Law Office of Ryan S. Shipp, PLLC

Posts tagged "Commercial Real Estate"

Commercial real estate can be a rewarding investment

Florida investors may be interested in learning that commercial real estate can be an exceptional method of earning a passive, profitable stream of income. While a real estate investment can be different from typical securities like stocks or mutual funds, commercial real estate can be successful and secure as an ongoing investment and business opportunity. When selecting a project in which to invest, there are several factors an investor should consider in order to make the best choice for his or her portfolio and style.

Large real estate trusts continue growth pattern

Investment in residential and commercial real estate is continuing to grow in Florida and across the country, as major real estate investment trusts (REITs) continue to acquire and build new homes for generating rental income. The percentage of occupied rental homes in 2017 grew and is expected to continue to rise as even more rental homes are acquired and built by the large REITs across the country.

Commercial real estate provides shield against volatility

Florida investors may be wondering what the future holds for the commercial real estate market. After decades of regular double-digit returns, it seems that, on some levels, the market has slowed down. In 2016, the returns fell below the annual average of 10.1 percent for the first time since 2008's major economic crisis. In addition, some forecasts envision 6 percent returns for 2018 and 2019.

How to benefit from HECM reverse mortgages

Florida residents who are looking to buy a home with an HECM reverse mortgage may benefit from understanding the new rules surrounding this type of loan. In the past, a buyer could reduce the mortgage insurance premium by drawing less cash. However, there is now a flat fee of 2 percent of the property's value regardless of how much cash is drawn.

How tax reform helps CRE investors

Florida residents may not all agree with the tax cut proposed by the GOP. Some who study the issue believe that it is generally better to have a stronger economy and higher taxes as opposed to lower taxes and a weaker economy. However, the bills may provide ways for those who own commercial real estate to make a profit. Those who are single tax filers and make less than $157,500 may be entitled to a 20 percent tax reduction.

Pop-up stores offer options

Major disruptions in the retail sector across Florida and around the country have created changes within the commercial real estate market. Many retailers have either gone out of business or have retreated from brick-and-mortar stores to concentrate on e-commerce efforts. As a result, landlords and property managers are actively seeking new commercial tenants while entrepreneurs are likewise seeking opportunities.

How to effectively do due diligence

Those who are selling commercial real estate in Florida generally want the deal to close as soon as possible. Those who are prospective buyers want to make sure that they are getting a quality property. Therefore, it isn't uncommon for buyers and sellers to have different ideas as to how the due diligence process should play out. In some cases, buyers may want more time for due diligence because it also buys time to find financing.

Variables to consider when buying real estate

Renting out a single-family home may seem like an easy way for Florida residents to make money investing in real estate. However, there are many problems that an investor may encounter. First, the owner of the property has to decide whether to manage it on his or her own or pay someone up to 10 percent of the property's income to look after it.

Law Office of Ryan S. Shipp, PLLC | 814 W. Lantana Rd., Suite 1 | Lantana, Florida 33462 | Phone: (561) 699-0399 | Map & Directions