Point Acquisitions Blog
CRE professionals have long recognized deferred maintenance as one of the leading causes of value erosion in commercial real estate. It’s also one of the most costly dangers a commercial real estate investor or owner can face. In this article, we explore the dangers of deferred maintenance and offer tips on how to avoid them. As the old adage goes: fail to prepare, prepare to fail. Keeping an eye on the present can save you in the future of commercial real estate. What is considered deferred maintenance? Deferred maintenance means putting off repairs or upkeep on a property to save…
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If you’re a property owner, one of the questions you may ask yourself is whether to invest in maintenance repairs or capital improvements. Both have benefits, but deciding the right choice for your property can be tough. In this article, we’ll look at the advantages and disadvantages of each choice, maintenance and capital improvement examples and some handy tips so you can determine which is best for your needs. Maintenance vs Capital Improvements: Know the Difference As a property owner, it’s important to know the difference between maintenance and capital improvements. Maintenance is the regular, ongoing care of your property,…
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If you’re a business owner who’s looking for a new property to lease, you may have come across the term “triple net lease” or “NNN lease.” You may have questions such as: In this blog post, we’ll explain everything you need to know about a NNN lease so you can make an informed decision. Keep reading to learn more! What is a triple net lease? What does triple net mean on a lease? A triple-net lease (triple net lease or NNN lease) is a contract on a real estate property. The renters or lessees promise to pay the costs associated…
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Real estate investing can be a lucrative process, or it can leave you high and dry. Your success depends on how well you know the market and how well you know the tricks of the trade. Below are just a few real estate investing tips from the experts to help you consider whether these are the right choice. Real Estate Investing Tips from Experts Look For Motivated Sellers This is important because you want to get the best possible deal for your investment and maximize your profit. A motivated seller is going to do what it takes to move the…
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Foreclosure may be a frightening term, especially when it comes to your house. But what if it happens to your commercial property? Commercial real estate foreclosure can have disastrous consequences for business owners. When a borrower fails to make mortgage payments or breaks another commercial loan condition, such as failing to maintain a debt ratio demanded by the lender, a business may face foreclosure. Foreclosure is the legal process by which a lender takes back property pledged as collateral for a loan. Each state has its commercial foreclosure laws. The essential information about business real estate foreclosures is included below.…
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Real estate investing has the potential to be an enormously profitable venture for those with the work ethic and aptitude to learn its various complexities. This fact is especially true in Philadelphia: the state contains some of the most exciting investment prospects in the country, which isn’t poised to change any time soon. Before you make your first big purchase, however, you should familiarize yourself with some of the industry’s most common mistakes. Below, you will find industry tips that can help you avoid common mistakes in real estate investing, based on advice from seasoned experts. 1. Sloppy Planning Planning…
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Before investing in commercial real estate in Philadelphia, consider key factors to ensure a good return. Choose areas with stable job markets, especially in education and healthcare, these attract steady tenants. Properties near universities, hospitals, and public transit are desirable because they can demand higher rents and attract more people. Make sure the rent you plan to charge will cover your costs, including mortgage, insurance, and taxes. Check the safety of the neighborhood, the amenities nearby, and if there are good schools, as these factors attract renters. Also, keep an eye on any future developments that might affect property values.…
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In commercial real estate, it’s important to know the difference between two key terms: Internal Rate of Return (IRR) and Extended Internal Rate of Return (XIRR). IRR is good for investments where you get money back at regular times, like monthly rent from a tenant. It gives you a simple way to see how much you’re earning from the investment. On the other hand, XIRR is better when money comes back at different times, which is common in real estate. For example, you might get large sums when you buy or sell a property or at irregular rental intervals. Choosing…
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Are you looking for a great investment opportunity with big financial rewards? Buying commercial real estate could be a smart move. Unlike homes, commercial properties—like malls, office buildings, and factories—are used for business. This kind of investment often brings in more money and can be easier to manage. In real estate, commercial properties are restricted for business purposes. Any building with businesses, such as malls, grocery stores, office buildings, manufacturing shops, or any land used to generate profit, falls into commercial properties. To buy commercial property, you need to know some things about real estate investing, including the different types…
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It’s always a fun topic to speculate about – will there be a commercial real estate bubble burst? And what might that look like? Some experts say we could see a bubble burst as soon as this year in 2022. The signs are all there – commercial real estate prices have been on the rise for years and show no signs of slowing down. At the same time, interest rates are rising, which could lead to an increase in defaults. If a bubble bursts, it’s likely to cause quite a bit of damage. Commercial real estate is a key driver…
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