How to choose industrial spaces

In today’s highly competitive world, various industries are in a big boom to serve the increasing demand of essential products and services. That is why; industrial spaces have got lots of importance.

It can be a daunting task to choose the correct space, as you need to consider different aspects including easy accessibility, basic amenities, cost, etc. If you want to avoid stress while finding an industrial space, then let us have a look at it.

Size- First of all, decide the size of industrial space that is needed. Planning is the most essential aspect of any endeavor. A well thought out plan for your customers, equipment, products and workers will be helpful to determine how much space you need. The variation of industrial spaces available may differ. There is no point in spending for more room than is needed. Careful planning is the best solution to avoid all of that.

Location- Location plays a crucial role when it comes to choosing a space. Depending on the type of service or product you are producing, the priorities for location may vary. You may want to consider the particular area which will be appropriate for your kind of industry. If you are manufacturing an expensive product, with complicated components, which have high overhead, then a location away from onlookers and local traffic may be your preferred option. The nearby industrial space renters in close proximity are another important consideration. There can be problems of noise or air pollution between neighboring companies, yourself and the management eventually. So, you should be keen about the industrial space contract. Go through it carefully before signing a contract.

Before you finalize any deal ask: is the location right for

·         You- The industrial space has to work for you.

·         Your employees- Your employees will work here. Will it work well? Remember, a good location always attracts potential employees. 

·         Your customers- You will be working for Customers. Keep in mind -No clients = no business.

• Strategic partners- If the partners are local to each other, then the strategic partnerships happen more easily. Particular locations become hubs for particular types of business.
• Potential buyers or investors- To a potential investor, the long-term value of the business is the most important aspect and location is an important factor to consider.

Cost- When it comes to basics of industrial spaces, a big space definitely means more expense. Remember, you may need to pay more for the industrial space than the office space. Therefore, you should ensure that the space you are looking for fits your budget. You have to think about available options and compare them. If you don't have enough of a budget, then think of spaces on the outskirt. It is better to look at spaces within your budget to avoid further issues in the future.

Legal matters- Prior to signing any contract, you should find out legal matters or tax liens concerning the industrial space. Go through the contract thoroughly before you sign. If you do not have any knowledge about it, then it is better to hire an expert. It is necessary to check out the clause prior to signing the contract. Check if the contract contains the clause of refunding the security deposit. Consult an expert who knows the laws and regulations who can help you understand the legal matters.

Amenities, convenience and safety-

Industrial space you are aiming for should be easy to find. It should feature amenities. Here you need to consider employees, customers, partners, etc. again. Safety is an increasingly important issue for both employees and customers. When it comes to promoting your business and prestige, your address definitely matters. Think about any special needs like specialized wiring or high power consumption. Further, consider options if you need additional space occasionally.

From all above discussion, it is clear that a fully informed decision involves a fairly complex matrix of issues. You should determine your priorities. Consider all your options. A well thought plan with thorough research will help you make one of the most significant decisions for your business.

© Global Realty & Investment Corp 

Understanding Mortgage

Investing in a home is one of the major financial decisions people make in their lifetime. If you want to own a house, then it is essential to understand certain concepts associated with your endeavor.  When it comes to investing in properties, one of the most common terms you hear is ‘mortgage’. Shopping for a new home is definitely exciting; however, it is a bit complicated too. Let us explore more about this concept.

Mortgage- what is it?

In very simple terms, mortgage is defined as the loan a person takes to buy a property which can either be land, residential or commercial. Many banks, financial institutions and specialist mortgage companies provide mortgages.

Types of Mortgages-

On the basis of the interest rate, a mortgage can be classified as-

• Fixed Rate Mortgages: Many people prefer this type of mortgage, as this is very stable. Generally, the monthly mortgage payment remains constant for the complete tenure. Irrespective of the inflation rate, the rate of interest for fixed rate mortgage remains the same. If you choose on tenure over than 5 years beyond which it is hard to predict inflations. However, in case, the interest rates go down, you will not get benefit at all from the same. Nevertheless, you can opt for refinancing in such cases. Further, the rate of interest for a fixed rate mortgage is slightly more than the adjustable rate mortgage.

