Make Easy Money Online: Become a Commercial Real Estate Property Scout

There are lots of ways to make easy money online. I am sure you have seen many of them in your email inbox.

One opportunity you may not be aware of is becoming a Commercial Real Estate Property Scout.

What’s a Commercial Real Estate Property Scout?

It’s a person who finds property for investors which meet a specific acquisition criteria.

Here’s the deal: This opportunity has nothing to do with sales, data entry, or any of those other possible questionable online business opportunities you may be aware of.

A Property Scout uses the Internet to search real estate listing databases for properties which meet the investors criteria. There are literally hundreds of these databases, many of which are free to use.

Advantages of the Opportunity

There are many things which make this opportunity attractive.

First, the price to get involved is very modest. It’s under $100 dollars.

Second, the money is really good. Frankly, there’s no comparison between what you can earn doing this and all the rest of the opportunities combined. It truly is one of the ways to make easy money online.

You can really earn hundreds of thousands of dollars a year.

Third, the support the company offers is incredible. While they won’t handhold or baby sit you, they will provide the weekly training, personal direction and weekly Q&A so that you can be successful–that’s more than any of the other opportunities do.

The fourth thing, is that you really can do this from home. There’s no travel involved. Plus it really only requires about twenty hours a week of work on a consistent basis.

The best part for me is that the company, Maverick Real Estate Investments, isn’t one of those schlocky companies promoting the next business opportunity. It’s real. And they sincerely want to see you successful because the big money for everybody involved is made when you find a promising property.

They’re committed to training you to be successful at it.

Maverick Real Estate Investments is in the commercial real estate business. That’s their purpose. And they’ve set up this business opportunity, so that they can attract people to help them find properties which fit their profile for acquisition.

It makes perfect sense if you think about it.

Disadvantages of the Opportunity

Are there bad points? Yes, a small one. But you really can’t blame the company for it, it’s just the nature of the commercial real estate industry.

If you need to make money right away, this is not the opportunity for you. Patience is key. While you can realistically make six figures and up a year, the fact is it takes time to find a property the investors want to acquire. It has to fit their profile (which they’ll thoroughly train you in).

And even when you find a property that meets their profile, they need the time to do whatever it takes to turn the property around which could take as long as 18 months to do.

But still, you have to admit it’s really good money. And let’s face it, you were to go into business for yourself, it would take that long AT LEAST to turn a modest profit–and nowhere near the money you’d earn as a Property Scout.

Now, they do offer an interesting way for you to get paid faster. But I wouldn’t recommend it, unless you really needed the money. You can get paid $15,000 when they buy the property and $15,000 again when they sell the property. It’s good money, but they prefer you to be partner with them and pay you when they sell the property and there are profits to be dispersed. It eases their cashflow.

Summary

In nutshell, this opportunity is legit. It’s lucrative. People ARE making money–and a lot. And it’s a profession which you can easily do from home using the Internet. Although it’s not perfect, it’s one of the few easy ways to make money online which is realistic and easily doable.

Commercial Property Management – Checklist for Property Management Handovers

When you take over the management of a commercial or retail property today, the information that you gather from the outgoing property manager or landlord will be critical to the establishment and future success of your property management processes.

Information is Critical

Lack of information in the handover process means problems and potential errors in the future. On that basis you should have a specialised handover process that you can implement on and with the handover of every property type within your local area. A checklist will help your activities as you bring in the new property to the management portfolio.

Here are some ideas to incorporate into your handover checklist:

