Archive for January, 2008
« Previous EntriesCorporate and Investment Groups
Thursday, January 31st, 2008As a general rule, taxes are due from the owner of a particular property and not the property itself. This is because profits from the property will be distributed during the year or at the end of it to the person or group that owns it. Ideally, cash will be flowing in from rentals all [...]
Research the Agency and Lawyers
Thursday, January 31st, 2008Always do your homework before signing with any prepaid legal services company. Check out the organization thoroughly and ask for references. In particular, follow through with the following:
Find out if the prepaid organization is asking for a long-term commitment or whether you can you sign up on a more favorable month-to-month basis.
Determine the organization’s policy [...]
Date of Possession
Thursday, January 31st, 2008The date is a negotiable item.
This section notes the specific date the new owner will legally take possession of this property. The date is a negotiable item. Generally the buyer takes possession when the deed transfers and money has been paid to the seller. In some rare cases a buyer can take possession before the [...]
More Uncommon Investment Opportunities
Wednesday, January 30th, 2008Don’t stop looking for investments at companies involved or associated with the real-estate industry. There are lots more options available. Check out the government-backed securities that are issued by a number of U.S. Government agencies. These securities, backed by mortgage pools, may be ideal for your personal or corporate investment needs. Many publicly and privately [...]
Worrying About Property Taxes ?
Wednesday, January 30th, 2008Someone once said that the art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing. This article explains what a lot of that hissing is about and even offers a few suggestions on how to hold onto a few of [...]
Breaking a Contract
Wednesday, January 30th, 2008No one enters a contract with the idea of not going through with it, but there are times when you may be faced with making that decision. It’s a good idea to know the positive and negative consequences of such a decision before that time arrives.
If You Are the Buyer
Consider a quote from Joseph Joubert, [...]
A good Landlord Nurtures good Tenants
Monday, January 28th, 2008Dale Carnegie pegged it right when he said, “When dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion, creaturesbustling with prejudices and motivated by pride and vanity.” The way humans think and act will have a tremendous effect upon your business. Whether that [...]
The Five Basic Types of Tenants
Monday, January 28th, 2008As noted previously in this book, everyone is different, with diverse wants and needs. Still, if you stay in this field long enough, you will come to distinguish all tenants as belonging to one of five categories: watchdogs, complainers, helpless tenants, slow-payers, and those who refuse to pay at all. As you might guess, the [...]
Accountants Aren’t Bookkeepers
Monday, January 28th, 2008What do accountants do? They keep the books, don’t they? Most people think accountants and bookkeepers do the same things, but nothing could be further from the truth. These are two entirely different business functions, usually handled by two entirely different groups of people.
The property manager or landlord usually handles the bookkeeping function. This entails [...]
Combine Properties, Increase Value
Sunday, January 27th, 2008Sometimes the land you want is just too small to use for your desired purpose and something called an assemblage may be needed. An assemblage is simply the combining of two pieces of property into a single unit. Joining the two properties may enhance the value because the new property may be worth more than [...]
Don’t Forget: It’s a Business
Sunday, January 27th, 2008The field of property management is full of small opportunities and many have the capacity to grow or help grow substantial businesses and even empires, which will then produce even more opportunities. In fact, there are so many prospects for growth in real estate that they are far too numerous to mention all of them [...]
Lease Termination
Sunday, January 27th, 2008Sometimes the tenants choose to move out, but other times you come to a conclusion that you need to tell them to do so. In many communities how you serve termination notice on a tenant can be just about as important as the notice itself. A lease termination notice comes in many shapes and forms, [...]
Understand Tax Considerations
Sunday, January 27th, 2008Our government’s tax code changes with as much regularity as do laws and regulations governing everything else. We are all subject to taxes, and the amount of taxes we owe varies from year to year. As you buy and sell properties, your tax situation will vary considerably.
If you are invested in a partnership, your group [...]
Invest in Common Sense
Saturday, January 26th, 2008Realize that genuine hard luck comes along now and then. For example, if a tenant is called to active military duty, and he or she is the sole supporter of the family, under law the landlord must honor the tenancy even if the rent isn’t forthcoming. That’s why it’s so
important for you to meet and [...]
Bad Luck or Bad Attitude?
Saturday, January 26th, 2008Not all hard luck stories reflect bad luck. Sometimes people will attempt to turn their good fortune into a hard luck story just to avoid paying their rent. Here’s an example, a true story. One of Mark’s tenants worked for a very successful company that manufactured cookies and crackers. Although she had originally worked at [...]
Get the Accountant on Your Side
Saturday, January 26th, 2008As noted, your lawyer is an important partner in your success, as you are in his success. The same is true for your accountant. He or she should be willing and able to work with you and your lawyer to keep your business running smoothly. In fact, a good accountant can provide a good referral [...]
It’s Never Fool-Proof
Saturday, January 26th, 2008The courts are filled with cases involving a lot of those written contracts. Clearly, just signing a contract won’t guarantee you a business free of legal hassles. Even the best-written contract will not always help you avoid problems regarding certain
representations. What does “timely delivery” mean? It could mean “Thursday morning at 8:00 A.M.” to the [...]
Dining Establishments
Tuesday, January 22nd, 2008The profit margin for a restaurant owner is always slim. The public is famously fickle, and every day is a challenge. Yet for the property owner who rents space, restaurant owners can be some of your best tenants.
Yes, there is an increased risk of a fire. After all, the tools of the restaurant trade include [...]
Get Permission for Credit Checks
Tuesday, January 22nd, 2008A credit rating or credit report is an objective evaluation of an individual’s history of debt repayment; credit reports are generally available from a local retail credit association. (Business histories are available from such sources as Dun & Bradstreet, Moody’s, Standard & Poor’s, and Fitch’s.) Credit reports are your only way to check whether a [...]
Commercial Leases
Tuesday, January 22nd, 2008As a manager of commercial property, you will most likely have to pick one of three different types of leases for each property you rent out If you have several properties, you will probably end up working with all three: gross leases, net leases, and triple net leases.
The Gross Lease
A gross lease requires the landlord [...]
