You are an investor, and you have been considering getting into the commercial real estate game. You have already made money on the residential side of real estate, but you’re interested in expanding your investing scope to more lucrative opportunities. While this kind of real estate venture can generate lots of cash flow, there are some issues you should be aware of before jumping in with both feet.
Running the Numbers
Image Credit: World Property Journal
When purchasing a commercial building or small stripmall-style property, you will want to take considerable time to go over the numbers of such a purchase. Will the cost of the property really justify the monthly generated income stream. Equally important, how long will it take to pay the property off—even if there are already renters paying an established monthly income rate. You have to know if this commercial venture is really going to be worth the investment.
Dealing With the County
Depending on what kind of commercial real estate you are investing in, there may be hidden licensing fees and county compliance issues that you must address along the way. Sometimes these issues are a matter of paying a fee to get the ball rolling. Other times, there are inspections that must be carried out, and you may even need permission from the county if laws have changed prior to you becoming the owner. Getting in touch with the county and knowing this information ahead of time is key.
When You Are the Landlord
Image Credit: BizCommunity
Being a landlord for commercial real estate can be a bit more complicated than being a landlord in other real estate ventures. This time around, you are renting to restaurants, retail stores, and a variety of other shop owners. The negotiations and contracts for this kind of real estate process are more entangling, and they require developing a more amicable relationship to ensure tenants remain long-term, loyal rent payers.
When it comes to sinking a huge investment into commercial property, you must make location a primary concern. Whether you are using a building for your own purposes or renting suites out to tenant businesses, you must make sure there is adequate foot traffic and visibility so that you will attract customers and clients. Otherwise, your location could kill any businesses trying to operate out of your commercial property—even your own.
Image credit: St. Louis Corporate Housing
Insurance is always a factor with any type of investment in commercial property. You would not want to risk owning such huge assets without having insurance to cover them. Before you purchase commercial property, you will want to be certain of the insurance ramifications that such a purchase entails. You will need liability insurance, flood insurance, in certain cases, and insurance to mitigate the costs associated with other types of potential damage to your commercial investment.
Going commercial with your real estate interests can turn into a huge investment opportunity. There is a lot of money to be made as the owner of commercial properties. The business applications are virtually endless, and so is the income potential.
When you’re ready to start the construction process, contact us at Pride One Construction to schedule a consultation.
Home renovation can be a long, complicated process, especially if you’re redoing your entire house at one time. Even so, there are several excellent ways to streamline the process and ensure it all goes well and is completed on time. Here are three of the best ways to make your next big renovation project go as smoothly as possible.
Plan Your Project Fully Before Beginning
One of the biggest mistakes you can make when undertaking a major home project is to start in before a comprehensive plan is in place. Often, renovations require more changes than you first expect. For example, installing a hot tub on its own, sounds like a fairly simple project. However, you also need to take into account the effect that installing new plumbing or electrical supplies may have on the rest of your home. Be sure to plan out everything comprehensively so you don’t have to improvise or make last-minute changes in the middle of the project.
Read Reviews and Know What You Want
Before you buy parts, materials, or labor for a project, you should have a very concrete idea of exactly what you want. The best way to make this decision is to read online reviews of different parts and materials. This will help you develop an understanding of the pros and cons of different options, so you can make informed decisions about what to buy when the time comes. Be sure to get recommendations and reviews on different contractors as well.
Block Out Time for the Project
Nothing is as frustrating as trying to complete a major home or apartment project around the rest of your schedule. If at all possible, try to take time off from work and other obligations so you can complete the project in good time, without having to balance it with other activities. This step is somewhat less important if you’re having a contractor do the bulk of the work, but some time off may still be necessary, so you can adequately plan the project out with your contractor and make whatever other arrangements need to be made to facilitate it.
By sticking to these simple tips, you can ensure your next home renovation project comes off smoothly and quickly. As with many other things, the key to a successful renovation is proper planning. If you go into it with a fully-formed plan that covers all necessary steps, you’ll find the renovation to be fairly easy.
