Investment Property Services

Real Estate Investments | Commercial and Industrial Space | Types of Real Estate Investments | Bank Financing

1) REALESTATE INVESTMENTS
IDENTIFICATION PROCESS:

Identification of investors' criteria for investment;
Research of real estate investment proposals available on the market that best fit the investors identified criteria and budget;
Present as many properties as possible that fit the investor's strategy;
Analyze the properties with respect to short and long term investment criteria;
Analyze all strategic factors regarding the intended use of the investment, the quality of the location and local market evidence.

PURCHASING PROCESS:

Conduct detailed financial feasibility analysis of the investment proposals;
Assess that the value of the property in question is reflective of the current market condition;
Represent the investors in the process of price negotiation with potential seller;
Provide assistance with legal, fiscal, administrative and financial matters of the purchasing process;
Negotiate best financing packages available from local institutions.

PROPERTY MANAGEMENT:

Improve the value of the investment through proactive and efficient property management:
Provide day-to-day management activities of the properties;
Income optimization through the assessment of all potential improvements and marketing strategies that will increase the property's income and consequently its value;
Provide clients with regular periodical detailed summaries of all expenditures;
Selection of all tenants and maintenance of all relations;
Keep investors informed on all developments on the real estate markets.

2) COMMERCIALAND INDUSTRIAL SPACE
LEASING & RENTAL:

Assist the clients in the process of identification of space to be leased for commercial purposes.
Advice clients on current, and expected future, commercial market conditions;
Present the most appropriate selection of space available;
Represent clients in the process of negotiation of a contract for leasing space;
Assist clients with all legal and administrative matters.

3) TYPES OF REAL ESTATE INVESTMENTS
RESIDENTIAL RENTALS "Apartments":

Rental Apartments:
These residential complexes consist of structures of 6, 12, 40, 100 apartments located in a downtown area or in the nearby suburbs. All the expenses and taxes are paid by the owner. Generally the American construction techniques are to build primarily by a wooden structure. The outside of the buildings could be anywhere from wood to concrete or bricks. The value, level of comfort, the commerciability of the building is not affected by which kind of material used.
Properties of such type could contain:
Studios
1 Bedroom
2 Bedrooms
3 Bedrooms

"Condominiums"
Contrary to the above described rental apartments, the condominiums are usually purchased and sold on a singular bases, and the expenses are proportionate to the space of the apartment.
Condominiums could be:
Studios
1 Bedroom
2 Bedrooms
3 Bedrooms.

COMMERCIAL INCOME PROPERTIES:
Investments in these types of building complexes are widespread inn the U.S. The management of such complexes more stable and less intense than the management of residential ones, and the value is directly related to the Net Operating Income generated annually. The leases of tenants occupying these complexes run normally from 2 to 10 years.
Commercial rental properties could comprise:
Office Space (class A)
Office Space (class B)
Shopping Centers ranging from 4 to 50 stores
Shopping Centers ranging from 50 to 100 stores


4) BANKFINANCING
Approved financing, or mortgages, take effect the moment titles on the property is exchanged from the seller to the buyer. Banks finance up to 75% of the assessed value of the building, which is directly proportionate to the yearly net operating income the property can produce. Mortgages structure could be with a 5 to 30 years amortization period, and fixed or adjusting interest rate. These mortgages do not require anything other than a participation of the remaining 25% (Leverage purchase) of the purchased value, and normally do not require personal collateral as form of security for the bank.

EXAMPLE "LEVERAGE" PURCHASING METHOD :

Consider an investor that has $200,000 to invest, and lets assume that a building that can be purchased with $200,000 and generates $20,000 yearly of income can be found. If the investors would purchase this property all cash, the return on the investment would equal 10% annually, not including the capital appreciation over time;
Assuming now that the investor could obtain financing for 80% of the purchasing value, $160,000, and that such financing would cost 10% of the amount borrowed, $16,000 a year. In such way the investor would tie only $40,000 of available capitals (the difference between the purchasing price and the amount borrowed), but at the same time would benefit from the ownership and appreciation of the full $200,000;
Subtracting now from the yearly income of $20,000 the $16,000 as financing costs, would generate $4,000 yearly that would still represent a 10% return on the $40,000 of the initial investment;
Assuming that five properties like the abovementioned $200,000 building were available, using the leverage approach would enable the investor to acquire $1,000,000 worth of buildings with $200,000 of invested capitals, diversify the risk in more than one location, and ultimately benefit from the ownership and appreciation of $1,000,000.