| |
| |
|
Real Estate Information |
|
|
Industrial Income Property Financing: Part 3 of 3
Financial Concerns Of the three types of income property, industrial property requires the greatest degree of technical expertise and experience. Likewise, financing the acquisition of an industrial income property can be, at best, very risky without adequate planning and know-how. The first thing to consider is what kind of industrial application the building will be used for. Not all lenders will fund the purchase of all types of industrial income property types. For example, funding the purchase of industrial real estate to be used for petroleum refining is a risky investment for many lenders. Make sure your lender is able to support your income property goals. LTV rates for most industrial income property loans run at a maximum of 75%, so plan on having a nice pile of investment capital on hand. Industrial loan interest rates can also be a little higher than for other income property types-usually between 5.6% and 7.5%. The 20-year term that comes with most industrial income property loans is fairly typical. Managerial Concerns Because of the nature of manufacturing facilities, liability becomes much more important than in residential or commercial income properties. Securing the proper type and amount of insurance can help mitigate much of the risk you will take on after you lease your industrial facility. While industrial income property comes with certain risks and challenges, it lacks to a large extent, the oft-times inconvenient nature of residential income property management. Don't expect any late night calls concerning overflowing toilets or broken stoves. Much of the time, the company leasing your property is obligated under contract to handle typical repairs and maintenance to the facility or equipment. Unlike commercial and (especially) residential tenants, industrial tenants usually intend to lease your facility indefinitely, or until they either liquidate or their operations outgrow your building. This is good news because you are virtually guaranteed cash inflow for the duration of your income property investment. Conclusion In the final analysis, investing in industrial income property requires a lot more time, money, and prior experience than it's commercial or residential counterparts. For investors with the right skills and financial backing, however, the payout can be much more rewarding than any other income property investment. Cameron Brown is an internet marketer specializing in investment property. For more information about residential income property, please visit Security National Capital.
MORE RESOURCES: This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Google News |
|
|
|
RELATED ARTICLES
The Sadness of Old Buildings From the book No Smooshing!For years, I've carried on a not-so-friendly debate with some of my artist friends from the West Coast about their ideas of what constitutes a good subject. We seem to be able to agree on certain things, like apples and oranges-and even certain landscapes. Creative Real Estate Investing With a job that paid $3.40 an hour, I saved $5,000. Should You Use a Property Management Company or Manage Your Real Estate Investment in Florida? When considering investment properties, first of all, it must be determined that it is profitable and a good idea to purchase rental properties. Let's talk about this aspect. Land for Sale Think owning land would cost a fortune? Think again! While land prices on the extreme coasts motors upward, there are millions of parcels for sale throughout the USA that can fit into anyone's budget. There is probably a land deal that could make you a profit happening right under your nose right now. Lease Options or Rent to Own? Finding a rent-to-own house is one of the many ways someone with bad or no credit can buy a house. You will often find them called names like lease/options, lease with option to buy, lease purchase, lease 2 purchase, rent with option to buy, rent to own, or rent to buy homes. Miami Property Booming for Foreign Investors Miami tourism is growing and so is the Miami property market. Dubbed the New Manhattan by the US property media. Real Estate Investing - House Problems Houses can have lots of problemsReal estate investing requires expertise in recognizing these problems and the costs for repair.Sometimes you stumble onto a jewel investment by discovering a house where mom was an excellent housekeeper, and all that's necessary is minor cleanup of the premises to prepare for selling. Horses In My Back Yard Horses In My Back Yard by Jody Hudson, with Extensive Collaboration From Chris Hudson HORSE LOVERS: During my thirty years of selling rural land, I have frequently found that folks want some acreage so that they can own and ride horses. They LOVE horses in their own mind but have little if any of the real knowledge or experience necessary to raise one or more horses. Buying a Home in Westminster The city of Westminster is centrally located in the Denver metropolitan area. Its easy access to amenities in both Denver and Boulder really coax investors into buying a home in Westminster. Where To Start In Looking For A Central Illinois Realtor Central Illinois is an excellent location for families andbusinesses. Property values and local economies are growingconstantly and the wide range of available properties isimpressive. Real Estate Business Starting real estate business is not that simple. Multiple aspects of stable business should be considered before you invest even 1$ in real estate. Real Estate Investing - The Motivated Seller How the heck do you find a "motivated seller?"The motivated seller doesn't wear a tattoo on his forehead that announces the distinction. And he never drags you onto his property begging you to buy. Making it affordable: Nine tips for first time home buyers It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. Investing In Commercial Property Why commercial property?Compared to residential property investments, commercial property offers some key advantages:Long-term secure cashflow -- Commercial lets normally have long lease contracts, with periods of 10 years and more not being uncommon. In addition to this, commercial property tenants are less likely to default on payments and even if the tenant goes into liquidation, the liquidator may continue paying the rent in order to stop the lease being forfeited. Hassle-Free Homebuying Perhaps you'd like to take advantage of today's great buyer's market in housing but feel a little intimidated by everything that's involved.You know the routine: finding the right locale and the right house; negotiating an agreement; putting together a down payment; and selecting the best mortgage available. Investment Real Estate Made Easy - Make the Most from Each Investment Dollar When it comes to buying investment real estate, there are many schools of thought on how to get the most out of your money. Some say lease optioning your houses is the best and safest way to go. The Many Benefits Of Lease Purchasing Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all. Choosing a Reputable Real Estate Appraiser When you are considering purchasing a property; either for investment or personal use you will need to hire a real estate appraiser. If you are financing the purchase through your credit union or another financial institution will most likely be required to hire a real estate appraiser to perform an appraisal on the property. Selling by Owner = Saving by Owner? According to the National Association of Realtors, For Sale By Owner (FSBO) home sellers comprised nearly 14% of all home sales in the United States in 2003. The Boston Globe reported that nearly 25% of homes sold in that area during that same time period were FSBOs. Appraisal vs. Market Value: How to Avoid Pitfalls in the Sale of Your Home When you sell your home, appraisers use comps (comparable market sales) of local properties sold within the last six months to value your home. With today's rapidly rising seller's market, six-month-old information is ancient history.
|
| home | site map |
| © 2006 TIGER MEDIA |