Commercial Real Estate Segment

Commercial Real Estate is one of the most critical segments of the real estate. It is a widely well-known segment in which various market operators operate. It is almost seen everywhere starting from your local coffee shop, Commercial Park, to your main streets main street, and even the office where you work says Hirsh Mohindra.

If you are looking forward to entering the retail segment of the commercial industry, then you will much advantage as this sector of the sector is delivering humungous gain than another part of the real estate sector. It has proved to have a broad array of resources to help you give the best service to your clients and to be the most beneficial in your department. The commercial real estate industry is doing wonders as it has a broad segment of the area to be covered in which the people operate buy, hold and sell the property.

There are many good reasons for investing in the commercial real estate industry.

The most genuine reason to invest in commercial over residential apartments is the earning potential that the commercial rentals offer over the residential rentals. Commercial properties generally have a better annual return of the purchase price which vary from 8% and 12%, and it depends on the area, which is a much more extraordinary range than typically survives for single-family home qualities.

Steps to Buy Commercial Property guide

Few of the steps which serve necessary to buy commercial property are as follows:

  1. Recognize your impulses for investing: The first and foremost step, which is a prerequisite for purchasing property or rentals in the commercial real estate segment is the understanding of the industry and the urges or the demand of the real estate segment says Hirsh Mohindra.
  2. Evaluate different commercial property types: After evaluating the demands of the property then the next step is to determine the fundamental difference between these two properties, otherwise it creates the confusion in the mind of the buyer in regards to the terms of the agreement. To avoid this confusion clarity should be there before dealing.
  3. Lock down your financing: Next step further in the case is the locking down of the property.
  4. Build the right team for the job: Building up of the desired team is very sure for doing the right job and providing the right services to the client.
  5. Recognize a potential property in your market: Before buying the property select among the best alternatives that are the prospective property, among other features.
  6. Secure an offer and close the deal: After selecting the property to discuss all the covenants of the agreement with the dealer and make the deal close before there is any fluctuation in the interest and the property rates says Hirsh Mohindra.

Real Estate a Volatile Market

If one has to define real estate, they can call it as the property which consists of buildings on a piece of land, which also includes the natural resources too. The word real estate stands for real or physical property.

Hirsh Mohindra, has said that “Real estate is actually one of the tangible assets available to us”. If one has to draw some examples of real estate, following things can be listed down – land, buildings, etc.

Where, real estate is said to be a tangible asset, personal property on the same hand enlists for both tangible and intangible asset, which can include stuff like investments, furniture, dishwasher, etc.  Keeping the points of tangible and intangible in mind Hirsh Mohindra has stated that “Real property and personal property are two different things and should be no mistaken as same”.

The business for real estate, includes buying, producing and selling real estate. The market here, can turn out to be advantageous or disadvantageous. “The investments made in this market can be either profitable or loss, before you plan to invest in this region look after all the possible outcomes” advised by Hirsh Mohindra.

It is highly suggested that investments in real estate investments are directly affected by its surrounding areas. The investments in real estate can be done either by purchasing the property or by investing in the shares of the market.

Real estate can be categorized into four basic types, namely –

  1. Residential
  2. Commercial
  3. Industrial
  4. Land
  1. Residential Real Estate:

Residential real estate is the one which includes of undeveloped land, houses and townhouses. The structures here in this estate, may vary from a single family or multi family dwellings. It can also vary, depending whether it is owner occupied or rental property.

2. Commercial Real Estate:

The commercial real estate enlists for non-residential structures such as office, buildings, and warehouse or retail buildings. These structures can be found as free standing or in shopping malls.

3. Industrial Real Estate:

Industrial real estate houses for factories, business parks, miles or farms. These properties are much larger in size and often their locations may include access to transportation facilities like rail lines or harbours.

4. Land:

Land includes vacant land, working farms or ranches. The subcategories within land include undeveloped, early development or reuse, sub division and site assembly.

Long Term Short In Real Estate Business

Real Estate business is generally a long term investment. The growth of the economy and consumers’ confidence increases with the rising prices of houses and vice versa. The business of real estate is the biggest industry in America. In 2018 its share was six percent of the US Gross domestic product. Real Estate business provides millions of people with houses and is the largest source of wealth creation. Property business helps in providing employment for millions of people. The value of your property increases over time and thus it requires a lot of patience says Hirsh Mohindra.

