Many people I speak with have an inherent fear of commercial real estate.? Most people think it costs an enormous amount of money to get returns from this market so they don?t bother doing any research to find out more.? So, I am here to clarify some of those thoughts and to help you get some ideas of how to invest in commercial properties without investing a huge sum of money.
3 Approaches
There are a number of approaches but the 3 approaches I will discuss today are:
Investing in a REIT
Pooled money or tenant-in-common
Direct purchase of a property
I will go into the basics in this post but will be discussing each of these in greater detail in later posts.
Today?s topic is Investing with pooled money or Tenant-In-Common
Pooled money or a TIC or Tenant-In-Common approach to investing in commercial properties can be confusing since many people I speak with believe this to be very different than what it is.? So, I am going to discuss both versions in this post.
The most common belief of this investment is that a bunch of family members, friends, acquaintances pool their money and buy a property.? This is actually a common approach to real estate investing.? Many of my clients got started in commercial real estate by getting a number of family members or friends together and having each of them invest money until they had enough to purchase the property.? Depending on the property and the number of investors, you might be able to invest for as little as a couple of thousand dollars.? The drawback of this type of investment is you are doing business with family and friends and emotions can run high.? This can be a very rocky road if the investment doesn?t perform as expected or if someone runs into hard times and needs their money back.? If you don?t create the proper entity to hold the property and manage the investments, then you could run risk of making everyone?s money at risk for the actions of one of the investors.? On the other hand, it is popular and several of my clients have used this to get started.
The more formal type of Tenant-In-Common (TIC) is where an asset management company solicits investors to put in a defined amount of money ? say $50,000.? The asset management company then creates a formal entity that buys properties then returns a specific rate to the investors for their investment.? For example, say you invest $50,000 in a TIC that invests in strong office buildings in secondary markets outside of major commercial zones.? The TIC may then give you a guaranteed return of 8% on your money for a period of time, then return your money to you at the end of the investment period.? This type of TIC also requires you to invest for a specific period of time.? You cannot get your money back before that time since your money was directly used to purchase the property.? The amount required to invest is higher in this approach.? In most cases, the TIC company would like to see $50,000 or more as an investment.? This type of investment also is handled through a professional asset management company who specifically handles this kind of investment.? The benefits of this approach are the guaranteed return on your money and the fact that you aren?t actively involved in the management of the property.? The asset management company employs professionals who identify target properties that meet their performance criteria for investment so you don?t have to handle that aspect of it.? You also aren?t pooling your money with your family members or friends so emotions run lower in this type of investment.? The people I know who invest in this type of structure love it and usually reinvest their funds with the company after the investment period has ended.
Whichever approach you are considering, the tenant-in-common or pooled money approach can be helpful for a number of people to invest in commercial properties without owning the properties outright and having to manage them.
Please post a comment below to let me know your thoughts on Tenant-In-Common.
Tomorrow?s post is going to cover the most common approach which is direct ownership of commercial property.
For families and even for those who chose to live alone, one of the most important things that must be considered is the fact that the home should be safe for those who live in it. Not only does it make those who live in it feels safe but a good lighting system also adds a great drama to the house.There are several points to consider when creating a lighting system that works for your home. You must take note of the several factors that might affect it, one of which are the plants, curtains, and other home fixtures that might block the light. For those who are opting for homes that are for sale by owner, it is best to look into every detail that will be a plus point or may be a hindrance. Therefore, to ensure that your home improvement lighting would serve the main purpose of providing security, here are a few basic tips that you can look into to ensure a functional lighting security system. 1. Look into the different FSBO listings for pre-set security system that you might be able to work with. This does not only make things quicker for you, but it also cuts the cost of starting from scratch. 2. For certain, the previous owner has installed some lighting fixtures in the home, so it would be best to ask an electrician to check everything out and ensure that wires and other electrical fixtures are functioning well to avoid unwanted accidents. 3. When things have been checked, determine the things that needs repair and work on the things that you want to add-on. It is best to ask help from electrical companies, they will certainly have people they can send over to help you out in whatever lighting home improvement that has to be done. 4. For sure you would want a few light fixtures outside your home, be sure that these lights are made for outdoor purposes and that they pass quality standards. 5. Ensure that products are tested beforehand. Most lighting fixtures have warranties-according to company policies-therefore you must make sure that you are aware of it to make the most out of the product that you have purchased.6. Be sure to read the manual or brochure of the product before installing it. This is to ensure that you do not ruin the product and that you are certain about how it should be installed. 7. Disconnect or switch off the main power source when installing any type of light fixture. This does not only ensure your safety but it also protects the product from damage in certain instances wherein you accidentally plug it in the wrong socket. 8. Use energy saving light fixtures. Nowadays, companies have developed practical ways of helping families save on their electricity bill without compromising any lighting and security. These lighting fixtures may be a little bit above the budget as compared to those other products but you will certainly be able to save a ton of money in the long run. To ensure that all home improvement lighting fixtures are made accordingly based what you want and need, make sure to test things first for at least 24 hours (some recommend 48 hours). This way you can figure out any discrepancies earlier and you will be able to work on it as soon as possible.
2012-03-31 Vatican Radio It was announced on Saturday Pope Benedict XVI has given $100,000 (US) for the charitable work of the local Church in Syria. The Holy Father has repeatedly appealed for the end of violence in Syria, and has called for dialogue and reconciliation between the those involved in the conflict, in view of peace and the common good.
The donation was made through the Pontifical Council ?Cor Unum?. Monsignor Giampietro Dal Toso, the Secretary of the Council, was scheduled to meet with the Melkite Catholic Patriarch of Antioch, His Beatitude Gregorios III Laham, President of the Catholic Hierarchy in Syria, and other representatives of the local Church on Saturday, at which time he was scheduled to present the donation of the Holy Father.
