What to Know Before Buying a Commercial Building
Buying a commercial building is the best way to push your business ahead and make massive strides: but if you decide poorly or don’t plan well enough, you could be setting your company up for failure. Whether this is your first commercial building or your fiftieth, it’s vital that you consider some things before making that purchase. These are the top ideas to think over. How Much Space You Need Now and Will Need in Ten Years Although you may be looking at some of the most incredible buildings and feeling inspired by them: it’s vital that you consider the space within them. Before anything else, plot out what a reasonable growth plan for your business for the next ten years would be. Of course, it’s a good idea to be realistic, but every company changes and shifts over time, so it’s vital that when you put in the money, you know that this building will be able to handle your needs. If you’re expecting to bring in more employees or change to bulkier equipment within the next five years, you’ll need to get a commercial building that has room for you to grow into. What Features The Building Has, And Which You Need What features does this commercial building have? Does it offer an updated breakroom with awesome options for your employees? Does it have attractive architectural louvers that ensure the HVAC system runs like a dream? Is there ample parking with easy access to the building? These may seem obvious, but one of the biggest mistakes you can make is buying a building without looking at what it offers: and considering what you need. On the other hand, if a building is just outside of your budget, but you love the details and amenities it has: consider buying lower and looking into the cost of adding those amenities yourself. Although this will make you put more money upfront, it can turn out cheaper overall. Do The Spaces Work For Your Specific Needs Many features that buyers look for in commercial office design ensure the building is perfectly suited to their business. If your budget is tight, it’s good to be flexible, but not so flexible that you try to turn an overheated warehouse into a call center. Look at the layout of the space, consider the number of rooms and their current use, and think about whether or not this speaks to what your business needs. Although you can update things and change walls or the layout whenever you want, it’s expensive to do so and should be avoided if possible. Is The Location In An Area Easy to Reach By Customers and Employees Whether you’re going for a 5,000 square foot or 20,000 square foot building: it’s vital that you consider the location. If you’re not planning on running your business alone, is this location a space that customers and employees could easily access? Although you shouldn’t buy a city-center location if you can’t afford it, it’s a good idea to keep as close to populated areas as you can. Land may be extremely cheap in distant communities, but if you can’t get enough employees to work the machinery or handle operations: it’s not worth the saved money. Try to find a balance between affordable and accessible for your employees. How Are You Financing This? Can You Afford it Even if Sales Dropped? How do you plan on financing your commercial building? Are you planning on getting a long-term loan that you’ll pay back in sales, or are you paying for it out of pocket? If you’re getting a loan, it’s vital that you ensure even if you lost fifty percent of your sales, you’d still be able to afford this space. Although nobody wants to think about their business dropping that much, 2020 showed many companies that they have to be prepared for any possible incidents that could happen. Careful planning and budgeting will protect your company even if everything else goes south. Do You Have a Team Behind You Helping Make Decisions? How are you deciding on this property? Are you the only decision-maker, or is there a board you have to gain approval from? Try not to work alone on this decision, and loop in an experienced commercial real estate agent to help you. Not only will they be able to show you more properties that you may not have considered, but their experience will also help you avoid making any big mistakes. Your business is a large investment of time, work, and money, so don’t go into any huge decision until it’s been thoroughly discussed and plotted out. Buying a Commercial Building is a Huge Investment Buying a commercial building is a massive investment that will tie your entire financial future into whether or not your company succeeds. It’s important to plan ahead and work with an experienced real estate agent to make sure you’re making the right choices. Sam Willis is a contributor to Innovative Building Materials. He is a blogger and content writer for the real estate industry. Sam is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes. – Sam Willis
Want to Upgrade a Fixer-Upper?
