Commercial real estate involves different rules, regulations and tax benefits from residential real estate. Check out the articles, blog posts, and videos for advice on how to handle commercial real estate property.
When determining value of a commercial property, know the different methods available of how to value commercial property properly. Q: Our bank came in with an appraised value that is about one-third of what we originally borrowed from the bank in 2006. Our loan is coming due (we had a balloon loan) and we need [...]
What can you do when you own commercial real estate and your tenant doesn't pay rent? How can you evict the commercial real estate tenant? Eviction laws vary by state and some attorneys specialize in evictions for commercial real estate.
Inheriting property brings up all kinds of options. When inherited property can be zoned as commercial or residential, an heir is faced with many decisions as to how to deal with the property. It's important to take one step at a time when dealing with inherited property.
Siblings have inherited property and now face several decisions on what to do with it. If everyone agrees to sell the inherited property, finding an agent who specializes in this type of property will help. If everyone agrees to keep the inherited property, someone will need to manage it, handle the finances and necessary repairs.
A real estate investor wants to know if an unusual deal where he is willing to pay more than the asking price is considered illegal lending activity. The buyer is wondering if paying the seller outside of the stated deal with the mortgage company and not informing the lender is illegal. A buyer and a seller can agree to one price in a contract and agree that the seller will credit or pay the buyer money back at settlement. However, some people might suggest this transaction is illegal because you have a lender involved.
If you're thinking of buying a home as an investment property and then turning it into office space - should you look for a residential or commercial mortgage? With a commercial mortgage, you'll pay more in interest rates and points and fees. A residential mortgage may also offer a higher interest rate but it will be less than a commercial loan. One of the keys to find finding the right mortgage is talking to several lenders.
Is a general or special warranty deed better for selling property? When selling a residential property, the type of warranty deed you use, or title, isn't so important. A special warranty deed is usually used for commercial real estate sales. During the home sale process, a title company will run a title search and discover any problems with the deed or title. Usually a general warranty deed is used when selling a residential property.
A building owner is thinking about building a commercial office and selling it with a lease to sell agreement. Rather than leasing it, holding onto the building could bring tax benefits for owning commercial property. Using a "lease with the option to buy" could also be an incentive to get additional buyers to consider purchasing it.
In a 1031 exchange, a real estate investor purchases a similar investment property to replace another property, and is able to defer any federal income taxes owed. But the IRS has strict timelines for 1031 exchanges and sometimes a 1031 reverse exchange may be a better option though it could be more expensive.