Before buying a piece of land quality of the neighborhood must be taken into account besides other factors. The value of different properties depends upon the economic conditions of the area you are investing and availability of mortgage funds. Prospects of the area is also of prime consideration. Lot of research is mandatory before buying a property. Always select a low cost house. Average return on real estate business differ with the location.

Long term short is usually worth short in real estate. There are hardly any chances that you succeed in the real estate business in short run. The market don’t increase or appreciates in short run unless there is a big new which is hovering. In this business of Real estate what matters is the long-term success which totally depends on many elements, but a good inception business plan is one of the several significant things you should understand says Hirsh Mohindra. Understanding market is not a day thing, you need to study the forces of the market. So if you are someone who is new to it and want to earn then step in the market with the long term prospective to get huge profits. The margin in the real estate market is huge if the market is bearish.

So there are few factors that you should consider before starting the business in the real estate market that are that you should concentrate on all the relevant business organizing and budgeting assignments. Many devices and guidance will assist you to concentrate on essential marketing methods and get a quick derivation on making profits in the long run and the short run. But never take step on the basis of influence says Hirsh Mohindra.

An informed decision is one that is prudent and will fetch you profits. Overindulging yourself with lot of advises will take you nowhere. There is no person who can totally predict the market. There are chances of speculation but you cannot totally judge the market and think about profits. Go with advise of expert as they can at least cover your half threat of fluctuation with their knowledge. But they cannot be hundred percent true.

Good Carrier Options for Many People

Building a good carrier has become a need of the hour. There are many opportunities in the market for the people who want to enter the commerce line. Real estate analyst is one such field they can divert themselves into. This profile is rising and has many opportunities all around the world. Also the demand for such a profession is also increasing as the awareness about this job is very less. People are very less aware about this profession says Hirsh Mohindra. They are not aware about its advantageous. The people who are aware are repaying the benefits. It is what gives rise to the growing trend of the market. With the growing trend a person is needed who can explore the trend and suggest people about it.

A career in real estate is very challenging and profitable. Get a license from the appropriate authority, join the Realtors Association, choose a reliable brokerage and explore your contacts to start a career in Real Estate. No primary education is required for real estate business. There are different careers in real estate business like real estate agents, Real Estate managing broker, Property Appraiser, Leasing consultants. To become a certified appraisal you are required to get 150 hours of education and can earn one lack dollars annually.

Real Estate Sector

This is an easy task as compared to the advantages it will be providing you. So if you are someone who is looking forward for his future in this real estate market then you should surely get yourself enrolled in this course. Get geared with this high quality education. The standard of the education should be followed well to be a good practitioner in this case. Appraiser is someone who appraise the trend and access that in which direction the market is moving in says Hirsh Mohindra.

Another field which is worth choosing a carrier option is the Appraiser. He is a person who is authorized to make reports on the valuation of different properties and also give a legal opinion on them. The job growth in the field of real estate is faster than other occupations. In some countries, high school diploma or a bachelor’s degree in real estate is mandatory for obtaining a license for doing business. Real Estate industry is expected to grow worth 180 billion US dollars in the next few years says Hirsh Mohindra. As the industry has increasing trend so is the job prospects and the carrier option of the industry. So with the increasing trend many people are looking forward toward adopting a carrier in the real estate sector. Get a thought over this thing if you are in this field.

Is making money in Real Estate possible?

Making money in this competitive world is not an uncomplicated task and with so many variations in the market, it is clearly a big risk, also when it comes to making money in real estate spending, there are very fewer ways to do it as interpreted by the researcher. Also once you assume the whole idea after the ideas of the sector, the implementation process would not be easier, try getting the notes of everything you understand. In this method the implementation process becomes quite easier, as there is a lot to discover, it will demonstrate simple for you to finish completely in the market full of questions and maximizing earning potential would become more prosperous says Hirsh Mohindra.