  1. Get complete and comprehensive details of all leases and licensed occupied areas within the property. You will need to check these against the tenants physically in occupancy and the rental invoices that are raised for tenancy payment. Everything has to cross relate accurately.
  2. Copies of lease documents should be checked against the original documentation. Also look for side agreements for any extension or variance documentation relating to the original lease.
  3. Copies of correspondence relating to existing tenancy matters should be handed to you. Ask for this specifically and drill down on the details of each matter.
  4. Get copies of the current rental invoices and cross reference these to the tenancy schedules for the property. It is not unusual to come across in errors in the tenancy schedule or the rental invoices.
  5. The tenancy schedule should be checked against the actual leases and other occupancy papers and the signed documentation between the landlord and tenant.
  6. Check all outgoings charges and expenses that are applied to the tenancies within the managed property. The charging process should be shown on the rental invoices; you will need to check this amount and the process of recover that is adopted. It is not unusual to see errors in the outgoings recovery with tenants in managed properties. The process of checking will involve you getting copies of the current outgoings budget and the recent outgoings reconciliation.
  7. The arrears that apply to the property and any tenancies should be identified as part of the handover. They are sometimes discharged at the time of settlement, although the question should be raised in case you are taking over the ongoing pursuit of the arrears with any existing tenants. If that is the case you will need copies of all previous correspondence and claims.
  8. Current vacant tenancies within the premises may be the subject of lease negotiation. You will need copies of the lease offers that are or have been made and the status of the existing negotiations.
  9. Details of the maintenance issues within the building will be required. The essential services within the building will be critical maintenance contracts to identify early in the Handover. Any threats to the stability and function of essential services should be identified and addressed immediately. The maintenance contractors for the building will understand the function of the existing plant and machinery; get details of these contractors and then set up meetings as quickly as possible.
  10. Ask about any orders or notices that apply to the property or any part thereof. Check out any encumbrances, rights of way, or easements that apply to property usage.

So these are some of the main items that apply to the property management handover process. There will always be more issues and items to look at although these items listed above are the big ones to immediately get under control.

Beneficial Choices Commercial Insurance Clovis Gives an Individual

Commercial insurance is important for business entrepreneurs irrespective of the size of their business. Apart from comprehensiveness, the Commercial Insurance Clovis gives must also have enough flexibility. You can have an overwhelming number of options when you consider insurance for your business. Before starting a business, the entrepreneur writes a business plan. The policy is to help protect the business owner from unseen, unwanted events such as theft, fire, property damage, and employee injuries.

Different Options of Commercial

When one buys insurance, everyone expects the best protection with competitive pricing. The Commercial Insurance Clovis gives covers all these:

â— Professional liability.

â— Worker compensation.

â— Commercial property.

â— Business insurance.

â— Commercial auto liability.

â— Commercial umbrella.

â— Product liability insurance.

A company might not need all the insurances listed above. One can check the features of each and select the insurance that suits their need.

Professional Liability

The most important Commercial Insurance Clovis gives is liability insurance. This protects your company when it causes damage to another individual or company. This protection also includes defective products and the damage to a person on your business premises. You remain protected from property damages and personal injury. A lawsuit against your company can lead to bankruptcy but the liability insurance will protect you from that.

Worker Compensation

The employees in the company need protection under state law. This is to provide compensation if they get injured while working for the company. But, there is a stipulation that this is applicable only if you have a specific number of employees.

Commercial Property

Your bank will ask for this type of insurance when they hold your mortgage. Also, if you have rented commercial space from your landlord, then he might ask for this kind of insurance. The commercial property insurance protects the owner from damages to the property such as fire damage, weather damage, and theft.

Business Insurance

This covers various aspects of the business and depends on the size of the business. When you have a warehouse containing inflammable material, you must consider the insurance that covers fire damage. A Business Owners Policy (BOP) helps a business with more than 100 employees.

If your company uses vehicles, you might consider including commercial vehicles also. When many customers visit your business premises, liability insurance is also a must.

Commercial Auto Liability

This Commercial Insurance Clovis covers the business that uses commercial vehicles. The insurance protects you from any kind of damage the vehicle suffers, accidents, fire, and theft. You can also have an extended cover for covering delays in transporting passengers and goods.

Commercial Umbrella

This is also called the Excess Liability. If you work for a vendor, they might need this insurance from you. You might have insurance policy cover for many things but at times this might not be enough. In this case, the Commercial Umbrella insurance will cover it for you.

It is vital to keep your insurance up to date all the time. If you don’t, you will remain disadvantaged when you find out your policy has expired and you need the insurance cover.

Understanding Commercial Real Estate Leases

When you list a property to sell or to lease you need to understand the type of lease that you are dealing with. There are definite differences in leases at all levels and hence a lease must be read fully before proceeding.

Leases are the foundation of property performance. The best salespeople understand the leasing process and the high value that it brings to the future sale. A good lease can enhance a sale price when the time comes.

As mentioned, there are many different types of leases, but there are some rules and common basic elements which will allow you to understand the lease or the potential lease that you can apply to a property. It’s all about interpretation of the lease document and that means that you must read the document.

