Real Estate Investment Properties & Ownership

The different types of investment properties that real estate investors consider vary in many different ways. We’ll identify the different types in this article and briefly discuss each one. We’ll also discuss the different ownership structures available. The basic types of investment properties include retail, office, apartment, mixed developments, and hotel/motels.

Retail properties include freestanding buildings and shopping centers. A freestanding building is one where it stands alone, not connected to any others. Shopping centers range from strip malls to super regional malls with many stores located in one area.

Office properties can be small (one, two or three tenants), office parks where many building exist serving different businesses or high rise complexes where many tenants are located in one building. Most will be located in downtown urban areas or in or near suburban towns/developments.

Apartments range from multifamily homes or “mother-daughters” to commercial units. A commercial apartment building will consist of at least 5 units. The larger the apartment complex, the higher the need for on-site management of the property.

Mixed developments consist of a combination of residential apartments, houses, and condos with office space and retail stores. Many communities that are growing at a fast pace have developers who are maximizing the feeling of community by mixing all different types of structures, creating small neighbhorhoods with all the essential aspects of small town, such as restaurants, entertainment, jobs for the local public, and of course, shopping.

Hotels and motels require excellent management if they are to be successful. Their locations near airports, business parks, inner cities and other active areas help to keep their doors open. Their failure rate is relatively high and must be managed correctly in order to remain in business.

These are the basic types of investment properties. The single family home is of course a consideration as well as other types of investments, however the properties featured in this article are appealing due to their income potential.

There are several different types of ownership and ownership structures. These are usually referred to as business entities in which investors hold real property. To keep things simple, we’ll simply cover the very basics of each structure and how each owns property.

A corporation is considered an artificial person. It is a separate legal entity. The corporation conducts its business according to the state law where the entity was created. The key here is “separate legal entity”. Due to the fact that the corporation is considered an artificial person, the real property is considered to be owned by one person, the corporation.

The management of the corporation depends on its board of directors which are elected by shareholders. The important point here is that any person who wishes to form a corporation and purchase real estate must speak to an attorney about managing the corporation appropriately, so that it operates the corporation according to state and federal law (if applicable).

Another business entity that is becoming more popular is the Limited Liability Company. This business entity takes advantage of the same type of liability protections as a corporation, however, it differs from the corporation in that it takes full advantage of the federal tax benefits and flexibility of a partnership. Again, check with your attorney in order to take full advantage of the benefits of this “pass-through” entity. Ownership of real property is also different and consulting an attorney to discuss how the LLC takes ownership of property is wise.

Some of the other entities include real estate investment syndicates, both private and public organized into a corporation, limited liability company, general partnership or limited partnership. Syndicates usually involve one or more projects and different types of ownership (tenancy in common, joint tenancy, etc.).

In conclusion, it’s very important that the new investor has, at the very least, a basic understanding of the different types of investment properties and ownership. It’s often something that is overlooked by new investors due to the complex nature of learning the business of investing, however, without at least consulting an attorney and doing some reading, the new real estate investor is bound to make costly mistakes that are definitely avoidable. It’s a great thing to learn from mistakes, however, making stupid mistakes like avoiding education due to a lack of patience is just plain old dumb!


How to Use the Internet to Market Your Real Estate and Save Thousands of Dollars in Commissions

The vast majority of buyers are searching the Internet to find the real estate they are looking for. The figure keeps changing but somewhere between 85 to 90% of all buyers use the Internet as their main tool for property search.

In these economically challenging times most professional real estate offices (including the large national franchises) have cut way back on their budgets for print advertising in the newspapers. In real estate offices this is known as a BLACKOUT on advertising and it is happening all over the country.

The other reason why real estate agents and offices heavily utilize the Internet is because it costs next to nothing and it works! Plan and simple it works.

The Internet has changed the way real estate is marketed forever and agents have accepted it. Print advertising is extremely expensive and the Internet has now made print advertising passé.
This is not a bad thing. Agents place their efforts and energy on what works and now so can you!
Right now is the perfect time for the average home seller to learn this truth and use the Internet to sell their property without the expense of a listing real estate agent.

One of the best-kept secrets around is that for peanuts and very little effort, sellers can put their property on the Internet without an agent or a real estate broker.

If you have a digital camera and have ever used or seen eBay then you can figure out how to post your property on the Internet. It’s that easy. Fill in the blanks, download some pictures and your property is out there for the world to see.

Oh sure, you are comfortable with the Internet. Maybe you have sold a car on it or have bought and sold other items on eBay or Craigslist. Or perhaps you are quite leading edge using all the latest technology. But this is real estate and it all seems a bit complicated. What about all the other steps that are involved in the real estate transaction?

Relax! This is not rocket science and most professionals in the real estate business are not scientists.

Use of the following 12 steps and it will make your transaction very manageable.

THE12 PRINCIPLES FOR SUCCESSFUL INTERNET REAL ESTATE SELLING is not only a guide for using the Internet to sell real estate online but also a formula for protecting and securing the seller throughout the entire transaction.

1. Be brave and set the price. The seller always has
2. You must perform all inspections before you market the property
3. Honestly represent the exact nature and condition of the property
4. Hire an Attorney. Do it early on in the sales process
5. Get proof of insurance from everyone
6. Anything you say can and will be used against you. So zip it!
7. You need to cooperate with and pay buyers brokers and agents
8. You can sell directly to buyers without an agent. If they don’t have one
9. Online advertising is cheap
10. Showings are easy
11. Be effective and follow up
12. All information concerning the property becomes the property of the property

If sellers will follow these principles they can sell their real estate online with the confidence that they can accomplish this important transaction from beginning to end.

Careers With a Property Management Degree

Gone are the days when you could learn the tricks of your trade through sweat, toil, and practical experience alone. Today your prospective clients and associates are savvy, knowledgeable, and often quick to find fault, thanks to the vast amount of information littered across the Internet. This can mean they have greater expectations than ever before. It’s true for pretty much every field and industry, but applies especially well to real estate or property management. Sure, time will eventually teach you all you need to know, but do you really want to wait for a few decades before you get the knowledge you need to start bringing in the big bucks? Of course not!

Education can factor into this in a big way; you can learn from the experience and research of others, apply it to your profession, and earn a stamped, sealed document testifying to your expertise in the subject. While there are a few certifications that you can get, you may have realized on your own that these are usually a dime-a-dozen. A good investment could be a property management degree from an accredited, reputable college.

A property management degree can give you the instruction, training, and credentials you need to pursue work in various capacities, such as a personal property professional, bookkeeper, clerical assistant, etc. You can choose to pursue either a Bachelor’s or an Associate’s in Property Management, depending on the amount of time and money you can invest into the degree.

You can enter this profession by earning a business administration degree with an emphasis on property management. This degree will give you a larger span of capabilities, ranging from accounting, marketing, finance, human resources, sales, and organizational development in addition to the property management courses. This integrated program can give you the credentials, experience, and capability to qualify for employment in various sectors in the corporate world. Furthermore, you can develop a greater depth of knowledge in the field of property management.

The business degree with an emphasis on property management is offered both at the bachelor’s and associate’s level. No matter which degree you pursue, make sure that it is from an accredited and reputable college, or your time, effort, and money will be squandered for no good reason.

In order to make sure you’re one step ahead of your clients and are aware of everything to do with your trade, ranging from the market condition to the various legalities and rules, consider investing in a degree in property management. Not only can it help you perform in your professional role better, but the stamp of a college degree can give your prospective clients, employers, and associates a greater sense of confidence in your abilities.