Below mentioned are few Strategies to Make Money from Real Estate Investments:

  • Models of Rental Revenue by leasing out the resources to residents.
  • Augmentation in property Value
  • Models of Rental Revenue by leasing out the resources to residents 

If you require to earn humongous from the Real estate sector can be done by renting the property you own, this approach you can earn rental income on which according to the income tax rules you have to partly pay taxes. The rental income is taxable, but that doesn’t mean everything you accumulate from your tenants is taxable. You’re allowed to overcome your rental income by deducting expenses that you acquire to get your property available to rent, and then to keep it as a rental says Hirsh Mohindra. Also, Management allows landlords to have a higher hand as far as the number of rent is concerned, so there would be no doubt you have to face in the collection of rent and also the law favors the landlords in this case.

  • Augmentation in property Value

This development in property value is also a fluctuating concept, one requires to follow this basic trend of the market that property prices do not always increase, this the case is apparent from the real estate market prices of the late eighties, but the trends are quite changed now the market is now getting pace and people are getting returns from increasing property value says Hirsh Mohindra. Also, this happens when the rate of inflation is predicted to surpass the current rate of long-term debt, you might find people qualified to chance by obtaining businesses, acquiring money to fund the purchase and then waiting for inflation to rise. This whole concept depicts a transfer from savers to accounts.

The possibility to make money can be infinite, it on you how you seize the opportunity if you answer at the right time you will definitely get compensated with the returns. So adopt any of these to get returns from the business activity which depends upon Real Estate.

Tips getting into Real Estate investment

Real estate is one of the best options to invest money in a productive manner. But it requires knowledge, time, patience and most important cash in your hand. These considerations are very important if you are considering investing in real estate.

Follow these top tips from Hirsh Mohindra to get into the real estate investment field:

1.    Make a financial strategy:

Cash in hand is the first requirement in real estate marketing. Before making any real estate investment, make your financial house in order.

Real estate field you should have cash in your hand for down payments and most important, some reserve for bad situations. This reserve money should be separate from your emergency fund.

2.    Leverage a local team:

Hirsh Mohindra: If you are really interested in real estate marketing, you need to focus on making a strong relationship with people, because real estate is all about good relationships. Initially, it can take time, but you can eventually develop a strong local team of brokers, attorneys, accountants, title companies, and property managers. They can help you to make the best deal in the local market.

3.     Know about your local market:

If you are planning to buy your own house. If you can stay in your neighborhood then it would be the best idea. Get an idea from the local people, local real estate investors about the property.

Try to find out who is living in that area, the demand for the property in that area and analyze recent sales and inventory. After conducting your due diligence, you’re ready for the next step.

4.    Make a smooth strategy: 

Plan and execute according to your timelines. Start your investment with a small amount and keep your expenses low. In short, make a strategy and execute it properly.

5.    Buy a single apartment and rent it out: 

Buying a single home and renting it out is a quite easy method to generate money. But make sure about taxes, maintenance, and insurance – as these are fixed costs that will be incurred regardless of having a tenant. So it’s important to have some reserves to accommodate periods of time when the property may be un-rented.

6.    Invest your money in a good location:

If you are planning to invest in the real estate field, then choose a good location. Location is key as it often generates demand.  Being situated in a strong residential corridor will provide you opportunities to find tenants and buyers.

Wrapping-up:

Real estate marketing is a good option to invest your money. But always remember, don’t make your decision in a hurry. The investor should have the knowledge, cash in hand, time and patience. Hirsh Mohindra suggests you invest in this field if you have all the above qualities. For more tips related to real estate investment follow my blog.

Significance of Amenities and Open Spaces in Residential Real Estate

Real estate buyers are not just interested in the size of their property, but he also looks for open areas and amenities says Hirsh Mohindra

Typically, builders relied on the structural integrity of properties to attract buyers – size, square footage, location, etc.  However recent trends are showing that buyers are interested in more amenities in buildings and communities says Hirsh Mohindra. Buyers are also attracted to properties having open space reserves – even open communal spaces.  Many buildings are now coming equipped with yoga studios, massage rooms, and even recording studios.  These features are significant value adds from the typical gym found in buildings.

Changing Trend of the real estate market

Is this a changing trend? Not exactly, because certain buyers always want a home, not simply a unit.  A home that has unique installations and open spaces provide for a fresh feel. The trend, however, has picked up in its momentum as more and more buyers are having these same parameters as necessary prerequisites for their purchase. 

