Commercial Real estate Las Vegas, Office space, retail space, lease, buy, land
Commercial Lease and
Tenant Representation
Investment Real
Estate
Determining the Value
of Investment Property
Land Acquisition and
Sales
Commercial Lease and Tenant Representation
Las Vegas is one of the fastest growing
cities in the United States. With an increasing number of people
moving into Las Vegas and the fast rate of expansion of the valley, the
demand in local businesses will increase. If you are thinking of
starting your own business or moving your business to Las Vegas, I can
find you the right property for you.
All landlords have different demands for their leases. Usually the leasing broker and property manager have a contract with the landlord and has fiduciary duties to represent and get the best terms for the landlord. This is where tenant representation is important. I will be working for you and have fiduciary duties to represent and negotiate the best terms possible for you!
Basically there are 3 types of leases:
1. Gross Lease- Flat rate rent through out the term of the lease. Usually used in office leases.
2. Percentage Lease- Flat rate rent until a certain sale point, then the landlord will take percentage of your sale. Usually used in retail leases.
3. Net Lease- The tenant will pay part or all of the expenses that the landlord pays in Gross and Percentage Leases. Usually used in industrial leases.
Requirements to qualify to lease a space depends from one landlord to another. Some are easier than others, but here are the basics of what that they will ask for:
Do you want to see what office or retail space is available in Las Vegas? Let us know your requirements (sq. footage, price per sq. feet, area, etc.) and we will email you list of availabe spaces for lease. Please include a contact number so we can better server you needs.
· Business Plan
· Business History
· Corporate Structure/Subsidiary
· Reference/Background Check- Financial Statements, Credit Check, etc.
Do you want to buy? Let us know, we can email you what is availabe for sale. Please include your contact information.
We will send you list directly from Property Line. If you are serious we can look and find you right place which is not listed!
Whenever an individual places surplus
funds in the bank or stocks, or purchases real estate for speculation,
this individual has made an investment.
Investment Real Estate can be land, shopping centers, office buildings, warehouses, multi-family apartments, and rental houses except an investors personal resident or second home.
Why do people invest*?
Here are few good reasons:
· To generate additional income
· To acquire wealth for their retirement
· To accumulate for their children's education
· To acquire prestige in the community
· To create an estate for their heirs
· To obtain financial independence
There are 4 major advantages
of having investment real estate*:
1. Income from Cash Flow
2. Equity from Loan Pay Down
3. Equity from Appreciation
4. Tax Savings
Here are few terminology's you
must know as investor:
· Gross Scheduled Income (GSI)- This is the expected total rent as if the property is 100% occupied for the year.
· Effective Rental Income- It represents the actual money collected in rents for the year. It is obtained by subtracting vacancy and uncollected rents from Gross Scheduled Income.
· Gross Operating Income (GOI)- Total actual income received from the property operations. It is obtained by adding other incomes (laundry, application fees, storage fees, vending machine income, etc.) to Effective Rental Income.
· Annual Operating Expenses- The costs required in running the property. (Property Tax, Insurance, Utilities, Maintenance, Services, etc)
· Net Operating Income (NOI)- This is the actual money you will get from the property. This is obtained by subtracting Annual Operating Expenses from Gross Operating Income.
Determining the Value of Investment Property
There are two commonly used
methods in determining the value of investment property.
Gross Rent Multiplier (GRM) Method
Gross Scheduled Income x Gross Rent Multiplier
= Investment value of property
Example: Suppose an investors GRM requirement
is 8. (This means the investor will pay no more than 8 times the
gross scheduled rent to purchase an investment property.) The property
in consideration has an estimated Gross Scheduled Income of $24,000.
The investment value of the property is:
$24,000 x 8 = $192,000
Capitalization Rate (Cap Rate) Method
Investors use this method to measure investment
performance.
Net Operating Income (NOI) / Purchase Price = Cap Rate
Example: Investment property selling for $200,000 with an estimated first year NOI of $20,000 would have a capitalization rate of 10%.
$20,000 / $200,000 = 10%
1031 Tax Deferred Exchange
This is investors’ great opportunity to build wealth and save taxes. An investor can dispose their investment property, use all of the equity to acquire replacement investment property, and defer the capital gain tax.
Looking for investment porperty in Las Vegas? Let us know your requirements (sq. footage, price per sq. feet, area, type, etc.) and we will email you what is available for sale. Please include your contact information.
We will send you list directly from Property Line. If you are serious we can look and find you right place which is not listed!
Land Acquisition and SalesThe land supply is limited and the demand is incredibly high here in Las Vegas. With all the people moving into Las Vegas, some developers are having people lined up waiting to buy their product! They need to build more. The price of land is consistently going up, so a lot of investors are putting their money into land with expectation to get good returns. (Most of them are getting GREAT returns!)
The Main Categories of Land:
· Dense Residential
· Custom Residential
· Commercial/industrial
The Two Types of Land:
1. Developer's land- (A) Land that Residential and Commercial Developers buy to build their project to make money and make our community more convenient and comfortable to live. (B) Land that Custom Home Owner/Builder buy to build their unique custom dream house.2. Speculation Land- Land investors buy with speculation that the price will appreciate so they will make money in the future.
Depending on the location, category,
and type of land you want, the price can vary dramatically. Just
tell me what you want and I will find it for you.
My Land Acquisition and Sales Service:
· With my aggressive research
methods, I can find properties that others can't
· I have cultivated a network with
owners, developers, and investors
· I have many updated sources to
find properties that are available either listed on the market or not listed
· Assemblages
· LLC
Formation
· Subdividing and Zoning/re-zoning
· 1031 Tax Deferred Exchange
John Vanhara