Want to Upgrade a Fixer-Upper? Know How to Proceed to Get the Most Profit Purchasing a home in the Greater Philadelphia area, renovating it, and then flipping or renting it can be a profitable investment. However, you should know a few tips, or you could find yourself losing money. Franklin Investment Realty will be there to guide you through the process and here are a few tips below. Consider a Real Estate Owned Property A real estate-owned property is one taken by a lender due to failure to pay. You can find listings for REOs in Philadelphia and the general vicinity on a real estate listing site, such as realtor.com. You can also check for listings through an auctioneer or on a bank or government site. Typically, an REO property is less expensive than a standard listing. Be cautious as you look for REO properties, though, because some may need significant repairs. Take into account the location and the nearby amenities. These play a major role as to whether the home will sell or entice renters. Additionally, get an appraisal to determine the listing price compared to the actual value. Rent or Sell Carefully weigh the pros and cons of renting or selling. Keep in mind that you’ll be responsible for the yearly taxes, even if you have periods when the home is vacant, if you rent. You’ll also need to maintain the house and make repairs as necessary. If you sell the home, you’ll only need to worry about paying taxes once. In addition, you may need to make certain repairs before closing if you sell. As a general rule, a home that you sell is held to higher standards than one you rent. Therefore, if the house needs significant repairs after the renovation, it may be in your best interest to rent the home. You should also take into consideration the housing market. If the current conditions are in the buyer’s favor, you may want to rent first and sell when it’s a seller’s market. When marketing the house, be sure to list it widely online with good photography. Use the best online image size converter to guarantee that your images look their best on each website. You can also use social media to publicize your listing. Know Your Responsibilities and the Law Know what you’re responsible for first before renting a home. Firstly, and possibly most importantly, you’ll need to comply with Pennsylvania laws. For instance, you must take care of major repairs, such as a broken toilet or heater. If you don’t keep the property up to code, a tenant may have a legal reason to withhold rent. You’ll need a written lease or rental agreement. The agreement should include information, such as the rent price and when it’s due. You may want to hire legal assistance to ensure you’re in adherence to Pennsylvania laws. Think About Hiring a Property Manager A property manager handles maintenance and repair. Hiring one may be especially important if you don’t live in the Philadelphia area since every time something needs to be repaired or maintained, you’d need to be there, possibly outside business hours. It’s also beneficial if you’re busy or unfamiliar with home repair. You can find local options online. Make sure you read reviews first as you compare. You’ll want to check for licensure and certifications. Turn That Fixer-Upper Into Profit Ensure your investment is profitable by making a sound decision regarding renting or selling. It’s also essential to understand the law and hire assistance when needed. – Rhonda Underhill
Guide to Philadelphia Investment Property
Guide to Buying Rental Property In Philadelphia Millennials, people between the ages of 23 and 38, have surpassed Baby Boomers as the nation’s largest adult generation. But they still trail the Boomers when it comes to being heads of households. But the strange thing is, millennial households dominate the home rental market. Because our largest adult generation would rather rent their home than own it, the real estate market is ripe for people looking to invest in income properties. America’s Favorite Long-Term Investment The popularity of real estate is near an all-time high. Low interest rates and the millennial generation’s desire to rent rather than own is increasing the demand for rental real estate. Is it time to get into the landlord business? Owning a piece of rental property can be a great investment when it is approached with a long-term outlook. Someone else pays down your mortgage, you keep the rent that exceeds the mortgage payment, and hopefully the home’s value increases over time. Financing Can Deliver Better Returns Some people think that if you are going to buy an income property it should be done with all cash. That way the entire rent check goes into your pocket. As an example, an investment of $100,000, the price of the home, may return $12,000 per year ($1,000 per month x 12), or 12%. However if you bought the same house using leverage, with only 20% down ($20,000), after interest charges your return on investment (ROI) could be over 25%. Where To Look: Location, Location, Location Everyone thinks they need to purchase a rental property where the monthly rents are the highest in a neighborhood where the buyer would want to live. That is not necessarily true. The people who gain the most from owning rental property are the ones that buy in areas with the greatest potential for appreciation. Remember we need to be thinking long-term. House appreciation