What are the compelling justifications?

Urbanization has guaranteed people from small towns and villages discover a place in big cities. A good amount of people (middle and upper class) from minor towns are used to living in homes be it big or small that have a lawn, a veranda, a compound filled with greenery, wide-open spaces. They need a related touch to their homes when they depart to cities in search of their livelihoods.

Hectic work schedules have given rise to escalating stress levels and add to that, blocked traffic circumstances and boosting pollution levels, all these earn for a very concern filled and chaotic life. Homeowners look forth to stay in an environment that calms their minds and hearts and eases these pressure levels. They want to invest in properties with open spaces and compelled amenities to provide the perfect solution.

City life can be a completely lonely life, with many friends and relatives living far off and wandering is a big problem. Amenities such as multipurpose halls and grasslands prepare for terrific areas to meet new people and socialise within the neighborhood.

Amenities and open spaces also unravel the difficulty of committing several demographics. While kids can utilize the sports areas, elders can grab a walk in the park to get some fresh air. Children and experts can have swimming pools and gymnasiums for their fitness needs and leisure time. There should also be something for everyone in a real estate that has amenities and open spaces.

Hirsh Mohindra: As per the research 10% of the total property area must be left aside for formulating open spaces or open space reserves. This authorization obliges developers to keep aside as much space. Although, this norm is not adhered to in specific cases due to the lack of land availability and other interests.

Indian Homebuyers Can Now Seek Repayment For Delayed Home Delivery

Homebuyers have a right to seek a refund for a house even if the postponed project is complete per new Supreme Court ruling.

If there is an unreasonable delay in delivering a real estate unit to a buyer, it is completely up to the purchaser if they desire to take ownership of the unit or seek repayment with appropriate compensation, the Supreme Court has ordered.

The National Consumer Disputes Redressal Commission (NCDRC) has also passed a similar rule says Hirsh Mohindra. The rule says that a flat buyer cannot be forced to accept tenure of his/her residence offered by the builder. 

A case filed in the Supreme Court bench involved a project in Gurugram where a builder had sold a villa to Shrihari Gokhale in July 2012. The builder had promised December 31, 2014, as a possession date. Gokhale had filed a complaint with the NCDRC in 2016 asking a repayment of Rs 13.24 crore.

The builder had challenged the NCDRC order in the Supreme Court to repay the principal amount of Rs 8.14 crore. The court found that there was a total failure on the part of the real estate agent, a deficit in providing services and ordered that the builder cannot vend the villa booked by Gokhale till the order was executed.

Records indicate that the entire consideration was Rs.8.31 crore, the respondents had remunerated Rs 8.14 crore by November 2013 notes Hirsh Mohindra. Though the plaintiffs had assumed to deliver the villa by December 31, 2014, they failed to release occupancy. As late as May 28, 2014, the amended construction schedule forecasted the date of delivery to be October 2014. There was, thus, failure on the part of the litigants and deficient in rendering service in terms of the commitments that they had made, the Supreme Court order said.

In the NCDRC, a bench of Fairness VK Jain directed a Delhi-based builder Pioneer Urban Land and Infrastructure to repay Rs 4.43 crore to a home purchaser who had deposited the amount in 2012 for a flat in Gurugram.

That flat was to be completed in 2015, but the builder botched to meet the terms and the consumer approached NCDRC in 2018 for repayment of the total amount paid. Though the builder had ready the flat and got the occupation certificate from the authority just a night before the purchaser filed the grievance, the charge directed the builder to repay the amount as there was holdup of more than two years.

The respondent flat buyer has made out an apparent case of lack of service on the part of the builder. The respondent flat buyer was justified in terminating the purchase agreement by filing the grievance, and cannot be forced to accept ownership, notes Hirsh Mohindra. The respondent buyer was lawfully permitted to look for repayment of the amount deposited by him along with compensation, the NCDRC order said.

These new rulings certainly put the onus on the builder to deliver on the promises they make, and empower buyers to seek remedy when builders do not.


How to Prepare for Closing your Real Estate Deal

It’s exciting to close your first real estate deal.  All of your hard work in getting to this stage, such as finding the ideal property, coordinating the closing, arranging to finance – are finally coming to fruition. 

