One in ten U.S. households now rent a self-storage unit. The growing demand for self-storage in the U.S. is created by people moving (some 40 million people move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. Recent surveys of self-storage companies indicate a positive trend in market demand and occupancy rate.
A new tenant and an investor share the same impression of an apartment property from the curb. Before marketing apartments, think about the outside appearance. The "look" affects not only an ability to attract prospective buyers, but the rental program as well. First impression by both expected buyers looking and tenants alike are crucial. The following is a checklist of first-impression items that a good property manager must use:
In major cities, looking for vacant land is difficult. A builder can look for vacant land but also must look for buildings that are in a condition that looks like they are no longer productive. A neighborhood that is in decline might be rejuvenated by tearing down a building and replacing it with a new office building, high-rise shopping center or apartments. Starting with one property might transform several blocks of a blighted area over a period of months or years. If an opportunity like this presents itself, it can be time to get options to purchase adjoining properties. An owner of an old building may be just waiting for an offer of some kind.
When an investor purchases land to build on, the next step is land development and financing. "Land development" cannot be precisely defined; generally, it refers to the physical, legal, and engineering processes needed to convert raw land to land (or lots) on which buildings can be placed.
The conventional lenders, banks, savings and loans and similar institutions may slow their funding of the more speculative projects. However private lenders do make loans on land. They will usually loan on land that is intended for early development and will limit the term from a minimum of one year to a maximum of three years.
Whatever the kind of property used, the user has the option of purchasing or leasing. Should you buy the house you live in, or lease it from someone else? With few exceptions, there would be an overwhelming response to "own it." The benefits weigh heavily toward ownership. With business property, the answer sometimes may be a lease instead.
Investors purchase commercial income producing real estate to make money. There are two obvious ways of making money from a property. First, the owner takes a share of the annual operating profit generated by the investment, and Second, profits from increasing the market value of the investment beyond what it would be because of inflation alone.
Acquiring land for development is necessary no matter what kind of market we are in. Professional real estate assemblers are always looking at and acquiring under-utilized sites within cities or in suburbs. Here are some ideas on how those professionals do it.
When you look around a community, you will usually find a number of properties that need to be upgraded. When you want an increased return on an older property it may be time to modernize that property. Some existing owners do not recognize the increased return that they could get or do not want to make the necessary investment. Often these buildings can be acquired at a price that reflects the return based on the current condition.
A prospective investor may have a problem getting started with a real estate investment because of the great variety of properties that are out there. They may be fearful that someone will "sell" them something - something that is wrong for them.