will almost always surpass the money earned from growth in rents. This is where working with a knowledgeable realtor comes into play. They know where the desirable areas are that offer the greatest potential appreciation. Down The Road Owning a few paid off rental properties can really add to your Social Security check when you are ready to enter into retirement. You won’t have to “cut back” your lifestyle in retirement. You will be able to take more vacations, drive a nice car, and do the things that you have always wanted to do. Those things may be volunteering your time or spending more time with the grandchildren. If golf is your thing, you could visit and play some of the notable courses around the country, or even better, buy a golf simulator and play those courses on your projector without ever leaving your house. In The End You could invest in the stock market, but try going out to a company you’ve invested in and tell them you would like to tour the facility or look at the books. Fat chance of that ever happening! With an income property you are in control and you can drive by or enter it almost anytime you want. Owning income property can be an excellent investment. Approach it like a business and it can generate a substantial passive monthly income. Just realize that an income property is not an instant cash cow, it is a long-term investment. And in real estate, you make your real money when you buy, not when you sell. So spend some time with a Franklin Investment Realty agent that knows the market and can guide you to the better areas in and around Philadelphia to invest in. – Karl Kennedy
9 Ways to Properly Dispose of Demolition Debris
Construction and demolition (C&D) waste is produced during the construction, renovation, repair and demolition of homes, significant constructions, roads, bridges, locks and dams. Construction and demolition (C&D) waste are unlike everyday waste. You can’t just throw it in the trash, and your local dump truck can take it away. If you have significant debris, especially demolition or construction waste, you will need to organize your disposal differently. Credit: KnockItDown.com Some of the waste generated during the construction process can be eliminated. For example, a durable modular metal system for concrete construction may be picked to be effortlessly disassembled and reused in future projects, thereby avoiding wood waste in plywood and trimmed wood formwork. Disposal of waste can help reduce impacts on human health and the environment. Some of the most common types of construction and demolition debris include: Concrete Bricks Drywall Plaster Metal Roofing materials Glass Wood Wiring Plumbing fixtures Insulation (non-asbestos) Rock Soil How to Dispose of Your junk? Disposal methods based on your type of construction waste: Almost all types of construction debris can be recycled, including tiles, lumber, concrete, metals, plastics, rock, drywall, etc. If you wish to dispose of the debris yourself, you should check with your local facility to see if they can accept it. Also, keep in mind that the transport itself can be a challenge, especially if you have a lot of debris to carry. Construction materials classified as hazardous waste must be handled and disposed of following state or federal regulations. When constructing a building, take the time to evaluate the materials you need as accurately as possible and keep the project organized. R&D waste generated during construction may include hazardous, non-hazardous, biodegradable or non-biodegradable debris or waste. Construction and demolition waste collected in trash chutes and containers are transported to diversion facilities via truck. Waste is classification as non-hazardous and hazardous waste. The safe and best disposal methods of construction waste are: Donate: Some construction debris or useless materials can help some local or needy people. Sometimes decorative items or old devices find a new home through donations. Reduce: Choose What You Buy Carefully. Careful planning ensures that you don’t buy unnecessary and unsuitable materials that end up in landfills. For example, you can avoid unnecessary waste from pieces like pipes and wood simply by purchasing a more suitable size and length in advance. Reuse: Think about what leftover materials you could convert for other projects, such as bricks, windows, tiles, etc. It is also possible to transfer materials or exchange them for another construction site and participate in a recall program. Some of these schemes allow you to return the packaging to its original manufacturer. Recycle: Most of your waste is likely to be recycled, including wood, metal, plastic, paper, glass, concrete, drywall, asphalt, and more. Therefore, you need to separate recyclable waste so that collectors can dispose of and process it properly. Often, your materials manufacturer and your disposal company will advise what can and cannot be recycled and how to separate and store it. Rent a Dumpster: Dumpsters are available in various sizes, from 3 cubic meter bins to 40 cubic meter construction dumpsters and can be rented easily. It is the ideal solution for building, demolishing, cleaning houses, roofs, removing yard waste and recycling in bulk. Disposing of hazardous construction waste: Hazardous waste must be treated and disposed of according to the state or country regulations. Few