Professional Property Services

After many years of working in the industry, I have seen the best people set the foundations of success around the leasing process. This means that they have grounded themselves with investment skills and knowledge by leasing property for a few years. So let’s now look at how you can move down this path of skill development regards leasing.

The better you negotiate and the more fully that you interpret a lease, the more professional you are and you appear to the people that you work with or serve.

You can and should add strategic value in the client in every lease that you negotiate. A lease is not just a document to allow a tenant to occupy premises; it is a tactical cash flow that can attract to or detract from the property.

The way that leases work for the property investor will solidly impact on the property and its performance for the duration of the lease. As you work with tenants or buyers for the property, the type of lease that applies will also impact on the negotiations. Let’s look at the main lease types and expand on some of the most relevant issues for you.

Gross Lease:

Under a gross lease the tenant pays a full rent that includes a component for outgoings and the building owner will pay all building operating costs (also known as outgoings). This means that the lease itself will have rent review provisions that escalate the gross rent only.

In a lease of this type the landlord needs to know that they can maintain the building outgoings to predictable levels over the lease term as the landlord holds all the risk of paying the outgoings. The levels of rent review escalations in the lease must be expected to cover or exceed the escalations in the level of outgoings over future years otherwise the landlord will loose money.

Gross leases are common in retail and office property. Your choice in using this rent and lease type should be balanced against the predicted levels of outgoings costs and future changes for the subject property.

Obviously an older building will have steady escalations in outgoings above that of a building that is younger. As a building ages and deteriorates, the gross lease method becomes less attractive and more risky for the landlord.

Semi Gross Lease:

In this type of lease the landlord is initially setting a gross rent which is paid by the tenant and is reviewed over the term of the lease, however the landlord also gets paid some regular money for outgoings that increase under a specific calculation. This is how it is done:

The landlord specifically recovers the escalation in outgoings above a nominated outgoings base year. This base year is selected at the start of the lease and is usually the last reconciled outgoings year prior to lease commencement, which is usually the previous financial year to the start of the lease (because it is fully reconciled and known as a set value).

As the new semi gross lease proceeds through its term, the tenant has to pay the escalation of the outgoings above the nominated base year. For example, if in a lease the base year for outgoings purposes was set as the financial year 08/09 and the known level of outgoings for that year was $85m2 pa, then in the financial year 09/10 when the outgoings escalate to $97m2, the tenant will have to pay outgoings of $12m2pa. As the lease ages and in the financial year 12/13, the outgoings could be $108m2, and in that case the tenant will need to pay $23m2.

In this type of lease the base year is set and the outgoings ‘gap’ will likely increase significantly as the lease gets older. This type of lease is good for the landlord with younger properties, in that it protects the landlord against the escalation of the outgoings above the base year yet still allowing the landlord to use a gross rent as the foundation for rent charge and collection.

It is common in this type of lease for the base year of outgoings to be updated at the time of any market rent review during the lease. Market reviews in this type of lease would be undertaken if the lease was lengthy (over 3 years) and so the market rent review would occur say each 3 or 4 years.

It is not necessary to do a market rent review at any particular time in a lease as the matter is negotiable at lease commencement, however be aware of the fact of re-setting the base for outgoings and the impact it will have on the landlord.

As a further interpretation of this type of lease you should look at the type of outgoings that are recovered in the calculation. It is not unusual for ‘lease savvy tenants’ such as the government or large corporations to nominate the type of outgoings to which the base year escalations will apply.

Naturally it is better for the landlord to recover the escalation in all outgoings in a building above the base year, however the government and corporate tenants are well known for limiting the calculation to rates and taxes escalations.

Clearly a lease is a product of a negotiation, but you need to understand what can be done and then get the best lease deal possible for your client.

Net leases:

The term net lease is firstly generic; hence you should be aware that there are 3 types of net leases within the category. So let’s look at them.

Net lease: In this lease the tenant pays some or all of the rates and taxes for the property or premises.

Net-Net lease: In this lease the tenant pays the rates and taxes as nominated in the ‘net lease’ method but they then also pay for insurance premiums for the property and premises.

Net-Net-Net lease: In this lease the tenant will pay for the rates and taxes, the insurance of the premises, and they will then also pay for repair and maintenance costs associated with the premises.

