More and more people are today choosing real estate as a mode of investment. There are many different ways of earning profits from real estate. While fixing and flipping and buying rental income properties are popular among some investors, it is investment in commercial real estate that is gaining popularity among majority of investors. CRE investment is different from residential real estate investment in the sense that there are dozens of accommodation or commercial units in a single complex in this investment strategy.

You can hope to earn income in two different ways if you are planning to invest in CRE. You can lease out the property at a price that covers the cost of ownership and also generates monthly income in the form of rent. You also earn profit when you finally decide to sell your property as prices appreciate considerably in a short time period. Commercial real estate has produced rich dividends for the investors if they know how to manage such a property.

If you have invested in an apartment complex, you will have individuals and families as your tenants. On the other hand, businesses lease spaces in commercial property. They pay large amounts as security despots and then they also pay monthly rents. Terms and conditions as well as duration of such leases are different and so are the deposits and rants. Regardless of the type of property you are planning to invest in, it is important for you to do your homework in advance so that your objectives of cash flow and rental income are met.

Returns from commercial real estate investment also include gains from appreciation of property prices. Though prices of commercial properties mostly increase, they may lose value in some cases. Depreciation takes place only when there is an economic downturn in the region or the housing market. If market conditions are good, appreciation depends upon how well the property has been maintained and managed. If you can add value to your commercial property by undertaking periodic renovations, you can increase the rate of appreciation and reap the rewards when you finally resell the property. However, value-add approach may not produce sufficient cash flow for you as you reinvest the income to carry out repairs and renovations. But you are rewarded well when you finally decide to sell your commercial property.

Rate of returns in commercial real estate investment strategy are highly dependent upon demand and supply. If commercial property, which includes retail shops and offices, is scarce, you can expect high return on investment.  However, if the location in Columbus where there are open spaces and commercial property comes up after your purchase, you may suffer from low vacancy rates resulting in decreased income. In locations where tenants have limited choices to move out, your commercial real estate investment may turn out to be like gold.

In the end, it would be correct to say that investment in commercial real estate can be very profitable if you do your research before buying a property.

Commercial real estate market in Columbus has received a massive boost recently. Priam Capital, a real estate firm from Nashville, has made its entry in Columbus in a big way. This Nashville firm has purchased two huge commercial complexes situated on Goodale Boulevard. The company has made an investment of nearly $12.7 million for the purchase of these properties situated on 1400 and 1404 Goodale Boulevard in a neighborhood called Grandview Heights.

According to reports from insiders, both commercial properties have a combined space of more than 80000 sq foot. Both contain offices and retail shops. Priam Capital has started to market these properties by describing the available offices as workplaces in a prime location with special features like open spaces,, natural sunlight, and open layouts.

For those who do not know this Nashville firm, the company has a portfolio of more than 900000 sq feet mainly comprised of multi tenant commercial complexes. Priam Capital was established in 2010 but it has carved a niche for itself in the commercial real estate market as an aggressive developer. The company acquired several properties in many other states before coming to Ohio. Alabama, Indiana, Kentucky, and Tennessee are th states in which Priam Capital has already purchased properties. These two buildings on Goodale Boulevard are the fits purchases of the company in Ohio. This information is shared by the company on its website.

Interesting fact about this purchase is that the two buildings are already 100% occupied. This means the sale of these commercial properties was not a result of poor rate of returns. It seems Priam Capital made an offer that was deemed irresistible by the owners of these properties. Many of the tenants inside these properties are those who are well known names in Columbus. These include Zaner Bloser, Greenberg Farrow Architects, King Business Interiors, and Navigator Management Partners. The present status of these properties can be termed as an impressive turnaround from a situation when they were nearly empty in 2016.  The warehouse at 1400 Goodale Boulevard presented a deserted look at the time when Manley Dias & Kochalski decided to vacate the premises in April last year.

Abhishek Mathur, who is a partner and one of the founders of Priam Capital, said that this locality and the buildings with their distinct contemporary looks were on the radar of the company for quite some time. He added that the plans to acquire these properties were finalized soon after the company learnt about their 100% occupancy rate. This feat was achieved by the buildings recently and it did not go unnoticed by Priam which was ready to add them to its portfolio.

It is interesting to note here that the owner of the properties, CapRocq, had purchased them only in 2016. It paid $1.4 million for 1404 and $5.7 million for 1400. It can be seen that they made a solid profit of more than $5 million with this transaction. CapRocq is not leaving the locality altogether as it still owns a property at 855 Grandview Avenue.

If you have anything to do with real estate, it must be clear to you that Central Ohio housing market is red hot at the moment. You may have also read reports about sky high prices of homes in Columbus and wondered what’s going on there. The fact of the matter is that demand for homes in this region is far ahead of supply. Buyers are not getting new homes and they are lapping up whatever is coming on the market. In fact, homes are sold in no time at all after being listed on the market.

Prices of houses in highly desirable neighborhoods of Columbus have appreciated by more than 50% in the last 5 years. It is hard to believe that houses in Clintonville, Bexley, Upper Arlington, and Grandview have become so expensive in a short period of time. However, it would be wrong to assume that housing market is hot only in these posh localities of Columbus. Demand for affordable homes is pushing prices of houses even in middle class neighborhoods like Whitehall, Franklin Park and Olde Towne East.