The American Institute of Architects is a professional organization of architects based out of Washington D.C. and has over 90,000 members. It is one of the most influential architect organizations in the world and has ramifications on how construction and architecture are performed especially in the United States. Moreover, it is the industry-standard process for commercial construction invoicing, making it a very important aspect of real-estate and construction. Once this organization is joined, there are a host of rules that must be followed so that a high standard of quality is delivered.
What Real Estate Developers and Construction Companies Need to Know
According to Contract ERP, “AIA billing (sometimes called the percentage-of-completion method or progress billing) first became prominent in 1888 with the publication of the Uniform Contract.” The AIA was essentially founded to raise the bar in terms of architectural quality and promote a more precise nature for construction as a whole. Professionalism is the cornerstone of the ideals of the AIA and members are expected to export certain qualities and exude professionalism in order to please clients. This has built the image that the AIA produces some of the best architecture work in the world.
The AIA has five tiers of membership that directly relate to licensing privileges. These different licenses alter how much work an architect is allowed to do autonomously. A full-fledged member is allowed to practice anywhere in the United States while an associate member is not technically licensed, but is permitted to work under a licensed architect for the time being. Other variables that determine membership status: the amount of time spent in the organization, if the individual is physically capable of working or if they are licensed in another country. They also have more missions than simply raising professional standards. The AIA also aims to educate people on what good architecture should look like and try to spark public interest.
Overall, the AIA is a massive organization that any contractor or real-estate manager is going to have to be familiar with. The AIA influences everything from architecture licenses to governmental policy on rules and regulations in the construction world. Everything from the strict rules that members must follow the different types of memberships is important to know. Being well-versed in this pertinent organization can help anybody navigate the difficult world of real-estate and construction and enhance their prospects in those fields.
Building an office from the ground up is a laborious process. When done correctly, though, it pays off in the form of a more productive and efficient workspace. So, what features should you consider when building your office?
1) Energy-Efficient Lighting
Statistics show that 20 to 40 percent of the average commercial office building’s energy usage goes towards lighting. While you can always pull open the blinds and allow sunlight to illuminate your office, another idea is to install energy-efficient lighting like light-emitting diode (LED) or compact fluorescent lighting (CFL).
2) Technology Integration
Technology is critical to the function of any modern business, so you need to make sure it’s integrated into your new office. For example, you may want to build a dedicated room in the center of your office to house computing networking equipment. By placing your wireless router here, the wifi signal will transmit equally to all employees throughout the office. Additionally, consider building electrical outlets at each workstation to reduce the need for extension cables (which are also trip hazards).
Don’t wait until theft, vandalism or other criminal mischief occurs at your office to implement security measures. Take action now to protect your business and its office from damage. In addition to keeping the doors locked, installing a security system will increase your office’s security. Some security systems also feature built-in flood detectors. ADT’s flood detector, for example, uses a normally closed external contact input. When exposed to water, the sensor opens, triggering an alarm before significant damage can occur. With a security system such as this, your office will remain protected from harm that comes both within and without.
Consider an ergonomic design when building your office. This means designing your office so that it minimizes stress and fatigue on the workers who use it. Buying cheap office chairs may cause increased rates of back pain among workers. High-quality office chairs with an ergonomic design, on the other hand, protect against back pain by providing workers with a comfortable seating area. Make sure each workstation is designed with the worker’s needs in mind.
5) Interactive Whiteboard
A whiteboard is an essential productivity tool for the modern office. Rather than using a traditional whiteboard, though, give an interactive model a try. Interactive whiteboards are essentially large touchscreen devices that work and function like a whiteboard. Employers and managers can use them for presentations, training, research and other purposes.
By taking into account these features, you’ll have an easier time building the perfect office for your business. Let’s talk about your next construction project — talk to the experts at Pride One Construction today!