So what lease type is the best for the landlord? In most cases the Net-Net-Net Lease is the way to go, however it is a matter of if the tenant will accept and sign that type of lease.

As a point of negotiation it would be wise in any Net Lease, or a Net-Net Lease to have a higher start rent for the landlord and better rent review provisions that offset the lesser outgoings recovery for the landlord.

Net-Net-Net leases are common on properties that are fully occupied by one tenant. This is method of lease structure is widespread in industrial property and office property.

Percentage lease:

This type of lease is more commonly seen in retail property as the calculation of rent is linked to the trading figures for the tenant. In most leases of this type the tenant firstly pays a fixed base rent that is geared to some rent review method, and then the tenant also pays additional rent that is calculated from their turnover or sales. As the tenant improves its trading, then the rent escalates.

An essential part of this lease structure is to obligate the tenant to give you accurate and regular audited turnover figures. The lease has to support and enforce the audit process for the landlord. Monthly turnover figures are the best way to go in this, with the tenant providing the audited figures to the landlord by say the 7th of the next month. The landlord then charges the turnover rent to the tenant based on the audited figures.

This type of lease is also seen in new shopping centres as new tenants stabilize levels of custom and sales, in supermarkets for the same reasons, and in hotels or motels. The basic strategy with turnover rent is to give the landlord some cash flow from the establishment of a base rent from the start of the lease, and then to collect additional rent as the property and the tenancy becomes more successful in generating sales and customers.

Spell it out

In all leases, the recovery of rent and outgoings must be clearly set out to avoid debate and disagreement with the tenant. As you can now see, the selection of the lease type that you are to use on a property will significantly impact on the future for the landlord. It will also impact on any sales situation.

It pays to know what is going on in the market regards lease and rent types so that you do lease deals that are similar to or better than the rest of the market. The right lease structure, document, and rent will help sell properties at better prices.

Great Comeback for Commercial Real Estate in India!

These days, the demand for commercial spaces has been on the rise and is pushing the yields higher than any other prominent businesses in the cities across the globe. Prominent cities in India like Bengaluru, Mumbai and Delhi have topped the commercial property market in terms of annual rental yields. Reports have confirmed that, these three markets have outperformed all the other global hotspots with 9.5 -10.5% annual returns.

According to a recent global survey made by a popular property consultant firm, Bengaluru has topped the list with the annual rental yield of about 10.5%, whereas the cities like London, Singapore, New York and Hong Kong ranged between 2.5 – 7% at the highest. This is just an instance that proves Indian commercial real estate is back to form.

Bengaluru and Mumbai in Top 5 Global Cities’ List

Yes, Mumbai and Bengaluru are in the list of top 5 global cities for future rental growth and it is also expected to grow to 22% and 16% respectively. Also, 67% of the investments are flowing to Indian real estate market, which is highest among all the other countries. This clearly indicates the growing appetite of Indian commercial property market.

Healthy Traction Since 2014

With all the real estate happenings across India, it’s quite evident that the office space market has been in a healthy traction since 2014. India registered the office space transactions of about 18 million sq. ft. in the first six months of 2015, and by the end of 2015, the country completed the transaction of a whopping 40.21 million sq. ft. which is the highest since 2011. It also has to be noted that, out of 40.21 million sq. ft. area, the transactions of about 12 million sq. ft. was happened in Bengaluru.

Robust Demand for Office Spaces

It’s true that the yields have shown a robust growth, but the current office rentals in Delhi and Mumbai are still lower than the peak levels of 2007 by 19% and 17% respectively. Bengaluru is an outlier here also wherein the rentals are more by 8%. Currently Mumbai and Delhi are facing an acute shortage of quality spaces, which has created an upward pressure on office rentals.

With this being the scenario of Indian commercial real estate, the Real Estate Investment Trusts are expected to give a further push to the commercial real estate and is also estimated to have the investments worth $100 billion in the next few years. Even though the vacancy rate stands at 17%, investors and occupiers are still finding it difficult to get quality office spaces across prime districts.

Due to the robust demand for office spaces from start-ups and large organizations, rentals are experiencing a substantial surge leading demand to outstrip the supply. Looking at the demand for office space, we can say that commercial real estate market is making a strong comeback after being in dumps for about three years, having great deals in the pipeline and showing the signs of recovery.