There are some experts who feel that the housing market of Columbus is a victim of the fast economic growth of the metro city. Job scene is great and income levels are rising. People have a desire to move to Columbus because of low unemployment rate and access to all modern amenities. The rate of influx of migrants is higher than the rate at which houses are being built. This has pushed the demand for housing up and the prices of homes have consequently gone up.

Last year, 18600 new jobs were created in Columbus MSA. However, only 8249 new homes were built in the same period. These included not just entry level 1 bedroom apartments but also the luxurious $2 million villas. According to experts, housing market of a place is said to be in a state of balance if 1.25 to 1.5 jobs are created for every new residential unit added to the housing market. But in 2016, nearly 2.25 jobs were related for every new household in Columbus. As such, Columbus MSA qualifies to be called an underserved housing market.

Increasing the misery of the buyers is the fact that very few of the existing homes are coming to the market. Only 4286 houses were on the market in February 2017. This is more than 21% less than the number of houses on the market in February 2016. The result of low inventory and increased demand is skyrocketing prices of homes in the area. Realtors say that this unusually high demand has created a situation where homeowners are getting multiple offers in less than 24 hours of putting their homes on the market. His has given birth to a feeling of frustration among the buyers as they are unable to buy homes despite getting involved in a bidding war with other buyers.

According to experts, nearly half a million new homes are needed in Columbus in the next decade or so to bring semblance of stability in the housing market.

If you think time has come for you to buy a home for your family, one thing that you need to look is your credit score. There is no need to start your house hunting exercise before you have obtained a pre qualification letter from a lender. Interest rates are still low but to get the best mortgage, you will need to observe sound fiscal discipline so that your credit score is high.

1.      Make it a habit to pay your bills on time

You have to inculcate the good habit of paying all your bills, whether they are utility bills or for purchases made using credit cards, on time. You may not think much of slight delays in payment of bills but the single most important factor affecting your credit score is your history of bill payment. In fat, 35% of your credit score is dependent upon your payment history.

2.      Keep balances to a minimum in your credit cards

Most people have high running balances in their credit cards. They keep paying interest on this balance not realizing that it affects their credit score badly. One factor that has great bearing on your credit score is the ratio of available credit limit and used credit on credit cards. You can expect the score to be lower if you are using up your credit limit while the score is high if you use very little of the available credit limit.

3.      Keep the number of credit cards down to 2 or 3

Many people feel good that they own 5-6 credit cards but the practice of owning high number of credit cards is looked down upon by credit rating agencies. They feel that such individuals are not able to exercise control over their spending habits. It is better to have only 1-2 cards rather than owning 5-6 cards. Also, use these cards sparingly only when there is an emergency rather than on buying foods that you hardly need.

4.      A mix of loans is good

Having all loans obtained using your credit cards is not considered a good fiscal policy by credit rating agencies. Make sure that your loan portfolio is a diverse one including different kinds of loans with a good track record of paying your installments on time. You are building god credit when you are repaying your installment loans and student loans on time.

5.      Do not apply for loans from several lenders in short time period

It is natural for you to apply for mortgage loan in different banks when you have decided to get a mortgage loan. However, it is better to use services of a mortgage broker rather than recklessly applying for loans in many banks as it gives credit rating agencies a reason to believe that you are desperate for a loan. Apply for a fresh loan only when you have brought down the amount of outstanding loans and all of these loans are up to date.

Millennials are reshaping the

Commercial Real Estate Market

Millennials are the individuals born between 1984 and 2004.  Today, Millennial's make up nearly a third of the population of the country. It is the largest demographic having its impact felt in all sectors of the economy. And commercial real estate is no different. Tech markets across the country including the Silicon Valley and the smaller hubs like in Madison and Charlotte are almost entirely driven by this generation.  Millennial's happen to be the only generation that has had access to the facility of internet all its life.

According to an estimate, Millennials will comprise nearly 50% of the global workforce by 2020 and a whopping 75% by 2025.  It is no surprise then that the preferences and requirements of these men and women are shaping the contours of commercial real estate across the country.  If you are into commercial real estate, it pays to listen to the demands of these young men and women to be able to attract them in the years to come.  Here are 4 of the most priorities of the Millennials when it comes to approval of commercial real estate.

Layout and design at the workplace

With Millennials set to take over the workforce, the days of private offices seem to be numbered.  Millennials prefer open work space so as to encourage free communication and collaboration.  No more meeting rooms and private offices for these men and women.  This trend is fast catching up with the commercial complexes and these buildings can now be seen offering more open work spaces.  Another change quite visible is the increased use of glass in workplaces to allow more of sunlight.

A shift to major urban centers

Millennials are know for the preference towards urban centers where they have quick and easy access to all modern amenities. It is a clear signal to you that you should stay away from buying rental properties in locations that prove to be inconvenient for the Millennials in reaching to their workplace or shopping an dining facilities.  The property would be within walking distance or at least situated within minutes drive from workplace and other important amenities.

They need to be connected all the time

Connectivity is the most important feature in deciding between two comparable properties for Millennials.  Make sure that your building offers 24/7 connectivity to buyers and tenants.  Most companies look for uninterrupted internet before relocating their offices in any commercial complex.

Be there online to grab their attention

Be tech savvy and have presence on most of the social media channels.  If you are targeting Millennials as your customers, expect them to reach you through unconventional means such as instant messaging or email rather than giving you a call and setting an appointment.  Get a beautiful and highly interactive website to make sure that you are able to create a good impression on the minds of these tech savvy individuals.  Millennials love images and interactive videos.  Having an app is a great way to remain connected with Millennials all the time.