Real Estate Blog

Any purchase in the commercial real estate industry is a huge investment. To the contrary, due diligence in commercial property investment is rarely talked about. Other factors such as raising money and negotiating the deal are mostly given more attention. Whether you’re a commercial real estate professional, tenant, buyer or seller, understanding the importance of due diligence is vital. Conducting due diligence helps you avoid costly mistakes and improve your skills as a real estate investor. Investors who focus on other aspects of the deal and fail to do the essential research most make expensive mistakes at the end. Below are the top due diligence mistakes from a 31-year investor that you should avoid.

Investors who are finding it difficult to compete will usually receive advice to build an absentee owner list first, as this allows them to skirt the edges of the competition and find juicy off-market deals. If the phrase is unfamiliar to you, absentee owners are property owners who don’t live on the property they own. The owners may reside in the area or in a different part of the country, and use said residence as their primary address.
Finding an absentee owner may seem like an intimidating prospect. They are using a different property’s address in all of their their public-facing information.  It’s difficult to know their status as absentee owners just from their public profiles, but there are a few tricks you can use to build an absentee owner list, such as:

You might have had a landlord at some point in your life. Not many people look at their landlords can want to live in his/her shoes. You see your land owners always taking complaints, working with the maintenance team and handling pest issues.
But what if we tell you that real estate can be a very lucrative business? If done right. You can manage your way past such issues and embark upon a journey to success through making sound investments. The problem is that many people do not know how to invest in real estate. We have come up with a list of ways you can boast your portfolio by investing in real estate.

In real estate investing, there are many myths perceived to be true. Land investing is not an exception as there are popular myths in this niche that mostly cause tension, anxiety and confusion among investors. Land investment can be a lucrative market venture for newbie real estate investors. However, there are many misleading ideas and myths that keep them from stepping into the market. Until you realize the reality about land investing, you may have cold feet over myths that are only misleading. In this digital age, getting misinformed is one thing you should be vigilant about. However, you don’t need to be confused anymore, we got you covered.

Lease Option also commonly referred to as ‘lease to own’ is the point at which a property owner gives the tenant the choice to purchase the property towards the finish of the rent. The tenant pays the fixed price in installments. Generally the tenant is given a time period and cost in which he or she has to purchase the property. This is a valuable technique for purchasers since they have the choice to keep leasing or purchasing, however, the seller of the property cannot sell the property to any other person.

If you are interested in buying a rental property, you first need to determine the property’s value. This will help you in making sure that the price you are about to pay for it is justified. Each guru of the real estate has their own way to determining the price of any given property. One of these price determining methods is “cash on cash” valuation, which is a widely used method.  They set their “target” for cash on cash rate to achieve, which they want out of their investments. If the property they are going to buy will give them money equal to or above this target (when sold), they immediately latch onto that deal. Many believe this system to be terrific and one can make the cash on cash rate work backward to figure the ideal price.
Let us now talk about “The float and desire method” which helps us evaluate the value of a property at any given time.

Real estate is a vast field for investing. It offers many different types of experiences for investors. We have come up with a list of ways you can invest in real estate:

1. House Flipping
2. Buy-and-Hold Residential Real Estate Investing
3. Commercial Real Estate Investing