allows. If after several years at one property, your business decides to move, it is much easier to do so as a renter.

Disadvantages of Renting

While renting does have some benefits, one major drawback is the lack of control you’ll have over your property. You are only assured of the space for the term of your lease, and, even if you re-sign your lease, your rate could go up significantly.

Startup costs for renting can sometimes be equally expensive. Deposits typically include first and last months’ rent, paid upfront and your landlord has the right to increase rent at any time, so there is not much control in that area of finances either.

For those grappling with this decision, it will largely depend on factors like how the current stability of the business, its needs, and desires, as well as its financial capabilities. Ultimately, these factors will determine the outcome of whether or not finding some Minneapolis general contractors is the right choice for you.

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4 Steps To Real Estate Investing Success!

Total Service

Real estate investing is forever lovely and occasionally it’s red hot. When it’s hot dozens of real estate seminars commence rolling across the country and thousands of people spend thousands of dollars on investing education.

It’s startling to learn that of all those thousands of eager people who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the “sizzle” and make profiting from real estate sound easy. The truth is that it’s simple, but not easy.

Here’s a quick plan that will let anyone begin building financial freedom.

There are basically four tips for investing in single-family homes:

1. Buy homes under full market estimate. Yes, people really do sell homes for less than the home’s full value. The key is to know that the majority of homeowners will only assume a purchase offer that is all cash and within 5% to 10% of their asking price.

The profitable investor learns to unearth financially distressed homeowners who have no alternative but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit.

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all-cash offer.

2. How do you find motivated sellers? You work at it! Like any business, it is vital to develop a small marketing plan. One that is simple, yet very successful, is the one that was tested 75 years back by the Fuller Brush company; door to door sales.

You are selling your skill as a home buyer to people who must sell. You are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will gather extra and buy more homes faster than any other method. However, most people just won’t walk door to door for three or four hours per week. OK, there are other ways.

You can see public notices for the announcement of property sales. Meeting with a homeowner right after they’ve got a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce, and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site.

You can telephone the names found in these notices or, and this is the slightest time consuming, send a postcard expressing your interest in buying their property. It will yield buying opportunities, just not as many as personal contact.

3. After you’ve found a motivated seller you must know how to frame offers that provide benefits for both you and the homeowner. A talented real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.

The homeowner is in a tense spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a small cash money to get a new start.

No investor can afford to leave cash in each deal. No one but Bill Gates has that much available money. You must use creative ways like, leases, options,s and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in the book retailer or on eBay or realestatevally.com.The same education that seminars sell for thousands of dollars.

4. You make your profit as you buy! Never make a purchase until you’ve carefully determined exactly how you will get to your profit. If you hold it as a long-term investment will the monthly rental earnings more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more attractive property? Have a plan before you buy.

There you have four tips that even a part-time investor can execute in three to four hours per week. What’s the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be good on your way to financial freedom.

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Learn About 4 Solid And Effective Real Estate Investment Strategies

Total Service

Most possibly you have a great interest in how you can become profitable by way of real estate but also have a good deal of concern relating to it. You hear many men and women stating how much income they have produced in real estate, yet there is something preventing you from acquiring results.

The only option to your problem is to get through your 1st purchase, make a mistake or two, and learn from it so you can carry on your path to real estate success. You want to get started because investing in real estate has the potential to be your admission to economic abundance.

Let us address the “dream home” challenge right upfront. Do not fall into the trap of attempting to make your very first residence your dream home. Why? One, you probably are not able to find the money for it. Two, you will probably get rid of your dwelling just about every three to 5 years or so anyhow, (especially in your younger years – career move, more children, etc.)

Here are 2 means to logically strategize for your dream dwelling: Firstly, buy a piece of real estate property. Rent it and let your tenants make your mortgage loan payments. Refinance or market this condominium property. Then, use that new income to purchase your ideal residence

A 2nd alternative is to start out by getting a home you can manage, like a low-down condominium. Hold out 4 to ten years. When this household appreciates enough, market and buy an average house. Wait 4 to ten years or so. Discover a nicer home. Wait around 4 to 10 years once again. Ultimately, purchase your ideal residence.

There are many other real estate techniques and too many to checklist them all right here. Having said that, here are 4 that will get you going…

Buy and Maintain for CashFlow: This is exactly where you look for deals that will allow you to accumulate a sizeable volume of month-to-month income from your investments following all expenditures, such as your home loan, tax payments, insurance, and house management are paid.

Buy and Maintain for Appreciation: This is a long-term approach and requires that you purchase in parts that will rise in value. This demands that you do your homework. However, appreciation has built quite a few millionaires.

Buy and Sell (Flip It): Some people today want to make a quick gain. To flip a house, you want to acquire it for 60% to 70% of its complete list value. This is a tactic that generally requires buying a distressed property, then repairing it, and showing it to be enticing again.

Payment Relief: This is the strategy of acquiring property (such as a duplex, four-plex, or higher) that you will also live in. If you set this up correctly, the other tenants in your building may very well pay all the expenses so that your own rent is zero to incredibly tiny!

Choose one method that appears to fit you and just get going. Buy that 1st investment and find out that not only can you invest in real estate, but in addition be successful at getting out of debt.

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