Sometimes closing a real estate deal is quick and easy, however unexpected issues may arise that could delay closing as well. It’s important to understand the closing requirements so potential issues can be mitigated in advance. The following list of real estate closing expectations from Hirsh Mohindra may assist in providing an overview of what to anticipate for your first closing.

The key in hand. The new house

Educate yourself: Determine what is required to close on your deal.  If you are working with a lender, that lender will have specific requirements.  Be sure to understand those requirements in advance so you can work with the lender to satisfy their items.  In addition, you may be working with a title company.  Title companies have specific requirements as well.  They will require information on the property as well as on the parties involved in the transaction.  Identify what is needed in advance so you can be prepared on your end to close quick.

Have your Team Ready: When buying real estate, you will likely need the services of other professionals.  Attorneys, title companies, lenders, real estate agents, home inspectors – may all be needed to facilitate your deal.  Identify your team in advance to help you find the right property, make sure it’s the right deal, and close quickly.

Find the Right Property: when searching for the right property, numerous factors come into play. Location, price, demand, are some of the key metrics you should consider.  Hirsh Mohindra often suggests working with a real estate agent to help understand a neighborhood, and to find the right property. Real estate agents know trends in their markets.  They know what areas are hot and what are not.  By leveraging their expertise – it can help you source the ideal investment property.

Understand the current trends in the area: Real estate markets change quickly.  Some areas become hot overnight, and others cool down unexpectedly.  Study the most recent sales data for the area in which you are interested in buying.  By understanding what past deals have transacted for – you can have a realistic expectation of what your deal may look like.

Property inspection: Once you find a property you’re interested in – make sure you get it inspected.  Home inspectors are experts in identifying damage and potential risks.  They are trained in finding issues that are currently present or that may arise in a short time frame.  Work with a home inspector to thoroughly inspect the property prior to closing. 

Understand the Deed and Title of the Real Estate: Make sure you understand the title and deed or any other material document associated with the property. Hirsh Mohindra routinely advises people to review the documents yourself, but also leverage a skilled real estate attorney to review the paperwork. Nuances in deeds and easements may create restrictive covenants on the property.  By understanding these documents you can minimize surprises at closing.    

Become Real Estate investor budget?

Real estate business is growing day by day, and particularly in urban markets.  Oftentimes investors believe that large capital contributions are required for investment, however – there are plenty of investment opportunities for lower budget investors as well.

Follow Hirsh Mohindra’s tips to become successful investor on a lower budget.

Education:

Prior to investing in real estate, it is critical to learn as much about the market, real estate valuation, and the transactional process. Empowering yourself with knowledge will provide you the ability to do more at lower costs. Real estate investments can be diversified by segment, such as:

a. Commercial Real Estate.

b. Small multi-family properties.

c. Large multi-family properties.

d. Vacant land.

e. Single family homes.

Study these fields before investment.

Understand your limits:

It’s important to understand your limits when investing on real estate. Setting an investment limit creates the target budget for your project. Important considerations include – investment amount, reserve amount, financing amount, carrying costs, and disposition costs.

Location:

Always choose the best location during real estate acquisition. Location is directly tied to demand.  Areas in higher demand typically have higher numbers of renters and prospective purchasers. 

Be aware of the tax implication:

You should be aware of the tax implication of buying and selling properties. When buying and selling properties that are not your primary residence you may incur tax liability. It’s important to understand tax consequences of all scenarios so that your budget is accurate.

Arrange finances for your down payment:

If you are financing your property, it’s always important to obtain the best possible financing terms possible.  Many factors impact the financing terms: your credit history, current debt, market interest rates, and your down payment.  In some instances, the higher down payment you make the better rate you may confer.

Research the market prior to investment:

Don’t invest your money in the hurry. Take your time to research and understand the market as much as you can. Make a list of advantages and disadvantages of your property, neighborhood, and broader market conditions. Once you understand the market conditions balance the risk with the reward to help make your determination if you should proceed with the project.

Conclusion:

No doubt real estate investing is a good option for income generation. You can start with a small amount of money to help cover your exposure in this field. To maximize your opportunity, Hirsh Mohindra advises to keep researching the market, don’t be hasty with your decision, and always be willing to walk away from a deal.