• Adjustable Rate Mortgages: This kind of mortgage plan is well known as it generally starts on a lower monthly payment and lower rate of interest. However, during the lifespan of the loan, the rate of interest can change. Each adjustable rate mortgage has a modification period that determines the frequency and time the interest rate can alter. There is a fixed initial period in which the rate of interest will not alter and range from 6 months - 10 years. The rates of interest alter on the basis of the margin and index. The index indicates current market conditions and the margin reflects percentage, which can be added to the index. These factors decide whether the rate of interest will decrease or increase. An adjustable rate mortgage has lower initial interest rates as compared to fixed-rate mortgage. Due to lower monthly mortgage payment, a buyer can afford more expensive homes than he or she would be able to buy with a fixed rate mortgage.

As compared to fixed rate mortgages, adjustable rate mortgages are significantly more complex.

Mortgage Payments – The term and size of loan are the primary factors determining your monthly mortgage payments. ‘Term’ refers to the time period within which loan amount should be paid fully whereas 'Size' refers to the amount of money borrowed.  There is an inverse relationship between the size and term of the loan. In simple words, shorter term results in higher monthly payments. So, select monthly payments wisely considering above factors. The most popular mortgage type is 30-year mortgage.

Mortgage Refinancing- Mortgage refinancing means to pay off the current mortgage and take out a new mortgage. Some property owners use this option for an improved credit rating. Some choose the mortgage refinancing, if another organization is offering a lower rate of interest that lowers the monthly payment or to change the type of loan.

Keep in mind that there are some criteria to be eligible for the refinancing options. The organization providing the refinancing option, evaluates your eligibility depending upon the value of your property, current mortgage details and your income. If a person meets all criteria, then he or she needs to complete the loan application form that will further help evaluate your credit history, financial situation, and the amount of equity you have on your property.

If you are planning to buy a home, then you should understand the concept of mortgage clearly. Have a look at your finances and consider the type of mortgage loan that you will be comfortable with. With some patience and a little bit of careful planning will make your search for the home of your dreams a financially responsible and rewarding experience. Get ready to have a great place to live without breaking the bank.

© Global Realty & Investment Corp 

Tips to hire a real estate attorney

In the past few years, land disputes, real estate frauds and foreclosure cases have reached new heights. Obviously, everyone wants to be on the safe side from the beginning. Therefore, hiring a real estate attorney is a wise decision to avoid situations, which could result into huge losses in the future.

When the problem arises, you need someone to handle your legal issues. If you hire a real estate attorney, he can get you out of the problem. Therefore, finding the right real estate attorney is a most essential task.

A Real Estate Attorney- your helping hand

Professional advice is of great importance when it comes to real estate cases and disputes. A good real estate lawyer can be a very useful tool in case of foreclosures and property disputes. If a case involves deadlines and time limits, then an attorney could help in borrowing more time. In addition he would facilitate better communication. Thus, a real estate attorney helps avoid crisis situations and saves you from possible trouble.

It is very essential to find a good real estate attorney that will handle situations wisely. Let us have a look at some factors that you need to consider while hiring a real estate attorney.

Do your homework: You need to do thorough research before you start your quest for hiring a real estate attorney. You should never settle for the first attorney you find. Do your homework and consider a number of options. Consult and narrow down your search wisely. Think about various factors including the experience of the attorney, success rate, previous cases, etc. Compare the fee charged for the services.

Field of Expertise: You have to look for an attorney who understands mortgages, foreclosures, property and land laws, and litigation. He should be able to handle your case more efficiently. Rather than looking for a real estate attorney with experience and general knowledge in commercial cases, look for field of expertise.

Time Commitment: No matter how much you are paying for an attorney, it is essential to decide the time commitment. A real estate attorney you are planning to hire should be able to give you the necessary time and discuss the matter with you.

Business and personal Referrals – Ask your friends, neighbors and colleagues who have hired an attorney earlier and ask for their recommendations. The experience your business associates and friends have gone through will definitely help you in this regard.

Attorney Referral Services - If business and personal referrals do not work for you, you can turn to attorney referral services. A referral service that specializes in real estate attorneys can screen the attorneys on their list with experience and apt qualifications. You can also check the Bar Association in your state for referrals.