commonly used disposal methods for dangerous construction waste are explained below: Disposal of Mercury-Containing C&D Waste: The items that contain mercury must be isolated and taken to a mercury recycler or consolidation site. It is recommended to label and store mercury contained devices to ensure proper disposal. Disposal of Lead-Based C&D Waste: Remove all lead-containing building materials and store them in containers. Get in touch with your local waste authority for instructions on how to dispose of lead paint residue. Disposal of Asbestos Construction Waste: Asbestos waste must be packaged appropriately in airtight containers. It is packaged and disposed of at an approved disposal site. Demolition waste must not be shredded, shredded, ground, ground, mulched or otherwise treated to improve recovery before disposal. By properly disposing of construction and demolition debris, you can save money and reduce waste. – Erich Lawson
Steps for Buying Your First Investment Property
Buying your first investment property comes with great excitement. However, it can also be scary, as you are unfamiliar with the territory of owning an investment property. There are many options and different factors that can influence your decision. While it may feel overwhelming at first, it’s easy to buy your first property if you follow the right steps. The key is knowing the reason you’re investing in real estate, your goals, and the obstacles that may be in your way. To get started with your real estate investing journey, here are the must-follow steps, presented below by the real estate professionals at Franklin Investment Realty. Get Pre-Qualified If you’re in the planning stages of buying a property, you should get pre-qualified for a mortgage. While this is not an official approval, it can help you raise the chance for financing. Pre-qualification tells you the things you need to get financing. For example, if your debts are too high, you can pay them off to boost your credit profile. Pre-qualification is an important step if you don’t have enough money to acquire the property without borrowing. Typically, a pre-qualification is good for about 90 days. However, when ready to buy the property, it’s recommended as it can speed things up when applying for a mortgage. Define Your Investment Strategy It’s crucial to approach real estate with a strategy; for instance, determine if you’re buying for the long-term or on a short-term basis. If you’re buying to hold, you need to consider things like maintaining the property, managing your investment, and ensuring you get the returns you expect. If you want the best results renting the property, you must consider a good location that is in high demand. Also, you can hire a property manager to help you with all that is required to keep your investment running smoothly. Look for Suitable Property After doing all the “leg work,” you need to find a suitable property. It’s easy to get the information you need without too much effort. Browse online here to see which properties are on the market. While doing the search, you don’t need to restrict yourself to a single geographic area. You can also explore outside your state. An easier option is to hire a buyer’s agent like Matt Scannapieco to assist in the search process. Due Diligence After locating the property you want to buy, it’s important to do due diligence. Home inspections are an important part of the buying process; after all, you need to know the property’s repair exposures to ensure you’re getting a reasonable deal. Talk to a contractor to know how much it would cost to fix any damages and plan for future improvements. There are different outdoor improvements you could do, including installing a new fence. There are many local fence companies you can contact for such a project. Ask for a quote for the project and also review the company’s performance by reading reviews online (sites like Angi allow you to read reviews from previous customers). The cost depends on the size of the fence and where you want to install it. All these costs should be a part of your calculation to decide if the property will give you a good return on investment. Create a Support Team Investing in real estate requires the collaboration of different people. You need eyes all over the place to create a successful portfolio. Your support team could include: An attorney An inspector A home contractor An appraiser A loan officer A real estate agent from Franklin Investment Realty These will work together to cover all angles and ensure your investment offers the best returns. You need someone to review the legality of documents, another to calculate the property’s value, and another to check the property’s soundness. You can also enlist the help of specialty services that can help you with specific tasks related to starting your business. For example, if you’re registering as an LLC, work with a company like ZenBusiness to ensure that all of your paperwork gets filed correctly with the state. Getting your first investment property is an important financial decision. You should consider a property that will appreciate in value and also give you cash flow. This is a good way to diversify and ensure you don’t put your eggs in one basket. These guidelines should help you understand where to begin so you can lay the foundation for success. – Rhonda Underhill