The Catholic Church is active in charitable work throughout Syria, especially in the area of Homs and Aleppo.
No Estelle effect in the 'confidence barometer'Public release date: 2-Apr-2012 [ | E-mail | Share ]
Contact: Soren Holmberg Lennart.Weibull@jmg.gu.se 46-031-786-5406 University of Gothenburg
Professors Sren Holmberg and Lennart Weibull presented the 2012 results of the annual study 'Frtroendebarometern' at the Media Days in Gothenburg in early March. The study shows the public's confidence in Swedish media actors, institutions and companies. Universities and university colleges once again placed high.
Out of all the organisations included in survey, the public service radio broadcaster Sveriges Radio (SR) tops the list 78 percent of the respondents have very high or fairly high confidence in SR. The public service television broadcaster SVT ranks second with 74 percent, followed by universities and university colleges with 64 percent. The nationalist party Swedish Democrats is found at the bottom with 7 percent, below the car manufacturer SAAB with 10 percent.
So, what does 'confidence' really mean?
'Confidence here refers to a combination of correctitude, reasonableness and emotional attitude towards an organisation,' said Professor Lennart Weibull at the University of Gothenburg, who presented the results of the study together with Professor Sren Holmberg.
Another interesting finding is that the Swedish Parliament scored higher (48 percent) than last year.
'This is a result of the citizens feeling that the economy and the financial crisis have been managed well,' said Holmberg.
Among the societal institutions, it can be noted that the Swedish Tax Agency remains at 54 percent, while the Swedish Social Insurance Agency and the Swedish Public Employment Service scored only 18 and 14 percent, respectively.
As part of the survey study, the researchers measured the public's confidence in various professional groups. Nurses top the list with 74 percent, while only 24 percent reported very high or fairly high confidence in journalists.
People's confidence in the Swedish Royal Court was explored as well. Despite the fact that the most recent survey was conducted after the birth of Princess Estelle, the score went up by only one percentage point, from 35 to 36 percent. Thus, there was no sign of a noticeable Estelle effect.
The Frtroendebarometern survey is conducted by Medieakademin, the University of Gothenburg and TNS Sifo. It has measured the public's confidence in companies, institutions and the media since 1997.
The most recent study was based on 1 017 web questionnaires submitted 8-14 February. The reported percentages indicate the proportion of respondents with an opinion who have very high or fairly high confidence in the organisation in question. This was the first time the survey was conducted in the spring.
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AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert! system.
No Estelle effect in the 'confidence barometer'Public release date: 2-Apr-2012 [ | E-mail | Share ]
Contact: Soren Holmberg Lennart.Weibull@jmg.gu.se 46-031-786-5406 University of Gothenburg
Professors Sren Holmberg and Lennart Weibull presented the 2012 results of the annual study 'Frtroendebarometern' at the Media Days in Gothenburg in early March. The study shows the public's confidence in Swedish media actors, institutions and companies. Universities and university colleges once again placed high.
Out of all the organisations included in survey, the public service radio broadcaster Sveriges Radio (SR) tops the list 78 percent of the respondents have very high or fairly high confidence in SR. The public service television broadcaster SVT ranks second with 74 percent, followed by universities and university colleges with 64 percent. The nationalist party Swedish Democrats is found at the bottom with 7 percent, below the car manufacturer SAAB with 10 percent.
So, what does 'confidence' really mean?
'Confidence here refers to a combination of correctitude, reasonableness and emotional attitude towards an organisation,' said Professor Lennart Weibull at the University of Gothenburg, who presented the results of the study together with Professor Sren Holmberg.
Another interesting finding is that the Swedish Parliament scored higher (48 percent) than last year.
'This is a result of the citizens feeling that the economy and the financial crisis have been managed well,' said Holmberg.
Among the societal institutions, it can be noted that the Swedish Tax Agency remains at 54 percent, while the Swedish Social Insurance Agency and the Swedish Public Employment Service scored only 18 and 14 percent, respectively.
As part of the survey study, the researchers measured the public's confidence in various professional groups. Nurses top the list with 74 percent, while only 24 percent reported very high or fairly high confidence in journalists.
People's confidence in the Swedish Royal Court was explored as well. Despite the fact that the most recent survey was conducted after the birth of Princess Estelle, the score went up by only one percentage point, from 35 to 36 percent. Thus, there was no sign of a noticeable Estelle effect.
The Frtroendebarometern survey is conducted by Medieakademin, the University of Gothenburg and TNS Sifo. It has measured the public's confidence in companies, institutions and the media since 1997.
The most recent study was based on 1 017 web questionnaires submitted 8-14 February. The reported percentages indicate the proportion of respondents with an opinion who have very high or fairly high confidence in the organisation in question. This was the first time the survey was conducted in the spring.
###
[ | E-mail | Share ]
?
AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert! system.
One S will be good but dont know how much is the wait. 
It was announced on Saturday Pope Benedict XVI has given $100,000 (US) for the charitable work of the local Church in Syria. The Holy Father has repeatedly appealed for the end of violence in Syria, and has called for dialogue and reconciliation between the those involved in the conflict, in view of peace and the common good.
BM170676 ...![[ Back to EurekAlert! ]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sX4IexXoinUm9iqhuw4-kb-frP5_SidEpx8zSpvvkTs_tuhSireJBEl4Ldc1NhVQCcVnF3BsemL6a12cqW9pC7OnpHMBR3TGqZT5yxvKo=s0-d){kind=small}
Public release date: 2-Apr-2012
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