Before selecting any specific attorney, you need to ensure that the attorney has expertise in real estate. Choosing a licensed real estate broker is a smart option.  

Let us have a quick look at easy steps to hire a good real estate attorney-

• Ask for referrals.
• Join a local association for real estate investors.
• Ask people around who have used the attorney’s services earlier.
• Contact real estate agents and title companies for referrals.
• Never pick any attorney blindly. Do thorough research and then choose a real estate attorney wisely.

Points to consider before hiring a real estate attorney –

Check out

• The number of closings that he or she normally carries out every year.

• Their recent odd transactions.
• Whether a real estate attorney has done evictions, zoning board appeals, or condo conversions, etc.
• If a real estate attorney is well versed with terms like installment land contract, wraparound mortgage, etc.

Now you clearly know how important a real estate attorney is in handling your property matters. Definitely, it will save you time when you have the right aid with you. The above mentioned tips will definitely help you look for the right lawyer that will handle all your real estate legal matters skillfully.

 © Global Realty & Investment Corp

 

Tips for buying foreclosure properties

Buying a foreclosure property can help you get your dream house at lower than the market price. When a house is listed as a foreclosure property, it means that owners are in big financial trouble, for a very long time. The owner is not able to pay the mortgage any more, and any payment in the future is not possible. In such cases, the lender takes a court order for foreclosure in order to get the money back. First, there is pre foreclosure period; this is a time when the borrower is warned about the possibility of foreclosure, if the mortgage is not paid within the stipulated time. The time limit of the grace period is determined by state laws. This pre foreclosure period is very beneficial for a customer who is looking to buy foreclosed properties. You can approach the owner with a good price for the house, which is good to your pocket and even helpful to the owner.

When the owner is not able to repay the debt to the bank, the owner is forced to give up the property to the bank. These bank owned properties are open for foreclosure sale at below market prices. As the sale is held by banks, they are safe for new buyers looking for foreclosed properties. The main purpose of the lender is to get back the money. Therefore, the lender might offer the buyer a price which is less than the market price.

While bidding for the house, the buyer must have the cash ready. If the buyer is successful, the house is handed over at the same time, in its present condition. If you are able to get a house in a foreclosure sale, that is also in a good area, then it can be a very amazing investment. The owners who fail to repay debt voluntarily give the house to the bank to cancel the loan. These banks hold auctions in order to sell the house and get back their money. Therefore, it will be beneficial for the buyer looking for foreclosure sales.

It is true that the foreclosed property is cheaper than the market price, but still you must study the market and do your homework. You must research the market price of the house, the location of the house, and even the condition of the house. You can get to know where the auction is being held. You can find it in the local newspapers. You can approach real estate agents or the attorney and notify them that you are interested in buying the foreclosure property.

After the property goes into the foreclosure mode, the owners do not care about the condition of the house. Therefore, you must know the present condition of the house, and how much you need to spend on its renovation. You can go by yourself or take an expert advisor with you to inspect the house. You must calculate the market price of the house and the expenditure you will need to make on the house. Because it might happen that you will end up spending more on the repairs than is worthwhile.

A little homework about the original market price of the house and the actual condition of the house will help you to play it safe at foreclosure auctions. You will be able to determine the price that will be profitable to you. After all, this research will help you fix your price range and you must stick to it. You can attend some foreclosure auctions to understand its working pattern and process.

You must set practical expectations when buying any foreclosed property. If you realize that the house requires more repair, then you can bargain more. You can also look at how long the house was empty, because there will be more damage to the house, the longer it has remained empty. You must check whether the house was given pest treatment and there are no bugs and moths eating up the woodwork of the house. These damages require huge expenditures to get them repaired.

There is one more form of foreclosure sale, known as hidden foreclosure, which is carried out for new and upscale houses. The auction for this is not advertised openly and, therefore, has less exposure to possible buyers. Real estate agents carry out the proceedings of such sale. Therefore, if you come across such sale, you must inspect carefully for all the details and make a smart decision.

© Global Realty & Investment Corp